Buying Cycle

Lets us Recap before starting further

Fashion Industry Levels of merchandising

Retail Organization Merchandising Buying House Merchandising Export House Merchandising

Merchandising Definition which we understood

Merchandising is the process of planning, buying and selling the merchandise for profit. Merchandising is planning, developing and presenting the line.

Merchandising in Retail Organization

It is the internal planning that takes place within a retail organization in order to ensure adequate amount of merchandise are on hand to be sold at prices that the consumers are willing to pay to ensure a profitable operation.

Merchandising in Retail Organization

Merchandising is planning , developing , and presenting product lines(s) for identified target market(s) with regard to pricing, assorting, styling and timing. Line Planning Line Development Line Presentation.

Merchandising in Buying House

A set of activities involved in buying and selling, finding customers , providing them what they want, when they want it and what price they can give for that, and are willing to pay that price.
A definition true for both Retail Organization and Buying House

Merchandising in Exports House or Manufacturing Unit

The activities involved in coordinating and communication of order information with Buyers merchandiser, achieving right product ,at right price, ensuring on time delivery, at right place by communicating all style related information & schedules with any raw material supplier and the relevant departments at manufacturers end

Sourcing Structure

Introduction Of
Retail Merchandiser Buying House Merchandiser Exporters or Manufacturers Merchandiser

Organizational Structures

Retail Organization

Buying House

Export House / Manufacturing Unit

Buying Cycle Let us understand how a merchandise comes into the stores

Buying Cycles
The fashion industry traditionally splits the year into 2 main seasons : spring/summer ( Feb to July ) and autumn/winter (August to January) . But , the competitive and constantly changing fashion business has introduced a more frequent introduction of merchandise i.e. introducing a new range every 3 months.

Buying Cycle
The buying Cycle refers to the key events & the processes in which the fashion buyer is involved in order to buy a garment range for a retail or a mail order company. The length of the buying cycle varies between company to companyusually takes a year between reviewing the current seasons sale and delivering into stores.

Below Table lists the main events in buying cycle chronologically( Example of buying cycle for a phase 1 autumn/winter range)
Review of Current season's sales Budget Planning Comparative Shopping Directional Shopping Fabric Sourcing ( for samples) Range Planning Garment Sourcing for range presentation Pre-selection Price Negotiation with supplier Final Range Selection Placing orders for ranges Product development-sample fittings,fabric testing Bulk Garment Manufacture Delivery of products to retailer Purchase by Customer early August mid august august to september august to october october to december october to november november early december november to december mid december december to january January to april April to July June to August August to October

One more example.

AUTUMN / WINTER 08-09 CALENDER Process REVIEW EARLIER COLLECTION & SALES STYLE & OPTION PLAN PER HIT(1,2,3) IDENTIFICATION OF VENDORS FOR SAMPLING CONCEPT STUDY FREEZE KEY CONCEPTS(THEME&COLORS) by STYLE & DESIGN SHEETS VENDOR LISTING FOR SAMPLING PERIOD SAMPLING PERIOD COSTING PO issue by SILVER SEALING SAMPLES BY FABRIC ORDERS TO BE PLACED BY PRE PRODUCTION SAMPLE & FIT APPROVAL PRODUCTION PERIOD (Aprox.70 days) REVIEW MERCHANDISE PRODUCTION STATUS DELIVERY (VENDOR TO WAREHOUSE/GOODS INWARDED AT WAREHOUSE LAUNCH OF RANGE IN STORE HIT-1 HIT-2 HIT-3

10th Feb 10th March 11th March-12th April 12-Apr 20th April-10th May 12th April 10th April-20th April 20th April-10th May 20th May-30th July

1st April 1st May 2nd May-3rd June 3rd June 10th June-30th June 3rd June 1st June-10th June 10th June-20th June 1st July-5th Sept

1st May 1st June 2nd June-3rd July 3rd July 10th July-30th July 3rd July 1st July-10th July 10th July-20th July 1st Aug-5th Oct 10th Oct-20th Oct 1st Nov

10th Sept-20th 1st Aug-10th Aug Sept 20th Aug 30th Sept

1. Review of current seasons sales and budget planning

Sales review or range direction meeting Let us see How it goes in a Retail organization.

RIG LADIES

SS09 SELLTHROUGH PERFORMANCE

FULL PRICE SALE MC RIG Ladies Knits RIG Ladies Blouses RIG Ladies Bottoms TOTAL INWARD 39964 41749 12041 93754 SOLD 24068 25043 5732 54843 ST 60% 60% 48% 58%

END OF EOSS INWARD 41680 45072 13556 100308 SOLD 34146 37511 10359 82016 ST 82% 83% 76% 82%

AW09 MCWISE PERFORMANCE (Wk 6-11)

CENTRAL QTY MC RIG Ladies Knits RIG Ladies Blouses RIG Ladies Bottoms TOTAL AWS/ AW 08 162 198 53 413 AWS/A W 09 189 264 156 609 VARIANCE 16% 33% 197% 47% AWS/ AW 08 0.68 1.16 0.53 2.36 VALUE AWS/ AW 09 1.04 1.96 1.64 4.64 VARIANCE 53% 69% 211% 96%

PANTALOON QTY MC RIG Ladies Knits RIG Ladies Blouses RIG Ladies Bottoms TOTAL AWS/ AW 08 947 763 344 2055 AWS/A W 09 864 945 750 2559 VARIANCE -9% 24% 118% 25% AWS/ AW 08 5.89 3.10 3.29 12.29 VALUE AWS/ AW 09 6.78 4.73 7.63 19.15 VARIANCE 15% 53% 132% 56%

*AW09: PT-wks 7 to 11; CT wks 9 to 11 *AW08: PT- wks 9 to 13, CT- wks 11 to 13

AW 09: HIT 1 SELLTHROUGH

HIT 1 MC RIG Ladies Knits RIG Ladies Blouses RIG Ladies Bottoms TOTAL STOCK 20412 25126 10836 56374

TOTAL SOLD 4716 5020 4302 14038 ST 23% 20% 40% 25%

* PT wks 6 to 11; CT wks 8 to 11

AW 09: BUY VS SALES

TOTAL MC RIG Ladies Knits RIG Ladies Blouses RIG Ladies Bottoms TOTAL STOCK 43499 49658 20654 113811 ACTUAL AWS 1053 1208 907 3168 SOLD 5291 5894 4441 15626 NWC 36 36 18 31

*AW09: PT-wks 7 to 11; CT wks 9 to 11

DEEP BUYS PERFORMANCE

TOTAL STOCK 2100 7563 2341 2434 3559 2774 2695 1889 4930 1790 6089 4799 TOTAL SOLD 198 1494 810 488 1621 1087 1425 464 656 131 401 445 ACTUAL AWS 96 344 142 116 291 212 248 88 111 25 111 81 TARGET AWS 80 288 89 93 136 106 103 72 188 68 232 183

MC T-SHIRTS T-SHIRTS T-SHIRTS BLOUSES BLOUSES BOTTOMS BOTTOMS BOTTOMS T-SHIRTS BLOUSES BLOUSES BLOUSES

STYLE NO RT-595, 599/RT-205, 699/RT-586, 499/RW-593, 699/Core Tunic, 999/RB-540, 899/RB-800A, 1299/Core Cargo, 1099/RT-601, 399/RT-200, 499/RW-644, 399/RW-645, 799/-

ARTICLE
Butterfly allover print empire line top Burntout long open front top Single dyed cotton viscose tee Ramie collar shirt with self fabric belt Twill tunic with canvas belt Slim ribstop cargo Cargo with turnup option & canvas belt Poplin cargo with lace belt Entry price point flock print tee Tee with chest print & stud detailing Entry price point dented dobby shirt Shiffly long top with ruching at sides

Review of current seasons sales and budget planning

This review often takes the form of presentation to the buying team and the design department team if the company has one with samples of garments from the range which was in stores last season and analysed. QC department may contribute to the meeting by commenting on any technical problems which may explain low sales figure, for instance colour or fit in production differing from the catalogue photograph of the garment.

Review of current seasons sales and budget planning

After sales review meeting Buyer is armed with knowledge of which styles the customer currently likes and dislikes and a framework of successes to build upon for the new season. So a rough idea of a new range plan can start to be pencilled in. This whole exercise is further gets the flavour of current trends, PESTEL influence and affected by Next seasons forecasting. They may also be learn from other buyers sales figures, so if a new fabric or colour has been trialled in another product area the buyer can decide whether or not to run it too.

Review of current seasons sales and budget planning

Analyse the reason of poor sales of any style. This whole exercise involves both buyers and retail merchandisers Merchandisers usually plan budgets in conjunction with buyers. Framework of the budget is largely based on the last seasons performance as well as any anticipated developments( category wise also) The role of merchandiser in budget planning- a tentative range plan will develop by planning the number of styles per retail selling price.

Directional Shopping and Comparative Shopping

Range Planning and Selection

Critical Paths for product development , production and delivery

The Stepping Stones in Critical Path

Lab dips/strike off/deskloom approval Sample fabric approval Trim approval Fit sample approval Other samples approval Bulk fabric and trim approval Bulk production starts shipment

Retail Merchandising Session 4