THE BUYING CYCLE and Tools of Merchandising

What is Buying cycle?

The key events and process in which the fashion buyer is involved in order to buy a garment range.

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.

Seasons
Spring Transition Spring Spring promo Summer 1 Summer 2 Summer Sale Autumn Transition Autumn Winter 1 Winter Festive/Holiday

Approximate Durations (with overlaps)

Mid Jan-End Feb Beg Feb - End Mar Beg Apr- Mid Apr Mid Apr-End May Mid May to Mid July Mid July to Beg Aug Mid July to End Aug Beg Aug -End Sept Beg Oct -Mid Nov Mid Oct-Mid Nov 6 Weeks 8 Weeks 2 Weeks 6 Weeks 8 Weeks 2 Weeks 6 Weeks 8 Weeks 6 Weeks 3 Weeks

Winter 2 /Christmas
Winter Sale

Mid Nov-Beg Jan

Beg Jan - Mid Jan

6 Weeks
2 Weeks

Four distinct and two promotional season within each half of annual retailing Period

 PHASES- Various ranges introduced within the season. TRANSITIONALS- Ranges which bridge the gap between one season and the next season.

The Buying Cycle

Review of current Seasons sales
Budget Planning Comparative Shopping Directional Shopping Sourcing for product development

The Buying Cycle (Contd)

Range planning

Garment samples sourcing for range

Pre Selection of garment samples Price negotiation with suppliers Final Range Selection

The Buying Cycle (Contd)

Placing orders for ranges
Pre production sampling & approvals Bulk garment manufacturing Delivery of products to the retailer Purchase by customer Review of current seasons sales

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 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 ref.

Buyers usually have budget to buy samples which are referred as bought samples
Designers may share responsibility of directional shopping with buyers.

 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 vis a vis: Styling, Colors , Price and Delivery Sourcing strategy regarding product and Supplier base.

Pre selection

Period after Line/ Range review

Finalization of the Styles , suppliers, prices for the Final Range. 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.

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 Calendar
Primary control tool when developing a seasonal line. Also called the line plan calendar, key events calendar, line development calendar, critical path/task calendar or line calendar Helps to control key events needed to get right product, in the right mix, at the right price at the right time to the customer.

Ingredients of a successful apparel season!

Manufacture what the consumer wants (style, quality, cost) Deliver proper product mix on a timely basis Maintain low inventory (raw material, WIP and finished goods) Inventory turns=annual value of inventory created/annual value of inv throughout the year Accommodate changes in quickest possible time.

Critical path method (CPM)

Determines the critical functions necessary to perform an activity or series of activities required to achieve an overall objective. How is the criticality of the activity decided?? After selection of critical functions, each one must be analyzed to determine the time required to accomplish it. Critical functions are then interfaced into a master calendar in the form of a GANTT CHART (series of parallel horizontal graphs which show activities plotted against time)

ACTIVITIES PRE SEASONAL ALIGNMENT MEETING

Activity Initiate development and pass raw material shelf to PreProduction Complete seasonal concept (concept, style, color and print direction) and initiate QA raw material approval Prepare hindsight, growth strategy, Merchant intent and assortment line plan Focused raw material scouting / selection for garment Seasonal Alignment Meeting (6/25) Functional Responsibility Design, Raw Materials Design, Raw Materials, PreProduction Merchant Timing (weeks) 1 42 41 40

Raw Materials

Cross Functional

PRODUCTION AND LOGISTICS ACTIVITIES POST BUY REVIEW

Activity Buy Review Meeting (11/10) Final PDM approval Final costing Bulk lap dip Color PO to factory transmission phase Waiting for delivery of raw material to factory Bulk color approval Transit from RM vendor to factory Sewing of garments sleepwear and panties Sewing of garments bras TOPs testing Air flow DC staging DC Ops Truck outbound 0.4 Procurement 8 Production 6 1

Functional Responsibilit y
Crossfunctional Design Tech Procurement

Timing 20 19 18 17 16 15 14 13 12 11 10 9 (weeks) 1 day 1.5 4 (1)

3 (1)

Production
4 Production 6 Production 2 Design Tech 2.7 Logistics

1.7
Logistics 1.7 Logistics 2.1 Logistics 2.1 Logistics 0.1 Store hold and prep Logistics Sewing can start during this timeframe if materials arrive early, alleviating pressure for Logistics team Floor set (3/29) 1 Continuation of activity that begins in week 22. Additional 25% to flow post first shipment

 Computer Applications-Many project scheduling software programmes which help in developing the merchandising calendar Developing, executing and maintaining and effective merchandising calendar is the responsibility of the merchandiser It is an important element of pre-season planning. Pre-Season Planning coordinates product development and sales expectations with material purchases and production capacities.

Critical path/Time and Action Calendar for the buyer

The key activities and the timelines associated with them, for processes like product development and production of any item forms the critical path or the Time and Action calendar. By virtue of the T&A the various activities involved in the Product development/Production processes and the responsible party is fixed

Time & Action Calendar for product development, production & delivery
Style no. Style Description Supplier & Country of Origin Lab dip/strike off approval Trim approval Fitting Sample approval

Size set approval

Bulk fabric & trim approval

Pre production sample approval

Bulk production

Ex factory

Due in warehouse

References
Fashion Buying-Helen Gowrek-Chapter 3 Apparel Merchandising-The Line Starts Here-Rosenau and WilsonChapter 4