fbs session i
TRANSCRIPT
FASHION BUYING & SOURCING
Session I
INTRODUCTION TO BUYING FUNCTION
What we will cover…..
•Introduction to buying function
•Role in contemporary buying
•Central buying for chain organisation
•Types of centralised buying
•Buying for full line and specialised operations
1. Specialty
2. Department
3. Variety
4. Discount
5. Boutique
6. Franchise
TYPES OF STORES
7. Tele shopping
8. Internet shopping
9. In-flight shopping
10. Mobile shopping
11. Paper/e-catalogue
1. Key individual
2. Buying responsibilities
3. Management responsibilities
4. Market forecasting & technology
5. Merchandise planning, selection & development
6. Working with resources – domestic/foreign
7. Pricing & promoting merchandise for sale
ROLE OF A BUYER
1. Key individual
ROLE OF A BUYER
Buyer – often called dept. manager/retail buyer
BUYING – DEFINITION – purchase of consumer
goods in relatively large or wholesale quantities for
subsequent resale in smaller retail lots to the
ultimate consumer.
Responsible for providing merchandise @ store
2. Buying responsibilities
ROLE OF A BUYER
a. Depends on organisational structure
b. Types of goods offered
c. Store sales turnover
d. Location of store branches/units
3. Management responsibilities
ROLE OF A BUYER
Why should a buyer have management capabilities?
a. He has to run the department
b. Be in constant contact with salespeople,
merchandising managers, staff, other store
buyer, customers
c. Attract consumer to store
d. Maximise profit
3. Management responsibilities
ROLE OF A BUYER
Buyer is an important link in management’s
communication network. (e.g. DMM communicates
store policies to buyer assistant buyer, sales staff,
vendors, manufacturers, customers)
Buyer should be alert to changes in personnel
attitudes and values, market & supply conditions,
consumer buying habits
4. Market forecasting & technology
ROLE OF A BUYER
Buyer should be aware of demographic,
psychographic marketing trends, economic forces,
technological advancements affecting consumer
attitude.
Should understand consumer behaviour and what
affects buying decisions in the market place
4. Market forecasting & technology
ROLE OF A BUYER
Should be aware of computer applications in
merchandising (EDP, POS, bar-coding, EDI, e-
Commerce, electronic shopping)
Importance and application of fashion information
to all categories of merchandise
5. Merchandise planning, selection & development
ROLE OF A BUYER
a. Planning
b. Record keeping
c. Preparing merchandise budget
d. Assortment planning
e. Application of control system to merchandising
5. Merchandise planning, selection & development
ROLE OF A BUYER
f. What to buy and how much
g. Product developer (scan domestic/foreign
market, meet tastes/needs of consumers, provide
exclusivity)
6. Working with resources – domestic/foreign
ROLE OF A BUYER
a. Must be aware of techniques used in making
buying contacts
b. Develop good vendor relations
c. Seek for resources
d. Know how to specify & buy from foreign sources
7. Pricing & promoting merchandise for sale
ROLE OF A BUYER
a. Determining wholesale price & retail price
b. Taking markdowns
Should be aware of psychological aspects of
advertising and
Determine advertising plan
Should know importance of ethics in advertising
ROLE OF A BUYER - SUMMARY
1. Formulating effective buying policies
2. Understanding retail consumer
3. Communicating effectively with market and trade
specialists
4. Continuously visiting local markets as well as
central trade markets
ROLE OF A BUYER - SUMMARY
5. Keeping abreast of market trends, economic
conditions, competition, supply conditions,
methods of distribution
6. Developing an awareness of fashion trends &
their influence on fashion merchandise and other
categories
7. Planning for effective merchandise control
ROLE OF A BUYER - SUMMARY
8. Planning & selecting merchandise assortment
9. Working with merchandise resources (vendors,
manufacturers, suppliers)
10. Pricing merchandise for a profit.
11. Employing good management techniques when
working with trade specialists as well as store
executives & personnel
ROLE OF A BUYER - SUMMARY
12. Working as a liaison between
(a) parent store & branch store
(b) store manager & department manager
RESPONSIBILITIES OF ASSISTANT BUYER
1. Managerial function of the department
2. Paperwork related to inward/outward movement
of merchandise
3. Receiving, marking, stock-keeping activities,
invoice & order checking
4. Presentation of new merchandise for display, co-
ordinating promotion ads with the merchandiser,
department housekeeping
RESPONSIBILITIES OF ASSISTANT BUYER
5. Store communications, supervising salespeople,
knowledge of merchandise, trends & promotions,
establishment of good communications with
merchandising staff & management, maintaining
good telephonic contact.
CAREER AS A RETAIL BUYER
1. Buyer’s role is increasingly demanding – due to
changes in marketing environment
2. Buyer has to be imaginative & analytical to meet
the challenge & take advantage of the
opportunities it presents.
Environmental Forces Affecting Job Responsibilities of the Buyer
1. Market forecasting
2. Economic conditions
3. Environmental concerns
4. Technological advancements
5. Competition
6. Global retailing
7. Government regulations
Environmental Forces Affecting Job Responsibilities of the Buyer
1. Market forecasting
May be broken down according to
(a) demographics
(b) psychographics
Environmental Forces Affecting Job Responsibilities of the Buyer
1. Market forecasting
Demographics age, sex, ethnicity, income,
occupation
a. Population trends
b. The family household
c. Shifting of the population
Environmental Forces Affecting Job Responsibilities of the Buyer
1. Market forecasting
Psychographics study of individuals personality,
values & roles, activities, interests, opinions
Environmental Forces Affecting Job Responsibilities of the Buyer
1. Market forecasting : Psychographics
Changing attitudes & values
a. Greater concern for health & better quality of life
b. Consumers are increasingly demanding in terms of
quality and performance
c. Weekend shopping longer shopping hours
during weekends
Environmental Forces Affecting Job Responsibilities of the Buyer
Changing roles of men & women
a. No. of working women – increasing
b. No. of two workers household – increasing
c. Increased spending on time saving devices
d. Catalogue for home shopping/electronic shopping
(T.V./Internet)
e. Fast food, convenience foods, prepared foods
1. Market forecasting : Psychographics
Environmental Forces Affecting Job Responsibilities of the Buyer
a. Recession high food prices high rate of inflation
cautious consumer
b. Boom (i) increased potential & increased
willingness to spend
(ii) buyer has to increase ad/promo to woo consumer
(iii) giving to consumers easy credit terms, coupons,
rebates, etc.
2. Economic conditions
Environmental Forces Affecting Job Responsibilities of the Buyer
c. Presence of labour unions
d. Change in business conditions in vendor/supplier/
service provider firms (e.g. supplier may go out of
business, change the product line, raise price,
relocate, etc.)
2. Economic conditions
Environmental Forces Affecting Job Responsibilities of the Buyer
a. Increased awareness regarding pollution/ecological
balance (organic cotton, non-polluting processes, eco-
textiles) (carry more functional brands)
b. Using energy efficient lighting
c. Relevant materials should be used in product design
d. products can be disassembled, repaired, recycled,
upgraded
3. Environmental concerns
Environmental Forces Affecting Job Responsibilities of the Buyer
a. Computer provides speedy, reliable and accurate
information which facilitates managerial decision
making
4. Technological advancements
Environmental Forces Affecting Job Responsibilities of the Buyer
a. Ever present
b. Characteristics of competitive environment
(i) diversifications & mergers
(ii) numerous types & sizes of retail stores
(iii) new merchandising techniques
5. Competition
Environmental Forces Affecting Job Responsibilities of the Buyer
Diversification allows retailers to expand their
purview
Mergers helps retailers to maximise the resources
thereby gaining a competitive advantage
5. Competition
Environmental Forces Affecting Job Responsibilities of the Buyer
Rapid growth of the Internet (non-store retailing)
a. Online commitment
b. Online selling
c. Traditional retailers need to realign customer
service, distribution & other operations so they
can capitalise on e-commerce in the future
5. Competition
Environmental Forces Affecting Job Responsibilities of the Buyer
New merchandising techniques
a. New strategies to revamp merchandise
b. Change of store image
c. Stocking major brands
d. New store designs
e. Stay open till late night
f. One stop concept
5. Competition
Environmental Forces Affecting Job Responsibilities of the Buyer
TODAY ……..
Manufacturers market worldwide
Retailers buy internationally
6. Global retailing
Environmental Forces Affecting Job Responsibilities of the Buyer
Retailing business is consumed by a power-play
among international giants.
LVMH acquired shares in GUCCI, PRADA, KRUG
CHAMPAGNE, BLISS, HARD CANDY, BOO.COM,
LIBERTYSURF, INTER PARFUM INC., TAG HEUER,
AUCHLAND, THOMAS PINK, JOSEPH, CHAUMET, EBEL
& ZENITH, SOLSTICE
6. Global retailing
Environmental Forces Affecting Job Responsibilities of the Buyer
Risks involved in global retailing
cultural differences,
currency differences,
different management styles,
Govt. regulations
6. Global retailing
Environmental Forces Affecting Job Responsibilities of the Buyer
Today, consumer’s demand of guarantees of
product quality, product safety, protection,
satisfaction in products purchased
Legislations governing retailer’s locations,
methods of distribution, timings, methods of
advertising
7. Government regulations
Environmental Forces Affecting Job Responsibilities of the Buyer
Laws have been passed to ensure competition and
fair business practices
For consumers laws protect them from unfair
trade practices & ensure safety
7. Government regulations