The fashion buying cycle. What is the Buying Cycle 2022-11-01
The fashion buying cycle Rating:
The fashion buying cycle refers to the process that businesses go through in order to purchase merchandise for their stores. It involves a series of steps that start with the identification of consumer demand and end with the delivery of the purchased goods to the store. Understanding the fashion buying cycle is essential for fashion retailers and brands as it helps them to make informed decisions about what to buy and when to buy it, in order to meet the needs and preferences of their customers.
The first step in the fashion buying cycle is market research, which involves gathering information about consumer demand and industry trends. This can be done through a variety of methods, including market surveys, focus groups, and analysis of sales data. The goal of market research is to identify what styles and trends are popular among consumers, and to determine the best time to introduce new products to the market.
The next step is product development, which involves designing and creating prototypes of the clothing and accessories that the business plans to sell. This may involve working with designers, manufacturers, and other partners to bring the products to life.
Once the products have been developed, the business must decide on a pricing strategy and determine how much to order. This involves considering factors such as the cost of materials, labor, and shipping, as well as the expected demand for the products.
Once the products have been priced and the order has been placed, the next step is production. This involves the actual manufacturing of the products, which may be done in-house or through a third-party manufacturer.
Once the products have been produced, they must be shipped to the store or warehouse. This may involve working with a logistics company or using the business's own transportation systems.
Finally, the products are ready to be sold to customers. This involves setting up displays, advertising the products, and managing inventory to ensure that the store has the right mix of products to meet customer demand.
Overall, the fashion buying cycle is a complex process that requires careful planning and coordination. By understanding the various steps involved, fashion retailers and brands can make informed decisions about what to buy and when to buy it, in order to meet the needs and preferences of their customers.
Fashion Industry And Buying Cycle
Related: What Is a Sales Cycle? The world of fashion presents a one-of-a-kind blend of styles, opinions, cultures, and much more. While most businesses operate under this schedule, buyers are increasingly looking to purchase all year in smaller quantities to provide continual newness. However, fast fashion does not apply to the whole range in stores, and as much as 80 per cent of goods may be core and basic lines, with fast fashion accounting for up to 20 per cent Mintel, 2002. The central team typically reviews sales data from the previous year, which can yield valuable consumer insights and form the basis of sensible business constraints. Fashion Cycle Stages: Fashion moves through different stages during its cycles of existence. A good critical path works as a retro planning management tool.
A buyer creates suitable looks for the consumer. A seasonal fashion theme or look that can be interpreted. ? On-time availability and production planning improved as well, thanks to better forecasting that allowed the company to book factory capacity ahead of time. Related: 11 Different Types of Customer-Buying Behaviors 4. Fashion items available have saturated the market.
One company aimed to shorten its fashion cycle from 60 weeks to 44, largely by digitizing the value chain. Gain your competitive advantage and up-to-date insight by LONDON, United Kingdom—As high profile commercial roles with sought-after interaction and visibility at fashion week, careers in buying and merchandising are a keen favourite among fashion school applicants and graduates. Closing Sales Knowing where a customer is in the buying cycle can be an important indicator of how to engage, e. Currently, fashion companies use a mishmash of legacy systems, making vendor management cumbersome; a lack of standardization results in wasted time and rework. One lever is disciplined manufacturer management. Challenges of fashion buying and merchandising 59 QR QR approaches to supply chain management were developed by the apparel manufacturers in the US during the mid-1980s in order to maintain competi- tiveness with offshore manufacturers through reduced lead times and accur ate forecasting Birtwistle et al. Budget Planning Merchandisers usually plan budgets in conjunction with buyer.
Furthermore, whether they work for large or small companies, fashion buyers must often take risks in order to make sure that their fashion companies can promptly respond to current and future trends. Stand out in your next interview and gain up-to-date knowledge from industry experts by. Thus buying is based on long-term forecasts based on historical sales Birtwistle et al. Within customer profiles includes long and short-term behaviours, from immediate trends to lasting phenomena in the market, such as almost genderless dressing. Understanding this process is an important part of marketing, advertising and sales.
No matter what path in the fashion industry a student chooses to pursue, they are guaranteed a fast-paced, creative, dynamic, and unique career. Bruce and Daly, 2006 As Clark 2015 pointed out, since fashion buyers cannot possibly predict the exact number of items that will be purchased during a season, markdown pricing is one of the greatest risks that retailers must manage and minimise, as even though it can be used as a promotional tool, it actually represents a significant cost. Repurchasing is the decision making process undergone by a customer which leads to additional purchases. The creative teams also develop a master plan specifying the breadth and depth of their respective collections, along with price ranges. However, there is a risk of such forecasts being inaccurate as a result of out-of-date data and difficulties in predicting popular sellers, resulting in out-of-stock best sellers and excess stock poor sellers, requiring mark-downs and reduced margins Birtwistle, 2003.
This team collaborates on the creative direction, the financial targets, and the master plan; they agree on parameters early in the fashion cycle. Intent In this stage, buyers consider their purchasing options from an emotional, financial and logical perspective. WGSN, 2015 On the other hand, as the Head of Selfridges Fashion Office noted, WGSN requires subscribers to spend a long time researching information, which cannot really be used when developing ranges, as there are many other organisations and individuals drawing on the same information. Dillon, 2011 Even though packages are certainly more detailed than magazines, they are usually more expensive and are published semi-annually. In other cases, fashion companies have placed specific tasks such as quality control on-site at the factories, eliminating the need to ship samples and products back and forth between factory floor and design studio or corporate office.
The buying cycle is a series of realizations, questions, decisions and judgments that customers go through before making a purchase. For example, perishable items such as food or paper goods offer a high likelihood of repurchase with minimal marketing efforts. Participants are the Design, Marketing, Merchandising and QC teams. Armed with data and insights, the company then produces the first prototypes of the new collection. Many more colors, cuts, and styles can be tested and prototyped. Talk through: Quantities booked and selling prices etc.
The Fashion Cycle: Strategic Buying & Selling for Retail
If the purchased product is not perishable or meant for one-time use, marketing efforts in this stage attempt to offer related or similar products and develop brand loyalty among customers. This ensures that once they are ready to make a buying decision, your product is one of the first they think of and one they feel confident investing in. It can survive longer if the fashion becomes a classic. TRANSITIONALS - Ranges which bridge the gap between one season and the next season. Generally fashion cycle is used to explain the process that a type of fashion goes through. Production and delivery Opportunities for shortening the production and delivery phase are fewer, but still meaningful.