You are on page 1of 24

Range Development

Principles & Technique for Merchandiser

Under Guidance of:

Ms. Garima Srivastava

Researched & Compiled by:

Alka Yadav (M/FMS/08/04)
Bhavik Gandhi (M/FMS/08/10)
Niharika Jain (M/FMS/08/12)
Ridhima Ranga (M/FMS/08/14)
Natasha Dhavan(M/FMS/08/16)

FMS Dept - NIFT, Mumbai 1

Range Development

FMS Dept - NIFT, Mumbai 2

Autumn Winter 07/08
 The foundation of autumn winter 2007/08
key trends are based on 
Bold bright colours

FMS Dept - NIFT, Mumbai 3

Colour Board

17.3918 TPX 16.1406 TPX 18.1616 TPX 19.3928 TPX 14.4810 TPX

16.4728 TPX 14.5002 TPX 14.6520 TPX 18.3518 TPX 18.1663


19.3810 TPX 14.1909 TPX 16.2614 TPX 15.1215TPX 14.1909


17.1125 TPX 17.1547 TPX 12.0912 TPX 17.1444 TPX 19.3722

FMS Dept - NIFT, Mumbai 4
Colour Board
 Monochrome & Black on Black

 BLACK and textural blacks or monochrome schemes of black

with white optical prints or cut out effects and bold
contrasts frequently highlight hemlines, collars and cuffs. 

 Texture is especially noticeable in the black range of clothing. 

Black texture is laid on more black texture.  Matte black is
set against shiny black, against dull black, against
shimmering sparkling black.  Decorative touches add whole
cluster areas of crunchy surface embellishment.

FMS Dept - NIFT, Mumbai 5

Colour Board
 Colour - Bold Brights
 With all the neutral grey, navy, black and taupe earthy
colours shown on this page you might wrongly imagine
there was no colour this autumn.   Grey, silver, anthracite
and charcoal are all strong this winter and make for grey
knitwear, military tailoring, masculine trouser looks and
slinky silver satin glamour.  However jewel colours, bold
brights - orange, coral, pink, red, emerald green, amethyst
purple and Peridot green are the key trend colours to wear
this Autumn Winter 2007/8.
 Purple
PURPLE is one of the hottest of colours for Autumn
Winter 2007/8.  Purple is prominent still with every
tone from the richest of deep violets and softest of
dusted heliotrope, lilacs and lavenders.

FMS Dept - NIFT, Mumbai 6

Purple Facts
Purple is a colour full of symbolism and a long association with
royalty. The colour purple denotes affluence, supremacy,
dominance and magnificent opulence.
Purple is also associated with spirituality, mystery and pacification.
The stone is believed to protect wearers from getting too intoxicated
with alcohol. A good quality amethyst will be a rich deep purple
gem, but paler tones of lilacs to rose amethysts are available to suit
many tastes and price ranges. The amethyst birthstone is very hard
wearing and this makes it a good jewellery buy.
The amethyst is the stone of Saint Valentine and was once the stone of
Royals as purple was the colour of power. It is the perfect gemstone
to give as a Valentines jewellery gift on Saint Valentine's Day,
celebrated on 14 February each year.
Tones of purple can be used as a mourning colour instead of black or

FMS Dept - NIFT, Mumbai 7
Mood Board

Purple has been key through summer 2007 and
now ranges from a wine purple that has a hint
of red present to a violet purple that verges
with royal blues and French navy.
Notice how in this board shiny colours are set
against matt textures. Texture is key to
autumnal fashion vocabulary.

FMS Dept - NIFT, Mumbai 8

Mood Board

FMS Dept - NIFT, Mumbai 9

Mood board
The mood board shows how designers have
used golden tans and rich terracotta colour
for autumn 2007. 
Leathers and suede take naturally to tan
Texture is important with croc effects and
slippery satin tops that shimmer and shine.
Watch how this fashion trend for tan soon
encourages the people to purchase orange
and rust based clothing.

FMS Dept - NIFT, Mumbai 10

FMS Dept - NIFT, Mumbai 11
Costing – Target Costing method
 Vera Mont’s Evening Gown
 The shimmering violet evening dress, with clever

draping and fancy black net lace layering, is

made from 100% polyamide


FMS Dept - NIFT, Mumbai 12

Price / Cost Element Estimate % Factor Per unit factor Amount

Vera Mont’s Suggested retail price ₤ 265

Standard dealer margin 30 % (₤ 79.5)
Cost to retailer ₤ 185.5
Shipping & distribution cost ₤5 (₤ 5)
Selling price to Retailer ₤ 180.5
Distribution cost/ Mark up 15% (₤ 27)
Shipping cost to distribution centre ₤5 (₤ 5)
Vera Mont’s selling price ₤ 147.5
Profit Margin 10% (₤ 14.75)
Alteration and other costs 2% (₤ 2.95)
Administrative / General costs 8% (₤ 11.8)
Non recurring development costs ₤ 90000
Estimated Production volume 30000
Allocated non recurring development cost ₤3 (₤ 3)
BusinessUnit target Cost (Cost including shipping) ₤ 103.2
Indirect Cost ( overheads ) 35% ₤ 36.12
DirectCost (material & labor) 65% ₤ 67.08

FMS Dept - NIFT, Mumbai 13

Costing – Cropped Boxy Jackets
Plaids and Checks
Bold tartans, lumberjack,
tablecloth or windowpane checks
are used for punk influenced
jackets and coats for the Autumn
Winter 2007/8 season.
Wrap tie belts are a feature of
trench styles and capes. Texture
on contrast texture means that
piped contrast edges are used to
trim revers. Cropped boxy
jackets and hip length toppers
with central back seam pleats
give swing and a modern edge to
an outfit.

FMS Dept - NIFT, Mumbai 14

Costing - Cropped Boxy Jacket

The suit spirit. Combed suitings, fluid plains, muted

stripes smooth, creased or crumpled in cotton/wool.
Two-tone neo-tweeds. Herringbones. Flannels.

Simplified, wrap, drawstring and folded shapes. The
supple comfort of dropped crotches for pants.
Hoods, turtlenecks, ring collars, incorporated scarf
collars. Buttonless closings.

Tote bags, ballet pumps with wide straps, ankle boots in
soft leather and textiles to tie.
Quilted bags and belts, inflated shapes.

FMS Dept - NIFT, Mumbai 15

Price / Cost Element Estimate % Factor Per unit factor Amount

Maximum retail price ₤ 400

Standard dealer margin 30 % (₤ 120)
Cost to retailer ₤ 280
Shipping & distribution cost ₤7 (₤ 7)
Selling price to Retailer ₤ 273
Distribution cost/ Mark up 15% (₤ 41)
Shipping cost to distribution centre ₤9 (₤ 9)
Selling price ₤ 223
Profit Margin 15% (₤ 33.45)
Alteration and other costs 5% (₤ 11.15)
Administrative / General costs 7% (₤ 15.60)
Non recurring development costs ₤ 100000
Estimated Production volume 25000
Allocated non recurring development cost ₤4 (₤ 4)
BusinessUnit target Cost (Cost including shipping) ₤ 158.8
Indirect Cost ( overheads ) 30% ₤ 47.64
DirectCost (material & labor) 70% ₤ 111.16

FMS Dept - NIFT, Mumbai 16

Costing - Evening Dress with sleeves
Bot h silver and gold look very good against purple and t his
dress is edged wit h a band of gold sat in fabric, a great
cont rast t o bot h colour and t ext ure of t he purple fabric in t he
m ain body of t he dress.

The dress below is from French Connect ion and t he m ain

body of t he skirt is purple velvet .

FMS Dept - NIFT, Mumbai 17

Price / Cost Element Estimate % Factor Per unit factor Amount

French Connection’s Suggested retail price ₤ 200

Standard dealer margin 20% (₤ 40)
Cost to retailer ₤ 160
Shipping & distribution cost ₤4 (₤ 4)
Selling price to Retailer ₤ 156
Distribution cost/ Mark up 12% (₤ 19)
Shipping cost to distribution centre ₤5 (₤ 5)
French Connection’s selling price ₤ 132
Profit Margin 20% (₤ 26.4)
Alteration and other costs 2% (₤ 2.64)
Administrative / General costs 9% (₤ 11.88)
Non recurring development costs ₤ 25000
Estimated Production volume 50000
Allocated non recurring development cost ₤ 0.5 (₤ 0.5)
BusinessUnit target Cost (Cost including shipping) ₤ 90.58
Indirect Cost ( overheads ) 25% ₤ 22.58
DirectCost (material & labor) 75% ₤ 68

FMS Dept - NIFT, Mumbai 18

Costing -V Neck Long sleeve dress
The shim m ering violet evening dress, wit h
clever draping and fancy waist band and V
neck, is m ade from 100% silk

FMS Dept - NIFT, Mumbai 19

Price / Cost Element Estimate % Factor Per unit factor Amount

Maximum retail price ₤ 150

Standard dealer margin 24% (₤ 36)
Cost to retailer ₤ 114
Shipping & distribution cost ₤ 2.5 (₤ 2.5)
Selling price to Retailer ₤ 111.5
Distribution cost/ Mark up 13% (₤ 14.5)
Shipping cost to distribution centre ₤2 (₤ 2)
Selling price ₤ 95
Profit Margin 18% (₤ 17.1)
Alteration and other costs 2% (₤ 1.9)
Administrative / General costs 10% (₤ 9.5)
Non recurring development costs ₤ 10000
Estimated Production volume 10000
Allocated non recurring development cost ₤1 (₤ 1)
BusinessUnit target Cost (Cost including shipping) ₤ 65.5
Indirect Cost ( overheads ) 33% ₤ 21.5
DirectCost (material & labor) 67% ₤ 44

FMS Dept - NIFT, Mumbai 20

Costing – Della Coat
The Della coat is m ade from finest polyest er w ool blend.

This pared dow n volum e w it h a st ream lined shapely body and

full skirt or A-line skirt is m uch easier t o w ear t han t he usual
suggest ion of t ying up already bulky volum e coat s wit h a belt .
That only really works well on super skinny w om en. Most
wom en benefit from a bit of seam or dart cont ouring t hat hint s
at a narrow er w aist area.

FMS Dept - NIFT, Mumbai 21

Price / Cost Element Estimate % Factor Per unit factor Amount

Maximum retail price ₤ 140

Standard dealer margin 25% (₤ 35)
Cost to retailer ₤ 105
Shipping & distribution cost ₤2 (₤ 2)
Selling price to Retailer ₤ 103
Distribution cost/ Mark up 15% (₤ 15.45)
Shipping cost to distribution centre ₤2 (₤ 2)
Vera Mont’s selling price ₤ 85.55
Profit Margin 10% (₤ 8.5)
Alteration and other costs 2% (₤ 1.7)
Administrative / General costs 8% (₤ 6.8)
Non recurring development costs ₤25000
Estimated Production volume 100000
Allocated non recurring development cost ₤ 0.25 (₤ 0.25)
BusinessUnit target Cost (Cost including shipping) ₤ 68.25
Indirect Cost ( overheads ) 30% ₤ 20.25
DirectCost (material & labor) 70% ₤ 48

FMS Dept - NIFT, Mumbai 22

Market Segment
Looking at the price range of Autumn Winter
07/08 collection of evening gowns and
overcoats, which is from ₤ 140 to ₤ 400 which
is for the elite class of European Market.
More over the purple color signifies the royalty.
The material used in garments are polyamide,
pure silk, satin, worsted and polyester wool of
the finest quality which makes the garments

FMS Dept - NIFT, Mumbai 23
Marketing Strategy
The merchandise is mainly for the elite class of
the Europe who usually shop from luxury
brand shops such as French connection,
Christian Dior, Charles Vougen etc.
Catalogue shopping would be another option
for the marketing of the merchandise.
Merchandise would be also available online on
all the leading luxury brand websites.

FMS Dept - NIFT, Mumbai 24