FASHION BUYING

Lesson 3

11th February 2010

Istituto Europeo di Design – IED Moda Lab

2

A buyer’s activity during the year

• Before the buying campaign:– Prepare sales analysis – prepare or review a given budget

• During the buying campaign:– Analyze the collection, collect information from the press office

select products, place orders, review selection/orders

• After the buying campaign & during the season– Prepare the collection briefing, organize training for the sales

associates, organize trunk shows, travel/visit the stores, check the display, work on sales analysis, place re-orders, prepare carry over & mark-down lists, do store checking (other brands flagship stores or multi-brand stores), updated on trends…

…RECALL…

The Retail Department structure

• Example: big company / big retail structure

3

Fashion Coordinator

Merchandiser

Styling Dept.

cooperation info directions

RETAIL DEPARTMENT

4

Buying Campaign: main activities

• Collection overview (show) + official briefing

• Product selection

• Selection review

• Eventual budget review

• Master order

• Orders

• Orders Review

Retail

5

Collection overview + official briefing

• The merchandiser (eventually with a production specialist) introduces the collection to the buying team (& the commercial dept)

INFO = MOOD – INSPIRATION – DETAILS REGARDING MATERIALS/PRODUCTION (leather characteristics and origin, materials composition, dying process, weaving techniques…) – CONTINUATIVE OR RE-INTERPRETED ITEMS – PRODUCT FAMILIES OR STORIES* – MUST HAVE - ADV CAMPAIGN PRODUCTS) …

6

Product selection 1

• Basic information– Sales reports (counter season - before markdown)– Analysis (best – worst seller – price range

analysis)– Budget!

• Basic materials– Collection book– Pricelists– Color swatches– (Fashion show) look-book– ADV campaign/catalogue selection ….

7

Product selection 2

• How to go through a collection and select?

– By category• Example1: RTW = coats – jackets – dresses…• Example2: SHOES = form/heel • Usually starting from the most important categories

– By material/fabric• Example1: RTW = Silk Jacquard – Flower Printed

Chiffon…• Example 2: BAGS = Washed Buffalo – Brushed Calf…

– By look: fashion show/collection look-book (+)

8

Product selection 3

• Finalizing the selection

– Consider what happened last season (counter season buying campaign)

• Compare # of SKU selected• Compare price ranges (preliminary check)

– Consider sales analysis• Any best seller item missing?

– Re-consider the budget• Budget % allocated to the different lines/categories

– Consider commercial department and store managers comments (if a visit is foreseen)

• Missed sales , requests, alerts, …

special request?

budget review?

special request?

9

Selection review

• The merchandiser (eventually + with the fashion coordinator ) or the retail/area/country manager review the selection with the buying team

IMPORTANT STEP = all the work done so far by the buyers is checked and approved.

INFO SHARED = more MUST HAVE – special SELECTION RULES (products to be selected for special locations only, special products for special locations…) – SPECIAL REQUEST discussion/approval - update on advertising campaign/catalogue/press feedback…

MASTER ORDER

10

The Master Order• Master order = the final and official selection of products

that shall be ordered for the brand stores all over the world (or belonging to a particular area/country)

MASTER ORDER

ORDERS

GLF

Av.Montaigne

11

Orders & Orders Review

• Things to consider when writing orders– Budget (eventually consider a very final review)

– Product features:• importance – price – easy to sell? *

– Store features:• wished type of assortment: deep/broad – price range• importance (location – sales)• store structural features

– Area/City characteristics:• different assortment for different doors *

12

After the buying campaign and during the year 1

• Writing collection briefing – mood, inspiration, materials, fabric, production details

…

• Sales associates training– goal: transfering important and clear information to the

customers, make them understand the product value

• Visiting the stores– general overview (staff, display, customers, …)

– collecting staff comments /requests– preparing a visit report– store check (competitors o multi-brand stores)

13

After the buying campaign and during the year 2

• Trunk Show organization / co-ordination

– Trunk show = event taking place (typically) in the most important stores, organized to present the collection (in advance) to the most important customers

– Event features:• mini show (models) or collection presentation (special display)• cocktail (soft party atmosphere)• gifts for the customers (GWP)• product booking /order collection• press

14

After the buying campaign and during the year 3

• Day-by-day activities:– Production timing, deliveries situation check– display check (photos are usually sent monthly)– sales analysis– re-orders– product transfers between the stores

• Mark-down preparation– carry over selection and mark-down lists (TBC)– mark-down calendars check (private sales –

public sales)

15

After the buying campaign and during the year 4

• Update on trends …