Basic Fashion and Business Concepts: Satisfying the Fashion Market Objectives

Slide2Part 1: Basic Fashion andBusiness Concepts Chapter 5 Satisfying the Fashion Market

Slide3Objectives 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

Slide4Market 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

Slide5Market Segmentation Dividing the total market into smaller groups that contain similar characteristics, since no business can serve ALL customers  Target marketing defines this niche

Slide6Demographics Statistics of human populations by:  Age  Gender  Race  Education  Religion  Income  Occupation  Geographic location

Slide7Psychographics Statistics that try to explain consumer behavior through:  Lifestyle  Values  Attitudes  Self-concept  Culture  Social groups  Personalities

Slide8Market 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

Slide9Market Research Methods Surveys  Consumer panels keeping diaries  Slower; broad trends  Focus groups  Particular subject or product line  Computer databases  Electronic feedback tests  Virtual reality

Slide10Product Development Process of taking a product from the conceptual idea to the market  Continually changing, striving to meet the needs of the consumer

Slide11Information Technology Providing information through computer technology  Collection, classification, storage, retrieval, and dissemination of data  Inventory control  Shipping/receiving  Customer tracking

Slide12Technology Methods Bar codes  Universal Product Code (UPC)  New UPC-A includes numbers with the lines  Optical scanners  Feed bar code data to computers  Radio Frequency Identification (RFID)  Uses radio waves to send data from “smart” labels  Magnetic stripes  Voice recognition  Machine vision  Identifies products  Smart cards  Microprocessor within plastic

Slide13Technology Disadvantages Financial cost  Computer hardware  Software  Bar code printers and scanners  RFID tags and readers  Power failures  Vast amounts of data  Consumer privacy concerns

Slide14Open Systems Integration of computer systems with each other  Industry data exchange standards  Multivendor networks  Outsourcing hires “third party providers” to manage computer network

Slide15Electronic Data Interchange(EDI)  The exchange of information and transactions through computers using a common digital language  Data available in “real time”  Printouts can be generated  Web based

Slide16Cooperation for IndustryExcellence  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

Slide17Quick Response Streamlines supply chain by transmitting product 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

Slide18Corporations and Partnerships The Textile/Clothing Technology Corporation, [TC] 2 , is a not-for-profit industry-wide organization  Researches high-tech innovations in apparel production equipment and processes  Helps the industry implement new technologies and business processes

Slide19Improving Its 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

Slide20Do You Know . . . What demographic and psychographic data would define YOU?  Why is product development so important to the fashion industry?  Why is synergy so important to the industry?