session 9 apparel product design and...
TRANSCRIPT
Session 9
Apparel product design and development
1
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What is a New Product?R&D people see a product as
A set of new physical properties.A new way of assembly.A set of objective performance standards.
Production people see it asA new process.A results of controlling cost and effort.
Marketing people see it asHow you convince people to use itHow much you can afford to gamble on it.What other products it will compete with.
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Give Examples
A technical success but a marketing failure
E.g. ..Bioform braTechnical improvement overcomes a marketing inadequacy
E.g. ..M&S apparelAn advertising concept overcome a technical defect
E.g. ..Super-warm thermal underwear
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Success FactorsAbility to serve customersAbility to produceAbility to sellAbility to earn profit
Right quality + time + cost
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Balance Between Design and Market
Market
Aesthetics
functionprice
creativitytechnique
cost
Design
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Product Development Process1. Trend analysis
Trend of life styleTheme of seasonal linesMarket surveyAnalysis of existing products and competitorsTrends of materials, colour & technology Material sourcing & development
2. DesignLines, forms, colour, materials, story board
3. SamplingBody measurements, pattern, garment sampleBill of materials, direct labour cost, overhead, mark upFitting test, wear trial, amendments & optimization
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Product Development Process4. Buying & marketing
Image packaging, promotion, product line schedulingMaterial specification, production specification, sourcing for production
5. Productioncolourway, size assortment & quantity, size chart, approved pattern, material card & production cost
6. Shipping7. Selling & Distribution
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Product Development Calendar 2005
Source: http://google.brand.edgar- online.com/EFX_dll/EDGARpro.dll?FetchFilingHTML 1?SessionID=NhOiCmmKL9RZ_MA&ID=5108226
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Product Development Calendar 2008
Source: http://google.brand.edgar- online.com/EFX_dll/EDGARpro.dll?FetchFilingHTML 1?SessionID=NhOiCmmKL9RZ_MA&ID=5108226
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Assignment 1 - Brainstorming
By what ways the product development processes can be reduced in time and cost?
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Product Life Cycle (PLC)
1. Product introduction2. Product growth3. Market maturity4. Sales decline
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1. Product Introduction Stage e.g. Dr. Kong shoes
Low sales volumeSlow sales growth High cost on product development and promotionNo or little competition New demand to be created Customers are prompted to try the product
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Introduction Stage –
Marketing Strategies
Rapid skimming
Build product awareness by careful pricing and promotion.
SlowskimmingP
rom
otion lev
el
Price level
Rapid penetration
Slow penetration
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2. Product Growth Stage e.g. One-piece bra
Growing market acceptance Substantial profitsCompetitors start entering the market and copy the best selling product.Much product varietyCosts reduced by economy of scale Sales rise significantly High profitability
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Growth Stage - Marketing StrategiesSustain rapid market growth as long as possible, by
improving product qualityAdding new product featuresEntering new market segmentsRecognizing new distribution channelsAdvertising to bring product conviction and purchaseDeciding when to lower the prices to attract the next layer of price-sensitive buyers into the market
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3. Market Maturity Stage
e.g. 5-pocket jeansSales reach the peak and slow down in growthMany competitorsPromotion becomes important to fight for market sharePromotion cost rises and profits declines Price war with competing products Products differ only slightly
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Maturity Stage - Marketing StrategiesMarket modification
Look for new markets and segmentsStimulate increased usage by present customersReposition the brand
Product modificationBetter or new functional performance e.g. durability, reliability, speed and taste etc.New features e.g. versatility, safety or convenienceImproved style e.g. aesthetic appeal
Marketing mix modificationCut price to attract new users and competitor’s customersAggressive promotion – trade show, gifts etc.Move into higher volume channels e.g. superstoreOffer new and improved service
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4. Sales Decline Stage e.g. Washable silk
Sales show a strong downward driftPrice diminishProfit erodeNew products replace the old Price competition from dying products may become more vigorous.
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Decline Stage - Marketing StrategiesContinue
The same market segments, channels, pricing and promotion
ConcentrateOnly in the strongest markets and channels while phasing out its efforts elsewhere
HarvestSharply reduce its expenses to increase current profits
DropDrop the product completely, quickly or slowlySell or transfer the product to someone elseJust maintain parts inventory and services
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Uses of PLCAs a planning tool
To realize the market situation of each stage and indicate the alternative marketing strategies over the product life cycle
As a control toolTo allow the managers to gauge how well a product is doing in relation to the successful and comparable products launched before
As a forecasting toolTo help the marketers to predict the product life cycle and project the sales pattern based on historical data, so as to adjust the marketing plan accordingly.
e.g. Apparel industry has developed quick response system to adopt the short fashion cycle.
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Limitations of PLCDifficult to judge with accuracy the exact location of a product in its PLC.Difficult to predict when the next stage will appear, how long it will last and to what levels the sales will reach.The 4 stages do not divide themselves into clean-cut compartments.Various products have different PLC.Some products may have several growth and maturity stages in the whole PLC.PLC is a product-based picture rather than a overall market-oriented picture.
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Assignment 2 –
Group DiscussionEvery product has a life cycle. After it is launched, it grows, becomes mature and at some point may die.
Is the statement always true? Provide examples of apparel products to support your argument.
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Life Style & Consumer NeedsUSA
Digital lifeFast foodDisposable productTravel on airSuper storeBlack is fashionSimple designSmart casualBrand identity
FranceRomantic lifeTable mannerStylish productTravel on roadBoutiqueMany coloursElegant designBlack tieSelf-image
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Assignment 3 –
Set QuestionsSet a questionnaire for a consumer survey onShanghai ladies’ shopping behavior of executivewear.
How often?Where?With whom?Price?Quantity?Criteria?Lifestyle?
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Product Innovation TrendsTextile Technology
Fiber - thermal & moisture comfortYarn - stretch, fancyFabric – light weight, soft but strongDyeing & finishing – environmental friendly, nano scale
Production TechnologySeamless – ultrasound / hot seamingGarment finish
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Product Technical AnalysisFabricAccessoriesWorkmanshipSize and fit Functional performance
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Reading List1. Johnson M. J. and Moore E. C., Apparel Product
Development, 2nd Edition, Upper Saddle River, N.J., Prentice Hall, 2001.
2. Keiser S. J. and Garner M.B., Beyond Design: The Synergy of Apparel Product Development, New York : Fairchild Publications, 2008.
3. Johnson M. J., So you want to work in the fashion business? : a practical look at apparel product development and global manufacturing Upper Saddle River, N.J., Prentice Hall, 1998.
4. Regan C. L., Apparel product design and merchandising strategies, Upper Saddle River, N.J., Pearson/Prentice Hall, 2008.