Topic 2 Flashcards
What is fashion buying?
Please note that fashion buying and merchandising are probably the most important management functions of any fashion retail business. If the business does not buy the goods that the customers demand, or if it fails to get the right products to the right place at the right time, then the business will suffer. Fashion buying is not simply about the buyer buy- ing what he/she personally likes, or necessarily about buying the latest trends - it is about supplying the business’s customers with what they want. The customer is always ‘king’ in fashion buying, not the buyer.
Fashion buyers typically work for department stores, retail chains, independently owned stores or wholesale distributors. A buyer for a boutique is very different from a buyer for a department store. A buyer for a boutique may rely on fashion trends and vendor suggestions when buying, while a buyer for a department store must analyse past sales for the store, profit margins and cost-of-goods-sold information before placing an order. The job of a buyer may seem easy. What is not to like about buying apparel with someone else’s money?
However, fashion buying goes far beyond the clothes themselves. The objective is to ensure that the products bought for sale are appropriate for the target market and can sell in large quantities to achieve a profit. If you are not willing to work hard, you just won’t make it in this field. You must be highly analytical, have a strong working knowledge of computers, and be able to work under pressure. You should also have strong negotiation skills. Buying is the most intense, tiring and rewarding fashion job. In general, smaller companies assign buyers a wider range of responsibilities as in department stores buying jobs are known to be less creative and more analytical.
The role and responsibilities of a fashion buyer (chapter 1)
A fashion buyer is a manager who is responsible for the selection, sales and profit of a product range within a category, for example jerseys. Buyers are responsible not only for meeting their individual sales targets, but also for the sales targets of the entire company. This dual aim means buyers often face intense pressure. A company holds buyers account- able for its plans and sales targets.
Progression in a buyer’s role:
The buying assistant
You start as a buying assistant, doing principal tasks such as organising and controlling the distribution of samples, filing fabric swatches (a swatch is a sample of cloth) and per- forming other administrative tasks.
The assistant buyer
All buyers begin as assistants. The role of the assistant buyer is to help the buyer make decisions and progress himself/herself to become a buyer. Assistant buyers assist the buyer in the purchase and tracking of merchandise. Many retailers offer executive training pro- grammes, which will help you work your way up to a buying position over several years. An inexperienced trainee can become a buyer in three to five years. However, the best place to start is with a sales associate job at a store. Many companies like to see retail experience on an individual’s CV. That way they know you have a basic understanding of the selling floor. Many buyers claim “previous store experience is an asset”, as it helps them understand the consumer.
In buying, the job progression goes from assistant buyer to associate buyer and finally to buyer. Buyers often come from computer, math, economics or business backgrounds. They differ from the traditional fashion professionals in that they often prefer analytical skills over creativity. Perhaps a buyer’s most vital assets are math skills, negotiation abilities, a forthright personality, and management and organisational skills. Buyers tend to have a working knowledge of markups and markdowns, gross margins, inventory control and turnover relationships, merchandise plans and vendor relations, along with other general accounting skills. One buyer explains: “The buyer is, in many senses, an entrepreneur… Both my assistant and I must be able to communicate effectively. We must be able to speak up and to think on our feet.”
The buyer
The buyer purchases the appropriate merchandise for the specific store’s customers. Mar- keting is one function of a buyer’s job; analysis and store visitations are others. Buyers must pay attention to how their company’s merchandise is being displayed, what colours and sizes are available, and where and how other competitors’ merchandise is displayed.
Buyers frequently collaborate with other groups within merchandising. Weekly meetings are the norm, at which they discuss upcoming sales, new strategies or targeted goals.
It is important that we explain the responsibilities of a buyer and examine the activities of those working in the buying environment.
Main responsibilities of a buyer (Jackson & Shaw 2001:14-16)
The main responsibilities of a buyer are as follows:
1 to develop and buy a range of merchandise that achieves the profit margins and is consistent with the retailer’s buying strategy
2 to source and develop products from an effective supplier base
3 to take responsibility for the negotiation of product prices including delivery and
payment terms
4 to research and evaluate all relevant product and market trends
5 to communicate effectively with suppliers, product teams and senior management
within the company
6 to work within the constraints of merchandise planning
7 to effectively manage and develop the buying team
All fashion buyers are responsible for selecting a range of products aimed at a specific market for a specific company. Some of the tasks undertaken by fashion buyers, in order to select a range successfully, include the following:
¡ identifying relevant fashion trends
¡ liaising with suppliers
¡ presenting ranges to colleagues and management
¡ calculating profit margins
¡ monitoring and analysing the sales performance
¡ reviewing and analysing competitors’ ranges
The role of a fashion buyer includes the following:
¡ liaising with suppliers
¡ negotiating (as regards price, time of payment, stock keeping, cooperative activities, volume, delivery times, physical distribution, product quality, specifications and manu- facturer assortment)
¡ liaising with internal departments (merchandise, design, quality control, garment tech- nology, fabrics and others)
Qualities of a successful fashion buyer
The following are qualities of a successful fashion buyer:
¡ versatility and flexibility ¡ stamina and enthusiasm ¡ conscientiousness ¡ professionalism ¡ decisiveness ¡ strong mathematical literacy ¡ creativity ¡ imagination ¡ strong motivation ¡ ability to predict fashion trends ¡ ability to develop skills in people ¡ time management skills
Applying for a fashion buying position
There are some important points to consider in applying for a fashion buying position. Design and product knowledge are important for a buyer but IT and numeracy skills are also essential core skills. A part of the interview process will normally include a numeracy test, with or without a calculator.
Applying for a fashion buying position:
Such a test aims to identify the applicant’s ability to solve simple arithmetic problems as quickly and accurately as possible. It is therefore essential to be familiar with the following:
¡ ratios
¡ percentages
¡ spotting numerical trends
¡ long multiplication and division
¡ conversions of fractions into percentages
A fashion buyer is therefore expected to have a knowledge of current trends, and some basic commercial skills.
Fashion marketing for fashion buyers (chapter 4)
It is vital that the fashion retailer know what his/her customers want and are expecting. Problems in defining and then keeping up with changing customer needs and expecta- tions are arguably the most important factors in successful selling. Marketing is the proc- ess of identifying and satisfying customer needs through the profitable supply of product and service benefits. It is concerned with managing the marketing mix to ensure that the benefits are delivered effectively.
The marketing mix (Jackson & Shaw 2001:61-63)
Study Jackson and Shaw (2001:61- 63) on the marketing mix.
After studying these pages, you should have a clear understanding of how fashion retailers are able to integrate and manage all the functions in business and the benefits thereof.
The marketing mix is a series of elements which have traditionally been referred to as the 4 Ps but which subsequently have grown to the 7 Ps with the acknowledgement of the importance of service to the overall package of benefits bought by customers.
The seven Ps are as follows: Product
The complete package of benefits offered to the customer.
The seven Ps are as follows: Place
The retail selling price consumers have to pay.
The seven Ps are as follows: Promotion
The wide range of activities involved from product labels, ticketing and packaging to ad-
vertising and PR and visual merchandising.
The seven Ps are as follows: Place of distribution
The channels through which the products are sold.
