Tag Archives: starting an apparel business

Merchandising – From Design Concept to Sale

Merchandising – From Design Concept to the final sale of a garment, merchandising is an important aspect, which is often not fully understood.

Role of a Merchandiser

Merchandising encompasses every department of an apparel business.

  • Line development
  • Time and action plans
  • Planning volume
  • Budgets
  • Merchandising calendar detailing key dates for planning, selling, and producing multiple lines.
  • Each stage will have an impact on the successful retail sales of the garments.

Merchandise Planning

  • Target market should be analyzed.
  • If the market is over-merchandised or saturated with a product, then it would not be wise to manufacture something that is already out there.
  • Market analysis involves studying the current market trends and anticipated needs for the forthcoming seasons.
  • New fashions usually evolve gradually, the processes by which fashions rise, peak, and decline take several seasons. It will be important that a merchandiser understands this.

In today’s market there is no universal group of customers. They could be:

  • City
  • Suburban
  • Rural
  • Young or not so young
  • Blue-collar or white-collar background
  • Middle-income or well to do
  • Conservative or the avant-garde, and so on
  • Weather is also a very important aspect

Merchandiser will need to know the niche market – and fill it

Fabrication:

The first things a customer will notice is:

  • The color of the garment
  • Then the will be the type of fabric
    • Plain colored
    • Prints
    • Or the graphics.

Choosing a fabric suitable for a particular style is probably the most important aspect of design/merchandising a line.

It will then be important to merchandise the fabric choice to fall within groups to relate other fabrics, trims, or colors.

Story Board:

  • Seasons
  • Color
  • Fabrics – Plain or Print
  • Styles  
  • Target market
  • Groups within the collection

 

Example of: Design/Merchandising

“Storyboard” are often made up of magazine tear sheets and other sources of inspiration.

Includes styling suggestions, colors, textiles, trims, stitching detailing and even accessories suggestions which will influence or direct the new collection.

Designer/Merchandiser may have been to an art show or museum, or inspired by the history of fashion or ethnic costumes

  • Vintage cars may be an influence for a print on a shirt, or, some part of a vintage dress could be taken as inspiration; there could be a floral or even a space theme.
  • Sub-divide these sheets into groups that better relate to one another; e.g. fabric types, colors that could be grouped together with in the line.
  • Storyboards forces you to focus your designing, and merchandising.

Groups Within The Collection/Line

  • A line is usually subdivided into groups.
  • As mentioned each group has a specific theme based on the fabric, color, or a particular fashion direction.  Sometimes the design for one garment may inspire a whole group.
  • The styling within each group should have variety yet carry out the “central theme”.
  • To present a visually pleasing group of “dresses,” the line needs only to include a few elements in common, such as fabric or a color story.
  • Often a manufacturer emphasizes only a few silhouettes (called “bodies or styles” in the trade), interpreting each of them in several prints; or it will feature one print in a variety of styles.
  • Within the group, the dresses should offer a variety of silhouettes, sleeve treatments, necklines, trims, or they could have certain continuity in stitching details and finishing of the garment.
  • Example To design “coordinated sportswear”, the objective is to have the individual styles mix and match interchangeably.  Fabric combinations must be carefully thought out.  There should be a variety of coordinating skirts, pants, jackets, shirts or blouses, and tops in each group.  There should still be consistency of theme, with color, fabric, line, or detailing to tie the whole group together.

Merchandising for Display Purposes

Whether you are displaying at a booth at a trade show or a retailer displaying goods in a store it will be important to spend the time to fine tune the art of merchandising a product. All displayed merchandise must relate and be simple enough to be understood. It is important not to over merchandise, (or over crowd) either a store or a trade show booth.

You need the buyer to:

  • Connect
  • Relate
  • Buy!
  • If your booth has all the pieces from your line make sure it does not end up with a swap meet effect.  Merchandising your end product (DISPLAY) will be as important as merchandising and designing the line.
    • Your buyers will not connect or understand your merchandising if the display is crowded
    • You have one chance to get their attention. Approx – 3 seconds – Booth must be inviting and create an impact quickly!
    • Know what to use to connect with your buyer will be critical to sales
    • A booth should be merchandised and displayed as if it were a store window
    • You want the buyers, and the customer to buy all your merchandise!
    • Your graphics should communicate who you are, what you do, and how the customer can benefit by buying your line
    • Make it easy for people to get in and out of the booth.  Make sure that whoever is working in the booth is friendly and out going 
    • Do not chew gum, drink or eat while selling
    • Give away small items with your company’s name, to remind the customer of your product.

Merchandising your booth and marketing is an important part of the sale of your product, and ultimately the success of your business!

Retail Visual Display/Merchandising

–      The arrangement and presentation of merchandise both on the floor and in the windows critical to keeping the store looking fresh will be an important factor in attracting return customers.

–      Why would shoppers return to buy if the stock is old and the window display is the same?

–      When everything begins to look alike, customers become disenchanted.

–      The longer a customer spends in a store, the more likely there will be a sale.

–      Coordinating and accessorized outfits should be displayed to help customers assemble their own wardrobes.

Website Merchandising

  • As with a retail window a website needs to be merchandised often
  • Must to be easy to navigate
  • Have a message as to what it is the site is selling
  • Visual connection
  • Keep it fresh and new
  • Change out merchandise as often as possible
  • Continuity will be part of brand recognition

  Conclusion:

  • Merchandising encompasses everything around us. Sometimes successful and others times not so successful!

Merchandise Yourself

  • We merchandise and brand ourselves each day with what we choose to wear and DO!!

 

 

 

 

Survival Tactics for the Apparel Business

When the economy is booming, a manufacturer and a retailer can have a greater margin of error. This margin of error could be defined as poor planning and or untimely inventory. Poor planning is often written off as “just the way the business goes”. When the economy is healthy people are more confident and so spend more freely. However, when the economy slows down for a while, the exact opposite occurs. People start to hold onto their money and only spend it on those items they deem absolutely necessary. Like an extended slow season, it becomes imperative that both manufacturer and retailer plan for no waste with a perfect mix of styles and sizes. To survive, it has been important to ensure that you have the right product in the right price point at the right time. Due to our global economic depression, a new trend has evolved; a demand for cheaper prices, speed to market, and smaller orders more often. All these changes have resulted in a new way of doing business, which is a mixed bag of changes, some good and some bad.

Retailers have been forced to take steps in the past couple years to slash inventory levels. Although they risk limiting their overall sales potential by stocking fewer goods, the effort is aimed at boosting margins and protecting profits. They are buying more often and in fewer quantities. This can be good news for the smaller manufacturer as they can easily handle smaller orders plus they get paid more often.

By offering too many options and with everything a trend, it is very easy not know what to buy. So, the big trend that seems to have stuck over the past couple of years is an item driven market and accessories are BIG. Recycle your wardrobe but keep things look new by accessorizing and adding new items such as separates e.g. skirts, pants, tops and jackets. Then purchase the very all important new shoe style, throw on a new scarf, look for a huge handbag and add some vintage or new jewelry. This should then give the wearer a 2011 trendy appearance.

Is There Room For The “Little Guy”?

Where does the small guy fit in with so many stars and high end designers taking over mass retailing?

I am starting to feel resentful that these high end designers are taking over the mass market. Don’t get me wrong these are amazing designers but what about the little guy, the new bee, the up and coming designer? Where are you going to play?

Vera Wang stepped in at Kohl’s, now JLo and her ex hubby Mark Anthony have followed suit (no pun intended) with sparkly lines and ad campaigns for Kohl’s. You walk into a Kohl’s and it feels like American Idol meets a book store of large designers – Lauren Conrad MTV goddess’s line next to Daisy Fuentes, next to Vera, etc. – it’s all in the name and the marketing and they have really done it again and again (Yes Brittany is there too!)

I was amazed at the second coming of god at Target a few weeks past when Missoni, yes that high end zig zag of a design hit the mass retailer like Jesus walking on water—where were the Target inventory planners for this big day? Target sold through basically everything at the store level within minutes of store openings.  Who knew?  Someone just got fired in Targets inventory management department!

The little guys are feeling it. Retail has become lost in the masses momentarily. I am not sure where retail is headed but there is silver lining. Here is the good news – not everyone wants what they have to offer – people are individuals they like to be unique and they like things that the masses do not have. How nice is it to have a wrap that no one else has? A unique color, fabric and style designed with love and care and maybe even eco-friendly and made in the USA to boot!

So what is the upshot of this? The solution to problem is to keep on swimming – keep cheering for the little guys. If you are a small manufacturer like everything in life – things come back into bloom. The masses will not always dominate the underdog will prevail. Keep making those appointments, keep designing your lines, and keep marketing your brand, your style, your unique product. At the end of the day we may be the small guy right now but that’s ok there is room for everyone. The small vs. the large creates a balance. We cannot be everything to all customers that is where you fit in! You create that uniqueness that creates fashion trends and set’s you apart from the masses. You create the trends that dictate what the massed pick up on. Fit yourself in, find your place and prosper.

Jamie L. Novick, The Next Step Retail Solutions, www.retail-solutions.biz / jnovick@retail-solutions.biz

 

DOWNLOAD FORMS

MANUFACTURING, WHOLESALE AND RETAIL PRICE CALCULATOR

Interactive Excel spreadsheet enables you to estimate your cost of manufacturing, for domestic or overseas AND enables you to estimate your wholesale and retail pricing based on margins and mark-ups that you determine. An invaluable tool in determining right from the start whether or not you can make a profit with the product you are wanting to produce.

START-UP COST ANALYSIS

Excel spreadsheet with examples of financial projections of production and the costs involved over a one year period.

NON-DISCLOSURE

Three examples of non-disclosure agreements – one simple version and two longer variations.

CASH ANALYSIS

Excel spreadsheet with a six-month spread.

COST SHEET

Two examples, one on how to cost, the other, a blank that can be used by the manufacturer. Just add your own company logo.

SALES REP SAMPLE AGREEMENT

This important document outlines the agreement between the manufacturer and the sales representatives, commissions agreed to and when it is due. Also includes territories covered by the agreement, sample costs and other important details that should be included in a sales agreement.

SALES COMMISSION REPORT

Example of what a commission report should look like when paying sales percentages.

TECH PACK SAMPLE

Example of a tech pack used by a major apparel brand with its factory in China. Extensive look at all of the details necessary to include in the information you give to any factory. The more complete and accurate your information, the less likely you will have problems with your production, regardless of whether the factory is located domestically or overseas.

SPEC SHEET PANTS

Spreadsheet showing examples of measurements that are used in a pant tech pack sheet.

PURCHASE ORDER

Spreadsheet example of what a purchase order should include. Just add your company logo and ready to use.

ORDER CONFIRMATION

Spreadsheet example of what is needed to confirm an order. Just add your company logo and ready to use.

INVOICE FORM

Excel spreadsheet example of an invoice. Just add your company logo and ready to use.

PATTERN CARD

Detailed blank pattern card with all the columns for listing fabric and trims. Just add your company logo and ready to use.

CONTRACTOR INFORMATION

Important “MUST HAVE” document when working with a contractor. Details contractors labor compliance information. Just add your company logo and ready to use.

PACKING SLIP

Spreadsheet example of packing slip that would be included in any packages shipped. Just add your company logo and ready to use.

PICKING TICKET

Spreadsheet example of cutting quantities and sizes for each style to be produced. Just add your company logo and ready to use.

LINE SHEET CROQUIS

Easy to use form for tracing a woman’s body to be used to sketch styles for line sheets.

FEMALE CROQUIS

Use as a guide for tracing styles and design renditions.

CHILD CROQUIS

Use as a guide for tracing styles and design renditions.

BILL OF MATERIALS

Excel spreadsheet of all materials that will be ordered and used in the production of a garment or product.