Fashion Industry Appreciation Half

8/3/2019 Fashion Industry Appreciation Half

1/70


2/70

Break Out Session

Aim ?

Risks ?

Sacrifices ?


3/70


4/70

What will we learn

Consumer

Retail Market

Industry


5/70


6/70

Retail MarketConsumer


7/70

Retail Market

Industry

Consumer


8/70

Context 4 weeks

Consumer 4 weeks

Retail Market 6 weeks Industry 12 weeks


9/70

What can we learn from each other ?


10/70

Fashion Industry Appreciation

Review of Week 1

Introduction

Aims / Risks / Sacrifices Review of Module Specification

FBM and FRM

What can we learn from Each Other Independent Work Images B of Fashion


11/70


Plan for Week 2

Independent Work - Images B of Fashion

History of the Apparel Market Break Out Session Market Logic

Quiz Game

Mapping Nike Case Study


12/70

Apparel Market

0000 - 1800s Homemade garments

All natural textiles

1818 - Brooks Brothers

- sailors and middleclass men

1826 - Lord & Taylor - menswear

1851- Macys - menswear


13/70

1902 - JC Penny- menswear, some childrens

1905 - Arrow Shirt

1908 - Filenes Basement - 25% off

1920s - fashion communication Paris developed as a base for designers

1926 - couture show- 100 reporters

Apparel Market


14/70

1929 - American Stock market Crash -depression

1938 - Dupont launched Nylon

- 1st synthetic fibre

1940s - WWII killed fashion Industry inFrance

US emerged as the Sportswear capital

Women began wearing bifurcated clothing

Apparel Market


15/70

1949 Bloomingdales

1950s - growth of suburbia

1960s - malls - suburbs

1968 - Calvin Klein, Ralph Lauren

1975 - Liz Clairborne, Price Costco

Apparel Market


16/70

Nike Peter England

Marks & Spencer

San Frisco

Benetton Esprit

Park Avenue

Chanel Bata

Sony

Mc Donalds

2008 - Global Market


17/70

Nike - USA Peter England - India

Marks & Spencer - UK

San Frisco - India

Benetton - Italy Esprit - France

Park Avenue - India

Chanel - France Bata - Canada

Sony - Japan

Mc Donalds - USA

2008 - Global Market


18/70


19/70

NONE


20/70


21/70

Case Study - Nike

NIKE Head Office, USA

NIKE Liason Offices

Regional Sourcing

NIKE Regional

Marketing & RetailOffices


22/70

Case Study - Nike


NIKE Liason Offices

Regional Sourcing

NIKE Regional


ManufacturerExporters

Manufacturers


23/70


24/70


Plan for Week 3


Written Quiz Global Market Global Trade

Apparel Industry Logic

Guessing Game


25/70


Review of Week 2


History of the Apparel Market Reconceptualization

Markets - Menswear vs Womenswear

Brands vs Manufacturing Mapping Nike Case Study


26/70


Plan for Week 3


Written Quiz Independent Work - Images B of Fashion

Global Market Global Trade

Apparel Industry Logic

Guessing Game

Role Play


27/70

Case Study - Nike


NIKE Liason

Offices RegionalSourcing


28/70

Case Study - Nike


NIKE Liason


Manufacturer

Exporters


29/70

Case Study - Nike


NIKE Liason


Manufacturer

Exporters

NIKE Retail Stores

Worldwide


30/70

Case Study - Nike


NIKE Liason


NIKE Regional


Manufacturer

Exporters

NIKE Retail Stores

Worldwide


31/70

Case Study - Nike


NIKE Liason


NIKE Regional


Manufacturer

Exporters

NIKE Retail Stores

Worldwide

Manufacturers


32/70

Case Study - Nike


NIKE Liason


NIKE Regional


Manufacturer

Exporters

NIKE Retail Stores

Worldwide

Manufacturers

NIKE Retail Stores India


33/70

Case Study - Nike


NIKE Liason


NIKE Regional


Manufacturer

Exporters

NIKE Retail Stores

Worldwide

Manufacturers

NIKE Retail Stores India


34/70

Market

Regional Manufacturers


35/70

Market

Global Manufacturers

International Trade

WHY?


36/70


37/70

Why did countries becamemanufacturers ?

Availability of Labour

Less expensive Availability of Raw Material

Low Investment Capability


38/70

Which was the First Country to

start exporting Apparel ?

1930s


39/70

Japan


40/70

Fashion Industry Globalisation

Other less developed countries started toimitate Japan

Taiwan

S.Korea Hong Kong

India

Pakistan


41/70


The business of domestic manufacturerswas threatened

Wage differential / hr

Switzerland - $25.46 US - $11.89 UK - $10.74 Taiwan - $5.84

Philippines - $0.95 India - $0.58 China - $0.48 Bangladesh - $0.26


42/70


Apparel/Textile Trade became very hostile

Many companies went out of business

Other firms restructured to become moreefficient or specialised in one particulararea.

US, UK, GermanyTrade deficits in Textile / Apparel


43/70

What do you think they did ?

Stakeholders

Industry

GovernmentConsumers


44/70

What do you think they did ?

Stakeholders

Industry

GovernmentConsumers

Role Play


45/70


Review of Week 3


Written Quiz Independent Work - Images B of Fashion

Global Market Global Trade

Reconceptualisation Impact of InternationalTrade on Domestic Economy


46/70


Plan for Week 4

Review of Quiz (contd)

Independent Work - Images B of Fashion Free Trade vs Protectionism

Global Industry (contd)

Careers


47/70

International Trade Agreements

1947 - GATT - General Agreement onTariffs and Trade

1974 - MFA - Multi Fibre Arrangement-

Establishment ofQUOTAS


48/70

Quotas

Numerical Restriction on Imports froma country

Bi lateral Agreement


49/70

Protectionism vs Free Trade

Officially many Countries supporteda Free Trade position

Free Trade - Domestic producersthat are not competitive are not

entitled to special protection fromimports


50/70


Nations affected by protectionism couldretaliate and other industries can getaffected adversely

Erecting Barriers to goods from othernations creates political ill will

Protectionism leads to high prices forconsumers


51/70

Most Countries were unhappy withQuotas

Strong Apparel / Textile Lobby

worlds largest manufacturing

employer



52/70

Free Trade

1995 - WTO - World Trade Organisation

2005 Quotas were Abolished


53/70

Free Trade

What do you think happened ?

Exporters

Buyers

C


54/70

Careers..

Export House Buying Agency

Liason / Sourcing Office for a Global

Brand/Store Domestic Brand

Retail Store

Manufacturing Unit Entrepreneur

Allied Business


55/70

Which is Indias biggestApparel Brand ?

-turnover-


56/70

VIP


57/70


Plan for Week 9

Review of ConsumerBehaviour

Relationship between Consumer & Retailing Functions of Retailing

Retailing Mix

Department Stores


58/70

RETAILING

An Appreciation


59/70

Todays Consumer

If a consumer has a need or want foralmost any imaginable product or serviceand lives in a sizeable community, theconsumer will expect to have readyaccess to one or more businesses thatwant to provide the needed product orservice.


60/70

Todays Retailers

Although consumers may not alwaysclearly express their expectations, a keyelement to success in retailing is tounderstand clearly - and in some mannerto meet or to exceed - consumerexpectations


61/70

Retailing Function I

To create product and servicesassortments that anticipate and fulfill

consumer / family needs and wants


62/70

Creation of Assortments

Supermarkets - 8,000 - 10,000 different items

Discount Stores - 30,000 - 75,000 differentitems

Department stores - hundreds of thousands Speciality Stores - 5,000 - 20,000 items

Vending Machines - 3 - 30 items


63/70

Retailing Function II

To offer products and services in quantitiessmall enough for individual or family

consumption


64/70

Breaking Bulk

Manufacturer wants to make a million ofthe same item

Consumer wants to buy one

Retailer has to resolve the difference


65/70

Retailing Function III

To provide for ready exchange of value through

efficient handling of transactions

convenient hours and locations

information that is useful in making choices

competitive prices


66/70

Ready Exchange of Value

Time Convenience

Place Convenience

Transitional Efficiency

Information Availability

Competitive Prices


67/70

The Retailing Mix

Location

Store Design & Display

Merchandise Assortments

Pricing

Advertising & Promotion

Services

Organisation / Personnel


68/70

Department Stores

Characteristics

yBroad Variety

yDeep Assortment

yOrganised by DepartmentsMenswearWomenswearChildrenswearHomefurnishings / FurnitureToys and GamesConsumer ElectronicsKitchenware


69/70

Department Stores

Prevalance ofBranded ProductsNational BrandsPrivate LabelInhouse Label

y

Full range of customer services

yLarge no: of salespeople

yHigh volume

yModerate to high price


70/70

Department Stores

Macys - USA Sears - USA JC Penny - USA

Bloomingdales - USA Marks & Spencer - UK Bon Marche France Karstadt Germany

Seibu - Japan Lifestyle India Shoppers Stop - India

Documents

Fashion Industry Appreciation Half