FASHION MERCHANDISING

BUYING CYCLE: UNITED COLORS OF BENETTON

Prashant Suresh Talreja M/BFT/11/16 Srishti Garbyal M/BFT/11/25 NIFT Mumbai

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.

The Buying Cycle:

Fashion Forecasting

Step-wise Process Description:

Step 1: Fashion Forecasting: Fashion forecasting is the prediction of mood, behavior and buying habits of the consumer. It is a vital activity where experienced fashion analysts scrutinize past buying patterns signs for current market dynamics and project these into the future this is done through liaison with stores, retailers and wholesalers fashion professionals also rely on information sources such as design, colour and video Services, newsletters, books, magazines and websites. Colour Forecasting: Color grabs the customers' attention, makes an emotional connection and leads them to the product. Even when the basic product stays the same, changing the color gives a sense of something new. Color consultants help companies decide on the right color story to sell the product. Some consultants specialize in advising on color. Others develop color forecasts as part of their overall product development function. Some large companies have departments dedicated to setting color directions for multiple lines. Professional color organizations bring together experts to collaborate on forecasts for industries like women's wear, men's wear, children's wear and residential and non-residential interiors

Yarn & Fabric Forecasting: It is not surprising that news about which fabrics are "in" or "out" plays such a prominent role in forecasting fashion. Newness in fabrics comes from the introduction of new fibers, the manipulation of yarn and fabric structures, variation in pattern and prints and innovative finishing processes. These innovations are introduced in trade shows and exhibitions held in the fashion capitals of the world. Design forecasting: Garment design shows are much more diverse, ranging from the products trade shows through to the high profile Ready-to-wear Designer shows like London Fashion week and then the exclusive Couture shows. Continuing this sequence, specialist product trade shows are held after the fabric shows. These shows are segmented according to broad sector like men's wear or women's wear, and by specialist product categories, like sportswear or lingerie. These shows are a good indicator of color, fabric, styling and new products.

Step 2:
Review of current season sale: The buyer keeps a keen eye for the sales report which are available once a week to be aware of how the range is performing. The merchandising team takes the charge of getting hold of the stock performance, what all designs are best selling and what all are the non attractive ones and need attention. It is presented to the buying team in the sales review or range direction meeting. After the review of the sales figures buyers go through the whole process of selecting new designs for the next segment of the new designs and the old ones in a more improved manner .

Step 3: Budget Planning: This is subject to the overall sales data. The sales data is keenly looked upon and a new budget planning takes place with reference to the designs which have to be improved, the best selling designs to be continued and to bring up new designs and their stock ratios.

Step 4: Comparative Shopping: often referred to as comp. Shopping. Undertaken at the beginning of each season and continues with once a month visit. Buyers and designers both are involved. Starts with the looking at current merchandise at the stores of competitors which sell comparable ranges, report is then produced with few sketches and information grid. Analysis of the famous trends and important trends missing is added in own range.

Step 5: Directional Shopping: Term used for trips to gain inspiration for design concepts Trips depend upon the buyers 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.

Step 6: Garment Sample Sourcing: The garment samples are sourced from designing studios of the brand and then they are looked upon to as to how the final garment after completion should appear.
Stage 7: Range planning: It is a stage where buyers define the detail of the range that is to be offered to the customer in terms of styling, fabric, design, suppliers and prices.

Step 8: Pre-Selection: Time after the Range planning stage at the Buyers end can be 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 - Styling, Colors, Price and Delivery - Sourcing strategy regarding product and Supplier base.

Step 9: Period after range/line 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. 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.

Step 10: Final order placement: After the Final Range Selection meeting, orders are placed with the suppliers in form of sending.

Step11: 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.
Stage 12: Proto-sample approval: These samples are to be made after getting the order sheets. These samples are needed to check the measurements, style and fit. So they can be made in available similar fabrics/substitute fabric in same count and construction but in the actual measurements and specifications. Stage 13: Fit Sample Approval: Buyers will ask us to make the fit samples according to the given measurements. So it is important to strictly adhere to these measurements. It can be made in any colour but the fabric should be same/ substitute fabric in same count and construction. It is send to the buyer to approve the fit and fall of the garment.

Stage 14:

Size-set Sample Approval: These samples are to be made in actual fabrics with actual trims if available. If the order is for 3 colours and the sizes are S, M, L then the buyer can ask for each size in one colour i.e. one size-one colour or samples in any one colour and swatches (fabric bits) in other colours. These samples should be strictly as per the specifications in the order sheets. We have to get the approval for these samples from the buyer before starting production.

Stage 15: Pre-Production Sample Approval: They have to be made in actual production fabric with actual bulk trims. They will represent that the production will be like these samples. Vendor needs to get the approval of these samples from the buyer before starting the bulk production. Stage 16: Bulk Garment Manufacturing: After the approval of pre-production samples bulk manufacturing starts with:

Stage 17: Production Sample: These samples are to be sent before shipment to get the buyers confirmation for shipment. Hence these samples are needed to be perfect in all manners. Buyer may check these samples for everything or anything. Stage 18: Shipment of order: Vendor prepares the shipping documents and gives booking to the freight forwarder for the shipment of garments. Stage 19: Receiving of product in warehouse: After the garments are ex-factory from vendor they are:

Loaded in feeder vessel > Transported to mother vessel > loaded in mother vessel > Transported to destination port > From destination port to buyerss warehouse.
Stage 20: Delivery of product to retailer: After the garments reach buyers warehouse, then from there garments are sent to respective distribution centers of the buyer in every region then from there to the retailers warehouse.

Stage 21: Final Product in Store: From retailers warehouse the garments are then sent to the respective stores for sale to the customers.

Buyer and Market Evaluation of UNITED COLORS OF BENETTON: Benetton Group Sales by Brand

Brand Competitive and SWOT analysis

Time and Action Calender:

General Information about the company:
1. Total Sewing Machine = 200 2. Number of Machines /Line = 40 3.Total No. Of sewing Line= 5 4. Production /sewing line=40Pcs. Complete garment every two hour. 5. Daily working Hour=8 +2 6.Working Six days/Week.

Season:
Winter/Fall Season.

Sl. No. 1 2

Date 10/08/ 14 13/08/ 14

Day Friday

Action Received Export order from Buyer. Received. Master L/C from Buyer. Will get Proforma Invoice(P/I) from Fabric supplier and Trim supplier. Will open B/B L/C to the fabric supplier and Trim supplier.

Related Dept. Commercial Dept. Commercial Dept.

Remarks

3 4

15/08/ 14 17/08/ 14

Commercial Dept.

5 7 8

17/08/ 14 22/08/ 14 23/08/ 14

Submission of proto sample to buyer Will get sample of fabric from fabric supplier for the approval Testing of fabric & trims in Testing Lab.

Sampling Dept. Fabric dept. Testing Dept.

2 Proto samples to be made by substitute fabric n access.

24/08/ 14 9 8 25/08/ 14 26/08/ 14

Will receive comments from buyer on proto samples Testing approval of fabric & trims on their quality Get Sample of sewing thread n trims from supplier for approval

Merchandising Testing Dept. Trims dept.

Considering 7 days for samples approval

9 10 12

26/08/ 14 27/08/ 14 31/08/ 14

Making of Fit sample Sending Fit sample to buyer Received fabric sampling yardage from supplier

Sampling Dept. Merchandising

2 Fit samples to be made by substitute fabric. 10 mtrs. Via courier Considering 7 days for samples approval Will receive trim samples via courier Size set samples to be made by substitute fabric n access. Or in case if the original fabric n access. Are available.

02/09/ 14

Received Fit comments from buyer Received few trim samples for sampling prog. Of Garments

Merchandising

13

03/09/14

15 16 17

03/09/ 14 04/09/ 14 05/09/ 14 Friday

Making of size set sample Submission of size set samples to buyer Bulk fabric Ex- Mill

Sampling Dept. Merchandising Fabric Dept.

18

10/09/ 14

Bulk fabric shipped

Commercial Dept. & Fabric Dept. Considering 7 days for samples approval In original fabric. Will do inventory & quality checking of trims.

19 20 21

11/09/ 14 12/09/ 14 13/09/14

Received comments on size set samples from buyer Merchandising Making of Pre production (PP) sample Submission of PP sample to buyer Sampling Dept. Merchandising

22 23

15/09/14 17/09/14

Will In-house bulk trims for the production Will In-house Finishing accessories for Bulk production (carton, polybag etc.)

Trim Store Dept.

24

19/09/14

Received PP comments from buyer

Merchandising

25 26 27 28 29 30

26/09/14 27/09/14 29/09/14 30/09/14 01/10/14 06/10/14

Bulk Fabric In-house in factory Cut, order planning for pilot production

Fabric store dept. Cutting Dept.

Considering 7 days for samples approval Will do inventory & quality checking of Fabric.

Pilot production will start (100 -150 pcs.) Production Dept. Comments on Pilot production by factory Q/C & buying house Q/C Q/C Dept. Start Bulk production Sending Production samples to buyer Production Dept. Production Dept. In original fabric. Considering 7 days for samples approval

31 32 33 34 35 36 37 38

13/10/14 29/10/14 30/10/14 07/11/14 09/11/14 10/11/14 11/11/14 12/11/14

Received production samples comments from buyer Merchandising Will contact shipping line & book vessels for the shipment Commercial dept. Start making Shipping Documents Stitching complete Finishing & Packing complete Final inspection by buyer Will be Ex-factory Will Hand over the Goods to the freight forwarder Commercial Dept. Production Dept. Production Dept. Buying house Logistics Dept. Forwarding Dept.