PowerPoint forTHE WORLD OF FASHION MERCHANDISINGByVicki Shaffer-White

Part 1: Basic Fashion and Business Concepts Chapter 5Satisfying the Fashion Market

Objectives:Distinguish between market growth, share, and segmentationDescribe the importance and methods of market researchSummarize the concept of product developmentExplain the latest fashion industry information technologyExplain the efforts that are being made for overall industry excellenceDescribe how the industry is improving its image

Market Growth and ShareGrowth is the increase in size of the entire marketShare is the part of the total market controlled by a firmCompetition results from firms trying to increase their market share

Market SegmentationDividing the total market into smaller groups that contain similar characteristics, since no business can serve ALL customersTarget marketing defines this niche

DemographicsStatistics of human populations by:AgeGenderRaceEducationReligionIncomeOccupationGeographic location

PsychographicsStatistics that try to explain consumer behavior through:LifestyleValuesAttitudesSelf-conceptCultureSocial groupsPersonalities

Market ResearchGathering and analyzing information relating to a particular marketResults may indicate:Shopping behaviorProduct preferencesPrice rangesTypes of advertising preferredNeeds and wants

Market Research MethodsSurveysConsumer panels keeping diariesSlower; broad trendsFocus groupsParticular subject or product lineComputer databasesElectronic feedback testsVirtual reality

Product DevelopmentProcess of taking a product from the conceptual idea to the marketContinually changing, striving to meet the needs of the consumer

Information TechnologyProviding information through computer technologyCollection, classification, storage, retrieval, and dissemination of dataInventory controlShipping/receivingCustomer tracking

Technology MethodsBar codesUniversal Product Code (UPC)UPC printersUPC compliance of code standardsOptical scannersFeed bar code information to the computers

RF scanners Feed information via radio frequencyMagnetic stripesVoice recognitionMachine visionVideo cameras Smart cardsMicroprocessor embedded in plastic

Technology DisadvantagesFinancial costComputer hardwareSoftwareScannersBar code printersPower failuresIncorrect data entry

Open SystemsIntegration of computer systems with each otherIndustry data exchange standardsMultivendor networksOutsourcing hires third party providers to manage computer network

Electronic Data Interchange (EDI)Communication through computers and modemsData available in real timePrint-outs can be generatedWeb based

Cooperation for Industry Excellence

Competition from world markets has increased over last 50 yearsIndustry segments now cooperating to regain marketThe industry is striving to provide quality, value, and delivery in a timely, efficient manner

Quick ResponseStreamlines supply chain by transmitting bar code data using EDI technology throughout the entire textile-apparel-retail pipeline.Benefits:Focus on consumer needsCommunication accuracyHigher quality standardsBetter buying, production, and distributionLower inventoriesEasier reorderingShorter lead/response timeImproved forecastingFewer markdownsHigher profits

Corporations and PartnershipsNational Apparel Technical Center helps upgrade the technical knowledge and skills of industry personnelAmerican Textile Partnership links government labs with the textile/apparel pipeline

Improving ImageContinuing efforts to educate the public about the industryQuality productsHigher standards of ethics and social responsibilityEducation, family care, health issues, and safety of employeesEnvironmental and community initiatives

Do You Know . . .What demographic and psychographic data would define YOU?Why is product development so important to the fashion industry?Name some disadvantages of Quick Response.