1GLOBALIZATION AND COMPLEXITY IN THE FASHION VALUE CHAIN Flashcards
What is a product in the context of fashion as a product category?
A product is a bundle of attributes (features, functions, benefits, and uses) capable of exchange or use, usually a mix of tangible and intangible forms, including services.
What is an assortment in the context of fashion merchandising?
Assortment is the range of choice offered to the consumer within a particular classification of merchandise, which includes multiple items with different UPC codes grouped together.
What are UPC and EAN in fashion retail?
UPC (Universal Product Code) and EAN (European Article Number) are standardized global identifiers (barcodes) for products used for trading, shipping, ordering, and retailing purposes. They are model numbers assigned by manufacturers.
What is an SKU, and what purpose does it serve in inventory management?
An SKU (Store Keeping Unit) is a vendor or retailer’s internal number for inventory or stock item management in an online catalog or store. SKUs help manage and locate individual items, varying by product variants like size, color, and price.
What is RFID and which retail store uses it extensively in its supply chain?
RFID (Radio Frequency Identification) is a technology used for tracking items in supply chains. ZARA uses RFID throughout all levels of its supply chain.
How is the breadth of merchandise defined and give an example?
Breadth of merchandise refers to the number of different merchandise categories offered, such as trousers, swimsuits, and skirts. It can be Wide or Narrow
How is the depth of merchandise defined and give an example?
Depth of merchandise refers to the number of items (SKUs) in a particular category, such as 20 models of skirts or 30 models of trousers. It can be Deep or Shallow
Describe product-centric classifications in fashion merchandising.
Product-centric classifications organize assortments by product sectors, departments, or families, such as fast-moving consumer goods, apparel and accessories (softlines), and hardlines and leisure goods.
What are customer-centric classifications in fashion merchandising?
Customer-centric classifications organize products into categories based on consumer needs and perceptions, such as staple merchandise, assortment merchandise, fashion merchandise, and seasonal merchandise.
Define staple (basic) merchandise and provide an example.
Staple merchandise consists of regular products with continuous demand over time, limited new introductions, easy to forecast, and continuous replenishment. Examples include milk, bread, and basic T-shirts.
Define assortment merchandise and provide an example.
Assortment merchandise includes categories where retailers must carry a variety of models and colors to provide proper selection, such as sneakers or exercise pants.
Define fashion merchandise and provide an example.
Fashion merchandise includes products with cyclical sales due to changing tastes and lifestyles, often having short demand periods and frequent new product introductions. Examples include Nike’s athletic shoes and trendy women’s apparel.
Define seasonal merchandise and provide an example.
Seasonal merchandise consists of products that sell well over nonconsecutive time periods, such as swimsuits.
What constitutes an industry in the context of fashion?
An industry is a collective of business enterprises in a particular field, region, or economy that can be viewed collectively, often named after its principal product, like the textile industry or apparel industry.
What is a cluster in the fashion industry?
A cluster is a geographic concentration of industries related by knowledge, skills, inputs, demand, or other linkages, often operating within the same value chain, such as the Cluster Textil Moda de Galicia (COINTEGA).
