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:
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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
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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
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Dividing the total
market into smaller
groups that contain
similar characteristics,
since no business can
serve ALL customers
Target marketing
defines this niche
Demographics
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Statistics of human
populations by:
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Age
Gender
Race
Education
Religion
Income
Occupation
Geographic location
Psychographics
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Statistics that try to
explain consumer
behavior through:
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Lifestyle
Values
Attitudes
Self-concept
Culture
Social groups
Personalities
Market Research
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Gathering and analyzing
information relating to a
particular market
Results may indicate:
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Shopping behavior
Product preferences
Price ranges
Types of advertising
preferred
Needs and wants
Market Research Methods
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Surveys
Consumer panels
keeping diaries
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Focus groups
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Slower; broad trends
Particular subject or
product line
Computer databases
Electronic feedback tests
Virtual reality
Product Development
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Process of taking a
product from the
conceptual idea to
the market
Continually
changing, striving
to meet the needs
of the consumer
Information Technology
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Providing information
through computer
technology
Collection,
classification,
storage, retrieval, and
dissemination of data
Inventory control
Shipping/receiving
Customer tracking
Technology Methods
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Bar codes
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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
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Technology Disadvantages
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Financial cost
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Computer hardware
Software
Scanners
Bar code printers
Power failures
Incorrect data entry
Open Systems
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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)
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Communication
through computers
and modems
Data available in “real
time”
Print-outs can be
generated
Web based
Cooperation for Industry
Excellence
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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
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Streamlines supply
chain by transmitting
bar code data using
EDI technology
throughout the entire
textile-apparel-retail
pipeline.
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Benefits:
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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
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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
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Continuing efforts to
educate the public
about the industry
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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 . . .
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What demographic and
psychographic data
would define YOU?
Why is product
development so
important to the fashion
industry?
Name some
disadvantages of Quick
Response.