Fashion Buying Cycle

November 18, 2017 | Author: Abhishek Kumar | Category: Industries, Trade, Shipping Service, Business, Retail
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Short Description

Fashion Buying Cycle...

Description

THE BUYING CYCLE The key events and process in which the fashion buyer is involved in order to buy a garment range is buying cycle. Fashion Industry traditionally splits the year into two main seasons, Spring/Summer- February- July Autumn/Winter- August – January The competitive and constantly changing fashion business requires a more frequent introduction to merchandise, resulting in most stores introducing new ranges many times in between these two main seasons. The occurrence and the names of sub seasons vary from company to company. Season

Duration

Spring Transition

Mid Jan-End Feb

Spring

Beg Feb – End March

Spring Promo

Beg April – Mid April

Summer 1

Mid April – End May

Summer 2

Mid May – Mid July

Summer sale

Mid July – Beg Aug

Autumn Transition

Mid July – End Aug

Autumn

Beg Aug – End Sept

Winter 1

Beg Oct -Mid Nov

Winter Festive/Holiday

Mid Oct-Mid Nov

Winter 2 / Christmas

Mid Nov-Beg Jan

Winter Sale

Beg Jan - Mid Jan

Buying Cycle Review of current season sale

Budget planning

Comparative Shopping

Directional shopping

sourcing for product development

Range planning

Garment sampes souring for range Pre selction of garment sample Price negotiation with supplier

Final range selection

Placing order for ranges

Pre production sampling and approvals

Bulk garment manufacturing Delivary of products to retailer

Purchase by customer

Review of current season sale

Comparative Shopping Often referred as comp. shop  Undertaken at the beginning of each season and continues with once a month visit  Byers & Designers are involved  Starts with the looking at current merchandise in the stores of competitors which sell comparable ranges  Report will be produced with few sketches & information grid  Analysis of missing important trends in own range

Directional Shopping Term used for trips to gain inspiration for design concepts Trips depend upon the buyer’s product range & travel budget Buyer may visit designer RTW ranges to mass market ranges Makes note on key shapes, details, colors and fabric for reference

Pre selection Time after the Range planning stage at the Buyers’ end canbe in form of the Line review/Range review meeting. •Garments samples featuring on the Range plan are presented. Participants are the Design, Marketing ,Merchandising and QC teams. •Range is reviewed vis a vis: –Styling, Colors , Price and Delivery – Sourcing strategy regarding product and Supplier base. Period after Line/ Range review Finalization of the Styles , suppliers, prices for the Final Range it involves:  Informing suppliers regarding the styles which have been included in the final Range.  Change in styles if any.

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Price re-negotiations Order Delivery dates re-negotiations. Styles dropped. Request for additional samples if required for the final range review meeting by the buyer.

Final Order Placement After the Final Range Selection meeting, orders are placed with the suppliers in form of sending Purchase orders /Purchase sheets for each individual items selected to be on the range. These may be generated by the Merchandising department or by a separate Purchase department.

MERCHANDISING ACTIVITY The merchandising department acts as a liaison between the buyer and manufacturing division. On one hand, the department is responsible for notifying changes in the product to the PPC and also to make sure that article is produced as per planning by the PPC and within dispatch time limits. On the other hand, it has to continually update buyer with planning and production status. The department takes care of all correspondence with buyer and is responsible for communicating it to PPC. The department also takes care of necessary sampling such as proto, size set and final which is necessary prior to production.

Price negotiation & Order confirmation Price negotiation is the most important part of merchandising and marketing. Order confirmation depends on how cleverly and logically one can negotiate price with buyer. How to prepare garment price There are processes for fixation of export prices which are as under:

1.FOB (Free On Board). 2.C & F (Cos t & Freight). 3.CIF (Cost, Insurance & Freight). FOB means ‘free on board’ i.e. exporter doesn’t bear the cost of freight of ship or air. It is buyer (Importer) who himself bears the freight of ship or air. C & F means Cost of Freight i.e. FOB (Cost) + Freight of Ship = C & F. In the case ship or air freight is carried by the exporter while quoting price, the exporter quotes price a bit higher than FOB. The whole responsibility including the sending of goods to the selected port of the importer is shouldered by the ex porter s hip or air. Freight may very from plac e to plac e and s hippers toshippers. CIF means cost insurance & Freight. In this case in addition to the bearing of freight the cost of insurance is also borne by the exporter. The exporter, while quoting CIF price, quotes much higher than C&F value i. e; C & F + Insurance=CIF. Normally we can add 1-2% insurance charge with CIF price.

Merchandising activities on Product development

Product development is another important r e s p o n s i b i l i t y f o r R M G merchandisers. Before go to bulk production various stage of sampling has topass in order to develop a product for end user. Sequence of Sampling

Counter sample/Style sample/Salesmen sample Fitting sample/ Size set sample Pre-Production. Production Sample. Shipping Sample. Photo/ Advertisement/ Catalog Sample

Steps of Garment Sample Approval

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Style sample (Closest available fabrics) Size Set sample (Closest available fabrics) Pre- production sample (In Actual) Production sample (In Actual) Approval Fabrics (for hand feel & Approval) Test done from official Testing House Bulk Fabrics in each Color Test report in each color

Lap dip

Style sample development The main object to develop style sample is to approve the styling of a product that a designer imagine first. This sample is usually made by available color but actual design, construction and weight. But some time buyer ask sample to make by actual color. Size set sample development The main object to develop size sample is to confirm the measurement, body fitting etc. This sample is also made by available color but actual construction and weight. Pre production sample development The main object to develop Pre production sample is to confirm the final product from buyer. After receive preproduction sample we can start final/bulk production. Production sample development

The main object to develop Production sample is to confirm alt buyer that what we produced and ship to sell for end user.

Merchandising activities on production follow up

Production plan After receive a purchase order from buyer merchandiser have to sit with production planner to make a production plan. Production plan contain below things:  Planned date to start knitting to make the required fabrics.  Planned date to start dyeing to color the fabrics.  Planned date to start cutting fabrics  Planned date to start sewing the required garments.  Planned date to start packing the required garments.  Planned date to hand over finished goods to buyer nominated sea or air forwarder. Trail/ Test cutting Before start bulk cutting to adjust pattern we cut each size and each color10/15 pcs. This is called trail or test cutting. After approved trail or test cutting we can go for bulk cutting. Sewing Sewing section is the section where cutting part are joined to make a garments. In sewing section sewing machines are set up according to the kind of final product. Packing

After sewing garments is packed into packing section. Here we put iron on garments, add various kinds of hangtags, polybags and make garments ready to ship to the buyer.

Merchandising activities on Quality control

The main objective of quality control is to ensure that goods are produced to the first customer (Direct Order) and hopefully to the second customer(Recorder/Alter order/ new order) as well. If both customers can be satisfied then the manufacturer products are more likely to continue to be in demand. Satisfactory quality can only be ensured through (from the manufacturer point of view)  Knowing the customers needs.  Designing to meet them  Faultless construction- manufacture.  Certified performance and safety.  Clear instruction manuals.  Suitable packing.  Prompt delivery.  Feed back of field experience. Satisfaction of quality can be ensured from the customer from the customer’s point of view by providing:  Right Product.  Right Quality.  Right Time.  Undamaged Condition

Merchandising activities on goods delivery to buyers destination

Booking to forwarder After making final inspection merchandiser received packing list from packing section which contain the list of carton, how many pieces garments in the carton, weight of the carton, number of pieces of garment to be shipped etc. Refer to this information merchandiser make booking to sea or air forwarder. Export Documentation The documents which to be submitted by a C&F agent for export: An exporter should have to submit the following documents to the customs authority of a station: 1.Shi ppi ng bill of entry. 2.Export L/C. 3.Packing List . 4.Commercial Inv oic e. 5.UD/UP. 6.VBF-9A. From to be supplied by the C&F agent. 7.Export Permission form (EXP). Bill of Landing (B/L) It is document issued by an eerier (railroad, steamship, or trucking Company)which serves as a receipt for the goods to be delivered to a designed personor to his order.B/L descri bes the condi tions under whic h the g oods are acc epted by thecareer and details  The quantity of the goods.  Name of vessel  Identified marks and numbers  Destination Invoice: Following point are including in the invoice:  Name and address of the buyers and the seller.

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The Date and term of the sale. A description of the goods, The price of the goods and The mode of transportation.

Payment release After prepared invoice, bill of landing and other required documentation we send it to buyers nominated bank for payment release

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