CTE3431 Final Exam Review Role of Product Development  Design apparel styles  Write specifications for construction of the apparel style  Coordinate style selections to develop a product line  Creative planning – tracking and interpreting trends for the company’s target market and developing styles to be produced  Merchandise planning – a plan that identifies the resources needed to meet company profit, sales, and margin objectives for a specific season by company division thereby linking strategic planning, production planning, and sales and marketing  Production planning – function that links merchandise decisions with design and technical decisions in order to plan the activities related to making the product • Line concept - the mood, theme, and key elements that contribute to the identity of the line  Line development - – translating trend information into actual sketches of styles • Line presentation showing the proposed line of products to sourcing managers and technical design staff for selection of styles to include in the season’s product line Apparel Supply Chain  Traditional Linear Supply Chain Vs. Todayo Traditional Linear Fiber production  Yarn manufacturing Textile production  Apparel manufacturing  Retailers Final consumer o Retail product development supply chain  Seeks to bypass the profit center of wholesale brand apparel manufacturers  And procure exclusive product at a more competitive rate o Today’s structure More complex and flexible than the linear model  Builds on core competencies o Core competencies – the business functions that a company is best equip to execute o Sourcing - the process of procuring materials and production o Collaborative supply chain – interactive networks of independent manufacturing specialists that join forces operationally to market an opportunity through the creation of a particular producto PLM software Seasonal concept• Business and marketing plans• Concepts and moods, color pallet & materials/trim/silhouettes  Line development• Merchandising plans, line boards, material usage, market calendars and product tracking  Definition • Initial specification, adopted specification, production specification, special size specification  Sourcing/Costing • Vendor collaboration, vendor allocation, multisourcing, estimate costing and quality • Vertical integration - manufacturer owned and operated factoriesBusiness Functions  Merchandisingo Planning, development, and presentation of the product line from concept to delivery  Production Financeo Expenditures for materials and equipment, salaries of employees, and the overall budget  Operationso The upkeep of equipment used by employees Marketingo Advertising and promotional objectives, sales goals, and marketing programs and tools  Sourcingo Supply chain management Consumer Markets Demographics Psychographicso •Life Stage  •The typical junctures of adult life that have an impact on decision making, such as marriage, divorce, having children, and retiremento •Attitudes A person’s opinions about issues, products, services, and institutions, as influenced by experience, peer group thinking, demographics, and personality o •Class Consciousness •Reflects an individual’s desire for social statuso •Motivation •An internal or external stimulus that causes an individual to act Generational datao Generation C describes a generation born into a very complex global community that are very connected to one another through creative communication  Point of sale datao Relies on the use of software, scanners, and universal product codes (UPCs) o Captures transactional data regarding style, size, and color of productso Tracks how purchases are paid for, average price at which a product sells, key selling seasons, and returns o The information can be shared to facilitate better decision making and anticipate future needso Electronic data interchange (EDI): the computer-to-computer exchange of information between business partnerso Data integrity: The accurate entry of receiving, pricing, transfer, sales, and return datao POS data facilitates analysis down to the individual stock-keeping unit (SKU) by store and time period  Lifestyle segments focus on the combination Trend Forecasting• A trend is the direction in which something tends to move in a way that affects culture, society, or business • Classics: Styles that never go out of fashion • Fashion Cycles and Theories of Fashion Innovation o Trickle-down theory:  New fashion ideas start on designer runwayso Trickle-up theory:  Street fashions that are later reinterpreted by designers and mass marketers • Shopping the Marketo Shopping the competitiono As well as a cross-section of their own stores, helps to understand HOW they are performing• Determining Where to Shopo Most full-service trend resources offer shopping reports that detail what is selling and key shopping venues in fashion cities all over the worldo Developers shop venues that will yield the most info for their market, product category, price point, and fashion calendar• Shopping internationally o As more wholesale and retail product developers aspire to grow globally, international trend research takes on added importanceo Concept stores, such as Colette or L’Eclaireur in Paris, are popular with trend researchers, designers, and buyers• Color associations o The largest color organizations are: o Color Marketing Groupo International Colour Authority (ICA)o Color Association of the United States (CAUS)• Color Forecasterso Color forecasting specialists include:  D3 Doneger  Design Directions Huepoint The Color Box • Fabric Showso Confirm developing trends o Identify new resources o Order sample fabric yardage• Forecast Formatso Trend teams for private brands must prepare more formal presentations because their forecasts are applied to multiple categories across the men’s, women’s, and children’s divisionsColor Management • Color Harmonieso Color products in different categories or divisions in the same store MUST relate • Seasonal Color Paletteso The color range will be influenced by:  How the line is merchandised The number of deliveries The fashion and price-point level of the line The characteristics of the target market• Merchandising