3431 Final Exam Review Product development is the strategic creative technical production and distribution planning of goods having a perceived value for a well defined consumer group these goods are designed to reach the marketplace when consumers are ready to buy Linear apparel supply chain fiber production yarn manufacturing textile production apparel manufacturing retailers final consumer Today s apparel supply chain is a complex network of suppliers and or vendors involved directly or indirectly in fulfilling customer demand for apparel The supply chain includes all of the companies directly involved in designing supply material components manufacturing and distributing apparel as well as auxiliary businesses such as design bureaus software providers sourcing agents testing labs consultants advertisement agencies etc that play indirect roles Core competencies the things they do best to maximize efficiency and maintain a competitive edge Sourcing determining the most cost efficient vendor of services materials production of finishes goods quality and service for delivery within an identified time frame Collaborative product supply chain for each product developed a unique product supply chain is assembled from a network of suppliers or vendors that can meet the requirements for the order Interactive networks of independent manufacturing specialist that join forces operationally to integrate complementary resources to respond to a market opportunity through the creation of a particular good Vertical integration strategy that seeks to consolidate a supply chain by acquiring companies at other stages in the supply chain growth strategy Basic Business Function Merchandising consists of the planning development and presentation of the product line from concept to delivery The product line refers to the assortment of product categories that a business offers for sale The merchandising area includes determining the content and diversity of the line fabrications styling pricing and timing of the product development cycle Production the responsibility for making the product Activities that are part of the production function are approval of the technical design developing specs and determining the cost of the product Finance all accounting activities of the firm including materials and equipment used to make the product salaries and the overall budget Operations oversees upkeep of equipment such as computers and buildings warehousing and the distribution activities for the materials and shipping of final Marketing advertising and promotional objectives recommended sales goals Sales team is part of marking function they gather data about target customer product Sourcing the activities within the basic business functions 95 of finished products are imported from other nations Creative planning tracks trends and interprets them from the company s target market Merchandise planning consists of line merchandise planning line development and presentation of product lines Focus on selection and development of products that are suitable for identified target markets with regard to pricing assorting and styling and timing Merchandise plan or budget resources needed to meet profit sales and margin objective for a specific season Line or range plan sets sales and margin goals for groups of lines Assortment plan breaks down line plan into components that address customer preferences what product how much of it what color sizes what delivery with seasonal calendar Production planning links merchandising creative design and technical design decisions to the actual construction of the products Production planners must understand the cost of materials trims value added finishes and processes determine quantity and quality criteria and specify assembly process Line concept results from trend research 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 showing the proposed line of products to the technical design staff and sourcing managers for selection of styles to include in seasons product line Consumer Markets Demographics statistics about a given population with respect to age gender marital status family size income spending habits occupations religion ethnicity and education Psychographics study of social and psychological factors that influence consumer lifestyles age class attitudes motivation activities life stage Generational cohort groups study of values motivations and life experiences that drive these people and influence how they spend and save their money Millennial s Gen Y confident optimistic globally oriented tech savvy Generation X seem as a lost opportunity uncertain about future individuality and smaller group Baby boomers work oriented health and wellness expect advertisements to be informative lifestyle oriented and feature models their age Matures retirement conservative spenders and brand loyalty Trend Forecasting Fashion is a reflection of the prevailing ideas in our society Trend is the direction in which something tends to move in a way that affects culture society and business Fads are short spurts Classics are enduring styles Trickledown theory starts with runway Trickle up theory stats with street fashion Trickle across theory helps explain how digital technology has changed fashion Fast fashion Long term forecasting is the process of analyzing the sources patterns and causes of change through the evaluation of current events in order to identify and anticipate directional shifts in business strategies consumer behavior and lifestyle and global dynamics Short term focuses on current and upcoming events and pop culture phenomena that can be translated into fashion trends over the next 12 18 months These events are analyzed for cues that can be related to season color fabric and silhouette stories to give fashion a fresh look each season Color Associations Color Marketing Group ICA CAUS Textile Consortiums Wool Bureau Cotton Inc and Manmade Fiber Color Forecasters D3 Hue color BOX Design Principles Proportion the relationship or scale of the entire garment s or parts to each other and to the body as a whole Determined by dividing horizontally Balance sense of stability or equilibrium determined by dividing a silhouette vertically Emphasis or focal point first place on the garment