The Buying Cycle

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The Buying Cycle: Retail Roles Tanith Roberts - N0560711

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Introduction The development of a range, from conception to consumer, is a complicated chain of events requiring the hard and consistent work of a number of individuals, each with their own set of skills and responsibilities, to achieve maximum profitability and customer satisfaction.

This process is referred to as the Buying Cycle, and depending on the retailer, can take up to a year to complete for each range (Goworek, 2007). The cycle can be split into 5 main stages: Planning Range Building Production Intake & Trading

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This report will cover the responsibility and input of 7 key roles within each stage of this process.

The aim of this is to illustrate these roles each as an integral part of the structure of the fashion industry, demonstrating how they each connect to plan, produce and promote a range.

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For the purpose of this report, I will be exploring the roles of the 7 key positions within a fast fashion mass market retailer, operating with a centralised buying and merchandising operation with an outside manufacturing process.

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Figure 2,3 & 4

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Role of the Designer ! ! !! !! Role of the Buyer Role of the Merchandiser !!

Role of the Garment Technologist !!

Role of the Marketer !!

Role of the Public Relations team !!

Role of the Visual Merchandiser !!

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Contents

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8.Bibliography

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and References 8.1 References 8.2 Bibliography 8.3 List of Figures !

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1 Role of the Designer

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The role of the Designer is defined as “A person who is involved in a creative process turning customer needs into value outcomes” (Jackson and Shaw, 2001). The way this is implemented varies greatly wit different retailers, but for the purpose of this report the main responsibilities of the designer are as follows. The Designer will work closely with the Buyer, Merchandiser and Garment Technologist to identify and replicate the trends of the season and interpret these to be appropriate for the retailer’s target consumer.

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Goworek’s model dictates that the role of the buyer begins around 10 months prior to the launch of a collection3 (Goworek, 2007). Once past figures have been assessed by the Merchandiser (see page 6), the Designer will collaborate with the Merchandiser and the Buyer to discuss budgeting and price architecture based on trend predictions, e.g. if a key trend for the upcoming season is midi skirts, the budget for the skirt department may be increased to prepare for this.

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The Designer must continuously research the fashion continuum as a whole, keeping up to date with trends from all sectors and applying this to the retailer using the trickle down theory (Sproles, 2016) to adapt high fashion to the target customer. To do this, the designer must intimately know the consumer who they are, that they expect from the brand, what encourages them to make a purchase.

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The Designer will then use previous best and worst sellers, last season figures, trend forecasting, fabric and trade fairs and Inspirational Shopping (see page 5) along with their own creative flair and knowledge of the industry and consumer to produce mood boards for the range, which are then presented to the other key roles in a Design Presentation.

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The Buyer will then begin to build design packs and specification sheets with the Designer to create samples, continuously reviewing these samples until both are happy with the garment. The Merchandiser will then join the Buyer and Designer to define the range from these samples, which at this point are still working progress, and discuss colour ways, fit, price points and other variables to produce a range plan to present to the directors, where they will be required to justify their choices based on previous figures, trend reports and consumer research. Any necessary changes are then made to increase the commercial viability, and finalise a range that will achieve maximum profit. The Designer is involved only really in the first two stages of the Buying Cycle; Planning and Range Building. Because of this, it is becoming increasingly popular for retailers to outsource to freelance designers who work alongside the design teams of manufactures to ensure the brand’s signature is apparent in each garment.!

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In today’s fast paced fashion industry, the lead time of a range has reduced dramatically for many retailers to keep up with post-internet consumer demand for the latest trend now. In this report however I will stick to Goworek’s model to demonstrate the relation of each role within the cycle.

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2 Role of the Buyer

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According to Jackson and Shaw, the main objective of the buyer is to “ensure that products bought for sale by the retailer are appropriate for the target market and can sell in sufficient quantities�(Jackson and Shaw, 2001).

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The buying cycle, as outlined in the introduction, is the process a collection must go through from conception to consumer. Unlike some of the other roles, who are involved predominantly in one stage of the process, though of course communication between the stages is vital, the buyer is called upon to consult on or approve almost every step to ensure the above aim is achieved.

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The first step of the cycle, Planning, begins with the allocation of the budget by the Merchandiser, though the Buyer will provide input (Gowerek, 2011). The Buyers will then discuss with the Designer trend information, influences and predictions, and initial thoughts on the range, such as how to apply new seasons fabrics, colours and trends to their target market. The Buyer, along with the design team, will then visit trade and supplier sourcing fairs, and go Inspiration Shopping, looking up the trickle through model to brands (usually) more aspirational and of a higher market sector, to examine how these brands have interpreted trends, and how they can adapt this to make it commercially viable for their target market. They will also examine their own market sector through Comparative Shopping, exploring the strengths and weaknesses of their competitors. It is vital to do this continuously throughout the season in a fast paced fashion retailer, to ensure they remain competitive.

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Taking this information on board, the Buyer will then work with the Designer, Merchandiser and Buyers from other departments to plan and source a full and comprehensive range (stage 2 of the Cycle), that is on trend, appropriate for the target customer, and will achieve profit. The Buyer will source reliable manufactures in keeping with the retailers ethical standards, and assist the Designer and Garment Technologist in building design packs including specification sheets which can then be sent to suppliers to draw up samples for range selection. These samples will then be produced and sent back to the Buyer for approval, any necessary adjustments made to increase commercial potential of the garment will be made, and new samples produced until the Buyer approves the garment. This process can take several weeks, particularly if the producer’s the Buyer has sourced are overseas, as they predominantly are in order to keep costs low and profits high. It is also the responsibility of the Buyer to negotiate with suppliers and manufactures to create maximum profit margins whilst maintaining the quality the customer expects of the retailer.

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The Buyer will assist the Merchandiser and Garment Technologist in drawing up a Critical Path for the range (see page 6), and meet weekly to ensure that this is kept to to avoid holding back the release date, potentially causing loss in profits. The Buyer will constantly be on hand during stage 3 of the cycle to approve product development - lab dip, fabric, trims etc and fit along with the Garment Technologist.

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Stage 4 of the Buying Cycle is predominately handled by the Merchandiser and Distributor, and the Buyer will begin the cycle again for the next range, meeting regularly with the Merchandiser to review the sales of previous range throughout trading (Stage 5).

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3 Role of the Merchandiser

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The functions of the Buyer and the Merchandiser are to achieve the same goal - to maximise the profitability of a range, and though the two positions are complimentary, they have fundamentally different skill sets and responsibilities.

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Merchandising can be described as “the total process of stock planning, management and control� (Jackson and Shaw, 2001). This is achieved by analysing sales performances during trading, evaluating garment, store and yearly targets and profit margins, to action mark-downs of current stock and plan range parameters and budgets for the upcoming season alongside the Buyer, taking into consideration trend predictions and the findings of the directional and comparative shops.

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Once the Designer has conceptualised the brand, and the Buyers have received working samples, the Merchandiser will assist with the range planning and selection of the range. Again, the Merchandiser must consider historical performances, open to buy budgets supplier options and lead times to produce a range that will satisfy consumer demand and profit expectations.

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The Merchandiser will also outline the risk of each sample produced for selection, and confer with the Buyer and Designer on colour ways, price points, stock depth and supplier decisions. Along with the Garment Technologist and Buyer, the Merchandiser will create a critical path, working back from the launch date identifying vital dates that must be met, such as fabric lab dip approval, fit approval and delivery dates.

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It is also the responsibility of the Merchandiser to decide on order numbers, and dispatch numbers to individual stores based on previous sales figures, size pack, store profile and, throughout the trading period, replenishment.

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4 Role of the Garment Technologist

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As much as we as a society are consumed by the aesthetics and expressive nature of fashion and keeping up with constantly evolving trends, we must remember the functionality of clothing. A garment needs to do more than just please the eye, and it is the responsibility of the Garment Technologist to ensure the consumer’s expectation’s of quality are achieved, or the customer will be left unsatisfied, which may effect their purchasing decision in the future.

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“ensuring that the garments in the buyer’s range conform to the quality standard set by the retailer” - Helen Goworek, 2001

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Of course, the expected quality varies between retailers and market sectors, and it is important for the Garment Technologist to understand the consumer, the brand and what is expected of them.

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The Garment Technologist will work closely with the Designer and Buyer whilst building the range, assisting in decisions of fabric suitability, construction methods, supplier sourcing, and producing the critical path, using there in depth knowledge of the garment construction process to meet the exact needs of each garment. With most production now taking place offshore, it is vital to maintain communications with suppliers to ensure consumer expectations in terms of quality are met, through factory visits, reviewing technical procedures and constantly assessing the capabilities and performance of manufacturers and suppliers.

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All pre-production samples will be assessed by the Garment Technologist, fabric test reports will be completed and initial fittings will ensure each garment works on the regular ‘fit model’, based on the brand’s typical consumer. After this is completed, ‘sealed samples’ of all pre-production drafts of the garment including any amendments made are recorded by the buying team, and once all necessary changes are made, an accurate production sample, including swing tags, care labels etc. is sent for approval. Once this has been done, the Merchandiser can arrange for stock allocation.

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5 Role of the Marketer

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Kotler describes marketing as “Creating, communicating and delivering value to a target market profitably” (Kotler, 2005). This is an effective way of describing the Marketer’s role, which about ensuring the product is put in front of the right people, at the right price point, place and time in order to maximise sales.

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The Marketer’s role can be split into 3 main stages, identifying, anticipating and satisfying the needs of the consumer. They must have a clear understanding of the consumer, and constantly conduct research into deepening this. The Marketer may also work with the Designer, Buyer and Merchandiser to spot and exploit trend opportunities, understand the key messages of the range, and plan a critical path for the marketing in order to maximise the exposure of the launch. This can be achieved through two main strategies, Above the Line and Below the Line media.

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Above the Line is the traditional mass media, such as television and magazine advertising. This can be effective for attracting new customers, by exposing them to brands they are not yet aware of or may not usually consider, or for creating aspirational brand followers, particularly in the case of high end designer brands. For example, according to an in-house Vogue study, only 54% of readers regularly purchase designer fashion (digital-assests.condenast.co.uk, 2016), however Chloe still choose to run pages of expensive marketing in Vogue in order to create desirable connotations with the brand that may influence future purchases. This usually takes place prior to the range’s launch.

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The other method is Below the Line marketing, taking a more direct approach, through personal, new media communications such as email mailing lists, smartphone apps and loyalty schemes. This usually takes place just before or coinciding with the trading period. This is to encourage brand loyalty and generate repeat purchases (Posner, 2011).

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Marketer’s may also use techniques during the trading period to promote items underselling or drive sales of best selling items, such as point of sale promotions and discounts.

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6 Role of Public Relations

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Public Relations is about managing the public’s conception of a brand and raising the profile of a new or failing brand or affirming that of an existing one. They are there to generate exposure, and ensure the brand is being talked about, and for the right reasons.

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Often retailers will employ outside PR companies, who specialise in this area, who will begin working during the Intake and Trading stages of the Buying Cycle, analysing and assisting with press launches, celebrity endorsements, arranging collaborations, product placement and social media content to generate buzz around the range launch.

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Other retailers may work ‘in-house’, implementing a PR strategy derived straight form the brand essence, using in depth consumer and brand knowledge to achieve the same goals. For example, UK high street retailer Topshop has a list, known as the Topshop 250, of relevant celebrities, editors, bloggers and people of the moment who receive free and heavily discounted items to wear and promote. This is a constantly evolving list, based on whose style is highly coveted each season, managed by the PR team to ensure the public’s view of the Topshop Woman coincides with the brand’s ideal. This is a very effective way of controlling brand reputation, as members of this list do not have to publicly declare the items as sponsored, and so it appears to the public as though the style icons they aspire to themselves chooses the brand, encouraging them to shop there themselves.

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7 Role of the Visual Merchandiser

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“The aim (of the visual merchandiser) is drawing customers into the store, promoting merchandise and maximising potential sales” Harriet Posner, 2011

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“The art and science of silent selling, bringing product, environment and space into one stimulating and engaging display to encourage a sale.” - Mary Portas, 2010

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These quotes outline the main role of the Visual Merchandiser - to increase sales through initially attracting customers into stores and then encouraging them to purchase.

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The first part of this is achieved through window displays; as creative director, Alannah Weston, says “If Selfridges was a magazine, the windows would be the front cover” (Morgan, 2011). What the customer sees from the outside is an effective form of free advertising, which can re-enforce the key messages of the brand’s identity, showcase statement trend pieces (see figure 8) and best-selling items or promote slow selling items. This can be achieved through use of colour, props (see figure 7), lighting, visual contrast and scale (see figure 6) to demonstrate main themes and concepts of the range. Displays can relate to current events, or announce sales.

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Once the customer has been drawn into the store, the Visual Merchandiser must use effective merchandise layout to keep the customer in - a badly laid out store will be frustrating for the customer, encouraging them to leave store empty handed and affect there decision to shop there again. Garments in key sight lines will attract the customer’s eye, and so items with high stock levels can be placed here to encourage sales. This requires the Visual Merchandiser to constantly communicate with the Merchandiser’s to ensure the stock is best distributed as to generate maximum profit. Anatomical dressing (see figure 9) and ‘dress outs’ (see figure 10) may encourage customers to purchase a whole outfit, instead of an individual item, as it makes the consumer visualise the entire outfit as a whole.

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Figure 6,7 & 8

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Repetition drives impact, and through that, sales. It is therefore important for the Visual Merchandiser’s to work closely with the Marketer’s to keep the concept the Consumer sees advertised continues into store.

The layout must also look visually pleasing to the customer, and colour and trend must flow throughout the store. Rhythm may be used to create interest, through varying fixture heights, items folded as well as hung, front and side facing rails, and balance of product, to make the shopping experience enjoyable (see figure 11).

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Increasingly, Visual Merchandiser’s are using new media and technology to further enhance the instore experience, such as the revolutionary Burberry flagship, 121 Regent Street.

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The Visual Merchandiser will begin to plan layout’s as soon as range selection begins, working closely with the Buyer and Designer to ensure a balanced range, solidifying this once samples have been received.

They will utilise information from the Merchandiser, Designer and Marketer to create plannograms and manuals for individual stores to follow so as to create an effective shopping experience across each store.

Visits may also be organised at the launch and throughout trading, as new lines are brought out or promotions are launched. to ensure the Visual Merchandiser’s vision is carried out.

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Figure 9,10 & 11

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8.1 Bibliography

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Jackson, Tim & Shaw, David - Fashion Buying and Merchandising Management, 2001 !

Goworek, H - Fashion buying, 2007 !

Kotler, P - FAQs on marketing, 2005 !

Posner, H -.Marketing Fashion, 2011 !

Carr, Harold & Pomeroy, John - Fashion Design and Product Development, 1992 ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !

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8.2 References

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digital-assests.condenast.co.uk, (2016). The Vogue Buisness Report 2015. [online] Available at: http:// digital-assets.condenast.co.uk.s3.amazonaws.com/static/mediapack/vogue_media_pack_latest.pdf [Accessed 6 Jan. 2016].

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Goworek, H. (2007). Fashion buying. Oxford: Blackwell Pub. !

Jackson, T. and Shaw, D. (2001). Mastering fashion buying and merchandising management. Basingstoke: Macmillan

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Kotler, P. (2005). FAQs on marketing. London: Cyan. !

Morgan, T. (2011). Visual merchandising. London: Laurence King Pub. !

Portas, M. (2010). Rules of attraction. [online] Drapers. Available at: http://www.drapersonline.com/retail/ independents/rules-of-attraction/5018674.fullarticle [Accessed 7 Jan. 2016].

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Posner, H. (2011). Marketing Fashion. London: Laurence King. !

Sproles, G. (2016). Fashion Theory: a Conceptual Framework by George B. Sproles. [online] Acrwebsite.org. Available at: https://www.acrwebsite.org/search/view-conference-proceedings.aspx?Id=5731 [Accessed 7 Jan. 2016].

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8.3 List Of Figures

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Figure 1. Frame Web.com, (2016). [image] Available at: https://www.pinterest.com/pin/ 175640454190960789/ [Accessed 7 Jan. 2016] - edited by Tanith Roberts

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Figure 2. The Telegraph online, (2016). [image] Available at: http://www.telegraph.co.uk/finance/ 11664185/How-Inditex-became-the-worlds-biggest-fashion-retailer.html [Accessed 7 Jan. 2016].

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Figure 3. DeWhirst, (2016). [image] Available at: http://www.dewhirst.com/en/services/garmentmanufacturing/ [Accessed 7 Jan. 2016].

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Figure 4. Elle Magazine, (2016). [image] Available at: http://www.elle.co.za/backstage-at-well-worn/ [Accessed 7 Jan. 2016].

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Figure 5. Example of Critical Path in Apparel Merchandising. (2016). [image] Available at: http:// apparelmerchandisingworld.blogspot.co.uk/2013/08/critical-path-tna.html [Accessed 6 Jan. 2016].

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Figure 6. Anon, (2016). [image] Available at: https://s-media-cache-ak0.pinimg.com/736x/b5/02/d4/ b502d44e10fb47e17accea0f8b72db8a.jpg [Accessed 7 Jan. 2016].

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Figure 7. Dazed Magazine, (2016). [image] Available at: http://www.dazeddigital.com/fashion/article/ 16482/1/studio-visit-kei-kagami-masterclass [Accessed 7 Jan. 2016].

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Figure 8. Daily Mail Online, (2016). [image] Available at: http://www.dailymail.co.uk/femail/ article-3284316/It-s-beginning-look-LOT-like-Christmas-Selfridges-store-world-unveil-festive-window-displayFEMAIL-goes-scenes-Santa-seen.html [Accessed 7 Jan. 2016].

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Figure 9. Primark, (2016). [image] Available at: http://shared.theoneoff.com/resources/images/ file11378915360.jpg [Accessed 7 Jan. 2016].

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Figure 10. American Apparel, (2016). [image] Available at: https://s-media-cache-ak0.pinimg.com/736x/ 1f/c4/00/1fc400ceb493bfbc7dd763b8d180724b.jpg [Accessed 7 Jan. 2016].

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Figure 11. Nadia Hassan Hoodie's, (2016). [image] Available at: http://nyulocal.com/wp-content/uploads/ 2012/04/NadiaHassan_HoodieShop_6.jpg [Accessed 7 Jan. 2016].

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