Brick and Mortar retail formats, Fashion Retail Stores

Types of Fashion Retail Stores :

Most of the consumers prefer to shop and browse in a Physical store rather than buying online specially those products where touch, feel, fitting and taste matters a lot. In brick-and-mortar stores, consumers can consults with employees about the products or services. Brick-and-mortar stores have the ability to offer shopping experience whereby consumers can test a product. Brick-and-mortar stores also provide consumers with instant gratification when a purchase is made.

Multi-brand outlet (MBO): These are usually large retail formats. As far as my experience is concerned after spending 17 years in the retail industry, out of which almost 10 years in Multi-brand outlets. I analyze very few benefits of Multi brands out, one of them is footfall. It could be a good choice to launch a new brand/product at MBO. In such a way without spending much at ATL marketing, while with the help of BTL marketing only you can get a good amount of customers as footfall at MBO is comparative much high at MBO. If MBO is in a metro city then High Rent & CAM as well as qualified professionals make it challenging to be a profitable venture. Although MBO in small cities could be much more profitable where customers can have a good shopping experience inside MBO with a concept rather than walking long at high street, which will be tiring. Groomed sale staff gives then required consultancy to make them more comfortable and confident.  

The Disadvantages/Risks of Multi-Branding

·         Cannibalization between the brands.

·         Confusion caused by overlapping segments that will result in brand switching.

·         The public image of you’re the brand may become profit-oriented, rather than the customer.

·         Failure due to poor management.

·         Failure from wrong business choices.

·         Difficult to justify each square foot return as MBO are forced to keep a variety of merchandise to catch different types of customers.

·         A good brand may not get proper positioning in MBO.

·         Because of the heavy flow of customers on the weekend, a big queue in front of the trial room. Long waiting sometimes makes customers frustrated especially if they are accompanied by kids.

·         System error makes customers frustrated if the scheme displayed and billing does not match. Some customers never buy again if they are not handled well at the time of billing disputes.

·         Shrinkage of theft issues is higher in MBO, which causes a good amount of loss every year. 

·         Maintenance & running expense are much higher. The complete area is not properly utilized.

Exclusive brand outlet (EBO): If we study success rate of organized retail, names which reflects in our mind are only and only EBO like Zara, Mango, H&M, Nike, Lee, Levies, Louis Vuitton, GUCCI, Prada, Chanel, Ralph Lauren, Burberry, House of Versace and many more. If we talk about Indian retail then too only a Few names we can count which are again EBO for example, Biba, W, Global Desi, Fab India and many more. 

·         Brand DNA can be maintained in EBO.

·         Majorly customers are brand loyal & does shopping without wasting must of the time

·         Customer creates a good relationship with sales staff and their relationship make them loyal customers.

·         The public image is more customers oriented.

·         Management is better and each square foot is properly utilized.

·         Uniformity of store layout and product line which makes connect better & trust more to brand anywhere in the world. 

·         Customer handling is better & management is easy.

·         Running expense is comparatively low, as each square foot gives the required result.

·         Space is comparatively small to manage better.

Hypermarket: In most of the case-study in India we found out such format profitable. Per square feet, the sale is almost 10 times compare to another retail format. The following are key features of the hypermarket.

• Top line (Turnover) attracts but Bottom-line (margins) are too low.
• One-stop-shop under one roof for all your daily needs from grocery, food, vegetable, kitchen, apparel, home, house cleaning product, and equipment. 
• You may not get occasion-specific apparel & electronics also up to a certain extent. 
• The customer gets better deals and offers at hypermarkets as they can negotiate better from manufacturing companies due to a higher volume of the same.
• A very proactive approach is needed to replenish stock without increasing warehousing costs. 
• Software support is needed to understand OTB and out of stock inventory before facing the loss of sale. 
• Margins are low; volumes are high due to repeated customers every week.
• Cross-selling is easy. The bulk sale is more promoted by giving extra benefits.

Hypermarkets are more focused on food-related items to serve the daily need. Other sections are majorly impulsive buying and the customer usually doesn’t plan to go hypermarket for buying clothes or electronics. Big Bazar and Spence are the two major successful players in the Indian market with a bigger business share. Other brands like Vishal, V-Bazaar, V2 are other known hypermarket Stores in Smaller cities, which has better cusses rate in the apparel segment as well.

What skills are required to become a Fashion Designer

                                    

What skills are required to become a Fashion Designer

Designing is a very wide term. Every physical product in the industry has been designed and upgraded from time to time with the thought of achieving better quality, look, feel, comfort and utility. When we talk about fashion designing it includes a wide variety of products from apparel, handbag, shoes, jewelry, accessories & Home furnishing Items. A designer brings freshness in the same product range with his creativity and innovation.

         

Before choosing this career one should know what are the most needed qualities to become a fashion designer. If you are creative, have an eye in color texture, pattern with good visualization power in three-dimension having technical knowledge of Pattern, cutting & making the apparel with enthusiasm of following the fashion trends, then you are a perfect candidate for the fashion design field.  

Now we will discuss the role of a designer, which almost remaining the same in different formats, for example, Export house, Buying House or Apparel retail organization.

·         Analyzing upcoming trends and making fashion forecast from 6 Months to one year ahead, base on your business requirement. Designers usually work 2 seasons ahead, some fast fashion apparel brands like Zara, H&M, Boohoo work on a fast pace to maximize business by working at the current successful trends with shorter production lead time.

·         Create the Mood board based on Brand DNA and customer profile. Compile them in a PPT as a whole season's look to represent to the Buying & Marketing team.

·         Choose fabrics based on approved mood board, color pallet, and brand positioning. Brand positioning means if a brand is a hypermarket then fabric selection will be cheap and if it is prêt-a-porter or designer wears then fabric will be expensive and unique. The selection of fabric will be base on the brand‘s customer profile.

·         Sketches either by hand or by computer to know the look of the Apparel or accessories post-development. While working on silhouette designer must keep key fashion element in mind which has been broadcasted by international textile trendsetter agencies and celebrities. Software is available for better illustration and implementation of print texture and affects at silhouette.

·         Post approval of these silhouettes or illustrations, actual product development came into the process.

·         Once physical collection gets ready, the Buyer or the Selection committee filter designs based on Budget, range plan, perceive value, practicality and customer profile.

Sometimes designers have to go extra miles by working late to meet the deadline of fashion shows, trade fares, exhibition & client visits. Apart from working for other some designers believe in launching their In-house fashion label. From a big bunch of professionals, very few got success and fame which can be counted at fingers. Some designers prefer to work as a consultant or Journalist. As per the interest, one has to decide what product range they choose as there career. Once you invest a few years in a specific product line then it becomes difficult to change the line as the hiring professionals always prefer to hire a product-specific designer, if they are looking, experience people. The selection of the product range can be decided on two criteria. For example If one decides to work for the apparel industry then one needs to inspect his true interest, whether it is Men’s wear, women’s wear, Kid’s wear or Home furnishing field. The same rule applies to the accessories field.

 2nd Criteria is for which class you wanted to design. Haute Couture (Exclusive designer creation for a big shot), Prêt-a-Porter or ready to wear (Designer wear which is sold in small numbers) and High street fashion designer (Cheaper range for the mass market).

 Here again one can create core expertise by choosing the occasion, for which product will be used by end user, for example, Daywear, evening wear, corporate wear, Innerwear, Night Wear, Party wear, Sportswear etc.

Career as Production Merchandiser / Apparel Merchandiser / Fashion Merchandiser

A Production Merchandiser / Apparel Merchandiser/Fashion Merchandiser at Apparel manufacturing division has to coordinate with the other departments to complete its job and to following the production activities. Factory merchandiser uses different formats and documents to coordinate within the factory, like Bill of material (BOM), production file, tech pack etc

Function of Production Merchandiser /Apparel Merchandiser/Fashion Merchandiser

Production Merchandising is a function of multiple activities performed by a person. Merchandising involves the planning and execution of the export order with the right place, at the right time, in the right quantities, at the right price. It is concerned with all the activities necessary to provide buyers with the merchandise they want to buy and when and where they want it and at prices, they can afford and are willing to pay. Hence it involves making execution plans, understanding the buyer's need for quality and cost, follow up of running order, effective communication with the buyer. The term ‘Merchandising’ has always been a magic word and hot pick of the cake in the field of apparel and fashion merchandising. Most of the persons who want to pursue a career in the apparel field want to become a merchandiser is discussed below.

Over the years the growth of the merchandising process  has increased as a discipline in the apparel export industry, there have been many responsibilities added to the profile of the apparel merchandiser. This has led to a change in the skills required for the job and evolution of the discipline of export merchandise. On one hand, the merchandiser had the job of getting orders and execute them; execution of Orders includes multiple processes and responsibilities.

Product Development/Sampling

Product development is the business policy of the organization which includes the development of the new designs as per clients' requirements against their comments on the existing sample or buyer’s tech pack. Production merchandisers must keep updates to buyers from time to time about the product development done by the organization. Motivate the buyer to give the design development to the organization instead of doing themselves. Whenever buyer visits to the organization, presentation of new color, prints, embroidery patterns, and desk loom developments are done by production merchandiser. By presenting new products as per international trend forecast and buyer’s brand DNA Merchandiser try to convince the buyer to select the designs from the presentation. Good Samples presentation and convincing ability of production merchandiser help to brings more business as the buyers generally place the order once satisfied with the quality and responsiveness of the sampling.

Fit Sample, Size Set, Pre-production Sampling

Sampling is one of the main processes in Apparel manufacturing and it plays a vital role in attracting buyers and confirming the order. Post Order Merchandiser has to submit Fit, Sample, Size set samples & Pre-production sample for technical and quality clarity. The role of merchandiser plays a crucial role as the follow up of the samples is an important aspect. The buyer passes some comments to the merchandiser after submitting the sample. These comments are needed to understand and communicate with the sampling department. Get changes from the sampling and resubmit to the buyer. Follow up with the buyer to get approvals of the sample.

Costing

Costing is a very dynamic process, and it is the most important function performed by the merchandiser. Merchandiser should know about costing and its calculations. While calculating the cost of the garment, merchandiser keeps the following things in mind.

·           Fabric Rate

·           Fabric consumption

·           Trim's average and rate

·           Cutting, Making & packing

·           Value-added services: printing, embroidery, washing

·           Lab Testing recommended as per country/Buyer’s need

·           Transportation and logistics cost

·           Minimum Overheads

·           Profit of the manufacturing organization

·           Currency exchange rate

The role of the merchandiser does not end only after calculating the cost, but after quoting the cost merchandiser need to negotiate with the buyer on the cost of the Apparel and close billing rate.

Planning (Time and action calendar)

Production merchandising is an interdependent activity. Successful merchandising is the outcome of effective preparation and follows up of time and action calendar by all (warehouse, cutting, embroidery stitching, washing, and finishing) departments. TNA is an effective way of coordinating and following up on important milestones in preproduction processes to ensure timely delivery within the stipulated delivery date. Production merchandiser prepares the TNA by keeping things in mind like production capacity, lead time of buyer, holidays, etc.

Communication

Communication is the most important aspect of any export order process. In production merchandising most important communication is quality manual, purchase order, lab dip, bit loom, Strike off, samples approval, tech pack, inspection report, packing list, Invoice. The buyer communicates each aspect of on-going and future style with merchandiser only. Merchandiser must be able to communicate with the buyer and with internal departments effectively. Nowadays the most effective mode of communication with foreign clients is mail, What’s app calls on Skype.

Coordination

Coordinating with other departments is one of the major responsibilities of a production merchandiser. One needs to coordinate with all the departments within the organization and outside the organization to run the export order successfully. A production merchandiser has to coordinate with the other departments to complete its job. The factory merchandiser uses different formats to coordinate within the factory-like BOM, production file, tech pack. Some of them need to create by factory merchandisers some of them are provided by the buyer. Internal and external coordination is needed from the merchandiser. Merchandiser provides status through formats to the buyer like production status report, packing list, TNA, etc.

Sourcing

The right product at the right price at the right time in the required quality and quantity is the key responsibility of a merchandiser. For Fashion & Apparel, Home Furnishing, textile industry fabric and trims are the raw material which needs to be outsourced. Not only does the fabric have to be appropriate and suited to the garment design, but it must also be made available at the precise time when it is needed. Thus, lead times play an important role in sourcing and placing orders for the materials required for the production. As soon as the fabric is in the stores, then only the sourcing of the threads, button, lace, tapes start because the color of the accessories must match the buyer’s requirements. Merchandiser must make sure that all approvals related to fabric and trims should be coordinated with buyers in the given timeframe.

Retail Planning, Business Analyst

For Retail merchandisers:  since past 7 years many professional courses are available in the education sector to learn retail merchandising professionally. The Key success of retail merchandising lies in major 5 steps. Right product, at the right location, at the right time, in the right quantity and at the right price.  Right people with the right process manage the business in the best way. To pursue such career one should have an analytical mind with efficiency in MS excel application with good practice at maximum MS excel formulas to process as well as understand data to make a practical and accurate decision. 

  

Common Job Responsibilities of Fashion Retail Merchandiser :

·         You will be responsible for ensuring that the right amount of goods are available at each store and are being sold at the right price within a season. 

·         You have to work closely with buyers and other merchandisers to plan product ranges, distributors and analysts. 

·         You need to make future budgets based on the current sales trend as well as last year's sales performance of the same period.

·         Need to work  closely with buyers, retail merchandisers predict up-and-coming sales trends to ensure maximum profitability.

·         Merchandisers need to ensure that products appear in the right store or website, at the right time and in the right quantities. This involves working closely with buying teams to accurately forecast trends, plan stock levels and monitor performance.

·         While the buyer selects the lines, the merchandiser decides how much money should be spent, how many items should be bought, and in what quantities.

·         In smaller companies, one person is responsible for both the responsibilities of buying and merchandising.

·         Merchandisers play a key role within retail, as profits can be affected by how successfully they undertake their work. Merchandisers suggest top management the prices to maximize profits and manage the performance of ranges, planning promotions and markdowns as necessary.

·         They also follow up delivery and distribution of stock and sometimes deal with suppliers for T&A.

·         Planning product ranges and preparing sales and stock plans.

·         Retail Merchandiser is the Analyst who is liaising with buyers, stores, distributors.

·         Work closely with the buyer for the new store layout plan based on the customer profile.

·         Planning budgets and presenting sales forecasts and figures for new ranges.

·         Controlling stock levels based on forecasts for the season.

·         Using specialist computer software like SAP or Genesis to handle sales statistics, produce sales projections and present spreadsheets and graphs.

·         Analyzing every aspect of bestsellers (for example, the bestselling price points, colors or styles) and ensuring that they reach their full potential.

·         Monitoring slow sellers and taking action to reduce prices or set promotions as necessary.

·         Analyzing the previous season's sales and reporting on the current season's lines.

·         Making financial presentations to senior managers

Retail Merchanding job required working at the fast pace in a competitive environment, with high levels of responsibility for potentially very large budgets, where even minor errors can result in vast reductions in profit. This aspect can either be motivating and challenging or a source of stress. Although most of the work is office-based, Some of your time may be spent each week visiting stores or suppliers and occasionally attending trade fairs or fashion shows. This may involve spending short periods away from home.

Career Opportunities in Fashion & Retail Industry

Have you done any course of fashion designing or textile designing and confused to choose type of industry?
Not to worry. To understand your real interest read following inside information of different job titles and their responsibilities.

First of all, one should know the types of Industries available under the textile industry segment like:

·         Manufacturing Industry:

·         Trading Industry

·         Retail Industry

·         Service Industry

Under Each Industry there could me multiple career option we can choose.

1. Manufacturing Industry:

·         Designer
·         Merchandiser
·         Sampling coordinator
·         Production Manager
·         Assembly line manager
·         Pattern Grading at CAD

2. Trading Industry

·         Business to Business, Whole Seller and Distributor
·         Business to Customer

3. Retail Industry:

·         Multi Brand Outlet
·         Exclusive Brand Outlet
·         Hyper Market.
·         E-Commerce Portal

Retail process is driven by 2 different team.

1-      Front end Team: Under this section one can find multiple job opportunities who has good marketing and selling skills.

·         Salesman
·         Department Manager
·         Store manager
·         Area Sales Manager
·         Zonal Head
·         Country Head
·         Retail Operation Head
·         Visual Merchandising Team

2-      Back end team: Under this section one can find multiple job opportunities who is good in analytical skills.

·         Retail Planner
·         Merchandiser for Goods follow up for timely delivery from supplier
·         Retail Merchandiser to work at reports & Numbers
·         Buyer
·         Designer
·         Product development Head
·         Category Head
·         Marketing Manager

4. Service Sector:

We have commonly heard terms of export house and Buying house. Actually buying house work as service provider and Export house work as production house.

·         Buying House ( this industry need Merchandiser, designer and product developer)
·         Consultant. These are experienced Independent professional working on the a gig economy concept.

Stay tuned to get more insight about opportunities in Fashion Industry