PowerPoint for THE WORLD OF FASHION MERCHANDISING By Vicki Shaffer-White Publisher The Goodheart-Willcox Co., Inc. Tinley Park, Illinois Part 1: Basic Fashion and Business Concepts Chapter 5 Satisfying the Fashion Market Objectives: Distinguish between market growth, share, and segmentation Describe the importance and methods of market research Summarize the concept of product development Explain the latest fashion industry information technology Explain the efforts that are being made for overall industry excellence Describe how the industry is improving its image Market Growth and Share Growth is the increase in size of the entire market Share is the part of the total market controlled by a firm Competition results from firms trying to increase their market share Market Segmentation Dividing the total market into smaller groups that contain similar characteristics, since no business can serve ALL customers Target marketing defines this niche Demographics Statistics of human populations by: Age Gender Race Education Religion Income Occupation Geographic location Psychographics Statistics that try to explain consumer behavior through: Lifestyle Values Attitudes Self-concept Culture Social groups Personalities Market Research Gathering and analyzing information relating to a particular market Results may indicate: Shopping behavior Product preferences Price ranges Types of advertising preferred Needs and wants Market Research Methods Surveys Consumer panels keeping diaries Focus groups Slower; broad trends Particular subject or product line Computer databases Electronic feedback tests Virtual reality Product Development Process of taking a product from the conceptual idea to the market Continually changing, striving to meet the needs of the consumer Information Technology Providing information through computer technology Collection, classification, storage, retrieval, and dissemination of data Inventory control Shipping/receiving Customer tracking Technology Methods Bar codes RF scanners Feed information via Universal Product radio frequency Code (UPC) Magnetic stripes UPC printers Voice recognition UPC compliance of Machine vision code standards Video cameras Optical scanners Smart cards Feed bar code Microprocessor information to the embedded in plastic computers Technology Disadvantages Financial cost Computer hardware Software Scanners Bar code printers Power failures Incorrect data entry Open Systems Integration of computer systems with each other Industry data exchange standards Multivendor networks Outsourcing hires “third party providers” to manage computer network Electronic Data Interchange (EDI) Communication through computers and modems Data available in “real time” Print-outs can be generated Web based Cooperation for Industry Excellence Competition from world markets has increased over last 50 years Industry segments now cooperating to regain market The industry is striving to provide quality, value, and delivery in a timely, efficient manner Quick Response Streamlines supply chain by transmitting bar code data using EDI technology throughout the entire textile-apparel-retail pipeline. Benefits: Focus on consumer needs Communication accuracy Higher quality standards Better buying, production, and distribution Lower inventories Easier reordering Shorter lead/response time Improved forecasting Fewer markdowns Higher profits Corporations and Partnerships National Apparel Technical Center helps upgrade the technical knowledge and skills of industry personnel American Textile Partnership links government labs with the textile/apparel pipeline Improving Image Continuing efforts to educate the public about the industry Quality products Higher standards of ethics and social responsibility Education, family care, health issues, and safety of employees Environmental 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.