Product Development The strategic creative technical production and distribution planning of goods Role of Product Developers Design apparel styles Write specifications for construction of the apparel styles Coordinate style selections to develop a product line 1 Creative Planning Tracking and interpreting trends for the company s target market and developing style to be producedspring and fall trends drive marketing and in store visuals Spring Fall TRENDS drive both marketing in store visuals 2 Merchandise 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 o What product o How much of it o What colors o What sizes o Delivery within what seasonal calendar A merchandise calendar controls the events required to get the planned apparel products to the customer at the right time Traditional 54 weeks Today s basics core merchandise 35 weeks Fast fashion 18 weeks 3 Production 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 o Understand the cost of materials trims and value added finishes and processes o Determine quantity and quality criteria o Specify assembly processes necessary to produce an acceptable final product 4 Technical Planning Further defines styles by developing o Fit standards o Materials o Construction specifications Technical designers evaluate a prototype garment before it is approved for production 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 Translating trend info into actual sketches of style 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 line Traditional Linear Supply Chain 1 Fiber Production 2 Yarn Manufacturing 3 Textile Production 4 Apparel Manufacturing 5 Retailers 6 Final Consumer Today s Supply Chain More complex flexible than the traditional linear model Builds on CORE COMPETENCIES the things they do best Digital technologies coordinate this into a single effort Retail Product development supply chain Seeks to bypass the profit center of wholesale brand apparel manufacturers and procure exclusive product at a more competitive price Supply Chain Management SCM is a competitive customer enriching supply system that iintegrates the business functions of one firm with the competencies and resources of supply chain partners into a competitive supply system focused on solutions for synchronizing the flow of products services and information Core Competencies the things they do best people will focus on the aspect of the supply chain they do best and it is more efficient Sourcing determining the most cost efficient vendor of services materials production or finished goods or a combo of these at a specified quantity and service level for delivery within an identified time frame Collaborative Supply Chain Interactive networks of independent manufacturing specialists that join forces operationally to integrate complementary recourses o respond to a market opportunity through the creation of a particular product PLM software Developed as add on to SCM to focus on product information and data captures manages visualizes and disseminates product related info from initial concept to a product s retirement throughout a company and its supply chain o Seasonal concept o Line development o Definition Business marketing plans Concepts mood color palette materials trim silhouettes Merchandising plans line boards material usage market calendars product tracking Initial Specification adopted specification production specification and production specification special size specification o Sourcing Costing Vendor collaboration vendor allocation multi sourcing estimate costing quality Vertical Integration Seeks to consolidate a supply chain by acquiring companies at other stages in the supply chain controls processes previously handled by specialized firms o Signature stores Manufacturer owned stores give the brand a direct line to their ultimate customer o Outlet stores Provide a means of controlling excess goods Business Functions Merchandising Planning development and presentation of the product line Production responsibility for making or manufacturing apparel products from concept to delivery o Responsible for Making the product Approval of technical design Developing specifications Costing the product Finance Expenditures for materials and equipment salaries of employees and the overall budget Operations the upkeep of equipment used by employees Marketing Advertising and promotional objectives sales goals and marketing programs and tools Sourcing Supply chain management Consumer Markets The ability to forge an emotional connection with consumers will increasingly drive the profitability of product development Lifestyle segments focus on the combination of the three Demographics o Age o Gender o Marital Status o Family Size o Income o Spending Habits o Occupation o Education o Religion o Ethnicity o Region 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 Reflects an individual s desire for social status o Motivation An internal or external stimulus that causes an individual act Generational Data Study of values motivations and life experiences that drive generational cohorts influencing how they spend and save their moneymembers of a generation linked through shared life experience in their formative years are called cohorts Members of a generation are linked through shared life experiences in their formative years Trend Forecasting A trend is the direction in which something tends to move in a way that affects culture society or business