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 Today o 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 product o 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 Sourcing Costing Initial specification adopted specification production specification special size specification Vendor collaboration vendor allocation multisourcing estimate costing and quality Vertical integration manufacturer owned and operated factories Business Functions Merchandising Production Finance Operations Marketing o Planning development and presentation of the product line from concept to delivery o Expenditures for materials and equipment salaries of employees and the overall budget o The upkeep of equipment used by employees o Advertising and promotional objectives sales goals and marketing programs and tools Sourcing o Supply chain management Consumer Markets Demographics Psychographics o Life Stage The typical junctures of adult life that have an impact on decision making such as marriage divorce having children and retirement o Attitudes A person s opinions about issues products services and institutions as influenced by experience peer group thinking demographics and personality o Class Consciousness o Motivation Reflects an individual s desire for social status An internal or external stimulus that causes an individual to act Generational data o 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 data UPCs products o Relies on the use of software scanners and universal product codes o Captures transactional data regarding style size and color of o 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 needs o Electronic data interchange EDI the computer to computer exchange of information between business partners o Data integrity The accurate entry of receiving pricing transfer sales and return data o 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 Fashion Cycles and Theories of Fashion Innovation Styles that never go out of fashion Classics o Trickle down theory o Trickle up theory New fashion ideas start on designer runways Street fashions that are later reinterpreted by designers and mass marketers Shopping the Market o Shopping the competition o As well as a cross section of their own stores helps to understand HOW they are performing Determining Where to Shop o Most full service trend resources offer shopping reports that detail what is selling and key shopping venues in fashion cities all over the world o 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 importance o 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 Group o International Colour Authority ICA o Color Association of the United States CAUS Color Forecasters o Color forecasting specialists include D3 Doneger Design Directions Huepoint The Color Box Fabric Shows o Confirm developing trends o Identify new resources o Order sample fabric yardage Forecast Formats o 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 divisions o Color products in different categories or divisions in the same store Color Management Color Harmonies MUST relate Seasonal Color Palettes o 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 Considerations o Coordinates Groups of items that are designed to stimulate the purchase of multiple pieces o Color harmonies o How colors are used in patterns prints or ensembles o Geographic Location Consider both weather patterns and regional preferences When marketing globally color adaptation may be required for cultures where color symbolism is deeply embedded o End Use Each category of