Lecture One Flashcards
What is a merchandiser?
Works with the buyer on producing stock mix according to trends and budgets. Deals with stock and deliveries in order to allocate to stores
Different approaches to product management?
Luxury- Chanel - fashion leader unique ranges
National chains - top shop - accessible cash fashion
Boutiques - independent style
Online - asos - 27/7 shopping
Supermarkets - f&f in tesco cheap
Niche - timberlands - strong target market
Different pressures wishing management of fashion?
Brand management - limits product range to fit brand personality
Consumerism - buyers fed on products
Technology- the supply chain is enhanced
Globalism - free trade and supply opportunities
What do the two things businesses need to think about when supplying a product?
Be relevant to trends
Create wealth of business and stakeholders
What is the definition of fashion?
A style or mode especially of dress usage in respect of behaviour and etiquette
What do fashion businesses need/do to know to be successful
Relevant to catwalks
Correct trend interpretation
Target a product range
Make sure customer understands inspirations and product
What does business mean to you?
A profession or trade. A business is a good or service being sold in order to satisfy customers needs and wants in order to generate profitability
How does business put success in their criteria?
Business trends
Risks
Target customers
What do fashion business’s focus on?
Awareness and interpretation- trends, culture and market
Awareness and interpretation of financial influence - budget balance sheet etc
What two fashion processes can produce a successful product
Product management process, financial process
What is a product
A tangible item
The role of the product?
The consumer will have an issue the product should solve
In fashion the problem solver is about self expression
What do consumers look for in a product?
Trust to fit attitude to fashion
Value for money
Ease of purchase
Fitting to purpose
What is sales turnover
Money generated by the product (influenced by b&m team)
What is cost of goods sold?
Generated by cost of making the product
B&m team will pay suppliers cash markdowns
Gross trading profit
The final amount after all expenses are deduced
Gross profit covers overheads and dividends
A fashion business would be expected to deliver?
Manufacturer to specification - good agreed cost
Delivery on time - in line with cash flow
Maximum sales achieved - unit and value
Maximum profitability- limited markdown
Roles within product management
Product supply - range and design creation
Indirect product supply - witching finance
Facilitate- marketing
What is the value chain?
A key concept that identifies roles and activities that supplies the product to the market and utilising them delivers margin benefit to the business
Inbound logistics?
Storing and distributing raw materials for production use
Operation?
Job batch and flow manufacturing
Outbound logistics
The combination of supply and distribution
Marketing
Letting customers know
Service
After sales service to the consumer
Infrastructure?
Does the whole chain fit to purpose and any improvements needed
HR?
Make sure staff are treated well and well trained
Technology development
Making sure all technology is up to date and working
Suppliers logistics
The process of planing delivery and shipping and share house allocation
Marketing and sales?
To enhance the retail and purchase of fashion
Value chain advantages
Puts product centre of business
Identifies the different activities that together supply the product
Looks at indirect and direct on product supply
Supports the roles that have products supply at their hearts
Value chain limitations
It’s a old model
Only created with manufacturing in mind
It’s generic in philosophy
Can the value chain principals be applied to a fashion business of so how?
Yes by matching generic roles to the value chain. If possible identify primary and secondary activities of a fashion business
What is centralised buying?
Making a common purchase from a purchasing organisation. Aiding in finding the best deals with local venders in near areas
Advantages of centralised buying
Less expensive Better quality Better for markdowns Better control on styles and trends Safety in numbers
The disadvantages of centralised buying?
Difficulty with local shipment
Requires a lot of cooperation
Hard to maintain enthusiastic selling
What is a buyer
A buyer is someone who decides what styles to be bought and negotiates production with suppliers
