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Fast fashion is a collaborative processUSING SALES AND TREND
ANALYSIS TO DRIVE THE PRODUCTION PROCESS
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Quick ResponseQuick Response (Fast Fashion) is a business
strategy which addresses the increase in consumer demand for new
apparel products by shortening the product development cycleJust In
Time(JIT) is a business strategy to reduce inventory costs by
shipping goods only when they are neededMarketers used QR and JIT
in order to build competitive advantagesResearch showed that USA
soft goods supply chain was losing $25 billion annuallyMarkdowns on
garments that did not meet needs of marketLost sales due to stock
outs where consumers couldnt find the style, size, and color High
inventory carrying costs
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QR StrategyBusiness strategy for domestic and international
textile, apparel, and retail sectors to reduce inventories, shorten
cycle times, and respond rapidly to changing consumer
demandsPrimary objective of QR is risk reduction of markdowns and
stock outsDevelop technologies in data processing, communications,
software, and collaboration
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QR RequirementsControlCommunicationCollaboration
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ControlEffective control systems must be in placeMerchandising
calendarsProduct data managementMerchandise planning, forecasting,
and adoptionProduct sourcing and manufacturingInventory
managementPoint-of-sale information systems
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Effective Communication:Information FlowEffective communications
must provide meaningful, accurate data and transfer that data as
quickly as possible
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CollaborationFor QR, collaboration is a vital factor Foundation
of QR is partnerships with the links in an integrated textile
supply chain
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Collaboration ProcessShare information(pos, edi, and
extranets)Establish decision-making modelsRequires trust and
confidence in partnershipChain is only as strong as weakest
linkEstablishing reliable, effective, responsive partnerships
throughout the entire supply chain is cornerstone of successful QR
initiatives
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The Importance of the Supply ChainThe supply chain begins with
the fiber which is processed into yarn, then into fabric, and ends
with fabric finishing, including dyeing and printing.
FiberTextileApparelRetail
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The Timing of Innovation
The scheduling of textile development is a critical factor in
the introduction of fashion productionsThe time involved depends on
the source of the fiber and the production stages between raw
material and final fabric.
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Sources of Innovation in Textile DevelopmentDesigners choose
fabrics very early in the product development process because the
attributes of fabrics are lined to the silhouette and mood of the
collection.
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Fashion Development Is Unity
Fabric, color, trim, and silhouette trends exist in harmony and
should represent a strong cohesive brand identity; this unity
facilitates the fast fashion process.
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Trend Identification, Analysis, and Synthesis
Abstracting is the process of forecasters shifting through
information and identifying the underlying similarities(or
differences) between design collections.
These similarities(or differences) are expressed through:The
totality of the lookThe theme or moodThe proportions of the apparel
piecesThe silhouettePoint of emphasisThe fitA specific
detailExaggeration in detailA specific trimFabric finishingA
specific fabricA color story
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Pantone Spring 08 Color Palette
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Trend Analysis and Synthesis
Analysis and synthesis are the two faces of forecastingAnalysis
= dissecting to achieve a more complete understandingSynthesis =
creative reintegration of the parts
Click visual to connect to fashion video, may have to press
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Trend Analysis and SynthesisIn fashion forecasting this means:An
accurate reading of the trend in all its subtle aspectsMatching the
trend with the consumer profiles most likely to initially adopt
itMatching the trend with the product category, price point, and
retail concept most likely to complement it
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Sales Forecasting
Forecasting is easy for products with long lifetimes and steady
sales, such as appliances, automobiles, and electronics.
The apparel business is much more volatile, hence more likely
for errors to occur such as:
MarkdownsStock-outs
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Product Life Cycle
Stages of the product life cycle include:Development
StageIntroduction StageMarket Development StageExploitation
StageMaturity StageSaturation StageDecline Stage
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Sales Forecasting DataSales forecasting requires access to three
kinds of information:Internal data on sales volume and marketing
actionsInformation on future plans for marketing and product
distributionExternal data relevant to their market and information
on general economic, political, and cultural conditions
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Sales Forecasts
Projection of sales by category, style, color, and sizeBased on
historical data and statistical analysisMost difficult planning and
control tool for merchandiser to successfully implementSales plan
is the tool used to meet or exceed the sales forecast
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Factors Influencing a Sales ForecastFactors that can influence a
sales forecast include:Controllable FactorsMarketing
ActionsOperating PracticesUncontrollable FactorsActions of
CompetitorsAccess to Channels of DistributionGovernment
Regulations
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