CTE 3431 Final ExamTraditional Linear Supply Chain1. Fiber Production2. Yarn Manufacturing3. Textile Production4. Apparel Manufacturing5. Retailers6. Final ConsumerSupply Chain Today- More complex & flexible than the traditional linear model- Builds on CORE COMPETENCIESRetail Product Development Supply Chain- Seeks to bypass the profit center of wholesale brand apparel manufacturers - And procure exclusive product at a more competitive price PLM Software• Seasonal concept: Business & marketing plans; Concepts/mood, color palette & materials/trim/silhouettes• Line development: Merchandising plans, line boards, material usage, market calendars & product tracking• Definition: Initial Specification, adopted specification, production specification, production specification, special size specification• Sourcing/Costing: Vendor collaboration, vendor allocation, multisourcing, estimate costing & qualityVertical Integration- Signature stores: Manufacturer-owned stores give the brand a direct line to their ULTIMATE customer- Outlet stores: Provide a means of controlling excess goods Diversification- Occurs when a firm expands its product mix to capitalize on brand recognition and increase sales, enhancing efficiencies for greater profit- May also be achieved through licensing or the acquisition of related or unrelated companiesGlobalization- Major growth opportunity: Retailers are expanding overseas- Requires a strong understanding of a more diverse consumerRole of Product Development• Consumer driven• Goal is to eliminate non-value-added steps such as warehousing• Define the product through detailed standards and specs• Requires partners who share the responsibility and risk for producing a quality product• Lends itself to MULTIPLE CHANNEL DISTRIBUTION * Stores * Internet * CatalogPrivate-Label Brands- Private brand products are developed and merchandised for exclusive distribution by a particular retailer Role of Product Developers1. To design the apparel styles2. To put style selections together to form a product line3. To write specifications for construction of the apparel stylesBusiness PlanningBasic Business Functions- Merchandising: Planning, development, and presentation of the product linefrom concept to delivery - Marketing: Advertising and promotional objectives, sales goals, and marketing programs and tools- Operations: the upkeep of equipment used by employees - Finance: Expenditures for materials and equipment, salaries of employees, and the overall budget - Sourcing: Supply chain managementStrategic Planning- Developed by the firm’s executive management team- Should be based on the firm’s mission, vision and values- Mission statement: Articulates why they are in business, the customer they serve, and what makes them special - Vision statement: Outlines goals for the future and how it wants the world to see its brand. It may need to be reviewed when goals have been reached ormarket conditions change. Creative Planning- Spring & Fall trends drive both marketing & in store visuals- Trend and design professionals track trends and interpret the for the company’s target marketMerchandise Planning- Merchandise budget: Identifies the resources needed to meet profit, sales, and margin objectives for a specific season- Line or range plan: Sets sales and margin goals for lines- Assortment plan: Breaks down the line plan into components that address customer preferences: What product, how much of it, what colours, what sizes, ddelivery within what seasonal calendarProduction Planning- Links merchandising, creative design, and technical design decisions to the actual construction of products- Today, actual garment production often takes place in distant offshore locations. Therefore, production planners must:- Understand the cost of materials, trims, and value-added finishes and processes- Determine quantity and quality criteria- Specify assembly processes necessary to produce an acceptable final productTechnical Planning- Further defines styles by developing:o Fit standardso Materialso Construction specifications - Technical designers evaluate a prototype garment before it is approved for productionProduct Development Process- Line concept: Results from trend research and includes the mood, theme,and key elements that contribute to the identity of the line- Line development : Begins as the design team translates the line concepts into groups of garments to be delivered throughout the selling season- Line presentation: Consists of showing the proposed line of products to the technical design staff and sourcing managers for selection of styles to include in the season’s product lineProduct Categories- An apparel product category is typically defined by the use for which the product is intended- Recent trends indicate that many manufacturers are again producing adult styles scaled for children Price Categories- Customers have higher expectations for more expensive productsSizing Categories- Size range is one of the first decisions made- Includes a sense of the overall shape, body dimensions, and garment ease preferences of a firm’s target customersContemporary designer - Brands include Marc by Marc Jacobs, Catherine Malandrino, Alexander Wang, and M Missoni- Offer clothes with a younger vibe and somewhat lower price point than found at designer RTWBridge- A term coined to refer to a price point between designer and bettermarkets- Brands include Elie Tahari, Lafayette 148, and Eileen Fisher Season- The goods must be designed and manufactured far ahead of the actual season so they are available when the consumer is ready to purchase- Designer RTW firms show their collections during fashion weeks in New York, Paris, Milan, and London- Fall/winter- Shown in February/March for delivery during late summer into fall; Clothing is more costly and difficult to produce- Spring/summer- Shown in September/October for delivery in February or MarchBranding and Licensing- A brand is the cumulative image of a business, product, or service communicated to consumers through a distinctive name, sign, symbol, or slogan - Branding is a competitive strategy used to distinguish the brand through the development of product, advertising, and promotions- Licensing agreements grant a business partner exclusive rights to produce or sell products under a proprietary brand name \Brand Equity- The