ASSIGNMENT

Fashion Merchandising
Buying Cycle at Sears

By: Kartik Singh (M/BFT/11/10) Abhishek Kumar (M/BFT/11/02) NIFT Mumbai

Introduction
Sears is a leading integrated retailer with almost 2,500 full-line and specialty retail stores in the United States and Canada and the home of Shop Your Way, a social shopping experience Sears is the leading home appliance retailer as well as a leader in tools, lawn and garden, fitness equipment and automotive repair and maintenance. Key proprietary brands include Kenmore, Craftsman and Diehard, with a broad apparel offering, including such well-known labels as Lands' End, the Kardashian Kollection, Jaclyn Smith and Joe Boxer, as well as Sofia by Sofia Vergara and The Country Living Home Collection. The buying Cycle refers to the key events & the processes in which the fashion buyer is involved in order to buy a garment range for retail or a mail order company. The length of the buying cycle varies between company to company usually takes a year between reviewing the current seasons sale and delivering into stores. The fashion industry traditionally splits the year into 2 main seasons: spring/summer (Feb to July) and autumn/winter (August to January). The figure below shows the buying cycle followed for a merchandize

The Main Events in Buying Cycle (autumn/ winter) Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Actions Review of current season sale Budget planning Comparative Shopping Directional shopping Sourcing for product development Range planning Garment samples souring for range Pre selection of garment sample Price negotiation with supplier Final range selection Placing order for ranges Pre-production sampling and approvals Bulk garment manufacturing Delivery of products to retailer Purchase by customer Time Period(approx.) Mid-August End August August to September August to October October to November October to December November Early December November, December Mid December December , January January to April April to July June , July July to September

Description of various Stages in buying cycle: Fashion Forecasting: Fashion forecasting is the prediction of mood, behavior and buying habits of the consumer. Colour Forecasting: Color grabs the customers' attention, makes an emotional connection and leads them to the product. Even when the basic product stays the same, changing the color gives a sense of something new.
Yarn & Fabric Forecasting: It is not surprising that news about which fabrics are "in" or "out" plays such a prominent role in forecasting fashion.

Comparative shopping: it is undertaken at the beginning of each season by the buying or the design team. In this the team looks at the current merchandise in the stores of the competitors which sell comparable ranges. Directional shopping: it is the term used for trips to gain inspiration for design concepts for a new season. Buyers visit cities such as Paris, London, Milan and New York for directional shopping trips depending upon the companys travel budget.

Garment Sample sourcing for range: Garment samples are bought from different stores as during directional shopping which resemble the product range of the buyer or some new trend. Range planning: It is a stage where buyers define the detail of the range that is to be offered to the customer in terms of styling, fabric, design, suppliers and prices. Pre-selection of garment samples: It is done after the range planning stage where buyers present garment samples for the range to their buying, merchandising and QC teams. Final range selection: It is done immediately after pre-selection and

buyers usually have about two weeks for this. It is the busiest time of the year. Most of the work involves contacting suppliers to explain changes in the range. Price negotiation with suppliers: After the final range is selected, buyers contact the suppliers and tell them that some garments have been removed from the range, others added, and existing styles amended so the prices may need to be re- negotiated if garments have been shortened, fabric changed or trims removed. Confirmation of order to suppliers: After the price negotiation is done, the supplier is selected and the buyer issues the master L/C to the concerned supplier as confirmation of order. Proto-sample approval: These samples are to be made after getting the order sheets. These samples are needed to check the measurements, style and fit. So they can be made in available similar fabrics/substitute fabric in same count and construction but in the actual measurements and specifications. Fit Sample Approval: Buyers will ask us to make the fit samples according to the given measurements. So it is important to strictly adhere to these measurements. It can be made in any colour but the fabric should be same/ substitute fabric in same count and construction. It is send to the buyer to approve the fit and fall of the garment. Size-set Sample Approval: These samples are to be made in actual fabrics with actual trims if available. If the order is for 3 colours and the sizes are S, M, L then the buyer can ask for each size in one colour i.e. one sizeone colour or samples in any one colour and swatches (fabric bits) in other colours. Pre-Production Sample Approval: They have to be made in actual production fabric with actual bulk trims. They will represent that the production will be like these samples. Vendor needs to get the approval of these samples from the buyer before

starting the bulk production. Bulk Garment Manufacturing: After the approval of pre-production samples bulk manufacturing starts. Production Sample: These samples are to be sent before shipment to get the buyers confirmation for shipment. Hence these samples are needed to be perfect in all manners. Buyer may check these samples for everything or anything. Shipment of order: Vendor prepares the shipping documents and gives booking to the freight forwarder for the shipment of garments.

Receiving of product in warehouse: After the garments are ex-factory from vendor they are:

Delivery of product to retailer: After the garments reach buyers warehouse, then from there garments are sent to respective distribution centres of the buyer in every region then from there to the retailers warehouse. Final Product in Store: From retailers warehouse the garments are then sent to the respective stores for sale to the customers.

Buying cycle at sears

Export Order Information

Buyer Style Order quantity Lead Time Master L/C receiving date Ship Date

Sears Full sleeve Mens Shirt 1,20,000 3 Months 5th May 5th August

Fabric Production details Fabric sourcing Production capacity Consumption of fabric Fabric needed Time needed for fabric production China 10,000 meters /day 1.25 meter/garment 120000 * 1.25 = 150000 meters 150000/10000 = 15 days

Company Production details Total sewing machines Clock time Total number of machine per line Production in each line Number of lines Production per line each day Total production each day Time needed for production 200 8 hours 40 80 pieces/hours 200/40 = 5 80 * 8 = 640 640*5 = 3200 120000/3200= 37.5

SL. No.

Time period

Action

Related Dept.

1 2 3

July August (2013)

Colour Forecasting Dulux colour trends (Australia) Pantone Fashion Colour report, Summer2013 International Colour authority (ICA), London

Forecasting Team Trend Forecasting Team at PROMOSTYL and Designers

5 6 7 8 9 10 11 12

August- September

Yarn Forecasting Yarn Expo- 2013, Beijing, China IFAI Canada Expo Craft Yarn Council of America International Istanbul Yarn Fair

Forecasting Team Textile Designers and Textile Engineers

Till August End

Fabric Forecasting China Clothing and Textile Expo The Knitting and Stitching Show Harrogate Bursa Textile fair, Turkey ITMA ShowTime, USA

Forecasting Team Textile Designers and Textile Engineers

13 14 15 16 17 18 19 20 October End Till September End

Design Forecasting Inters toff Asia, Summer 2013, Hong Kong CBI fashion Forecast Print Source, Summer 2013, New York Review of current season sale Review of Season sale for the month of February Review of Season sale for the month of March Review of Season sale for the month of

Forecasting Team Fashion Designing Team

Commercial Dept. Accounts Dept. and team of Chartered Accountants

21

22

April 23 Review of Season sale for the month of May November/December November to December Budget planning Competitive/ Comparative shopping Commercial Dept. Buying Team And Designers Garment Design Analysts

25 24

26

Comparative shopping Report Of Flagship store of Polo Ralph Lauren, San Diego Trend Variation Analysis Comparative Shopping Report Of Flagship store of Levi's Strauss, San Francisco Trend Variation Analysis Comparative Shopping Report Of Flagship store of Calvin Klein, NY Trend Variation Analysis November to January(2014) Directional shopping

27 28

PROMOSTYL Garment Design Analysts

29 30

PROMOSTYL Garment Design Analysts

31 32

PROMOSTYL Buying Team and Merchandisers Sales Dept. and Trend Variation By Trend Analysing agencies

33 34 35 36 37 38 39 40 41 42 43 Mid-January January February

Sales Review of 1st week of Feb. Trend Variation Analysis Sales Review of 2nd week of March Trend Variation Analysis Sales Review of 3rd week of April Trend Variation Analysis Sales Review of 4th week of May Trend Variation Analysis Garment sample sourcing for range Range planning Final Decision of the Merchandise to be Prepared - T-shirt With Hood and Embroidery Till January end February Pre selection of garment samples Final range selection

Buyers Buyers And Designers

44 45

Buyers Buyers And

Merchandisers 46 Full Sleeve T-shirt With hood in Sizes(S,M,L,XL,XXL) In 3 Different Colours, Brown, Beige And Green Full Sleeve T-shirt With hood and An Embroidery in Sizes From (S,M,L,XL,XXL) In 3 Different Colours, Brown, Beige And Green February End Price negotiation with suppliers Merchandising Dept. ( Buyer)

47

Merchandising Dept. ( Buyer)

48

Merchandising Dept. ( Buyer) Merchandising Dept. (Manufacturer) Merchandising Dept. consisting of a group of merchants including Senior merchandisers and his assistants at export House Carry these activities

49

March and End April

Received Export order BID from Buyer.

50 51 52 53 54 55 56 57 58

Fixed Price Contract (FPC) Review of styles, files, B.O.M Graded Marker for average System entries Fabric booking Fabric for sampling Thread Lab dip Closures on styles; design., trims Received fabric sampling yardage from supplier Received few trim samples for sampling program Of Garments Submission of proto sample to buyer Will get sample of fabric from fabric supplier for the approval Will receive. comments from buyer on proto samples Testing approval of fabric & trims on their quality

59

60 61

63

64

Time and action calendar for production

Sl. No. 65 Date Day Action Order Confirmation From Buyer Related Dept. Commercial Dept.

02 May 2014 Thursday

66 67

06 May 2014 Monday 07 May 2014 Tuesday

Received master L/C Received P/I from the Fabric & Trim supplier Will issue B/B L/C to suppliers Send proto sample for approval Fabric and Trim Supplier will send Swatch to factory for approval Send to Testing Lab Approval for Proto-Sample Approval from Testing Lab on Fabric Approval from Trims Department Making and Submission of Fit Sample Suppliers sends Fabric for Sampling Program Trims Supplier sends Trims for Sampling Program Approval on Fit Sample from Buyer Making of Size-Set sample Submission of Size-Set sample Bulk fabric Ex- Mill from China Shipment of Fabric from China

Commercial Dept. Commercial Dept.

68 69 70

09 May 2014 Thursday 09 May 2014 Thursday 13 May 2014 Monday

Sampling Dept. Fabric dept.

71 72 73

13 May 2014 Monday 14 May 2014 Tuesday 14 May 2014 Tuesday

Testing Dept. Merchandising Testing Dept.

74 75

14 May 2014 Tuesday 15 May 2014 Wednesday

Trims dept. Sampling Dept.

76

18 May 2014 Saturday

77

18 May 2014 Saturday

78

20 May 2014 Monday

Merchandising

79 80 81 82

21 May 2014 Tuesday 22 May 2014 Wednesday 27 May 2014 Monday 29 May 2014 Wednesday

Sampling Dept. Merchandising Fabric Dept. Commercial Dept. & Fabric Dept. Merchandising

83

27 May 2014 Monday

Approval of Size-Set Sample

84

28 May 2014 Tuesday

Making of Pre-Production Sample Submission of Pre-Production Sample In-house of Bulk Trims in the factory Approval on Pre-Production Sample In-house of Bulk Fabric in the factory Inspection of the Fabric Cut order planning for production Pilot production will start (100 150 pieces) Comments on Pilot production by factory Q/C & buying house Q/C Start Bulk production Send Production Sample to Buyer Received production samples comments from buyer Will contact shipping line & book vessels for the shipment Start making Shipping Documents Stitching complete Finishing & Packing complete Final inspection by buyer Will be Ex-factory Will Hand over the Goods to the freight forwarder Feeder Vessel Leaves Port Feeder Vessel Reaches Mother Vessel (Singapore) Mother Vessel Leaves Port

Sampling Dept.

85

28 May 2014 Tuesday

Merchandising

86

5 June 2014 Wednesday

Trim Store Dept.

87

5 June 2014 Wednesday

Merchandising

88

13 June 2014 Thursday

89 90 91

14 June 2014 Friday 15 June 2014 Saturday 17 June 2014 Monday

Fabric store dept. Cutting Dept. Production Dept.

92

18 June 2014 Tuesday

Q/C Dept.

93 94 95

18 June 2014 Wednesday 5 July 2014 Friday 12 July 2014 Friday

Production Dept. Production Dept. Merchandising

96

15 July 2014 Monday

Commercial dept.

97

23 July 2014 Tuesday

Commercial Dept.

98 99 100 101 102

31 July 2014 Wednesday 2 August 2014 Friday 2 August 2014 Friday 3 August 2014 Saturday 4 August 2014 Monday

Production Dept. Production Dept. Buying house Logistics Dept. Forwarding Dept.

103 104

5 August 2014 Tuesday 10 August 2014 Saturday

Shipping Company

105

12 August 2014 Monday

106

27 August 2014 Tuesday

Mother vessel Reaches at Buyer's Port (FAS New Yorkand) Receiving of product in warehouse (San Diego) Delivery to regional distribution Centres (Chicago, New Jersey, Washington, NY, San Francisco) Delivery of product to retailers Final product in store Distribution Network

107

28 August 2014 Friday

108

30 August 2014 Sunday

109 110

31 August 2014 Tuesday 1 September Thursday 2014