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One of the most globalized industries in the world 10% of world business USA consumes more product per capita than any where else More than 200 countries export products to the USA
Domestic production on the decline for 10 years
Road bed stabilizers Tyvek Tents Heart valves
To protect or enhance the appearance of the human body
Many product types
Grocery, video, gas, clothing, etc…
“Area of an apparel company that develops strategies to have the right merchandise, at the right price, at the right location to meet the wants and needs of the target customer”
Burns and Bryant1997, pg.. 429
Fiber Fabric Design Manufacturer Wholesale/buyer retail
Compared to Retailing
“The process of planning , developing, and presenting product lines for identified target markets with regard to pricing, assorting, styling, and timing.”
Selling goods and services to the ultimate consumer One component of the trade matrix
Material manufacturer and supplier Finished goods manufacturer Retailer Consumer
The activities involved in buying and selling: finding customers, providing them with what they want, when they want it, at prices they can afford, and are willing to pay.”
Jarnow, Guerreiro, and Judelle, 1987, pg. 506
Merchandising is a business function that may operate at any level
visual presentation . develops and edits product lines Sourcing and production capacities Oversees development of product Design. timing Job titles CEO. Price lines. and timing.manager.Quality Merchandising Constituency Interprets consumer preferences Profit center of company Plans. etc… Success measured by obtainment of objectives and ROI to stakeholders 2 . VP’s. COO. CFO.” Kunz. Product selection. pricing. assorting. styles. fabrication. styling. Kean: merchandising as a subset of marketing G. assortments. developing.Compared to Marketing Marketing is the act of bringing together buyers and sellers R. Kunz: Interactive yet equivalent functions “The process of planning . directors. 1998 Three major functions Line planning Forecasting Budgeting Assortment/mixing Delivery and allocation Merchandising plans Line development Buying at wholesale Internal product development Combination Product development Design Line adoption Technical design/Samples Line presentation Internal For adoption Wholesale Consumers Multi-channel Constituencies Executive Constituency Management Sets goals Mission and business plan Target markets. and presenting product lines for identified target markets with regard to pricing.
sell through Job titles Advertising manager Manufacturer representative Market researcher PR Sales manager Operations Constituency Manages people and physical property Human resources Inventory Facilities Equipment Quality control Success measured by market share. costs. ROI. rate of sales increase Jobs Information manager Inventory controller Receiving manager Distribution manager Personnel manager Recruiter/headhunter Technical design functions here also Success measured by employee retention. materials utilization. markdown percentage. stock/sales ratios. labor productivity. breakeven 3 . advertising/sales ratios. inventory levels. sales per square foot.Job titles: Buyer Designer Merchandise manager Product development manager Marketing Constituency Defining target market Branding and imaging Promotion Sales opportunities Strategies for growth Research Success measured by GM. turnover.
and Isaac Singer Ramifications Decrease in production time Increase in demand for ready made clothing Increase in demand was an economic issue Need of sailor.Eli Whitney Sewing machine .Samuel Slater Power loom . Weaving. Elias Howe. and Sewing Several inventions Spinning jenny .Walter Hunt. Distribution changes Catalogs Department Stores The birth of Ready to Wear (RTW) Standardized sizes Men's wear .Finance Constituency Evaluating profitability Setting future goals All the money “stuff” Jobs: Financial analyst Accountant Investment manager Quick Responce Constituency Time to market Minimize time form concept to consumer Cuts across all other constituencies Focus on IT and telecommunication Success measured in terms of investment and profit Chapter One From Spinning Machine to Quick Response 1789-1890 Mechanization of Spinning. miners and slaves Increase in middle class consumer who wanted affordable. not custom clothing.Civil war uniforms 4 .Francis Cabot Lowell Cotton gin .
Target) Increase in imports . decrease in suit sales. Incorporation Increase in large publicly owned apparel companies.1890-1950 Growth of the RTW Industry Women's and children's clothing Mass production Sweat shops Formation of International Ladies Garment Workers Union (ILGWU) No part of the Union of Needletrades. Increase in information . Use of synthetics increased . Brand recognition .Paris Synthetics . Further equipment development Sergers and power cutting Beginning of globalization . Decentralization of industry occurred in the 1940’s.Arrow. Couture copies in RTW.Rayon Depression of the 1930’s dealt a hard blow Recovery occurred after WWII Nylon .Chicago. and Textile Employees.More fashion magazines . Sportswear Industry immerged. Designer licensing. Increase in casual.581% (1961-1976) Teen fashion flourished. Baltimore.Vogue.DuPont Subcontracting. Rising labor costs Discounters (Kmart. 1950-1980 Diversification and Incorporation Continued growth in consumer demand. Industrial. Invention of the zipper Increase in marketing efforts (fashion magazines) increased demand . UNITE) Women's wear centralized in New York Men's wear decentralized . Growth in suburbia spurred the development of the shopping mall. 5 .Narrow target. Lifestyle changes drove industry. DNR. New York.Americas love affair with polyester (1970’s).Uniform production helped to streamline production methods. WWD WWI .
66 week cycle (1¼ years) Raw fiber to garment 84% of this time in inventory The birth of Quick response. Developed by Kurt Salmon and Assoc. Increase speed of design Improve on communication Reduce warehouse and in-transit time Decrease reorder time Any activity that improves accuracy and reduces time Industry Cooperation/Partnerships Cooperation is critical to QR success Textile/Clothing Technology Corporation TC² Shift from “push system” to “pull-system” “Premier source of assistance to the sewn products industry for improving business systems and manufacturing resources” Really trying to find ways to improve efficiency. thus improve international competitiveness Inter-Industry Linkages Development of the National Apparel Technology Center Mission: Demonstrate the latest technology. energy and materials. American manufacturers and retailers needed to reevaluate processes. reduce labor costs. Verticalization Store brand strategy E-commerce Multi-channel retailing Studies revealed that products were spending too much time in inventory resulting in huge inefficiencies. Short-term development of technologies. Showed increased turnover and ROI Quick Response A reduction in the amount of time between fiber production and sale to the ultimate consumer.1980-present The Era of Quick Response Increases in costs such as labor. Increase in imports. Educate apparel industry on ramifications of technology use. To encourage standards and increase accuracy Voluntary Inter-Industry Communications Standards Committee (VICS) Bar-coding UPC (universal product code) SKU (stock keeping unit) SCM (shipping container marking) Track product and info about product flow EDI Standards Recently reorganized under new name Voluntary Interindustry Commerce Standards Association 6 .
Goals of SCM The collection of the activities necessary to bring a product to market Raw materials procurement Production Transportation Distribution Managing the selling process (Abend. market and distribute but contract manufacturing Crafted with Pride in USA Council Boost American economy Sharing and coordinating information across all segments of the soft goods industry.Supply Chain Management Track Textile Apparel Linkage Council (TALC) & Sundries and Apparel Findings Linkage Council (SAFLINC) Established EDI standards between manufactures and suppliers Reformed into QR Committee of the American Apparel Manufacturers Association Now part of American Apparel and Footwear Assoc. 1998) Reduce inventory Shorten production time Provide better service Sharing of information as well as product Forecasting POS Inventory Changes Thank you for your attention!! 7 . 3 main types of companies Companies that perform their own manufacturing Companies that specialize in a certain area of manufacturing Companies that design. A concept brought on by advancements in technology.
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