Unit 10 fashion retail buying environment

Fashion Retail Buying Environment Unit 10

Group Task – PESTLE A PESTLE (political, economic, social, technological, legal, environmental) analysis looks at the external factors that can affect the retail business, as shown on the diagram to the right.

It examines all aspects of the environment surrounding a retail business and is thus used to assess the risks involved in the market. This can includes factors such as environmental law and the restrictions it may place, the concerns of consumers over sustainability or ethical issues, society’s effect on the retail market (issues such as attitudes and social norms, as well as the growth of the population), and the economic situation of the country in which a business operates, but also of the countries with which a business trades.

A PESTLE analysis looks at factors affecting the retail market that are often out of the business’s control, so by using a PESTLE analysis an organisation is able to put themselves in better stead for any events that may have an effect on the business.

For the purposes of this task I will use Matalan as a basis for my PESTLE.

Political Many political factors can affect a retail business, such as tax policies, employment laws, mean better rights for workers, they tend to mean bigger costs for companies, and this and the political stability of a country. All organisations must obey the law, and companies often results in businesses making redundancies in order to cover this cost. High street must try and predict how future legislation might affect business. Organisations are also stores such as Matalan also have a habit of hiring younger staff, as they are able to pay restricted by the rules and regulations of both the country in which they operate and also them less, although unlike other stores they steer clear of using zero hours contracts, as any countries with which they trade. Other policies that have no direct effect on these are seen as exploitative to workers. organisations can still have an indirect effect via their effect on the consumers themselves.

Tariffs The Bedroom Tax A tariff is a tax imposed on imports and exports, known as VAT (value added tax). In The bedroom tax was introduced in 2012 and reduces the amount of housing benefit a England this tax is 20% standard rate since 2011. The standard rate used to be 17.5%, and person receives if they are deemed to have more bedrooms than necessary in their in 2008 it was lowered to 15% in order to help stem the decline in consumer confidence household. If a person has one spare bedroom in their house their benefit is reduced by during the recession. It was returned to the original rate in 2010 but was then raised to 14%, and if a person has two or more spare rooms it is reduced by 25%. More than half a 20% in 2011 in an attempt to lower the UK’s deficit. The tax a company charges on their million claimants have been affected by this tax, with many people being forced to move goods and services is their output tax, whereas the tax the company pays their suppliers home. Others have claimed that they have been unable to afford food, electricity or for purchases and expenses is their input tax. Matalan will not only pay tax on the clothes heating due to the rise in the amount they have to pay (Larsson, 2015). This obviously they order to sell, but also on the raw materials they use, business equipment, business means that there is an affect on the retail business. Matalan, for instance, is a shop phone calls and professional services such as accountants’ fees. specifically aimed at families on a budget. If thousands of Matalan’s customers are affected by the bedroom tax to such an extent that they struggle to get by, then this has an effect Political Stability A lack of political stability in a country can affect businesses not only in that country but on the company’s sales. As a result Matalan will have had to account for this decline in sales, either through buying in less stock or sourcing and selling at a cheaper price in the also worldwide. Factors such as the price of oil can affect a companies ability to move products, and the political stability of a country can also have an effect on workers’ rights, hopes of still bringing in the customers. which may lead to extremely cheap labour in some countries. The collapse of the Rana Employment Laws Plaza factory highlighted the dire conditions in which people work in these poorer Employment laws are put in place by the government to ensure that workers have access countries. Since this collapse Matalan have actually invested in a number of initiatives to to certain rights in the workplace. These directly affect companies such as Matalan as all help families living in Bangladesh. They worked in partnership with BRAC to support the companies have to adhere to these laws. Factors such as the national minimum wage, families involved in the incident, providing medical insurance and also contributing to a holiday leave and the workplace pension scheme all mean that companies are obliged to Monthly Reserve Fund in order to ensure a regular income for the families. However, the pay a certain amount, and the rise in national minimum wage and the introduction of the store have been accused of not doing enough, and paying only a derisory amount into the workplace pension scheme mean that this amount continues to grow. While these factors fund set up for the victims (Murphy & McGovern, 2014).

Larsson, N. (2015). 'We've had to go without food' – personal stories of the bedroom tax​. [online] the Guardian. Available at: http://www.theguardian.com/housing-network/2015/oct/14/bedroom-tax-social-housingtenants-my-spare-room [Accessed 22 Oct. 2015].

Murphy, J. & McGovern, A. (2014). Matalan have bowed to pressure over Rana Plaza, but the campaign goes on. [online] Available at: http://www.newstatesman.com/politics/2014/07/matalan-have-bowed-pressure-overrana-plaza-campaign-goes [Accessed 22 Oct. 2015].

Economic Issues: Matalan Unemployment Rate Retailers find it difficult during uncertain times, because they need customers to buy their products. After the recession in 2008, when unemployment rates where high, a lot of establish retailers were swallowed up, e.g Woolworths. It is important for retailers that people have jobs, and have money to spend.

E-Commerce With retailers like Matalan, who have been around for thirty years, there is an increase in online shopping. In 2011, Matalan hired a new head of online, to expand their ranges that are available on their online store. Online shopping is a lot easier for consumers, and they can purchase items at anytime of the day, not within set store hours. Retailers have to open longer, and earlier, to accommodate the new behaviour of consumers.

Data Tracking A lot of stores now have apps that can be downloaded in store, and the consumer can order something the store doesn’t have with the touch of a button. In Matalan, they encourage shoppers to download the reward app in store, to get an instant 10% code to scan that day at the till. Getting data about their customer to analyse, helps them track the buying habits and lifestyle habits of their customer.

Family Values No matter what the economic weather, Matalan and other value retailers have to keep their prices low, and therefore they must keep their costs low. This could mean hiring more young workers on zero hour contracts; they can hire a 16 year old on £3.87 an hour, as opposed to an adult at £6.70 an hour (as of October 2015). They can keep their costs down doing this, however customer services, and reliability of the workforce can decrease.

Insightdiy.co.uk, (2015). Matalan announces new hire to maximise ecommerce revenue. [online] Available at: http://www.insightdiy.co.uk/news/matalan-announces-new-hire-to-maximise-ecommerce-revenue/1242.htm [Accessed 21 Oct. 2015].

Gov.uk, (2015). New National Minimum Wage rates announced - Press releases - GOV.UK. [online] Available at: https://www.gov.uk/government/news/new-national-minimum-wage-rates-announced [Accessed 21 Oct. 2015].

Baker, L. (2000). Matalan aims to maintain unrivalled growth. [online] The Independent. Available at: http://www.independent.co.uk/news/business/news/matalan-aims-to-maintain-unrivalled-growth-623589.html [Accessed 21 Oct. 2015].

Matalan is the most highly rated company in the retail sector; In 2011, they had a 60% increase in growth, and it is still growing as of 2015. Matalan is the sixth most valuable retail company in the UK, their clothing sales make up for over 80% in group profits. They’ve gained market shared from retail giants like Marks and Spencer. Matalan continue to increase the stores they open, and in 2012 opened their first ever high street store in Liverpool Williamson Square. This levelled their competitors, and has increased interest in investment outside the UK. They also opened a store on Oxford Street, London, in 2014. Growing online, and using technology, is where they are focusing their efforts currently. They are boosting the British economy by hiring more staff, and developing new products. They recently opened an second online site that specialises in bathroom and bedroom furniture at low prices.

This slide was made by Abigail as part of our group project.

Social Issues: Matalan Cost inflation There is an increase in British companies outsourcing manufacturing, and selling it cheaper in the store because of this, however the increased costs of transporting the products from overseas and the importing and exporting of those materials during pre-production, has caused greater costs.

Corporate Social Responsibility Stakeholders in retail companies are more aware that the public, their consumers, want transparency. They want their money to be involved in ethical business practices; responsible sourcing, understand the environmental risks of importing and exporting materials across the globe.

Buying Behaviours What do consumers want? Do they prefer value shopping, high end products? This will affect the cost of the materials and how high the price margin will be when we sell them. They have to appeal to a customer where their spending habits aren’t consistent.

Human Resources Not only do they have to be aware of environmental factors, but also sociology factors; pension schemes, bonuses, rewards for boardroom staff etc. They have to appeal to their workers by paying them a decent wage, and give them a decent retirement fund, but they also have to provide value for their customer.

Taxes VAT increases, can this affect a value retailer? If you want to provide on trend products cheaper than your competitors, then you have to take into account any increase in VAT. In 2011, the government increased VAT from 17.5% to 20%. This affected the lower income families more than anyone.

Matalan.co.uk, (2015). About Matalan - Matalan. [online] Available at: http://www.matalan.co.uk/corporate/about-matalan [Accessed 21 Oct. 2015].

BBC News, (2015). VAT rate rises from 17.5% to 20% - BBC News. [online] Available at: http://www.bbc.co.uk/news/business12099638 [Accessed 21 Oct. 2015].

Matalan is a value retailer. Their slogan ‘Made for Modern Families’ is used in cross-promotion on television, and newspapers. They appeal to working class families, and young families. They keep on trend, and have a constant range of basic essentials like vest tops, blouses, and work wear. They also are affiliated with local job centres across the country, and provide a ‘New Deal’ for job seekers who can’t afford to buy an outfit for an interview or a job. They frequently have sales, and send out vouchers in ‘mailers’ every season, encouraging shoppers to buy into their new designs with 20% vouchers as part of their free ‘Reward Card’ that rewards customers for shopping with them. You can also recoup the VAT off the clothes you buy if you are a tourist.

Matalan was involved in the Bangladesh factory collapse, and have since partnered up with the Hope Foundation, and have built a School of Hope that provides education to children in Bangladesh. They were not involved with the Ranza factory collapse, they had only used it to create a small amount of samples. However, they knew that any affiliation would be bad, and they decided to release a statement conveying their distress and how they would offer financial help, and charity, to the families involved.

This slide was made by Abigail as part of our group project.

Economic & Social Abi’s research on the economic issues surrounding Matalan demonstrates the number of ways in which the economy of a country can affect the retail environment. The financial state of the general population has a huge impact on the retail environment because without people spending money stores cease to exist. She has also demonstrated how stores are able to utilise economic patterns such as the habits of consumers to boost sales. Technology plays a big part in this, with customers now being able to shop anywhere at any time, and stores being able to easily collect customer data. Stores are also able to use economic laws to reduce their costs, such as hiring younger staff so that they are able to pay them less per hour. Shorter contracts are another way stores can reduce staff costs, as this reduces holiday pay, and stores are able to get the most out of their staff for the least amount of money.

Abi’s research on the social issues surrounding Matalan show just how far and wide the issues spread, with both national and international issues affecting retailers. Stores have to consider all the issues surrounding their staff and their customer, and be seen to be treating them responsibly. They must account for financial difficulties among their customer, such as those that come with an increase in the VAT, and be seen to be providing the best service possible for them. They must also be seen treating their staff respectably, and not pass on value to the customer at the expense of the staff. The public’s concern for human welfare does not stop at their borders however, and companies are also under a lot of pressure to be seen treating their staff across the world in a good manner. Companies associated with suppliers with poor human rights records will be ostracised for the exploitation of workers, and retailers need to be able to judge how much their customer is willing to pay for responsibly sourced clothing. This also includes concerns about the environment, and how eco-friendly a company is in their sourcing, manufacturing and transporting of garments.

Technological Technology plays a huge role in the retail business nowadays. With the rise of social media society today is saturated with advertisements, and advances in technology over the last few years have meant that it is now possible to access the retail environment and make purchases anywhere and everywhere with considerable ease. Things such as video blogs, Instagram and Twitter are now a part of every day life for many people and can have a massive impact, either positive or negative, on the retail sector. Even aspects such as payment are now becoming even more technological, with contactless cards and mobile payments becoming increasingly popular. All these aspects, however much they appear to ease the experience of buying and selling, seem to also make it a less personal experience.

Technology seems to speed everything up these days so that people are living faster, busier lives each day while reducing social contact to a minimum.

Matalan Direct is to be able to offer everything you need to complete your home with just the click of a button” (Wilmore, 2015).

Reward Card App Matalan now offer an app that, for many customers, replaces the need for a plastic reward card. This means that customers can access discounts and excusive offers on the go, without the need to remember to bring any paper vouchers from home. It also reduces the level of clutter a customer might have in his or her purse, which will ultimately mean the customer is happier. This maximises sales for the company as it is easier for customers to take advantage of the offers available.

Social Media Social media’s role in retail sales is growing, through aspects such as embedded ‘buy’ buttons on posts that drive direct sales, or through referring traffic to retailers’ websites.

Matalan have effectively utilised social media to drive sales in campaigns such as the Alphabet Scarf, whereby all the proceeds from the sale of these scarves went to Alder Hey Children’s Hospital, and various celebrities posted photos of themselves wearing the scarves on social media sites to promote the campaign (Kent, 2014). Abbey Clancy also promoted her collaboration range with Matalan on Instagram, another example of how social media has aided the retail sector. Social media is beginning to play such a big role within the retail sector that Matalan, like many other stores, now have dedicated employees working with social media sites such as ‘PR & Social Media Manager’.

Online Shopping Online shopping is now a massive part of the retail industry, with many online only retailers now on the scene. Matalan have taken full advantage of the popularity of online shopping, offering home delivery, free click and collect and easy returns either by post or in store. All this aims to make the online shopping experience as easy as possible. Revenue from online sales means that more money is coming in where no money is needed for rent or utility bills, and this means that shops are often able to branch out into areas that their high street stores usually restrict. Matalan, for example, now offer Matalan Direct, which is online only and stocks a wide range of homeware such as household furniture and decorative items such as rugs and curtains. This also drives online sales because consumers find themselves on their website as they are unable to browse these products on the high street. Chief executive of Matalan Direct, Shane Quigley, said “The ultimate goal for Kent, David. (2014). Wayne Rooney wears alphabet scarves in aid of Alder Hey Hospital. [online] Available at: http://www.dailymail.co.uk/sport/article-2811186/Wayne-Rooney-Brendan-Rodgers-Britney-Spears-wearalphabet-scarves-aid-Alder-Hey-Children-s-Hospital.html [Accessed 22 Oct. 2015].

Wilmore, J. (2015). Matalan Direct unveils beds and bedroom furniture ranges. [online] Retail-week.com. Available at: http://www.retail-week.com/sectors/general-merchandise/matalan-direct-unveils-beds-and-bedroomfurniture-ranges/5079166.article?blocktitle=Matalan:-Latest-news-and-insight&contentID=9569 [Accessed 22 Oct. 2015].

This slide was made by Daniella as part of our group project.

This slide was made by Daniella as part of our group project.

Legal Daniella’s research on legal issues surrounding the retail industry highlights the variety of concerns that the industry faces, from legal battles with other companies to global issues. Copyright issues are something that high street retailers often face, especially fast fashion brands. Often the argument seems petty, or forced, but in cases such as these it is important for a company to protect their interests, as another company copying something of theirs can take profits away from them. Copyright cases often go to court, and if a retailer is found to be guilty of copyright infringement there is usually a financial penalty. In some cases the company is merely requested to remove the stock in question from sale, and if they oblige then no payment is required. In either case, however, there is a loss for the company, whether because they have had to pay a fine or simply because they have had to destroy stock. It is important therefore that companies are careful to avoid such issues in order to keep their profits up.

With regards to global issues, companies are under more and more pressure these days to provide safe and fair working conditions for workers not only in the UK but around the world. Since the collapse of the Rana Plaza building there has been an increase in public demand for measures to be in place that will ensure the safety of workers. Companies such as Matalan want to be seen by the public to be complying with such measures, otherwise they could face a backlash from their customers and find that people begin to boycott the brand. By signing agreements such as The Bangladesh Accord, companies are publicly committing to ensuring suitable conditions for their factory workers around the world.

ENVIRONMENTAL

This slide was made by Alice as part of our group project.

The environmental factor of a PESTLE is important as it is the effect that industry can have on the environment and the effect the environment can have on the industry and a company.

Now a days companies are being more environmentally aware of the effect there business may have on the environment. The carbon foot print is something that is bought to companies attention as it is produced through everything from transport, electricity and manufacturing.

One of the main producers of carbon dioxide into the atmosphere is travel. So companies will have to ask them selves, which form of travel is best? Whilst it might be cheaper to send products by boat and larger quantities being able to be shipped at once, it takes a longer time and might cause more harm than a plane.

An old article from the Guardian newspaper asks weather cruising is any greener than flying.

Looking at some of the facts from the article, it turns out that travelling by boat produces more carbon emissions than flying. Along with the carbon emissions also come the effect that the boat has on the ocean.

Deciding on which form of transport to take is something that a company should be more considerate of. Not only does their decision affect the environment from the ocean to its inhabitants, along with affecting the atmosphere from planes, but they could also face back lash if something was to go wrong. For example if the boat transporting goods was to have a fuel leak, it could lead to negative reports and raise questions like, why were they using that form of transport? This could then affect any future sales and business plans.

http://www.theguardian.com/travel/2006/dec/20/cruises.green

Other major environmental factors that companies should take into considerations, especially in the fashion industry, is the way in which they dye their materials.

One of the largest problems the fashion and textiles industry has, is in the way that fabric is dyed and the effect that it has on the environment. The textile industry causes a large amount of water pollution.

According to this article by Fathima Quaraishi, the textiles industry is responsible for up 20% of global industrial water pollution.

An article in the guardian talks about this issue and how it can be combated.

There is a way of dying fabric that uses less water. It also uses less chemicals. This new eco friendly way of dying is by using air to disperse the dye and is called dry dye.

https://prezi.com/rvvpesph3k5g/the-textile-industry-and-its-impact-on-the-environment/

Leading sporting brand Addidas has jumped on board with dry dye, which uses less chemicals, less energy and less water. Other ways in which Addidas are working forward to produce environmentally friendly clothing is by avoiding oil based plastics and using thinner or lighter materials which produces less wastes and a lower carbon emissions.

http://www.theguardian.com/sustainable-business/dyeing-textile-sector-water-risks-adidas

This slide was made by Alice as part of our group project.

Environmental Alice’s research on the impact of the fashion industry on our environment highlights just how detrimental the industry can be. The effects of the fashion industry on the environment are often not thought of by a great many consumers: when questioning the ethical standards of a fashion retailer the majority of consumers will think only of sweatshops and the exploitation of workers. Her research shows however that the processes used in manufacturing, as well as the methods of shipping products from one place to another, have a huge impact on the environment. Processes such as dying fabrics can lead to water pollution. Chemicals that are used in the dyes create waste that is then dumped into the water supply. Chemicals used in places such as leather tanneries also cause water pollution. The use of water itself is also a concern, as it is in short supply in a number of countries around the world. Some fashion companies now use “dry dye” as a way of reducing their water usage. This method also apparently wastes much less dye and therefore less chemicals are introduced to the water supply.

Companies have had to adopt methods such as these because of a growing demand to make their production processes less harmful to the environment. Alice’s research also shows us the harmful impact that shipping can have on the environment. As many fashion retailers manufacture their products abroad, stock has to be transported either by air or by sea. This leaves a massive carbon footprint, and fashion retailers are now under pressure to find ways to drastically reduce their carbon footprint.

PESTLE

BBC News, (2015). Primark investigates claim of 'cry for help' note in trousers - BBC News. [online] Available at: http://www.bbc.co.uk/news/uk-northern-ireland-28018137 [Accessed 22 Oct. 2015].

Primark.com, (2015). Primark - How Can Primark Offer The Lowest Prices On The High Street?. [online] Available at: http://www.primark.com/en/our-ethics/questions-and-answers/how-can-primark-offer-the-lowest-priceson-the-high-street [Accessed 22 Oct. 2015].

Siegle, L. (2013). Primark: How ethical are your clothes?. [online] the Guardian. Available at: http://www.theguardian.com/environment/2013/oct/06/ethical-high-street-clothes-primark [Accessed 22 Oct. 2015].

edie.net, (2015). Primark strengthens supply chain sustainability. [online] Available at: http://www.edie.net/news/6/Primark-to-beef-up-supplychain-sustainability/ [Accessed 22 Oct. 2015].

Mail Online, (2011). Primark forced into out-of-court settlement after ANOTHER 'insulting' design plagiarism. [online] Available at: http://www.dailymail.co.uk/femail/article-1355937/Primark-forced-court-settlement-ANOTHER-insulting-design-plagiarism.html [Accessed 22 Oct. 2015].

Shankleman, J. (2014). Primark pledges to phase out toxic chemicals. [online] Businessgreen.com. Available at: http://www.businessgreen.com/bg/news/2327831/primark-pledges-to-phase-out-toxic-chemicals [Accessed 22 Oct. 2015].

Smith, K. (2014). UK: Primark launches investigation after wool probe. [online] Just-style.com. Available at: http://www.juststyle.com/news/primark-launches-investigation-after-wool-probe_id122312.aspx [Accessed 22 Oct. 2015].

Primark are among many brands that have succumbed to pressure recently to take steps to improve their environmental impact. Reports of toxic chemicals found in the water around the factories in which garments are produced, and even reports that traces of these chemicals were found on the clothes on sale, prompted Primark to commit to a reduction in the use of these chemicals, with the aim to eliminate their use completely by 2020. The company are keen to promote their environment-friendly ethos, and have a webpage dedicated to explaining how they achieve this, through working with farmers, factories and through their use of recycling.

The issue of chemicals used in garment factories affects the Buyer because it is down to the Buyer to source these factories, and to ensure that they are doing business in an environmentally friendly way. A Buyer should be aware of how business is being conducted and this includes the materials and processes being used in their factories.

Potential impact: Medium

Time frame: Ongoing Type of impact: Positive Blueandgreentomorrow.com,. 'Primark To Eliminate Hazardous Chemicals From Clothes By 2020 - Blue And Green Tomorrow'. N.p., 2015. Web. 30 Oct. 2015.

PESTLE

Slideshare.net, (2014). Marks & Spencer Strategic Analysis. [online] Available at: http://www.slideshare.net/flevydocs/marks-spencer-strategic-analysis [Accessed 22 Oct. 2015].

Corporate.marksandspencer.com, (2015). Plan A. [online] Available at: http://corporate.marksandspencer.com/plan-a [Accessed 22 Oct. 2015].

BBC News, (2014). Protest in Slough against M&S work conditions at Swindon warehouse - BBC News. [online] Available at: http://www.bbc.co.uk/news/uk-england-berkshire-30098041 [Accessed 22 Oct. 2015].

Finch, J. (2006). M&S tops up commitment to Fairtrade. [online] the Guardian. Available at: http://www.theguardian.com/business/2006/mar/06/marksspencer.fairtrade [Accessed 22 Oct. 2015].

Smithers, R. (2012). M&S becomes 'carbon neutral'. [online] the Guardian. Available at: http://www.theguardian.com/environment/2012/jun/07/marks-spencer-carbon-neutralsustainability [Accessed 22 Oct. 2015].

Corporate.marksandspencer.com, (2015). Cruelty Free Beauty. [online] Available at: http://corporate.marksandspencer.com/plan-a/our-stories/about-our-sourcing/cruelty-free-beauty [Accessed 22 Oct. 2015].

Fagge, N. (2014). Artist accuses M&S of copying her design. [online] Mail Online. Available at: http://www.dailymail.co.uk/news/article-2566331/Artist-accuses-M-S-copying-design-Legal-battle-framed-wall-prints-designerssays-identical.html [Accessed 22 Oct. 2015].

Neville, S. (2015). M&S boss Marc Bolland backs George Osborne's Sunday trading overhaul. [online] Evening Standard. Available at: http://www.standard.co.uk/business/business-news/ms-boss-marc-bolland-backs-georgeosbornes-sunday-trading-overhaul-10371000.html [Accessed 22 Oct. 2015].

The retail sector is constantly affected by the politics of the country in which it operates. In this instance, Marks & Spencer welcome the new proposal from the Chancellor of the Exchequer, which would see Sunday trading laws relaxed. The company has been careful to stress that they would only put this into practice “if the area demanded it� (Neville, 2015). As it stands, the retailer is currently only allowed by law to open for six hours on a Sunday. If Sunday trading laws are relaxed by the government then M&S would be able to open longer, thus bringing in more sales.

A rise in sales would mean a quicker turnover of stock, so the Buyer would have to ensure that a suitable amount of stock is manufactured and supplied to the stores in question. This would have to be done in advance, so the Buyer would need to anticipate the levels of stock required, presumably with the help of the merchandising department.

Potential impact: Medium Time frame: Ongoing Type of impact: Positive

Neville, S. (2015). M&S boss Marc Bolland backs George Osborne's Sunday trading overhaul. [online] Evening Standard. Available at: http://www.standard.co.uk/business/business-news/ms-boss-marc-bolland-backs-george-osbornes-sunday-trading-overhaul-10371000.html [Accessed 22 Oct. 2015].

Success in the retail sector is largely down to the state of the economy.

Sales rise when customers feel wealthier, and the rise in sales prompts a rise in share price, a rise in share price props up the economy, making customers feel better off. It is a cycle that the retail sector relies on. Of course, sales also rely on stock that is popular with customers, and M&S have rebranded themselves in recent years as a popular fashion outlet. This rise in popularity has led to more confidence in Marks & Spencer’s shares: “If my supercritical daughter thinks M&S is finally getting its fashion right, I reckoned there might be something in it” (Bartholomew, 2015).

As a Buyer, a rise in the company’s shares would mean a bigger budget with which to source stock. This would allow the Buyer to bring in stock in bigger quantities or to bring in more lines, or perhaps to spend more than usual on certain items.

Potential impact: Medium

Time frame: Ongoing Type of impact: Positive Bartholomew, James. ''When My Daughter Told Me M&S Was Fashionable Again, I Decided The Shares Were Too''. Telegraph.co.uk. N.p., 2015. Web. 30 Oct. 2015.

Marks & Spencer recently came under fire for not paying their employees a living wage; an issue that has been rife in the news over the past couple of years. In this instance an employee directly confronted the M&S chief executive. M&S is among a majority of retailers that do not pay their staff the living wage, however thanks to this incident the public eye is now on M&S to act on this issue. The employee in question stated that he was forced to leave M&S because he simply could not afford to continue working for them. This issue of a living wage affects employees nationwide and the vast majority of people want to see a living wage introduced.

If and when a living wage is introduced, it will mean that the company is spending more money paying its employees, and this may mean that other departments face cuts. This could mean that the Buyer could be faced with a lower budget to work with, or few staff assist in the Buying process.

Potential impact: Medium Rawlinson, Kevin. 'Worker Confronts M&S Chief Over 'Poverty Wages''. the Guardian. N.p., 2015. Web. 3 Nov. 2015.

Time frame: Ongoing Type of impact: Negative

In 2014 Marks & Spencer spent as much money on their Christmas ad campaign as they did in the previous year, but in 2014 much more of that money was geared towards promotional activity on social networking sites such as Twitter and Facebook, even launching their Christmas advert on social media sites before airing it on television.

This emphasis placed on social media is in order to get customers talking about the store. Having people up and down the country chatting about M&S is better advertising than anything shown on TV. Advertising on social media would not directly affect the Buyer, but an increase in sales would see an increase in profit and it would also mean that stock is flying off the shelves or leaving warehouses much quicker, and this would put more pressure on the Buyer to ensure that a large quantity of stock continues to be available.

Potential impact: Low Butler, Sarah. 'Marks & Spencer Ad Harnesses Social Media For A Fairy Christmas'. the Guardian. N.p., 2014.

Web. 3 Nov. 2015.

Time frame: Ongoing Type of impact: Positive

This article is just one example of how retailers are subject to the rules and regulations set about by government, and how laws affect both retail giants and small businesses alike: “Marks & Spencer was convicted of two charges under the Health and Safety at Work Act 1974 of failing to ensure the health and safety of its staff and others” (BBC News, 2011). It is important when running a business that care is taken at every stage to ensure that correct procedures are being carried out.

Indeed, most retailers conduct ‘Staying within the law’ tests every six months in order that their staff are up-to-date with current laws.

An issue such as this would not have a huge effect on the Buyer, as the Buyer is not responsible in any way for construction works being carried out in store. This would however highlight the importance of following the correct code of conduct, and of course the Buyer would take care to ensure that they do not agree to work with any businesses that are in breach of any laws, as this would then also reflect badly on the company.

Potential impact: Low

Time frame: Short BBC News,. 'Marks & Spencer Fined £1M Over Asbestos Risk - BBC News'. N.p., 2011. Web. 30 Oct. 2015.

Type of impact: Negative

Marks & Spencer have been at the forefront of environmentally friendly retail for many years, with numerous goals and ambitions detailing their work towards sustainability. In 2012 the company announced that it had become carbon neutral, as detailed in their Plan A manifesto that was launched five years previously. Environmental sustainability is of great concern to much of the general public nowadays and is a constant source of news for the media, so it is important that M&S are seen to be doing their bit. The retailer has gone to great lengths to ensure that the public know that they are an environmentally friendly company and continue to produce more targets to achieve sustainability: “The social and environmental issues addressed by M&S range from energy saving and carbon emissions to Fairtrade and animal welfare; from waste management to sustainable sourcing of timber and fish� (Smithers, 2012).

In order to comply with the company’s standards the Buyer will have to ensure that this eco-friendly ethos is adhered to at every stage of the Buying process.

This means that raw materials will have to be sustainably sourced, nothing goes to waste, and that no harmful processes are used in the manufacturing.

Potential impact: High Time frame: Ongoing Type of impact: Positive

Smithers, R. (2012). M&S becomes 'carbon neutral'. [online] the Guardian. Available at: http://www.theguardian.com/environment/2012/jun/07/marks-spencer-carbonneutral-sustainability [Accessed 22 Oct. 2015].

M&S and Primark PESTLE analyses Both Marks & Spencer and Primark are hugely successful retailers, although differing massively in their ethos. Primark have been the subject of much criticism for years for their supposedly abundant use of sweatshops, whereas M&S present an image of themselves as an extremely ethical company, promoting sustainability and workers’ rights. This shows in their prices, which are considerably higher than those of Primark. Primark however in recent years have done much to promote themselves as an ethical and environmentally sustainable company, even having pages on their website dedicated to detailing all the work they are doing with workers abroad to provide a better standard of living for them and their families. What I thought was notable when conducting my market research in M&S and Primark, was that the level of stock produced in countries such as Bangladesh and Sri Lanka, was much the same in both stores, which makes one wonder if the sourcing of garments by M&S is much better than that of Primark.

Both companies have also taken advantage of the rise of social media in recent years, with both having dedicated Facebook pages in which customers can interact with the store and each other. This is particularly useful for Primark as they do not spend much money on advertising campaigns, although M&S, while still spending a lot of adverts, have recently aimed a greater majority of their budget at social media campaigns. It seems that for both stores, the rise in social media has created a wonderfully versatile platform on which they can advertise. Staff in M&S also informed me that they have a social media platform exclusively for M&S staff, through which everything to do with the store can be communicated.

M&S and Primark have both come under fire for a number of copyright issues, proving that even the giants of the retail industry are not exempt from the laws

imposed on the UK by the government. Health and safety regulations have also been the cause of concern for both companies, as well as fair wages for workers. Another thing I picked up from my research was the age difference between the staff at M&S and the staff at Primark. In M&S the staff are much older and many of them have been there for years, with their wages increasing the longer they are with the company. Primark on the other hand have much younger staff, meaning that they are able to pay them a lot less.

This is another way in which Primark are able to give value to their customers.

It seems that both Primark and M&S are promoting themselves as ethical, environmentally friendly companies, while both coming under scrutiny for certain legal and ethical issues. Certainly M&S are seen to be the more ethical of the two retailers, but when one considers how much M&S spends on advertising and technology, and how little Primark spends on these things, it is not unfeasible to think that perhaps the two companies are spending a more similar amount on production than we might be lead to believe.

Primary research – photos The use of technology in M&S is advertised throughout the store, whereas I saw nothing of the sort in Primark.

Product labels from M&S and Primark. I was surprised to see that most M&S items are manufactured in the far east, including poppy broaches associated with the British Legion. I was also surprised to see items in Primark that were made in Britain.

Role of a Buyer - Research Customer – I will need to understand everything about my customer, such as the price Attending shows – As part of the trend forecasting process I should attend a number of they are willing to spend on clothes, their age, their interests and their buying patterns. shows in places such as Milan, New York and Paris. Trade shows, such as Magic, Bread & Knowing what is popular with my customers will help me better tailor what I order to Butter and Pure, and fashion weeks will be useful to me not only for discovering new their own interests. I must also know the needs of the customer, in order to understand styles and trends, but also for meeting new designers, purchasing stock, looking at what price range I should be aiming for, the quality the customer expects from the samples and forming new business links. Trade shows attract buyers and suppliers from store, and also the quantities in which I should be ordering stock. This will ensure that I across the globe, so I will be able to make business links in many different countries. do not order anything too expensive or in too big or small a quantity. If working for a Different countries are popular for different stages of production, such as India for company that has stores around the world, I will need to be aware that customers differ embellishment and China for finished goods, so I will need to bear in mind what I want from country to country, and each country will likely need at least one customer profile. from certain suppliers and where is best to look when I make these business links.

What is popular in one place may be unpopular in another, so I will need to pay close attention to sales figures, as well as trend forecasts, in each country.

PESTLE analysis – I should also consider outside factors that may effect the retail environment, such as legalities, political and economic issues and social concerns. This is Other product lines – I need to be aware of the ethos of my company, so that I will where global issues become a huge concern. I need to be aware of what is going on not purchase stock that is manufactured in a way that is in keeping with that ethos, and also only locally but also around the world. For example. If a country is embroiled in political so that I purchase stock that is well suited for that store. I should also be aware of what upheaval, it may not be appropriate or even possible to import goods from that country. other departments are selling, so that I can order stock that goes well with that of other I should visit the countries with which I am working in order to see for myself that the departments. correct rules and regulations are in place to ensure fair conditions for workers there.

Performance reviews – I will need to regularly review the performance of specific stores to see which stock is selling well or not so well in different stores, as sales of different merchandise may depend heavily on location. I will also need to analyse sales during discount and promotional periods to see how these offers affect sales.

Trend forecasting – I should be using various means to trend forecast, such as WGSN, celebrity influence, films/TV, fashion magazines and blogs, social media and street style.

I should be considering every little detail such as popular colours and shapes, as well as popular fabrics and styles. Directional shops will help me determine what is going to be popular in the months ahead based on what has been successful across the board, and this will put my store in a good position in the fashion market, meaning that the store will be providing the latest styles that are popular with the customer. A comp shop will also ensure that I am on target to compete with the applicable retailers based on popular trends and the right price range.

Role of a Buyer – Sourcing Location – There are a number of issues I must consider to do with the location of my suppliers. When dealing with suppliers abroad I will need to be aware of the different health and safety regulations in that country, I will need to have a means of communicating with the suppliers if they speak a different language, and I will need to be aware of different exchange rates. I will also have to bear in mind the costs of transporting stock from one county to another, and this will include customs charges and taxes. Visiting my suppliers is an integral part of the buying cycle, as I will need to see the products produced by these suppliers and communicate with them face-to-face to cement a good working relationship. Where the suppliers are based abroad, I will have to consider how I will communicate with them. One business strategy I could use would be to employ staff that are fluent in different languages, as this would save the cost of hiring a translator and would help to prevent any misunderstandings caused by the language barriers.

Branded – If I am buying in branded fashion I must make sure that the stock I am ordering is the real thing and not a fake, as ordering counterfeit stock will result in the warehouses being filled with stock that the stores cannot sell, which will of course mean a huge loss for the company. It is especially important that I get the best deal possible when buying in branded fashion, as other stores may be selling the same thing, and I will therefore need to be able to compete with them on price.

Copyright – If I am sourcing original designs for the company I must ensure that there are no copyright issues with things such as designs or prints, as this could lead to the company being embroiled in legal battles.

Conditions of suppliers – I will need to take care to ensure that I do not make business deals with suppliers that have poor human rights records. I should be visiting my suppliers regularly to ensure that workers there are working in suitable conditions and Raw materials – I will have to be aware of the materials used by suppliers and whether that the standards meet EU regulations. I should also work with the suppliers to ensure these are sustainably sourced and manufactured, for example whether these are their workers are being paid a fair wage. natural materials such as wool and cotton or whether they are synthetic. I should also consider what materials are suitable for sale in my store and whether these will fit in with what is popular within the company. The cost of different materials will also have a bearing on what I can order from suppliers.

Price – As said, the cost of materials will have an impact on what I can or cannot order. I will also have to take into account the mark up of the products to ensure that I am able to make a profit on stock. During the buying cycle I will have to negotiate with suppliers to get the best deal possible, in order to make as big a profit as possible. I will also need to account for shipping costs and customs taxes imposed during the delivery process.

Volume – I will need to consider how much stock is required to make sure that I do not order too much or too little. This will also mean I have to consider the amount of time it will take the suppliers to assemble the quantity required. Looking at previous sales figures will help me to determine a suitable quantity to order, as I will be able to see how much has sold or how much excess is left over and has had to be reduced for sale.

Role of a Buyer - Communication Suppliers – It is important that I communicate effectively with my suppliers, and on regular basis to ensure that we remain on target and that there are no issues with the products. Quality checks must be carried out to ensure that the colours and sizes are correct, and that the construction is up to scratch. By maintaining regular contact with my suppliers , any problems that arise can be swiftly resolved. As part of the sourcing process I will also need to negotiate the prices I will pay suppliers based on the quality of the products and the labour that goes into making them, as well as the quantities required and the dates for which I require them. It is important that I remain on good terms with my suppliers as ours is a mutually beneficial relationship. It is important that I am able to communicate with suppliers abroad by having staff that can speak the language or by having access to a translator.

Head office – I will need to liaise with other departments in head office, such as the merchandising department to help with calculating costs and budgets, the marketing department for advertising (I may for example need to provide samples for photoshoots or commercials), and the visual merchandising department to discuss exactly what garments need to be prominent in store and how these items should be targeted towards the customer. I will also need to be aware of what other departments are buying in so that my own range goes well with those of other departments, and I will need to be aware of deadlines that each department is working towards. The quality control will also be of vital importance in the sourcing process so I must make sure I maintain a good working relationship with this department in particular.

Designers – It is very important that I have strong working relationships with my designers as without them I have no products. I must be able to offer the designers, as with the suppliers, a suitable price for their efforts. I need to get the best price possible but I must be careful not to offend the designers, and so strong negotiation skills are essential.

Customers – I must be able to communicate with my customers in order to understand what it is that they want. They are at the heart of my role and they are who I am buying for. I must be confident that I am ordering stock that will be to their liking, and that will be within their price range. Things such as surveys and questionnaires will be useful for gaining knowledge of what my customers value and what they would like to see from the products.

Buying department - I must be able to communicate my ideas effectively within my own department as I will need to justify my choices to my peers and perhaps even persuade them of my arguments. I will need to appear respectful but confident to my superiors so that they have faith in my ideas, as well as to those working below me as I will need their respect to help the buying process move smoothly.

Fashion Buying Job Specifications Menswear Fashion Buyer

Childrenswear Assistant Buyer

Jewellery Head of Buying

Ladies Footwear Buyer

Sportswear Buyer/Merchandiser

I have shown here a number of job specifications for various positions within the Buying department. Most of the specifications require someone who has experience within the role in question, although a couple do not state such a demand. All however state that the ideal applicant should be aware of current and future trends and have a suburb eye for detail, as well as being able to work effectively within a team both on a small and a larger scale. The posts are all based in head office rather than on the shop floor, but the locations range from Dublin, through England, to Canada. The fact that companies abroad are advertising in the UK suggests that they are keen to find the best applicant possible and are willing to help people relocate in order to find someone suitable for the role.

None of these specifications state any formal qualifications required such as a degree in fashion buying. This is likely because the employers value relevant experience rather than an official qualification. This highlights to me the importance of securing a job within the fashion sector even at the very bottom if I want to aim for the top, as companies will only hire someone who is familiar with how business in fashion is conducted.

The salaries for a junior or an assistant buyer start at around ÂŁ20k, and go up to around ÂŁ60k for a senior role. Some of the specifications do not state a specific salary, as in many cases it will be dependant upon experience. Again, it is clear that experience within the sector is key. Although no formal qualifications are stated as necessary, it is clear from these specs that the ideal candidate must have excellent written, verbal and mathematical skills.

Buying Task “You know Topshop as the style setter and star of your wardrobe, but over the years we’ve become so much more! From the charities we sponsor to our work at London Fashion Week, our love of everything fashion knows no bounds!”

“Over the years we’ve built a strong bond with industry insiders and in 2002 we joined forces with NEWGEN, a scheme which allows us to foster new design talent and provide a global platform for the scene’s brightest new stars.”

Customer Demand Customer profile – First and foremost I need to know exactly for whom I am buying; the kinds of clothes they prefer, their budget, the frequency with which they shop for clothes, and any other shops that they buy from regularly. For the previous unit I surveyed a number of Topshop customers within the UK and made a customer profile, which follows this page. For other countries I will need to create more customer profiles, as these will differ from place to place.

fashion savvy consumers than Wakefield, and this will have an impact on the types of clothes that sell in Liverpool compared to those that sell in Wakefield.

Styling – I need to consider how my customers style their clothes, and make sure that I order a range that can be adapted to their styling preferences. Topshop has a variety of customers and each will want to wear their clothes in their own unique way. I must be able to provide clothes that cater to this need while still being typical of the Topshop Quality – I need to know what kind of quality my customer expects from Topshop, and brand. what they are willing to pay for it. For instance, will a customer consider a £20 top disposable or will they want to be able to wear it for years to come?

Global – Topshop has stores in countries all over the world, from Armenia to Sweden.

As the only high street retailer to be involved with London Fashion Week, it gets a huge Price range – I need to know what Topshop’s price range is, as I need to ensure that I amount of exposure across the globe. It is known the world over for its “eclectic British do not order anything in that is too expensive for my customers, or even too cheap. I style”, but as a buyer I will still need to be aware of the different tastes of each must make sure that the garments I order are the correct price for their level of quality country. Customers in Turkey, for example, may prefer to dress a little more modest and that the price matches other Topshop lines of similar quality. I have made a chart than customers in the UK, so I must ensure that I cater for the correct tastes in each of various Topshop items in order to clearly show their typical price range. location.

Key trends – I should pay close attention to what trends my customers are following, whether there is a particular trend that is popular with Topshop customers specifically or whether they follow a wide range of trends. I should look closely at the trends on the catwalk in order that I can filter these down to my range, as well celebrity trends, as these will appeal to my customers. Trends will differ in different countries, so I will need to be aware of what is going on in a global context. Something that is hugely popular in the UK may not be popular at all in the US, so I will need to plan my ranges accordingly to ensure the best possible profit is made in each individual location.

Location – I should take note of the varying trends across different cities and across the world, as this will affect what sells well in different stores. Global trends may be useful for inspiration but I must also look at what trends customers are following locally so that I can tailor my range best to their needs. Liverpool, for instance, has many more

Customer Profile Topshop is typically popular with women aged between 18-30, with an income ranging from £10,000-£40,000. It is aimed at women who are fashion conscious but are on a budget, and it has a number of lines designed for varying budgets. Its main competitors are Zara, H&M, French Connection and River Island.

This is Sarah, aged 24. She lives and works full time in York, earning just under £15,000 p/a. She has a moderate social life, usually going out with friends every other week. Her social activities include going to pubs and clubs, going to the cinema and going to festivals. In her own time she likes to stay active, usually through swimming or cycling, and she also likes to spend time reading. Her favourite type of food is Italian and her favourite band is Maroon 5, although she enjoys a wide range of music genres from industrial metal to pop. She takes care of her skin but does not spend a lot of time on it every day, usually just washing with Body Shop products and moisturising every day. On a daily basis she just wears mascara, usually Rimmel or Collection 2000, but if going out on an evening she likes to wear products by Mac, Clinique and No7. She washes her hair every day but just lets it air dry. If she’s going somewhere special she might spend up to an hour styling it. She likes to wear any style that suits her but is a particular fan of vintage inspired fashion. She will typically spend about £30 on an everyday outfit but for occasions she will usually spend £50-£70 on an outfit. She usually goes clothes shopping once a month and her favourite shops are Topshop, H&M and New Look.

Price range Bardot Skater Dress by Glamorous £20

Ribbed Cropped Cami £6

Plunge Neck Satin Dress

£58

Brunswick Velvet Cut-Out Dress £895

Embellished Neck Shell Top

Christos Shirt

By Unique

£36

£125

Petite Jet Pocket Cigarette Trousers

Ari Palazzo Trousers by Motel

£22

£39

Suede Trousers

£150

Bodycon Midi Co-ord Skirt by Rare

Faux Suede Navajo Lace Up Skirt by Jaded

Inverness Leather Skirt by Unique

£18

£38

£265

Short Belted Trench Jacket by Wal G

Aleen Faux Fur Collar Wool Coat by Jovonna

£33

£89

JACOBSON Drizzle Wellies

MEG Bone Heel Boots

£25

£79

Toascana Collar Coat By Boutique £350

Leather High Leg Boots by Unique £225

Market Trends Location – As I have already mentioned, location is key when thinking about trends, as especially among Topshop customers as they are of the age where they are completely these can differ from place to place. I must not only use trends from around the world familiar with social media platforms and use them every day. It is now easier than ever as inspiration but I must also consider trends that are popular within my area of to follow trends thanks to social media, with hundreds of fashion blogs on sites such as business as these are the ones for which my customers will be looking out. I should also Tumblr, Twitter and Pinterest. Topshop customers will visit these blogs to discover the think about the area directly around my store – the atmosphere and other shops latest trends and many will even take an active part in them, so I must be familiar with surrounding it – as this may have an effect on the type of customer that goes into the them all to stay up-to-date with the latest styles and to be able to predict what will store. become popular.

Directional shops – I should carry out directional shops because these will help me Street style – In today’s society there are few codes of conduct for dress; almost determine what has sold well recently and what has perhaps not been so successful. By anything goes. This means that people are free to express their individuality through doing this I can base my orders on what the customers obviously like, purchasing larger the way they dress, and we see many different styles on the high street today. By quantities of popular stock and reducing the quantities of stock that have not sold as looking at what people are wearing out and about I should be able to determine well. popular trends and take inspiration from the mash-up of styles that young people choose to convey. With the rise of globalisation people can now be influenced by street Comp shop – It is important that I see what my competitors are selling in order that I style from across the globe, so I must be on the lookout wherever I go. can effectively compete with them on the market. I should make sure that I am not missing out on any trends that the other shops have picked up on and I should also make sure that my price range is comparable to my competitors as I would not want to drive sales elsewhere with overly expensive prices.

Celebrity – Celebrity trends and influences are massive nowadays with thousands of consumers copying styles seen on celebrities such as Kim Kardashian and Miley Cyrus.

Topshop, for instance, are currently offering a range by Kendall and Kylie Jenner. As a buyer I need to be aware of the latest celebrity trends so that I do not miss out while another retailer such as River Island or Zara moves in with the latest dress or coat that everyone is after. Different celebrities will be popular in different countries, so I need to be aware of the different trends across the world. Someone hugely popular in the US, for example, may be unheard of in the UK. By using my knowledge of celebrity across the globe I will be able to tailor ranges to different customers around the world.

Social media – This also has a massive influence in the fashion industry today,

Comparative shop New Look AX Paris Dark Red Lace Skater Dress £35

River Island Black pattern skirt zip front Aline dress

Zara Suede dress £49.99

£60

New Look Petite Burgundy Fine Knit Zip Front Top £19.99

River Island

Zara

Blue print open wrap back shirt

Raw denim shirt

£38

£29.99

New Look

River Island

Only Black Abstract Print Sports Leggings

Black crepe wide leg palazzo trousers

£35

£50

New Look

Black Suede Trench Coat £99

Zara Faux leather biker trousers

£39.99

River Island Zara

Grey RI Studio brushed shearling gilet

Jacquard coat £79.99

£395

Store Policy Mission statement – “From our collaborations – think Christopher Kane and of charge. Item returns, whether by post or direct to the shop, are free of Kate Moss – to our fresh take on making new season pieces work for you, we’re charge: a full description of Topshop’s returns policy can be seen below. I also on a mission to bring style to you, wherever you are.” Topshop is at the need to be aware that, since Topshop extends it’s return policy during the forefront of affordable high street fashion, and aims to bring catwalk inspired Christmas period, I may be met with a greater quantity of returns in the period garments to the general public. immediately after Christmas.

Charities – Topshop works with a number of charities, and is currently VM – I will need to have good communication with the Visual Merchandising supporting Key To Freedom, Shelter Box, Fashion Targets Breast Cancer, Teenage department, and be aware of how different stores are laid out, and discuss with Cancer Trust, Age UK and Centre Point. Topshop helps support these various the VM department how things such as the layout of the store will affect sales. causes both through selling specially designed items with the proceeds going to the charities and through events such as sponsored sleep-outs, mobile soup kitchens and local musical events. As a buyer for Topshop it is of the utmost importance that I conduct business in a way which is in keeping with their charitable ethos and that I do not work with any companies that are in breach of this ethos.

Environmental – I must be aware of the company’s stance on environmental issues such as recycling and sustainability of raw materials. “We have long-term relationships with our suppliers and work with them to make lasting improvements to working, social and environmental conditions, like the livelihoods of the people who make our products, community involvement and the reduction of the environmental impact resulting from the manufacture, distribution and sale of our products” (Topshop.com).

Customer service – I should be aware of the company’s in store policies with regards to its customers. Topshop offers NUS students 10% discount, and it also offers a Topshop store card to customers. Another popular service that Topshop customers enjoy is personal shopping appointments, which are completely free

Financial Budget Daily projections – I must be aware as a buyer of sales figures for various stores, sells well. I will be able to review sales figures to determine the bestsellers and as this will not only have a bearing on what I specifically buy in for the stores, then work with this information to suitably divide my budget. If my budget is but also on the budget with which I am able to purchase stock. allocated only for swimwear, it will be easier to spread than if it were allocated to a wide range of womenswear.

Mark up – I must take into account the cost of manufacturing compared with the RRP of products, as this is where I should be turning a profit. The jumper on Turnover v. budget – I will need to be aware of the difference between the the bottom right, for example, retails at £29. The cost price of this would company’s gross income and net income, as this will have a big impact on my therefore be approximately £9.70 (Cost=RRP-60%/1.2). I will have to work with budget. For example, while Topshop may do £300 million of sales in a year, after the merchandising department to secure a budget, which I will then try and the cost of manufacturing, taxes, staff costs and store rent and bills, they may utilise to purchase the optimum amount of good quality stock. only make a profit of £100 million.

Exchange rates – When working with suppliers abroad I will need to consider differing exchange rates, and how these will affect my budget and profit margins. This will also require me to negotiate with the suppliers a deal that is beneficial to us both.

Reductions – I will need to review sales figures for Topshop to determine what is appropriate to put on sale and what should be kept at its original RRP. Items that are not selling well may benefit from a reduction in cost, especially if the store has a large quantity of said item. Bestsellers on the other hand need not be reduced, as it is best to get the most profit Overall budget – Topshop’s main budget is split over the two seasons. It is at the available from them. forefront of high street fashion, and as such pays close heed to the S/S and A/W collections seen on the catwalk. I must ensure that I use my budget effectively Audits – An audit will usually take place about once a year, in so that I am able to purchase stock throughout the year, but certainly during the order to check that the quantity of stock is correct, and also start of these two major seasons. to make sure that everything is priced correctly. I must, as a buyer, be able to understand the reports that come at the VAT – As a buyer I must be aware of all taxes that may be applied during the end of the audit and be able to utilise the information in buying and selling process. Not only must VAT be added to each garment but I them to use my budget to its full potential. will also need to pay customs taxes when ordering stock from abroad.

Stock management – It is important that I use my budget to buy a wide range of stock, and that I allocate the budget accordingly, so that I have more of what

Trend Research & Analysis Social media – As with market trends, social media platforms are a highly useful to be able to pick out key themes such as pattern, colour, shape and fabric, that tool for trend forecasting. As a buyer I am able to look at a number of websites, will filter down the high street. such as fashion blogs, world news and WGSN, to predict what trends will be popular in the months ahead. Topshop have their own blog with all kinds of Street style – Another popular way of determining future trends is by looking at articles on new designers, new trends, top fashion tips etc., and they encourage what the public are wearing, and noting if there are any particularly popular their customers to share their photos on Twitter and Instagram using fashions among young people. The age of Topshop’s target market make this #topshopstyle. This a fantastic way for buyers to interact with the customers as method all the more applicable to my role, as they have an active interest in they are able to see exactly what they are wearing and how they choose to sharing their fashion ideas and inspiration, as seen with the ‘topshopstyle’ wear the products. hashtag and the popularity of this platform.

Television/Celebrity – I must be able to look out for possible trends in the world Magazines – I should be looking frequently in fashion magazines such as Vogue, of TV and celebrity, as these are heavily influential on the public’s fashion Elle and Marie Claire, as these will provide me with many useful hints and tips choices. Celebrities have always been a source of fashion inspiration to their as to what trends we should expect to see in the coming months. Celebrity adoring fans, but now more than ever it is easier to dress like them. With fast magazines will also be of use to me as they will be a source of inspiration for fashion brands like Primark and H&M, something made popular by a celebrity celebrity trends. one week can be available on the high street 6 or 7 weeks later. I must therefore be quick to notice what is popular in the media and use my knowledge to Trade shows – Trade shows will be very important to me for my trend research predict what will be popular in store. I should also be keen to note which as I will be able to see directly what designers are doing and what sorts of celebrities themselves are trending, as this may provide opportunities for colours and fabrics are currently popular. collaborations between celebrities and Topshop, such as those with Kate Moss and Cara Delevigne, which have proved successful in the past.

Catwalk – As a buyer for Topshop I will already be involved in London fashion, but it is important that I visit many fashion shows and really get involved, so that I see a wide range of collections and what big name designers are doing.

Designer labels will play an important role in my trend research and I will need

Trade Shows Designers – Trade shows will provide me with an opportunity to meet new up and coming designers, as well as enable me to build relationships with other designers. I will be able to see their work first hand, which is invaluable.

Trend forecasting – As discussed previously, trend shows will be highly useful to me when trend forecasting, as I will be able to see first hand what fabrics, shapes and styles etc. are popular among designers.

Fabric choices – At trade shows I will be able to look closely at the different fabrics on offer. This will not only be of use to me when trend forecasting, but it will also mean that I am able to review a variety of choices before picking what fabrics to order, from which my stock will be made.

Frequency – There are many different trade shows across the globe every month, such as Denim by Premiere Vision in Barcelona, WOMAN in Paris and Moda in New York. As a buyer I must be willing to travel so that I can take full advantage of all they have to offer.

Pricing – I will be able to review the prices on offer at trade shows, such as the costs of different fabrics and the costs that different suppliers charge for them.

This will provide me with an opportunity to try and secure a good deal for the supplies I require.

Networking – As a buyer I will need to build a strong rapport with as many designers, suppliers and manufacturers as possible, and trade shows will provide me with the best opportunity for this as I will be able to speak with people directly.

Types of trade show – The types of trade show I would visit will depend on what I am buying, for instance whether I was buying for the footwear department in Topshop or just for Topshop in general. If I was buying for Topshop in general I would go to all kinds of trade shows such as womenswear, footwear and swimwear. However if I was buying solely for the footwear department I would have no reason to visit a swimwear trade show.

Sourcing & Negotiation Supplier Relationships & Communication Factories – Arcadia, which owns Topshop, works with factories operating in roughly 46 countries worldwide. The top five countries they work with are China, Turkey, Romania, Mauritius and India. As a buyer it is my job to find these factories and broker deals with them. I must ensure, therefore, that they meet health and safety regulations and provide their employees with a living wage. I will have to visit these factories myself so that I can see the conditions therein.

Raw materials – As a buyer for Topshop I will have to source raw materials to be used in the production of garments, and this will mean I have to decide whether to use natural or manmade fabrics. Both natural and manmade fabrics come with their own issues: for natural fabrics I will have to make sure they are sustainably sourced, and for manmade fabrics I will have to ensure that they are manufactured in a way that is environmentally sound. I should expect to pay more for fabrics where effort has been made to make sure they are eco-friendly, and therefore I will probably reserve these more expensive materials for Topshop’s highly quality lines.

Ethics – I must take care when sourcing fabrics and garments that I do not do business with any manufacturers or suppliers that are in breach of Topshop’s caring ethos. If I order stock from a factory that is later found out to be breaking Human Rights laws, this would reflect terribly on the company and may put my job at risk.

Regular contact – Good communication with my suppliers is key. I will ideally be in contact with suppliers every day, as this will mean that mistakes are kept to a minimum and I am kept aware of progress. I will be swiftly informed of any problems that arise during productions and this should mean that they can be resolved in a timely fashion without hindering production too much.

Respect – It is important that I have a good relationship with all my suppliers, as our business together is mutually beneficial. Topshop states on their website: “We are committed to building lasting relationships with everybody we deal with, be they a customer, an employee or one of our many suppliers, we know that these people are what makes Topshop great.” As a buyer for Topshop I must adhere to this code of conduct and take care to treat my suppliers with respect; in turn I will expect my suppliers to treat me in the same way.

Job Descriptions – Buying Environments Own label retailer

High street chain

Department store

When working as a buyer for a small independent label, one will have to know the company inside-out. The job will likely require the buyer to try their hand at everything, so the role will be quite varied. The buyer would be responsible for range planning first and foremost, but they may be required to help out with marketing and merchandising as well. They may also need to be able to approach other retailers about stocking their brand, and therefore good communication skills are very important.

As a buyer for a high street chain, you would need to be familiar with the ethos of the company so that you plan and buy your ranges accordingly. If working for a fast fashion company, range planning will be a quick process (about six weeks from start to finish), whereas a more expensive chain will probably work about a season ahead.

Due to the size of a department store, and the varying ranges that they sell, there will be a number of buyers, each working on their own department.

These would include own label, branded fashion and high street concessions. This would mean that a buyer for a department store would have a limited role, in that they will buy for a specific line, swimwear for example, while another buyer will deal with footwear.

This will mean that the buying department needs to communicate regularly with each other in order that their ranges do not clash.

This is a job description for Head of Buying for a jewellery retailer. We can see from the description that the buyer would be required to purchase jewellery from other brands but also develop product ranges. As this is a Head of Buying role, the successful applicant will be responsible for the entire buying process, as well as for a team of other buyers. This is therefore a managerial role.

The Head of Buying will also be required to work with the merchandising department, to develop and maintain relationships with suppliers, maximise sales and profitability, and be actively involved in the business.

Skills needed are extensive Buying and Merchandising experience, although not necessarily within jewellery, strong leadership skills, analytical and numerical skills and multi-site retail experience. The successful applicant will also be able to travel internationally.

This is a job description for an Assistant Buyer in a childrenswear department. The Assistant Buyer will have to maximise profit through effective sourcing, regularly review their supply chain, produce reports on their suppliers and their competitors, and help to build profitable ranges in conjunction with the Merchandising department.

The successful applicant will have previous buying and product development experience, and must be eager to learn and progress. They will also need a sound understanding of the buying principles and have good negotiation skills. Knowledge of the supply chain and product life cycle is also a must.

This is a job description for a fixed-term internship for Very, and the emphasis is very much on learning during the role. As part of the internship the applicant would work with a number of teams such as Buying, Merchandising and PR, in order to gain an understanding of how the entire process works, and they will have the opportunity to source and develop a range with support from the Buyer.

Main responsibilities will be typing up orders, collating images, uploading products to the portal, office admin, and managing trend presentations.

The successful applicant will be highly organised and have good time management, be hands on and versatile, possess an eagerness to progress, and be a competent user of Microsoft Excel, PowerPoint and Outlook.

How do these types of buyers job roles compare and contrast for the different retail environment?

Online specifically for the store that the concession is in. Therefore, the buyer A buyer for an online company will have similar duties to a buyer for a high needs to be able to determine what kinds of products on offer from the street chain, but there will be no interaction at any point with the concession company will be popular in the allocated store. This means that customer. The buyer will be responsible for sourcing and building ranges, the buyer needs to have knowledge on two separate sets of customers. and they must adhere to the company’s ethos and make sure all their stock fits in with the company’s theme. As everything is sold online, and customers cannot browse the products in person, the buyer must work with photographers and writers to try and portray the product on the website as accurately as possible.

Wholesale A wholesale buyer acts as a sort of middleman between suppliers and retailers. Their role is to source and build ranges, which they will then sell onto retailers who will sell it at an RRP. Because the wholesalers are selling onto other retailers, the buyers will need to try and source garments for the cheapest price possible. This means that they need to have extremely good negotiation skills, not only for buying off their suppliers but also for selling on to retailers, as in this situation they will want to get the highest price possible.

Concession A buyer for a concession will need to have a knowledge not only of the concession they are working on but also of the store the concession is in.

They will be hired by the company of the concession, but to buy in

Merchandising job specifications

This is a job description for a Merchandiser for luxury fashion retailer. With a mid-range salary, this role requires the Merchandiser to be responsible for seasonal planning for a department, to carry out regular sales analyses and reviews, and to communicate action plans to the board of directors.

The successful candidate must have experience of working as a Merchandiser for a fashion retailer , and an eagerness to further their career. Junior Merchandisers will also be considered if they have an excellent record. This demonstrates that the company are very keen on finding someone who has good experience. The successful candidate must also be a highly competent user of Excel and WSSI.

This a job description for an Entry Level Assistant Merchandiser. The salary starts at ÂŁ20k, which seems to be typical for a someone beginning a career in Merchandising.

The successful candidate will be working under the direction of the Junior Merchandiser, and will be responsible for managing WSSI’s and allocation of funds. They will also have to liaise with the Buying and the Visual Merchandising departments on things such as sales targets and performance.

The applicant must have excellent Excel skills, as well as excellent communication, numerical and analytical skills.

They must also be prepared to work under pressure and have good time management skills, which demonstrates the demanding nature of the role.

This is a job description for a Senior Merchandiser for ladieswear.

The salary starts at ÂŁ60k, which is common for a senior role such as this, and hints as to the skills, experience and level of work required.

The Senior Merchandiser will be responsible for department strategy, reviewing performance and identifying areas for improvement, and working alongside the Senior Buyer to deliver margin targets. They will also be responsible for the development of other Merchandisers.

The successful candidate will already be operating at a senior level and will have experience working within a fast paced high street retailer. They must also have a good track record for delivering excellent results.

Buying and Merchandising Environments Buyers and merchandisers work closely together during the buying cycle to ensure the maximum profit is reached, but the individual departments have separate responsibilities. The buying department is responsible for building the range, whether that involves any design aspect or if it is just buying in branded fashion. A buyer will know what the customer wants and how much they are willing to pay. They are responsible for trend forecasting and carrying out comparative shops, in order to ensure that the store is offering the right clothing to its target customer. The buyer is also responsible for sourcing the garments, and maintaining communication with suppliers around the world. This will often involve trips abroad to see suppliers’ factories, through which they can assess the suitability of using that supplier. Trend forecasting will often require the buyer to travel as well, as they will need to visit trade shows around the world and also attend various fashion weeks such as those in Milan and New York.

The merchandising department are responsible for the budget given to the buyer. They use previous sales figures to determine how much the buyer can spend on future collections and how the amount is most effectively divided. A merchandiser is also responsible for stock allocation. This means that they will review what the buying department has ordered and will work with the buyer to decide what quantities of stock should be ordered and how much of certain items should be sent to every different store. They will need good mathematical knowledge in order to best divide the budget and allocate stock across each store. By looking at the sales performance of individual stores they can also decipher what items ought to be reduced and what items will sell through at full price.

The buyers and merchandisers work hand in hand to maximise profits for the retailer. The buyers know what the customers want, and the merchandisers know what they buyers can afford. By working together they can decide what garments are best to purchase in higher quantities and what garments should only be bought in limited amounts. This way they can buy more of what will sell well and this will mean that the store makes as big a profit as possible.

Organisation chart – Head office Company Director

Head of Buying

Head of Merchandising

Head of Marketing

Head of Finance

Head of PR

Head of HR

Head of Customer Service

Head of Health & Safety

Buying Manager

Merchandising Manager

Marketing Manager

Finance Manager

PR Manager

HR Manager

Customer Service Manager

Health & Safety Manager

Senior Buyer

Senior Merchandiser

Senior Marketer

Senior Accountant

Senior PR Advisor

Senior HR Advisor

Senior Customer Service Advisor

Senior Health & Safety Advisor

Buyer

Merchandiser

Marketer

Accountant

PR Advisor

HR Advisor

Customer Service Advisor

Health & Safety Advisor

Assistant Buyer

Assistant Merchandiser

Assistant Marketer

Assistant Accountant

Assistant PR Advisor

Assistant HR Advisor

Assistant Customer Service Advisor

Assistant Health & Safety Advisor

Junior Buyer

Junior Merchandiser

Junior Marketer

Junior Accountant

Junior PR Advisor

Junior HR Advisor

Junior Customer Service Advisor

Junior Health & Safety Advisor

Organisation chart – Shop floor Area Manager Store Manager

Assistant Manager

Stockroom Manager Security

Department Managers

Stockroom Assistants

Supervisors Team Leaders Sales Assistants

Cleaner

Analyse the significance of and critically evaluate different buying environments (Head Office & Shop Floor) found in fashion retail.

Within head office there are a number of different environments: buying, merchandising, them, going over what has and what has not been successful in recent months. design, marketing, finance, customer service and quality control or technologists. Head office is at the heart of a retail company as it is where all major decisions are made, such Design as budgets and financial planning. It is the nucleus of the business, where all departments The Design department is the creative side of the company, without whom there would are able to communicate and work together easily. be no own brand products to sell. They introduce new ideas to the company, but are familiar with the brand identity, and so are able to maintain it through clever use of Buying design. The designers have fabric and production knowledge, so they know what will and The buyers create and build ranges. They are integral to the success of fashion retail as will not work. With this knowledge they are able to advise the buyers on what fabrics to they are the ones doing the trend forecasting. By doing this they are able to keep the buy in and how to have the products manufactured. By working with the Buying brand current and maximise sales by keeping up with the company’s competitors and department, the design team are able to utilize their expertise to keep down the cost overcoming the threat that those competitors pose. As well keeping the brand on trend, price and to maximise profit. The buyer, as the one who does the trend forecasting, may they are also able to look out for opportunities to expand the range, for example by have to reign the designers in from time to time, but by working together the Buying and identifying niches in the market. The also build and maintain relationships with suppliers, the Design departments are able to create new ranges that are profitable and on trend. usually getting the best deal possible for the company with regards to sourcing products.

As part of their sourcing role, they have an understanding of all ethical issues that might Marketing affect their company, such as sustainability and workers’ rights. Buyers who also speak The Marketing department are responsible for promoting the brand to the consumer, and foreign languages are also invaluable to a company, as many companies source their also for collections consumer data that they can use to maximise profit. By conducting products from abroad. customer surveys and collecting date from platforms such as social media, they are able to better understand the customer, and are therefore able to advertise their product in a Merchandising way that is suited to their target market. They are also able to work with the Buying The Merchandising department are responsible for building sales reports in order to department to help them understand what the customer requires. Marketers are not only maximise profit. They allocate budgets to the relevant departments, such as the Buying able to use social media as a way of collecting customer date, but they can also use it as a department, to ensure that there is no excess loss of finances. They are also responsible platform for free advertising, by getting people talking about the brand online and for stock allocation, so that stock is accessible where it needs to be, but also that no creating a buzz that surrounds the brand. Through their advertising they also promote the stores have any excess stock that they can’t shift. The merchandisers work with the brand identity, and are able to link this to their target consumer. The Buying department buyers to help them order the right amount of stock, by discussing sales figures with will need to

communicate regularly with the Marketing department to ensure that the ranges are marketed in the correct fashion and toward the correct target market. They will also need to liaise on issues such as photoshoots and commercials in order to provide sample products to the Marketing department for such events.

they are largely responsible for processing returns. It is therefore the responsibility of the sales assistants to ensure that all returns are processed correctly and that any customer details required are taken. Processing returns correctly is hugely important, as buyers and merchandisers will analyse returns figures to see if there are any items that need reviewing. For example, if a particular item has been processed as a faulty return in high numbers, this would prompt the buying department to review their supply chain.

Technologists The technologists are responsible for ensuring that the products are fit for purpose before they are sent out for sale. They will work with the Buying department during the Supervisors/Department Managers sourcing and manufacturing process to ensure that there are no issues with the products, The supervisors and department managers have many of the same responsibilities as the or that any issues that do arise are swiftly resolved. By testing fabric samples they are sales assistants, but they are also responsible for implementing campaigns and able to advise the buyer what should go on the care label – the effect of different washes promotions sent from head office, and completing response forms in order to keep those for example on the product will have an effect on the price that the retailer is able to sell in head office up-to-date with the store’s progress, successful or unsuccessful campaigns, it for. A buyer may decide to use a different fabric if the sample is not suitable for and customer feedback. machine washing, or if the buyer is adamant on the choice of fabric then they will have to specify that the product is hand wash only.

Store Manager The store manager is the main point of contact between the store and head office. They will communicate often by telephone and also via the area manager, who will move back While the major decisions take place in head office, the action happens on the shop floor and forth from head office to store. The store manager is responsible for dividing the itself. It is the retail outlet itself that makes the money: it is where sales take place, and is store’s budget set by head office amongst the staff and any expenses needed on site. at the forefront of customer service as this is where the customers and the retail staff are Managers are able to feed back regularly to the buyers to inform them what is selling able to interact. This is invaluable, and while online sales have risen sharply in recent well, or what has not been so successful. The success of certain products can differ from years, the majority of consumers still value the ability to go into a store and see and feel store to store, so the Buying department need to be aware of the performance of each the products for themselves. As in head office, the shop floor encompasses various levels individual store in order to maximise sales in that area. This is where the buyer will work of staff, all of which are important to the company. with the merchandiser to allocate stock, based on the feedback of the store managers and the sales figures from the specific stores. They will also work with the VM team in Sales Assistants store to maximise profits through clever use of layout and displays. It is particularly These are the staff at the very forefront of customer service. They are representing the important that the store manager work with the VM team if it is a team sent from head company, and as such must be dressed appropriately, and be attentive and welloffice, as every store is different and it is the staff that work there regularly that best mannered to the customer. As the sales assistants process most transactions, know their own customer habits.

Visual Merchandising The shop floor is also the realm of the Visual Merchandising department. This is where they are able to adapt the surroundings in order to manipulate the customer. By creating a visually appealing environment for the customer they are able to maximises sales. In some cases the VM team also utilise the use of scent and sound to appeal to the customer. The buyers will work with the VM team to explain the ranges and how they want them to be promoted to the customer.

Personal Shoppers Some retail stores also offer extra services such as Personal Shopping, which provide the customer with a further experience that they are unable to find online. In these instances, highly trained staff are able to assist the customer to create a truly positive experience for them. Through their knowledge of trends and styling they are able to help the customer find clothes to best suit their shape, their style, and perhaps even suggest combinations of which the customer would never have thought. Personal shoppers may also communicate with the Buying department about what products the company is particularly keen on pushing, so that they will know whether to suggest any specific garments or accessories to their customers.

Project Proposal What is the brand you have chosen? Why did you choose this brand? What type/style of range are you going to build for this brand? How will you make the range fit with the brand? What season will the range be for?

I have chosen to buy in a party range for Dr. Martens for the Christmas season. I have chosen this brand because it is a highly successful and well-known brand, however it does not have a wide range of clothing on offer. I feel that such a popular brand, known for its good quality, will benefit from a wider collection to offer its customers. The brand is inspired by working class Britain and this shows in their clothes, I will try to build a range that keeps true to this identity while bringing in a more glamourous vibe suitable for the Christmas season.

What methods or tasks will you use in your mini project?

I will use a number of methods in order to build a range that is suitable for the Dr. Martens customer, starting with a mood board that will present a general image of the brand, and then a customer profile so that I know exactly who I am buying for.

By carrying out customer surveys and comparing the prices of the range already available in Dr. Martens, as well as the prices of its competitors, I will be able to judge a suitable price range for my collection. I will also carry out market research and a directional shop, so that I can see what has been successful with the customer and predict what will be successful with the customer in future. Having gathered all this information I will be able to create a concept board for my range based on current trends and customer demands, before building the range itself.

Evaluation & Progression- How will you continuously evaluate your progress throughout this project?

I will keep a logbook in which I will reflect weekly on my progress. This will help me stay on track and evaluate my work as I go along, which in turn will help me in my final analysis.

Action Plan Thursday 12th Nov. Build range plan.

Proposal, action plan, history of the brand, current ranges by Thursday 26th Nov. the brand, brand mood board. Trip.

Friday 13th Nov. Friday 28th Nov. Customer profile, concept SWOT analysis. Buying cycle – board including name of range. research, communication, sourcing. th Wednesday 18 Nov. Business plan.

Wednesday 2nd Dec. Financial spreadsheet. th Thursday 19 Nov. Business plan.

Thursday 3rd Dec. Review work and make any Friday 20th Nov. adjustments necessary.

Marketing – logo, mission statement, slogan, Friday 4th Dec. advertisement.

Written evaluation.

Wednesday 25th Nov. Trend forecasting – catwalks, street style, comparative shop.

Business Summary My plan is to buy in a women’s party range for Dr. Martens, not in order to attract a new customer but to simply expand the range available to existing Dr. Martens customers, so that they can not only look to DM for casualwear but also when they have a special occasion. The range will be aimed at women aged 20-35, and items within the range will fit in with the styles already available at DM, but will feature more luxurious fabrics and detailed embellishments that will make the items suitable as eveningwear. The quality of the range will also stay in line with the good quality reputation of the brand, so the customers’ eveningwear will demonstrate the same comfort and durability prevalent amongst the rest of the brand. Dr. Martens is a Public Limited Company, and was acquired by Permira in 2013 for £300m. The company does not offer shares to the public and is 100% owed by Dr. Martens Airwair Group Ltd. (Companycheck.co.uk). It is a brand known around the world, but I will only launch the partywear range within the UK to begin with, with the mind to expand on a global scale as the range becomes more popular, beginning in Western Europe and hopefully then breaking into Asia and the US. The name I have given to the range is Graceful Rebellion, which harkens to both the current brand identity and the new partywear collection. I want Dr. Martens customers to understand that they can dress to impress at events while still holding onto their original style. The partywear range will not look out of place in DM stores, but it will stand out as something extra special. I feel that a partywear range is suitable for Dr. Martens because its customers are young, fashion conscious people who take pride in their appearance. However, at the moment DM do not offer a huge variety of clothing, meaning that its customers currently have to look elsewhere for eveningwear. The choices of shops selling eveningwear on the high street is vast, but the styles are similar, whether in Primark or in Ted Baker. DM partywear will offer women something different.

Check, C. (2015). DR MARTENS LIMITED. Free and instant access to a company's group structure, parents and subsidiaries. Online instantly. [online] Company Check. Available at: https://companycheck.co.uk/company/02752740/DR-MARTENS-LIMITED/group-structure [Accessed 18 Nov. 2015].

Financial Summary I will compile a financial spreadsheet in order to show the cost price of my range and the profits it will make. The range will be on sale in all flagship and high street stores for a total of 16 weeks, with about half of the range being introduced towards the end of September, and then the rest of the range being introduced towards the end of November.

The range will be produced in Portugal as Dr. Martens already have established links with suppliers there, but embellishments will be carried out in India as this country has a particularly good record for this type of manufacturing. The cost price should amount to about a third of the RRP, so I should be looking at roughly a 60-70% margin on all products.

Financial spreadsheets are hugely important as they allow the buyer and merchandiser to arrange stock allocation and divide their budget accordingly.

Business Aims By launching this range I hope to permanently expand the range of clothing available in Dr. Martens stores and the retailer become more of a go-to place for fashion savvy shoppers. By launching an A/W range I hope that sales will rise rapidly due to the Christmas season, but I expect it to take 1-2 years for the company to become a name associated with partywear. I would also like to see Dr. Martens clothing stocked in concessions in big department stores, as this will increase the number of customers coming face-to-face with the brand. I expect to be able to launch concessions in a few stores within the UK, such as in London and Manchester, within 1-2 years, and expand this number over the next 5 years. Within 5-7 years I would like to see a Dr. Martens store on the high street in every major city within the UK, in order that a visit to DM becomes a part of every young shopper’s retail therapy routine. I hope that after 10 years the brand will also see a significant growth in its number of high street stores abroad. As an iconic British brand, DM already appeals to markets abroad, and has a small number of high street stores in Europe, Asia and the US (Cochrane, 2012). I plan to use this as a basis for further global expansion. By implementing these strategies I hope that the company will see a big rise in sales and profit.

Cochrane, L. (2012). Dr Martens enjoy comeback with best-selling season ever. [online] the Guardian. Available at: http://www.theguardian.com/fashion/2012/jul/19/dr-martenscomeback-best-selling [Accessed 18 Nov. 2015].

Sole Traders, Partnerships and Companies Sole Traders Sole Traders are small businesses that are independently run, in which the owner (the sole trader) is responsible for the whole business. They can of course employ other staff, but the owner is accountable for any losses that the business incurs, as well as all taxes for which the business is liable. All the profits after tax are the property of the owner, as there are no shareholders or other accounts invested in the business. The owner of the business must register as self-employed and must complete a tax return every year.

Partnerships In a Partnership, each business partner is responsible for the business. Each is accountable for any loss, and each must pay tax on their share of the profits.

Decisions about the business will be run by each partner before being actualised.

Companies An owner of a business can set up a company to run the business, which keeps the business’s finances separate from the owner’s. The profit is therefore the property of the company rather than just the owner, and is shared among its members after corporation tax is taken out. There are four main types of company, the first is a private company limited by shares. In this type of company, the members’ liability for any financial issues that the company faces is limited to the amount they have in unpaid shares. This prevents Directors from being held solely responsible for any

debts that the company incurs. The second type of company is a private company limited by guarantee. In this case, the members’ liability in the case of bankruptcy is limited to an agreed amount. The third kind of company is a private unlimited company, in which the members’ liability is not limited, so in the case of liquidation all members have a joint obligation to meet any insufficiency in assets. The final type of company is a public limited company. This is similar to a private limited company, but the company’s shares may be sold publicly, at the London Stock Exchange for example. As with private limited companies, the shareholders’ liability is limited to the amount they own in unpaid shares.

Graceful Rebellion I want the name of my range to reflect the rebellious spirit associated with the Dr. Martens brand, but also the more sophisticated and elegant side of the partywear range that will be available. I feel this name harkens to the individuality of the DM customer market. Rebellion encourages free-thinking and risk-taking; something which is at the heart of the DM customer. They are encouraged to wear the brand in their own way, to put their own mark on it and in doing so stand out from the crowd.

The range is designed however to be suitable for special occasions. Without diminishing the free-spirited ethos of the brand, I want the name of the range to portray the elegance and evening-ready style on offer to the customers. Customers will be able to dress up for occasions such as parties, nights out or special events without betraying their unique style.

“Stand for the weekend” The strapline for Graceful Rebellion is a spin-off from Dr. Martens’ popular “Stand for something” slogan, which encourages customers to express their individuality. Since I am buying in a party range, I have decided upon “Stand for the weekend” as my slogan, because the range will be geared towards those customers going to parties or out into town on a night. This strapline reinforces the DM brand identity, and at the same time swiftly identifies the range as a party range.

What are you going to sell?

My range will be entirely product-based. Dr. Martens already offer a customisation service for their footwear, and I feel that, for now at least, the range does not require any additional services. The products I will be selling will be women’s eveningwear. The range will not be too dissimilar from that which is already available from DM, and it will appeal to the same customer, but it will be a “glammed up� version of DM womenswear, suitable for special occasions. Luxurious fabrics such as velvet, lace and silk will be key to the range. The colour palette (dark reds, purples, greens and jet black) will adhere to the rest of the DM clothing range, and this will be especially appropriate for the launch of the range as it will coincide with the Christmas season. The overall theme of the range will present a juxtaposition between elegant and rebellious, meaning that while customers will look dressed to the nines in the new range, their unique selfimage will still shine through; a dark purple velvet dress, for example, may be paired with a pair of yellow patent DM boots.

Dr. Martens offer clothing in sizes XXS-XXL. For the launch of my range I will offer clothing mainly in sizes XS-XL (the bulk being available in S-L), with a limited number of XXS and XXL available. I will then increase the availability of all the sizes as the range becomes more popular. I will release roughly half of the range at the start of the A/W season, and release the rest just before November, when consumers really start to get into the party spirit. I hope that by releasing the whole range in the run-up to Christmas, sales figures will soar as customers buy not only for themselves but also for others.

Elevator Pitch My range, “Graceful Rebellion”, for Dr. Martens will offer fans of the brand a collection of eveningwear items that will reinforce the brand identity whilst providing suitable clothing choices for occasions such as parties and nights on the town. For women aged 20-35, Graceful Rebellion will enable the wearer to look elegant and sophisticated, whilst still displaying their individuality. It is very much an “alternative eveningwear” collection, for women who are perhaps dissatisfied by the seemingly uniform eveningwear options available across the high street.

The new range will mirror the existing range in style, but with an elegant twist. It will offer a different style of eveningwear than that which is widely available on the high street currently. It will also observe the brand’s established high level of quality, so that garments will be able to stand up to the wear and tear that may come with a night on the town. Most importantly, the range will encourage customers to express their individuality even on the most special of occasions.

STAND FOR THE WEEKEND

Who are your customers?

Before I buy in a range I need to have a full understanding of who my target market is. Since I am buying in a range for an existing customer, I have a head start. Factors such as the price range of Dr. Martens current clothing range and their bestselling items will give me an idea of the customer (what styles they prefer and what they are willing to spend), but customer surveys will enable me to find out much more. I will ask a number of people to complete surveys for me, with questions about their income, spending habits, hobbies, favourite food, favourite make up etc. I will be able to build up a really detailed portrait of my target customer this way. There are a number of ways in which I can ask people to complete surveys, through Facebook, or asking family members, for example. I will only need to survey women in the UK for now as my range is going to be exclusive to the UK for at least the first year. However when the company is ready to expand abroad I will need to conduct surveys in each of the countries in which it wishes to expand, in order that I buy in a range that is suitable for the customer in that chosen country. Women in Germany may have completely different tastes, spending habits or needs than women in the UK, and they may be different still in the US. I must tailor the range to the right customer in each location in order to make the range a success and to maximise profits.

When I have enough completed surveys I will build both a written and a visual portrait of my target customer. By doing both a written and a visual customer profile I will have a very in-depth image in my mind about the person for whom I am buying. The reason I need such a detailed image of my customer is because I need to understand exactly for whom I am buying. Every detail of her life will effect her spending habits, which is of course directly linked to the success of the range. I need to know how much my customer is willing to spend on clothes, how often she buys clothes and what prompts her to buy clothes, so that I can plan not only my range accordingly but also my marketing strategy and any promotions that will take place. By gathering information about my customer’s favourite shops, I am also made aware of who precisely my competitors are, with whom I must compete in terms of style and price. Knowing personal details about my customer such as her favourite restaurant or how she spends her spare time will help me understand what kind of person she is, which will help me to understand her choices and actions. It is important that when buying in a range I really feel as if I know the customer on a personal level.

Market Research Before I buy in my range I will need to conduct some market research, in order limited in time I will simply carry out a SWOT analysis on this occasion. to understand exactly what I am getting into. Market research will help me understand just what the market looks like (is it expanding or declining? Is it Field Research very varied or is it uniform? What is the state of the economy?), how the market This refers to research carried out by yourself directly in the market. For behaves (consumer spending habits and patterns, such as peak times of year example, one might carry out comparative shops and directional shops to gain like Christmas), and what customer’s expect (do they value price over quality or an idea of what has been successful and what is currently on trend. Comp shops vice versa?). When conducting market research there are two ways in which I also allow a buyer to ensure that they are pricing their ranges correctly. For the can go about it: either through desk research or field research. purposes of trend forecasting I can also look closely at street style in order to identify possible trends. Surveys are also a popular method of gaining Desk Research information about the market. By asking customers to complete questionnaires This refers to research that can be gained through looking at books and on the I can not only gather information about them but also the wider market. I can internet. Articles in newspapers, magazines, journals, or on websites can be find out how customers feel about their shopping experience, what shops they used to gain access to a plethora of information. Books are also a useful tool, for tend to buy from and what they would like to see from shops on the high street. example I could read about past trends, and facts and statistics also provide me I can also asks customers to leave their details so that they can be contacted with useful information such as sales performance and consumer habits. Blogs about any future promotions or campaigns when I start trading. and trend forecasting websites such as WGSN also provide me with important information. Most information gained this way will be secondary information, As part of my field research I could also conduct test trading, in which I would but I can utilise social media to forecast trends and to interact with the be able to get customers’ opinions on my range. Through showing customers consumer to collect customer data. Secondary data will include things such as my products I can find out from them what they do or do not like about the sales figures, annual performance, consumer spending habits and patterns, as range, whether they would buy from the range and how much they would be well as the platform on which sales are taking place (do customers prefer to willing to spend on it. I would also be able to ask customers if any other shops shop online or in store?). I will also be able to assess any external factors they like do a similar range, and whether they would buy from my range instead affecting consumer habits, such as weather patterns, political issues or or continue to shop elsewhere. Test trading is extremely useful in determining technological advancements. In order to fully understand the external factors whether a range will be successful as it is a direct way of finding out what the affecting the business I would conduct a PESTLE analysis, however as I am public think about the range.

Marketing Strategy If my range is to be successful I will need to contact potential customers in order research I should also find out what social media sites are most popular among to let them know about the range and where to get it. The more effective my my target market. This will ensure that I focus my efforts on the right sites. marketing campaign, the higher sales will be. There are a number of ways in which I can market my range to potential customers.

Advertising One of the most obvious, yet highly effective, ways of contacting my customer is Word of mouth through advertising. As the buyer I would need to provide the marketing Customers actually talking about the range is one of the best forms of department with garment samples for photoshoots and commercial filming. I advertising, as they focus on the positives about the range rather than try to would also need to discuss with the marketing department how the range directly sell it to people. This form of indirect selling is highly effective because should be marketed to the customer. Television adverts, pages in glossy people do not feel like they have been targeted by an advert campaign when it magazines and even billboards are all ways of letting your target market know is their friends telling them about it. Customers will likely talk about the brand if about your range. I can also think about celebrity endorsements when they are a fan, but it is possible to increase the chances of this by offering introducing a new range, in which case I would need to have an idea of who is incentives such as discounts or providing excellent customer service that will currently popular with my target market. make an impression on the customer.

Business literature Social Media This includes things such as leaflets and business cards. These are ways of The emergence of social media in recent years has provided a whole new contacting your customer without being particularly in your face with them platform on which retailers can communicate with their customers. Social about your ad campaign. Items such as these should have a minimal amount of media is incredibly useful with regards to word of mouth advertising, especially information on them, such as the name of the range and the website. An eyesince nowadays so many young people run fashion blogs, in which they talk catching design is also handy for grabbing customers’ attention, as well as giving about what clothes they like and from where they got them. Social media also them that first image of what the range is about. I will be able to distribute this provides a form of free advertising for companies. It is a way for them to get kind of literature by asking in store staff to hand it out to customers or by having their name and their message out there, and a way in which they can interact it distributed as a supplement in magazines. with their customers, for example by replying to threads on Facebook or Twitter.

It also allows a business to connect with consumers on a global scale; for Direct Marketing example, a small boutique in Brighton may have followers on Facebook from all Direct marketing refers to contacting the customer directly to advertise your over the UK and in Europe, based on the popularity of its products. I can also product to them. This can be done by phone, email, a letter or face-to-face. I take advantage of the emergence of fashion bloggers, by sending out sample will be able to select customers for direct marketing by looking through contact products for them to review on their social media pages. This would then reach details that customers have given me when conducting market research. a whole audience I may not have even considered. As part of my market

Trade Shows Trade shows are a huge part of the fashion industry and make up a substantial portion of a buyer’s role. They are events at which buyers and sellers meet to trade and network. Buyers, suppliers, manufacturers and designers are all able to meet, discuss ideas and make new business connections at a number of different types of events that run throughout much of the year, although traditionally centring around February and August. The exhibits at these events are usually for the following season, so most buyers tend to purchase collections about six months ahead. This is different, however, for buyers for fast-fashion companies, as stores such as Primark tend to have a six-week turnover from design to sale. There a three main types of trade show, specialising in different products. These are yarn, textiles and branded.

Yarn Yarn fairs traditionally take place earlier in the year than fabric fairs because the production cycle usually takes longer with knitwear, at which these types of exhibitions are often aimed.

Pitti Immagine Filati – An Italian trade show specialising in knitwear, taking place in January and July. With over 1000 exhibiters, international buyers and designers meet here in Florence to do business and look for inspiration.

Exhibitors showcase trends in colour and design, new methods of production such as printing, dying and stitching, new machinery and even new software for design and manufacturing (Pittimmagine.com).

Pittimmagine.com,. 'Fashion At Work - Pitti Immagine'. N.p., 2015. Web. 22 Nov. 2015.

Textiles Fabric exhibitions offer visitors an insight into future colour and fabric trends, and companies are able to showcase their latest ranges on individual stands (Goworek). Buyers who visit these events can order swatches and sample lengths from suppliers to use in head office.

Premiere Vision – a Paris based trade show that hosts events across the globe, with smaller shows within specialising in yarns, fabrics, leather, design, accessories and manufacturing. Exhibitors at Premiere Vision Fabrics showcase trends up to eighteen months ahead. A huge range of textiles is brought to the table here with a wide array of different price levels. Held twice yearly, in February and September, and with over 2000 visitors from 100 countries, it is one of the world’s leading fashion trade shows.

Goworek, Helen. Fashion Buying. Oxford: Blackwell Pub., 2007. Print.

Purelondon.com,. 'Pure London 2016 - Visitor Faqs'. N.p., 2015. Web. 22 Nov. 2015.

Branded Branded trade shows showcase ranges from brands and manufacturers that buyers are able to purchase to sell in their own retailer. These garments carry the label of the brand/manufacturer rather than the retailer. This type of buying is popular in department stores that have many different clothing concessions.

Pure – Held every February and August in London, showcases brands from around the world, and specialises in womenswear. It showcases over 700 UK and International brands, and is split into six sections: Agenda, Spirit, Allure, Aspire, Accessories and Footwear. Catwalks take place three times each day, and many seminars take place over the course of the event in which buyers can hear from trend forecasting experts such as WGSN (Purelondon.com).

In the 21st century, youth subcultures are a lot more difficult to define. There are no tribes, so to speak, these days. Gone are the days when the youth would identify with a specific title. These days, in the wake of the emergence of technology and globalisation, young people are able to dip in and out of different cultures, taking inspiration from here and there; a sort of Pick ‘n’ Mix of cultural style Traditionally sold on the British high street as good reliable footwear for the working (Drmartens.com). Dr. Martens footwear lends itself perfectly to this form of selfman – particularly popular among factory workers and postmen (Manzoor) – the Dr. expression, with customers wearing the staple brand in a number of different ways: Martens brand was adopted by a multitude of subcultures, starting with the scuffed, polished with military precision, unlaced, etc. skinheads, for whom the working class identity of the brand struck a chord. Over the years as youth subcultures changed and progressed, ditching established fashions in In 2011 Dr. Martens launched its first clothing line, featuring classic pieces for the favour for something new and different, Dr. Martens footwear remained a staple of modern silhouette (Waite). A limited collection of button-down shirts, T-shirts, youth subculture. “Consequently, the subcultures who have championed Dr. sweatshirts, dresses, jackets, coats and accessories are available to men and women, Martens reads like a Who's Who' of youth culture: skins, punks, two tone, Oi!, ranging from around £30-£140. The collections harken to that original working class hardcore, psychobilly, goth, industrial, grebo, grunge, Britpop, emo … the list goes identity associated with the brand, but feature modern twists that appeal to today’s on” (Drmartens.com). fashion savvy consumer.

Dr. Martens is a well established brand, famous around the globe for its sturdy and stylish footwear. It was established April 1st 1960, and is the brain child of Bill Griggs of Northampton, England – coming from a family of shoe makers established since 1901 – and two German innovators, Dr. Maertens and Dr. Funck.

Drmartens.com,. 'Dr Martens History | Official Dr Martens Store - US'. N.p., 2015. Web. 11 Nov. 2015.

Manzoor, Sarfraz. 'Dr Martens At 50: These Boots Were Made For… Everyone'. the Guardian. N.p., 2010. Web. 11 Nov. 2015.

Waite, Alicia. 'Dr.Martens Launch Clothing Line - Telegraph'. Fashion.telegraph.co.uk. N.p., 2011. Web. 11 Nov. 2015.

Current womenswear range

UNISEX OXBLOOD ALPHA X BOMBER

DR MARTENS WOMAN'S LONGLINE DRESS

£140

£80

CROSS PATTERN DRESS £60

CASHMERE RESIN VEST £28

DR MARTENS SCARF £25

DR MARTENS SALOME SHOE £95

SWOT Analysis Strengths • Well-established brand.

• Known for durability.

• Minimal advertising required.

• Instantly recognisable footwear.

• Offer customisation of footwear.

• Known globally.

Opportunities • Room to expand clothing range.

• Could advertise more on TV, in magazines, billboards etc.

• Could open more high street stores.

• Could open concessions in department stores.

• Could open more high street store in Europe, the US and Asia.

Weaknesses • Predominantly footwear – little choice in clothing range.

• Many people will only know about their footwear range.

• Not many shops on the high street.

• Only footwear stocked in other stores.

Threats • Other brands copying the famous DM silhouette.

• New Rock – specialising in strong, sturdy footwear but also offer a small range of clothing and accessories – this is also a global brand.

• Customer demand for DM clothing abroad unknown.

I will now critically analyse this SWOT by comparing and contrasting the cross-sections. Dr. Martens is a well-established brand known around the globe. I can see from the SWOT that it is known for its sturdy and durable footwear, with little to no advertising necessary as most people the world over recognise the brand. With this strength comes the threat of other high street stores, such as Primark and New Look, copying their classic boot style, which then poses a threat to DM’s sales. However, as one of DM’s strengths is that it is known by so many for its reliability, they are able to overcome the threat of other retailers imitating their design because consumers hold DM in high regard as a suburb quality retailer. Another strength is that DM offer customisation with their footwear. With this business strategy in place they are able to stay one step ahead of the retailers imitating their world-famous style. Critically analysing the SWOT I can see that DM faces direct competition from other footwear brands.

With regards to this threat of other specialist footwear brands such as New Rock, DM have the advantage of being known for practicality as well as style. This strength means that they are popular with both fashion savvy consumers and also consumers looking for durable workwear, whereas New Rock and other such brands are purely a fashion item. DM are also known around the world, and have a few high street stores scattered across Europe, Asia and the US. By implementing strategies such as increasing their presence on the high street around the world, they could boost sales and make themselves known to more people as a clothing retailer. Although DM is popular abroad, I do not currently know if customers in other countries are as fond of the clothing range as customers are here. I could combat this however by creating customer profiles for each country into which I wish to expand.

Dr. Martens’ fame for designing such high quality footwear comes at a price however. A weakness of theirs is that their clothing line is limited, and many consumers are still completely unaware that they even offer a clothing range. This gives DM the opportunity to expand further with new business strategies. They could launch more clothing ranges, and they could boost sales of these collections by investing in more advertising. As many footwear retailers stock DM boots and shoes, DM itself does not have a prominent presence on the high street. This is another substantial weakness. If DM took the opportunity to open more high street stores however, consumers would become more aware that they have more than just footwear to offer. By implementing this business strategy DM would also make their clothing ranges are more accessible to the general public. Another strategy DM could use to increase their presence on the high street is to open concessions within big department stores such as Debenhams. I conclude from my SWOT analysis that while DM face threats in a number of forms, they are a well enough established company to easily overcome these threats, with a good reputation and a loyal fan base.

Customer Survey How old are you?

Using the questions on the right I was able to conduct a customer survey of women who shop at Dr. Martens. Ages ranged between 20-35, and income ranged from ÂŁ5,000-ÂŁ24,000, with both students and professionals shopping at DM. I was able to pick out from the surveys a typical customer: someone social yet reserved, who likes to go out but is not a party animal.

What would you pay for an occasion outfit?

Do you follow the latest fashion trends?

What are your hobbies?

What are your favourite shops?

What is your favourite food?

How often do you buy clothes?

What music do you listen to?

Are you a student, in employment, or both?

Do you have a busy social life?

How much do you earn in a year?

What skin care products do you use?

What is your favourite fashion style?

What make up products do you use?

Do you prefer skirts or pants?

How long do you spend on your hair on a morning?

What would you pay for a casual outfit?

Customer Profile Millie is 23 and works full-time in Liverpool as a teacher of adult learners, earning £16,000 p.a. She lives with her mother, grandmother and baby nephew in a small house and helps with caring for the child. She does not have a busy social life but makes sure to go out with friends at least once a month for either drinks or for a meal. She likes going out for Italian food with her friends and enjoys watching the football with her boyfriend in the pub. She also loves to go dancing with her friends and goes to Download music festival every year. In her own time she reads a lot, both novels and beauty/fashion magazines, and she enjoys listening to lots of different kinds of music: mainly rock and metal but also classical and pop punk. Her favourite time of year is Christmas because she loves the lights and decorations, as well as the glitzy styles that come out over the party season. She tries to eat very healthily but allows herself one day a week to eat whatever and however much she fancies. She keeps fit by swimming, doing yoga and also hula-hooping, which she says is the most fun way to tone up. She does not really have a skincare regime beyond washing every morning and moisturising every night, and she wears a minimal amount of make up; her favourite brand is Max Factor but she also wears Elizabeth Arden. She has never coloured her hair and does not use heat styling on it, but rather curls it with sponge rollers overnight or puts it into a bun in the morning, spending only around 10 minutes on it before she goes to work. She takes pride in her appearance and updates her wardrobe regularly, buying new clothes every month, although she does not consider herself a follower of trends. She usually aims for a vintage look in her styling or contemporary classic, and will spend £80-£100 on an every day outfit. Shift dresses or longline shirts with skinny jeans are her go-to outfit of choice. For special occasions she will stretch to £200 for an outfit and will occasionally show off her legs with an A-line dress. Her favourite shops are Dr. Martens, Reiss, Supertrash and River Island, but she also likes to look in TK Maxx for a bargain.

MILLIE TEACHER

LIVERPOOL

FAMILY ORIENTED BOOKWORM

FOOTBALL/FOOD/DANCING ROCK/OPERA/PUNK CASA ITALIA

THEATRE/MUSICALS POPWORLD KRAZYHOUSE

SMART

SOPHISTICATED TK MAXX

SUPERTRASH

REISS

DR. MARTENS

Comparative Shop Reiss

Reiss

Reiss

Cap Sleeve Dress

Bomber Jacket

Devore Shirt

£495

£125

Topshop

Topshop

Topshop

Guipure Lace Dress

Marabou Feather Coat

Burnout Lace Blouse

£55

£150

£65

£170

Supertrash

Supertrash

Supertrash

Drake Dress

Odia Coat

Bubble Blouse

£110

£130

£70

H&M

H&M

Wool Blend Coat

Sleeveless Peplum Top

£119.99

£29.99

H&M Silk Dress £79.99

A/W 16 – Catwalk Trends

There are a number of key themes from the Autumn/Winter 16/17 shows that will carry easily over into my range. The overcoat, as seen on the left, is once again due to be an essential item for A/W 16, and I will include at least one item like this in my range that can be worn over the rest of the collection. Other themes that can be seen on the previous page include high necklines and classic tailoring. The high neckline will be a common theme across my range, as it is a range aimed towards a more modest women, and classic tailoring will make an appearance in the form of a staple blazer that can be paired with a number of ensembles across the range, as well as tailored pants to go with an array of blouses that will be available.

The catwalk shows for A/W 16/17 also show a popular trend toward luxurious fabrics such as lace, velvet and satin. Velvet in particular is a popular fabric choice for the party season, and I will make use of the trend in these fabrics to really drive home the partywear factor of the range. I want the range to scream luxury and opulence, without betraying the original spirit of the brand, and I think the use of luxurious fabrics on classic cuts will go a long way in achieving this.

Street Style

I have included here various photos of women wearing Dr. Martens in various locations in order to show what styles are popular with DM customers.

You can see from the photos that these customers have paired their DM footwear with feminine outfits. The juxtaposition between the heavy working boot/shoe and the soft, feminine dress appears to be a popular style with women around the world, and will translate perfectly into my range.

Graceful Rebellion

Embellished Shift Dress RRP £65 CP £22

Shift Dress with Faux Leather Trim RRP £75 CP £25

A-Line Dress RRP £60 CP £20

Peplum Dress RRP £90 CP £30

Winter Dress RRP £90 CP £30 Pleated Midi Dress RRP £115 CP £38

Blouson Blouse RRP £45 CP £15

Embellished Top RRP £30 CP £10

Blouson Blouse RRP £50 CP £17

Velvet Blazer RRP £70 CP £23

High Waist Skinny Jeans RRP £60 CP £20

Peplum Capri Pants RRP £50 CP £17

Faux Fur Bolero RRP £70 CP £23 Winter Coat RRP £140 CP £47

Fresh face

Bold lip

Our aim is to provide high quality eveningwear for women who want something different, something special.

Dr. Martens – Supply Chain The majority of Dr. Martens clothing range is produced in Portugal, which is where I will have the new range manufactured; the exception being embellishments that will be completed in India. DM take social responsibility very seriously and do not work with suppliers who do not provide safe and fair working conditions for their employees. For this reason, DM have a code of conduct for their suppliers, and will not work with any suppliers that do not meet these standards. The code of conduct consists of 9 main points, which are as follows: 1) Employment is freely chosen, 2) Freedom of association and the right to collective bargaining are respected, 3) Working conditions are safe and hygienic, 4) Child labour shall not be used, 5) Living wages are paid, 6) Working hours are not excessive, 7) No discrimination is practised, 8) Regular employment is provided, 9) No harsh or inhumane treatment is allowed. These points are discussed in more detail in the code of conduct, which can be found on the DM website. An open dialogue is encouraged with DM’s suppliers, so that any problems that arise can be swiftly resolved, rather than driving bad practices underground (Drmartens.com, 2015).

Drmartens.com, (2015). Social Responsibility | Official Dr Martens Store - UK. [online] Available at: http://www.drmartens.com/uk/social-responsibility [Accessed 3 Dec. 2015].

Financial Spreadsheet

Financial Analysis Financial spreadsheets are integral to the success of a store. Buyers and merchandisers use these to predict what will sell well in future and to suitably allocate stock across different stores. In my spreadsheet I have kept the quantities of all the garments relatively low because it is a completely new range being brought into a store with a very limited clothing collection. Therefore I do not want to purchase too much stock and then have trouble shifting it if it is not as successful as I would like. The spreadsheet shows that all the garments will be available in grades A and B stores. I hope that as the range grows in popularity, we will then be able to expand into grade C as well. I have divided my budget relatively evenly, as the whole range is similar in style and suitability, but I allocated more of my budget towards the less expensive items because they were more likely to sell well.

After 16 weeks I am able to analyse the sales figures to inform my buying decisions in the future. The bestsellers from this range were the winter coat and the velvet A-line dresses, which is what I expected because the A-line dresses were good value and the coat was suitable for the time of year. In future I will buy in more A-line dresses, perhaps in different materials for the S/S season, and I will also continue to have at least one big statement coat in the collection. The least successful item in the range was the pleated midi dress, perhaps because it is not as versatile as the rest of the range. For this reason I will not purchase any more of these dresses for an A/W collection, although I may come back to it for a S/S collection as the fabric might be better suited to S/S weather. I have also noticed from the financial spreadsheet that green items of clothing have sold better than those in other colours, so I will keep this in mind when choosing the colour palette for the next range as it is obviously a popular choice with my customer. The velvet dresses have all sold consistently well, so I will purchase more garments made with this fabric in future.

Replenished numbers according to colour 100 50 0 Black

Red

Green

Purple

I have included this chart here as a basic way of determining the most popular colours among my customers, as this may be a useful fact when creating my colour palettes in future.

The Buying Cycle – Fast Fashion Review season performance – Buyers and merchandisers will look at previous sales figures (usually the past six weeks for fast fashion) in order to decide how best to divide the budget for the season ahead. Reviewing previous sales performance will allow head office to see what has and has not been successful, and this will allow them to make decisions about what to stock in future.

Budget planning – Because fast fashion companies usually work with a six-week turnover, merchandisers will split the season’s budget into smaller sections so that the buyers can purchase more collections over the season.

Planning and buying schedules and trips – Buyers will need to make regular trips Order processing and confirmation – Before confirming an order, samples will be to see suppliers. Often with fast fashion brands the suppliers are based abroad, sent to the buyer with specific codes, so that the buyer can let the supplier know and this will mean the buyer has to travel abroad regularly. It is important to the exact fabric and shade required. A buyer must keep in regular contact with ensure that suppliers abroad are complying with the ethical standards and health the supplier to ensure that everything is going to plan. By maintaining regular and safety regulations required by law, and this is something that the buyer will communication, any problems that arise during the manufacturing process can see first-hand when making these trips. be swiftly resolved.

Range selection – Because of the quick turnover for fast fashion brands, buyers Monitoring deliveries – The delivery process must be followed closely so that the must attend trade shows regularly in order to stay up-to-date with current and retailer can keep track of the garments. With orders coming from abroad, the future trends. They must also carry out regular comparative shops to ensure that buyer will also have to account for import taxes and shipping costs within their there are no trends that they are missing out on while other retailers are offering budget. them to consumers.

Retail selling period – In fast fashion retailers stock is usually on the floor for Price negotiation and setting retail price – Buyers must try and utilise their about 8-12 weeks before it goes into the sale, so buyers must ensure they have budget to the best of their ability, getting as much as possible from the supplier purchased enough stock and must also account for stock replenishment when for the lowest possible cost. Because fast fashion sells at such a low RRP, it is organising their budget. extremely important that the buyer get a good deal, so that they still have a Monitoring sales figures – This ties back in with reviewing sales performance: reasonable mark-up and make a profit. Often fast fashion companies buy buyers are able to work with merchandisers to figure out what items have and garments in bulk, as this is usually more cost effective. have not been successful, and what should be a priority for the season ahead.

The Buying Cycle - Designer Review sales performance – For buyers working for own label designers, the year is primarily split into Spring/Summer and Autumn/Winter, so the buyer will usually work a season ahead. They will therefore review the sales performance of different stores for the previous year to conclude what has and has not been successful.

Budget planning – For most own label designers the yearly budget is just split into two, so the buyer has a very clear picture of what is available to spend.

When the range has been purchased, the buyer will ideally have some of the budget left to spend freely. This is known as an Open To Buy budget, and allows buyers to quickly purchase garments that may have suddenly sprung up on trend, will need to ensure that they can get a comfortable mark-up for the garments. for instance a dress that has been made famous by a celebrity.

Order processing and confirmation – As with fast fashion brands, samples will Planning and buying schedules and trips – Buyers will have to visit suppliers to be sent to the buyer so that they can confirm the exact fabric and colour check for quality in factors such as the manufacturing and the textiles. If the required from the supplier. Each sample shade comes with a specific code suppliers are based abroad then the buyer will have to ensure that health and relating to the concentration of the dye used, so that there is no difference in safety regulations are up to scratch, as well as workers’ rights. colour within the same line. If any problems such as this arise, the buyer must be Range selection – As with fast fashion buyers, the buyer for own label designers quick to contact the supplier and resolve the problem before too much unfit will need to visit a number of trade shows over the year, although perhaps not as stock is produced. regularly. They will need to have a keen eye for current and future trends, and Monitoring deliveries – Buyers must work delivery costs into their budget, but as will use trade shows, as well as online tools and street style, as a means for trend they usually order much less than fast fashion buyers, they will likely have less to forecasting. Buyers will also look to the catwalk shows when trend forecasting as spend on shipping and tax. these often give a good idea of the key shapes and colours that will be popular in Retail selling period – Garments by own label designers may not necessarily be future. They must also carry out comparative shops in order to keep up with their put into a sale as they do not have a limited shelf-life. The quantities ordered are competitors. less and therefore garments tend to remain at their RRP until all the stock is Price negotiation and setting retail price – The buyer must communicate with gone. the suppliers in an effective and friendly way so that they can get the best Monitoring sales figures – Garments that are not selling so well will then be possible deal before confirming their order. They will have an RRP in mind and reduced to clear, while garments that have sold well may be replenished.

The Buying Cycle - Branded Review season performance – Buyers will review the sales figures from the previous season to determine if there are any items they should definitely restock, and whether there are any items that are not worth buying in again.

Merchandisers will calculate the budget for the season ahead based on these sales figures.

Budget planning – The budget for branded buyers will usually be split into two main seasons. Some of the budget may be set aside to go towards exclusive or limited lines that are only available in that particular retailer.

Planning and buying schedules and trips – Buyers of branded fashion will much more simple for branded buyers as the stock they are buying is already attend branded trade shows such as Pure in order to see what a wide array of manufactured. Buyers will still have to communicate with the supplier to brands have to offer. Fashion weeks will also be useful to buyers looking out for ensure the correct quantities are distributed and that they are sent at the new and upcoming brands to stock in their store. correct time.

Range selection – Buyers will still need to look out for trends in the market to Monitoring deliveries – Buyers will have to track deliveries from start to finish ensure that they buy in suitable brands. However they have the advantage of in case there are any problems on the way. They must also account for shipping being able to return and swap an y garments that have not sold well. costs and taxes within their budget.

Price negotiation and setting price – Branded fashion retailers often have to Retail selling period – Depending how many items the store stocks, garments sell garments for a minimum price which has been set by the brand. They must may or may not have a shelf life. If they do, they will be reduced when the however still negotiate with their suppliers to get their stock for the best store wants to bring new stock in, however if they do not then items will be possible price. This is particularly important because other retailers may be reduced according to how successfully they have sold. selling the same stock, so the buyer needs to get the best deal possible so that Monitoring sales figures – Merchandisers will examine what items have sold they can compete with the prices of the same stock in other retailers. well, what has not sold well, and if any items have been returned in unusually Order processing and confirmation – After agreeing upon a price, this stage is high quantities.

The Buying Cycle - Conclusion The buying cycle is a similar process whether for fast fashion, designer or branded fashion. There are key differences in each environment however. For buyers in fast fashion companies the turnover is much quicker. This means that they must be constantly on the lookout for new trends, and sales figures will be reviewed much more frequently, as new collections are introduced regularly. Designer and branded buyers, on the other hand, usually work about a season ahead, so they will only need to go through the main buying cycle twice a year. This means they have longer to do their research and plan their ranges, although they will often leave some of their budget “open to buy�, in case they want to jump on any new trends that arise quickly. Fast fashion companies, because they are so much cheaper, will likely be working with considerably cheaper suppliers, and will need to regularly visit their suppliers to ensure that they are working within EU regulations. Designer buyers will still visit their suppliers to ensure they meet expectations, but perhaps not as regularly as fast fashion buyers, as their supply chain will not be under as much scrutiny. All buyers will want to get the best deal possible from their suppliers, but for fast fashion retailers who are selling for a low mark-up, and branded fashion retailers who are in direct competition with other stores, getting the stock for the lowest price possible is key, whereas own label designers have the freedom to charge what they like, within reason of course. For both fast fashion and designer buyers, the processing stage of the buying cycle will include samples being sent for review, so that they buyers can see that the garments are being made to their exact specifications. Branded buyers do not have to worry about this, however, as they are purchasing readily assembled stock. The retail selling period is then much shorter for fast fashion companies than for designer and branded, as fast fashion retailers need to regularly bring in new stock. If something is not selling quickly enough in a fast fashion retailer, then the price of the item will be reduced. Designer and branded retailers will usually only reduce the price of garments that have not sold well enough and of which they have an excess.

Unit Evaluation Over the course of this unit I have learnt considerably more about the retail environment, from behind the scenes at head office to front of house on the shop floor. I learnt what a PESTLE analysis is, and why it is so important to a buyer’s role. It is certainly not the most fun part of a buyer’s role, but without considering the factors in such an analysis a company runs the risk of losing money. This can be for various different reasons, whether directly through having to pay fines imposed on them, or indirectly through loss of customers. As part of a group task to produce a PESTLE analysis for Matalan, I researched the political and technological factors that face retail companies today. I researched issues that face all retail companies, but by focusing my research around Matalan I was able to gain a better understand of how these issues really affect a company. I cemented my understanding of the effect of outside issues on retail companies further by doing PESTLE analyses for Primark and Marks & Spencer. Using an article to back up each point helped me understand the variety of factors that can be included in the PESTLE, and by stating the level and type of impact such cases have on the buyer I was able to understand how external factors directly affect and influence the buyer’s role. Completing PESTLE analyses for two very different stores also demonstrated to me the similarity in the issues all retailers face, and how each retailer attempts to overcome these issues. Whether a cheap, fast fashion company, or a more respectable quality retailer, external factors affect retailers in much the same way, and companies must constantly keep these factors in mind if they want to stay out of trouble. Often companies react to external factors in much the same way in order to progress as society progresses, and I found through my research both online and in store that what appear to be two very different retailers have quite a bit in common. I suspect this is the same for a great many retailers.

After completing my research about the external factors affecting a buyer, I looked more closely at the buyer’s role. This gave me a lot of insight into just how much a buyer is responsible for at every stage of the buying cycle. A buyer must be aware of everything going on around her, both in the outside world and within the company, and thus she must be willing to put the time and effort in to researching and analysing everything that might affect her business. Without knowing what the customer wants, how the company is performing or the direction in which the industry is headed, a buyer would be very ill-informed and unable to make suitable decisions about what to buy in for the store. As well as a great deal of research, sourcing and communication are a huge part of a buyer’s role. The buyer must consider many things when sourcing stock, as any slight mistake or mishap could result in a loss of money for the company. It is for this same reason that communication is key to a buyer’s role. The buyer must be able to communicate effectively with her suppliers and her colleagues, as well as her customers, to ensure that the whole buying process runs smoothly and that the customers are happy with the end product. If they are not, or if there are any blunders during the buying cycle, then the company faces reduced profits. By looking at various job specifications for buying roles at various levels, I was able to reinforce what I had learnt about the role of a buyer. The importance of research and communication, which both link directly to the buyer’s ability to source effectively, are evident in all job specifications. Something else that has become clear to me through my research is the importance of looking at everything in a global context. At every stage a buyer must think about her work on a global scale, as factors all around the world effect the buyer’s role. This is evident from the PESTLE analyses I did, but also because it is almost impossible to effectively research trends and source materials without looking to other countries. A buyer must think about influences on a global scale if she is to understand how trends move forward from one place to another, more so nowadays with the rise of globalisation. Anyone in the world can see what is going on and what other people are wearing via the internet and on television, so a buyer must be constantly aware of influences from around the world that may impact on her own target market. She must also be willing to travel around the world as trade shows are a hugely important part of a buyer’s role. Not only are these events useful when trend forecasting, but they are also vital for making business links with suppliers and manufacturers, as well as being a window to finding new talented designers. Without a willingness to travel across the globe, a buyer would be hard-pressed to form any successful business links or gain a good understanding of changes in the industry.

Using the knowledge I had gained about a buyer’s role, I was able to look in more detail at the buying process. The buying task I completed with regards to Topshop helped me once again to put my research into context. I was able to utilise my knowledge of customer needs, market trends, garment sourcing and effective communication to better understand how these factors all come into play during the buying process. I looked into the specifics of these issues with the focus on Topshop, and this really cemented for me the detail with which a buyer needs to analyse everything. Focusing on Topshop for this task also reinforced the importance of thinking about everything on a global scale, as Topshop has stores in countries all over the world. Topshop also has its own blog and is involved in London Fashion Week, meaning that it is really on show to the world, and it would be impossible to complete a buying task for Topshop without thinking about the wider global context, which is why I think this was such a useful task to do. This task also introduced me to other factors that a buyer needs to think about, such as store policy and financial budgets. Store policy is at the forefront of the customer environment, and includes things that affect the customer directly, as well as things that reflect the store’s image, such as charitable work that the company does. It is important that a buyer thinks about store policy throughout the buying process so that she does not do anything to harm the company’s image in the public eye.

With regard to the financial budget a buyer has to work with, this affects the buyer for obvious reasons – it is what she has to spend. This is, however, mainly the realm of the merchandising department. What I have learned through my research on the buying cycle is just how closely linked the buying and merchandising departments are. One cannot work without the other. A merchandiser calculates how much a buyer is able to spend and how stock should be allocated, but the buyer also needs to be aware of factors such as the mark-up, exchange rates and taxes in order to get the most out of her budget. I looked at a number of job specifications for merchandising roles, as I did with the buying job roles, in order to gain a better understanding of the skills required to work a merchandiser and the responsibilities such a role entails. It was clear to me that the merchandiser is largely responsible for the strategies put in place to maximise profit. This is why it is so important that the merchandiser and the buyer work together, as the buyer will need help effectively dividing her budget and allocating stock, and the merchandiser will need help understanding what the customer wants and what works best with the company ethos if she is to do her job effectively.

I also looked at the different environments within the industry, and within a company. Different industry environments, such as department stores, independent boutiques, or wholesalers, demand different skills from their buyers, such as the in-depth knowledge of the company required by a buyer for a small boutique, off-set against the specialist knowledge required by a footwear buyer for a large department store. By looking into these different buying environments I have gained an understanding of the many different types of role I could go into as a buyer. The role of a buyer is not one clear-cut definition, but it varied among many different environments. Within a company there are also many different environments that impact upon the buyer, split between head office and shop floor. I created two organisational charts to show how the head office and shop floor environments are divided, and then I was able to discuss each part of these environments in more detail. Within the head office environment I discussed the importance of each department and how each department works with the buying department to maximise profits. Then within the shop floor environment I discussed each role and their effects on the buyer. Each position, from senior merchandiser to shop floor assistant, is integral to the success of a company. Without each person fulfilling their duties there would be confusion and poor communication within the company, and this would be reflected in poor profits.

The buying cycle is similar for different environments within the fashion industry, but there are some differences at the various stages in each environment, for example, a fast fashion company works with a much quicker turnover than a designer label, and branded buyers do not have the same creative input as own label retailers. I was able to use the knowledge I had gained about sourcing and communication, as well as trend forecasting, to discuss each stage of the buying cycle for each retail environment.

Discussing the buying cycle helped me further understand the process that a buyer has to go through from start to finish, and it helped me to see how the process is an ongoing one, influenced constantly by the results of the previous cycle. Discussing the cycle for each type of retailer further cemented my understanding of the differences of each buying environment that I could go into as a buyer, and the different duties that these environments require from the buyer.

For my major task I chose to buy in a womenswear range for Dr. Martens. This task presented me with the opportunity to utilise all the knowledge I have picked up about trend forecasting and the buying cycle. I began with the brand history, as it is hugely important to be familiar with the brand for which you are buying. As part of this I did a brief overview of their current womenswear range, including the price range, as well as a concept board for the brand. This concept board was my first real attempt at using Photoshop, and I feel as though it has made a big difference in the quality of my work. It looks more professional, and I was able to portray more while at the same time using less, so that the concept board was not too busy. I also did a SWOT analysis for the brand. A PESTLE analysis would have been more thorough, but would have taken longer. If I had had more time I would have done a PESTLE for Dr. Martens as this would have helped better inform my decisions for the buying cycle. A SWOT analysis is still useful, however, as it helps to identify any strength and weaknesses of the brand internally, as well as any external threats and opportunities facing the brand. By identifying these things I can then use the knowledge to come up with business strategies that will maximise profit. My target market was women who already shop at DM, so I only had to do one customer profile. I created a survey and asked a number of DM customers to complete it for me. I was able to pick out a specific type of customer from the completed surveys for which I could create a detailed customer profile. Something that struck me when reading through the completed surveys was the other shops in which DM customers purchase their clothes. Reiss, for example, appeared on a few surveys, yet it is a very different style to DM. I think this is likely because DM has a very limited clothing range, and there are very few shops that cater for a similar style. This is why I chose to do a range for this brand however, so that the customers who like the brand will have more option to add to their wardrobe from there. Looking at my business strategies from a critical standpoint, I feel my strategy for the range was well thought out. I had clear short, medium and long term aims and had put consideration into how I would effectively make the brand an established name for partywear. The name I created for the range portrays the range exactly as I would like, and I think my strapline was clever in that it advertises the range as a partywear range while at the same time reinforcing the brand identity.

Before building my range I would need to do market research so that I would buy in the appropriate stock. I considered the types of research I could carry out to gain a better knowledge of my target market, and discussed a number of strategies I could use to collect this information. Critically analysing these marketing strategies, I would say the least successful way of marketing my range would be through word of mouth, as people are already familiar with the brand, and may not realise that anything new is being offered. The most successful strategy I think would be social media, as it has such a huge influence on young people these days, and on which costs little or no money to advertise. Therefore I could spread the word about the new range without too big a dip into my budget, which would be very beneficial while I am still unsure about how the range will be received. Once I had created my business plan and conducted my market research I was able to build my range. I feel as though my range is very strong in terms of the colour palette. It all obviously belongs together and it is clearly a party range. I used an object on my concept board around which I based the range. This was a method I picked up in the previous unit and I found it worked very well for this task as well.

Once I had established my range I was able to concentrate on the marketing side of everything, and I created a few mood boards that demonstrate the type of model I would have advertise the range, and the type of makeup I would have her wear. I also created a mission statement and elaborated on my strapline for the purposes of advertising, which I think would work quite well. One of the final parts of the task was the financial spreadsheet, which demonstrates what the figures may look like after a 16-week selling period. The spreadsheet shows what items were bestsellers and what items were not so successful, and how stock was replenished accordingly. As a buyer I would work with the merchandiser to use this spreadsheet to influence the decisions I make during the next buying cycle.

Overall I am pleased with the work I did on this unit, especially with my progress on Photoshop.

However I feel as though the learning curve of using Photoshop cut into a lot of the time I had, so I have not done as much as I would have liked. For my next unit I will try to back up more of my research with articles as I feel this is where I have let myself down on this unit. I have certainly gained a wider understanding of the different buying environments and the buying cycle, but I have not shown as much informed research as I probably could have done, so this is where I will try to improve in the next unit.