1Graduation ProjectOnTo Develop Spring-Summer’14 Assortment Plan ForUnited Colors of Benetton Outlets in Lifestyle Departmental Stores(Delhi NCR Region)Submitted ByDelwin ArikattBatch: 2011-2013Post Graduate Program in Fashion ManagementUnder the guidance ofMr Annaji SharmaAssociate ProfessorDepartment of Fashion Management StudiesNational Institute of Fashion TechnologyHyderabad2013
2ACKNOWLEDGEMENTI am grateful to NIFT for providing me an opportunity to do research work on “To Develop a Spring-Summer’14 Assortment Plan for United Colors of Benetton Outlets in Lifestyle Departmental Stores –Delhi NCR Region”. I express my whole hearted thanks to my guide, Mr Annaji Sharma for hisencouragement and moral support in giving me valuable tips for making it presentable. I am indebtedto Ms Supreet Gandhi, my industry mentor who has guided and supervised me throughout this study.I have no words to express my gratitude to her.I am also thankful to Mr Digvijay Pandey for providing me the details of conducting the research fromits inception. My thanks are also due to Mr Bijit Nair for his advice in collecting data and otherrelevant information. I will be failing in my duty if I do not mention the name of my CCMr Annaji Sharma and other faculty for his help in my Research Project I am appreciative of Dr Bandiwho allowed me to get access to the library and for motivating me to finish the study on time.NAME: Delwin ArikattMaster of Fashion ManagementDate of submission: 16-05-13
3DECLARATIONI, Delwin Arikatt, hereby declare that the Project entitled “To Develop a Spring-Summer’14Assortment Plan for United Colors of Benetton Outlets in Lifestyle Departmental Stores – Delhi NCRRegion” is my original work and no part of the project has been copied from any other reports or anyother were carried by someone else and this have been submitted for any other degree/award.However, any material taken from any other published sources has been suitably referred andacknowledged at various places.Name: Delwin ArikattRoll Number: 5Batch: 2011 -2013Centre: NIFT-HyderabadDate: 16-05-2013Place: Hyderabad
5CERTIFICATE OF AUTHENTICITYThis is to certify that the Project entitled “To Develop a Spring-Summer’14 Assortment Plan forUnited Colors of Benetton Outlets in Lifestyle Departmental Stores – Delhi NCR Region” submittedtowards the partial fulfilment of Post-Graduate Degree in Fashion Management by Delwin Arikatt ishis original work under my guidance and the results are based on the research done by him.Mr Annaji SharmaAssociate Professor,Dept. of Fashion Management StudiesNIFT-HyderabadDate: 16-05-2013
6TABLE OF CONTENTSChapter No. Contents Page No.1 Objective 101.1 - Sub-Objective 102 Research Design2.1- Secondary Research 112.2- Primary Research 113 Research Methodology 124 Significance, Limitations and Scope 135 Executive Summary 146 Introduction 167 Company Profile7.1- United Colors of Benetton 207.2- Benetton India Private Limited (BIPL) 257.3- BIPL: Business Model 267.4- BIPL: Introduction to Channels 277.5- BIPL: Organizational Structure 277.6- BIPL: Key Success factors 288 Functioning of various Departments Related to Buying 298.1- Buying 308.2- Supply Chain 338.3- Production 368.4- Product Development 378.5- Commercial 389 Literature Review9.1- Assortment Planning 399.2- Merchandise Planning Process 419.3- Fashion Forecasting 459.3.1-Direction of Fashion Change 469.3.2-Drivers of Fashion Change 479.3.3-The Future of Forecast 5110 Spring Summer (SS14) Forecast10.1- Key Colors 5210.2- Theme 1: Digital Aesthetic 5310.3- Theme 2: Next Nature 5410.4- Theme 1: Neo Geo 5510.5- Key Shapes and Detailing’s 5611 Store Based Comparative charts11.1- Ghaziabad Store 5911.2- Gurgaon Store 6111.3- Noida Store 6311.4- Rohini Store 6511.5- Vasantkunj Store 6712 Spring Summer (SS13) - Sell Through Analysis 7112.1- Category Analysis and Summary 7212.2- Sub-Category Analysis and Summary 7412.3- Price Analysis and Summary 7612.4- Size Analysis and Summary 7812.5- Color Analysis and Summary 82
7Chapter No. Contents Page No.13 Spring Summer (SS12) - Sell Through Analysis 8813.1- Category Analysis and Summary 8913.2- Sub-Category Analysis and Summary 9013.3- Price Analysis and Summary 9213.4- Size Analysis and Summary 9413.5- Color Analysis and Summary 9914 Proposed Merchandise Budget for SS14 10315 Findings15.1- Forecast Findings 10415.2- Findings for SS13 10515.3- Findings for SS12 10716 Suggestions16.1- Assortment Plan - Gurgaon 11016.2- Assortment Plan - Noida 11116.3- Assortment Plan - Ghaziabad 11216.4- Assortment Plan - Rohini 11316.5- Assortment Plan - Vasantkunj 11417 Bibliography 11518 Annexures 11619 Soft Copy Format – Spring-Summer 12/13 Data 121
8LIST OF TABLESSerial No. Contents Page No.1 Ghaziabad11.1 - Options in Knit Tops 5911.2 - Options in Knit Bottoms 5911.3 - Options in Denims 5911.4 - Options in Woven Bottoms 6011.5 - Options in Woven Tops 602 Gurgaon11.6 - Options in Knit Tops 6111.7 - Options in Knit Bottoms 6111.8 - Options in Denims 6111.9 - Options in Woven Bottoms 6211.10- Options in Woven Tops 623 Noida11.11 - Options in Knit Tops 6311.12 - Options in Knit Bottoms 6311.13 - Options in Denims 6311.14 - Options in Woven Bottoms 6411.15- Options in Woven Tops 644 Rohini11.16 - Options in Knit Tops 6511.17 - Options in Knit Bottoms 6511.18 - Options in Denims 6511.19 - Options in Woven Bottoms 6611.20- Options in Woven Tops 665 Vasantkunj11.21 - Options in Knit Tops 6711.22 - Options in Knit Bottoms 6711.23 - Options in Denims 6711.24 - Options in Woven Bottoms 6811.25- Options in Woven Tops 686 11.26 - Comparison of Average prices in Spaghetti 697 11.27 - Comparison of Entry, Average and Exit prices of Round and V-neck Top 698 11.28 - Comparison of Entry, Average and Exit prices of Chest Printed Knit Top 699 11.29 - Comparison of Entry, Average and Exit prices of Overall Printd Knit Top 6910 11.30 - Comparison of Entry, Average and Exit prices of Value Added Knits Top 6911 11.31 - Comparison of Entry, Average and Exit prices of Knit Dresses 7012 11.32 - Average prices od Denim Sub-Category 7013 11.32 - Average prices od Woven Bottoms 7014 11.33 - Comparison of Entry, Average and Exit prices of Woven Dress 7015 11.34 - Comparison of Entry, Average and Exit prices of Woven Tops 70
10CHAPTER 1OBJECTIVE To develop a Women’s Spring Summer’14 Assortment plan for Benetton outlets in LifestyleInternational Departmental stores in Delhi and NCR regionsSUB OBJECTIVE To do complete forecast for Women’s Spring Summer’14 collection To study the range plan for Women’s Spring Summer’12 collection. To map the past sales (Spring-Summer 12) as well as current sales (Spring-Summer 13) based oncategory, sub category, price, size and color levels. Study of the competitors (Forever 21, Veramoda, Only), product offerings for SS 2013 collectionwith respect to: Key trends, Price points, Sizes, Styles and options. Comparison of competitors’ price offering with that of UCB.
11CHAPTER 2RESEARCH DESIGNA) SECONDARY RESEARCH Desk Research: The data that was collected from the stores by means of observation it wasverified through respective websites of various brands. Information on trends for SS14 was collected through WGSN forecasts.B) PRIMARY RESEARCH To work hands on within the product team and to be part of buying activities and projects tounderstand the basic working of the organization. The data about the working of the departments was collected through interactions withdepartment employees. Market Research includes visits to all United Colors of Benetton and competitors stores inDelhi and NCR region to study the SS 13 trends and merchandise offering through observationand unstructured interviews. Market visits included: Great India Place, Noida Metropolis Mall, Gurgaon CityCenter Mall, Rohini Ambience Mall, Vasantkunj Mahagun Metro Mall, Ghaziabad Study of sales data provided by the department and to analyse the performance. To observe the changes in the actual product at Benetton and its impact on the company’soutput and image and conduct Sales Associate interviews. To be part of the order boking team and therefore be able to analyse past sales data as well ashow the changes in the product, prices, MRPs and the actual delivery schedules of the productimpact the final sell through. A major part of this research is based on the feedback given by various Floor and Storemanagers.
12CHAPTER 3: RESEARCH METHODOLOGYProject IdeationIntroductionFormulate Research Objective: 1To develop a Women’s Spring Summer’14 Assortment plan for Benetton outlets in Lifestyle InternationalDepartmental stores in Delhi and NCR regionsSub Objective 1Study of thecompetitors (Forever21, Veramoda, Only),product offerings for SS2013 collection withrespect to: Key trends,Price points, Sizes,Styles and options.Sub Objective 2To map the past sales (Spring-Summer 12) as well as current sales(Spring-Summer 13) based oncategory, sub category, price, size andcolor levels.Sub Objective 3Analyse and study womenstrend forecast for SpringSummer 14Primary Secondary SecondaryLiterature ReviewAssortment Planning Merchandise PlanningSS14 Trend AnalysisCompetitor Product AssessmentSales data AnalysisRecommendationsAssortment Plan development
13CHAPTER 4SIGNIFICANCE, LIMITATIONS AND SCOPELIMITATION: The information collected about departments other than buying is an overview as they do notdisclose the in depth information. The study of the project was restricted to malls of Delhi and NCR only. In total 3 competitor brands were studied which were specified by UCB. The stocks were updated frequently at the stores due to which the Rate of Sale data may vary.SIGNIFICANCE OF STUDY: As retailers look to overcome the problem of generating growth while the economy isslumping, getting smarter about allocations will be a necessity. In order to gain greater share ofwallet, retailers will be required to offer more customer-centric assortments that appeal to theemerging trends in local markets. This study would help in providing an optimum plan to maximize revenues for future seasons. It would provide insights in to consumer preferences to by marking a certain course of trendmovement.SCOPE OF RESEARCHThe research provides a basis for many future research projects: To develop better educational methods for a clothing buying process; To develop more accurate assortment plans; To reduce constraints in assortment planning of fashion sensitive goods; and To develop a computer program for assortment planning
14CHAPTER 5EXECUTIVE SUMMARYDespite the importance of assortment planning, a reliable process model for assortmentplanning activities is rarely found in either the industry or the academic arena. However, this is acritical function in retail. The purpose of this research was to develop an established assortment-planning model identifying procedures and activities for retail buyers.The major ideation for this project is the shift of Benetton – India’s selling model fromOutright to Sell or Return (SOR) model. In the Outright model, the buyers (Lifestyle International)where responsible for the merchandise purchased from the brand, whereas, in SOR the brand (UnitedColors of Benetton) would be making all the merchandise buying for all the counters throughoutLifestyle stores in India, and any merchandise which will not sell would be the brand’s responsibility.Thus making an optimum Assortment Plan a crucial juncture for profitability.Major Reasons which has led to the conceptualisation of this project are: For Spring Summer 14 Benetton-India has targeted growth at a rate of 30%, since in theprevious season the assortment was conservatively planned. The forecasted sell-through for Spring Summer SS13 is declining in contrast to SS12, in spiteof a conservative approach in Merchandise planning, which indicates an opportunity forimprovisation.This research project encompasses, a complete analysis of Spring Summer-SS12 (Outright Model –Last season) and Spring Summer-SS13 (SOR model – 1stSeason)on Category, Sub-Category, Price,Size and Color parameters, along with comparative analysis of suggested competitor brands(Veromoda, Only and Forever 21) has been done. This has resulted in understanding the major buyingapproaches during both adopted models. Based on this a complete assortment plan for 5 stores in DelhiNCR, namely – Ghaziabad, Gurgaon, Noida, Vasantkunj and Rohini has been made for SS14 alongwith a complete understanding of Spring Summer 14 Forecast.Objective of this Research Project is: To develop a Women’s Spring Summer’14 Assortment plan for Benetton outlets in LifestyleInternational Departmental stores in Delhi and NCR regionsSub-Objectives of this Research Project are: To do complete forecast for Women’s Spring Summer’14 collection To study the range plan for Women’s Spring Summer’12 collection. To map the past sales (Spring-Summer 12) as well as current sales (Spring-Summer 13) based oncategory, sub category, price, size and color levels. Study of the competitors (Forever 21, Veramoda, Only), product offerings for SS 2013 collectionwith respect to: Key trends, Price points, Sizes, Styles and options. Comparison of competitors’ price offering with that of UCB.
15The Research Methodology which was followed during the course of this research is as follows:Project IdeationIntroductionFormulate Research Objective: 1To develop a Women’s Spring Summer’14 Assortment plan for Benetton outlets in Lifestyle InternationalDepartmental stores in Delhi and NCR regionsSub Objective 1Study of thecompetitors (Forever21, Veramoda, Only),product offerings for SS2013 collection withrespect to: Key trends,Price points, Sizes,Styles and options.Sub Objective 2To map the past sales (Spring-Summer 12) as well as current sales(Spring-Summer 13) based oncategory, sub category, price, size andcolor levels.Sub Objective 3Analyse and study womenstrend forecast for SpringSummer 14Primary Secondary SecondaryLiterature ReviewAssortment Planning Merchandise PlanningSS14 Trend AnalysisCompetitor Product AssessmentSales data AnalysisRecommendationsAssortment Plan development
16CHAPTER 6INTRODUCTIONINDIAN RETAIL INDUSTRYThe Indian retail industry is the fifth largest in the world. Comprising of organized and unorganizedsectors, India retail industry is one of the fastest growing industries in India, especially over the lastfew years. Though initially, the retail industry in India was mostly unorganized, however with thechange of tastes and preferences of the consumers, the industry is getting more popular these days andgetting organized as well. With growing market demand, the industry is expected to grow at a pace of25-30% annually.GROWTH OF INDIAN RETAILAccording to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retailindustry is the most promising emerging market for investment. In 2007, the retail trade in India had ashare of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%.Retail formats in India Hypermarts/supermarkets: large self-servicing outlets offering products from a variety ofcategories. Mom-and-pop stores: they are family owned business catering to small sections; they areindividually handled retail outlets and have a personal touch. Departmental stores: are general retail merchandisers offering quality products and services. Convenience stores: are located in residential areas with slightly higher prices goods due to theconvenience offered. Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types ofproducts and services including entertainment and food under a single roof. E-trailers: are retailers providing online buying and selling of products and services. Discount stores: these are factory outlets that give discount on the MRP. Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other smallitems can be bought via vending machine. Category killers: small specialty stores that offer a variety of categories. They are known ascategory killers as they focus on specific categories, such as electronics and sporting goods.This is also known as Multi Brand Outlets or MBOs. Specialty stores: are retail chains dealing in specific categories and provide deep assortment.Mumbais Crossword Book Store and RPGs Music World are a couple of examples.
17THE FUTUREThe retail industry in India is currently growing at a great pace and is expected to go up to US$ 833billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of10%. As the country has got a high growth rates, the consumer spending has also gone up and is alsoexpected to go up further in the future. In the last four year, the consumer spending in India climbed upto 75%. As a result, the India retail industry is expected to grow further in the future days. By the year2013, the organized sector is also expected to grow at CAGR of 40%.RETAIL BUYINGBeginning with the turn of the century and continuing for many years, retailers and buyers for retailstores (retail purchasing) concentrated all of their buying efforts on the selection of merchandise itemsthey thought their customers would like and would purchase. These buyers were product oriented. Itwas called subjective retailing because the buyer based the buying decision on a personal view of thelikes and dislikes of customers.Within recent years the consumer movement (consumerism) has forced a change in the retailers buyingefforts from a subjective to that of an objective one. The retailer now has to measure the likes anddislikes of the customers before a buying decision can be made. The buyer has to be consumer-oriented. Retailing has entered into the new era of the marketing of merchandise.In the retail industry, a buyer is an individual who selects what items will be stocked in a store, basedon his or her predictions about what will be popular with shoppers.Retail buyers have had an important role to link between manufacturers and consumers in the clothingindustry complex. To predict and buy what consumers want from their stores for the next season, retailbuyers can get information from store records and past experience, market representatives and agents,competitors, magazines, recommendations, trade directories, trade shows, films and exhibitions.Buyers have a pivotal role within retail organizations, not least for the fact that it is their responsibilityto make reality the retailer’s positioning statement through their selection of appropriate products andservices. Consequently, the contribution of the buyer to the success of the retailer is considerable andrequires that they possess a range of skills and talents, not least of which is the ability to identify,interpret and satisfy consumer needs and wants. Various attempts have been made to locate therequisite competencies of a successful buyer, and among those that have been identified include skillsof market and numerical analysis, negotiation and communication.
18Furthermore, and perhaps the most important of buyer’s skills, is that of flair and creativity(which is arguably an intuitive competence), and which is evident as part of the process of rangedevelopment and product selection.THE PRINCIPAL BUYING ACTIVITIESIn some respects, it is impossible to provide a definitive and comprehensive account of theresponsibilities of the buyer, not least for the fact that buyer’s roles are as varied as the companies thatemploy them. For example, for an independent retailer, the buyer may be the owner of the business, aswell as the manager of the retail outlet. As such, their responsibilities will be more wide-ranging thanfor a buyer responsible for the ‘cut-flower offer’ for a super market group. However, despite thesesignificant role differences, it is possible to identify a number of activities which are integral to thebuying function as a whole – and these can be grouped into five categories as follows:1 Analysis of market opportunity: A crucial responsibility of all buyers is the identification ofprofitable market opportunity for the business. This necessitates that the buyer undertakes an analysisof trends and developments I consumer buying behavior in general, as well as in relation to the buyer’sspecific area of responsibility. Essential to this process is the evaluation of competitor performance,particularly in terms of their development of new products and services. From this evaluation, thebuyer must identify continuing and new market opportunities for the retailer and from this develop amerchandise plan.2 Creation of the merchandise plan: Substantiated by sound market and competitor analysis, themerchandise plan details the nature and characteristics of the product range in terms of its breadth (therange of different product categories) and depth (the choice of products within a specific category).The merchandise plan must also include a forecast of future sales and profit margin within eachproduct category. This plan is then used as the basis for determining retail price levels within thecompany. A sales and profit budget by week, month, quarter and year will also be included.3 Selecting the supply base: Derived from the analysis of market opportunities and based uponfinancial forecasts, it is then the buying function’s responsibility to identify appropriate sources ofsupply. This investigation will include the application of supplier selection criteria that will typicallyextend beyond merely price of supply considerations, to include issues pertinent to the supplier’srecord on employee’s rights and the use of child labour. Having identified an appropriate supply base,the responsibility for agreeing terms of trade with the supplier is negotiated on the retailer’s behalf bythe buying and merchandising team.4 Product development and supplier performance management: Motivated by the desire toimprove profit margins and secure customer loyalty through distribution exclusively, many buyers,particularly those employed by the larger multiple retailers, have developed own brand ranges. Thisdevelopment has in many cases resulted in retail buyers assuming significant control over the supply
19chain, principally through their determining of product specifications. This shift in power in favor ofthe retailer has meant that suppliers must adhere to strict performance criteria, particularly in relationto product quality standards, and availability levels.5 Presentation of merchandise at point of sale: In recognition of the need to ensure that merchandiseis presented in sufficient quantity to meet demand and in a manner that is conducive to promptcustomers to purchase the range, it is appropriate that the buying team should be involved in decisionspertinent to the presentation of merchandise at the point-of-sale. The involvement of the buying teamin this area may include their directing the nature and form of product packaging, determining themechanisms by which products will be displayed to consumers, as well as proposing the amount ofspace that is allocated to product categories in order that target sales volumes can be achieved.The most important part of a retail buyer’s role in a retail company is satisfying company objectives bymaking accurate and timely decisions of merchandise planning and assortment planning, becausedecisions related to the acquisition of merchandise are critical to the profit potential of a retailcompany. Therefore, the clothing product retail buyer plays an important role in the success or failureof a retail store.
20CHAPTER 7UNITED COLORS OF BENETTONTIME LINE: The seed of the Benetton phenomenon was sown in the late 1950s when three brothers and a sistermerged their flair for fashion and their business acumen. Luciano Benetton, with sister Giuliana andbrothers Carlo and Gilberto, turned $2,000 and a global vision into a multinational empire in less than20 years. Luciano and Giuliana started work early in their childhood to maintain the family. Giulianaliked to knit brightly coloured jumpers which she designed. In the late 1950s Luciano convinced herthat he could sell the brightly coloured garments, which are still the companys distinguishing mark. In 1965, Luciano Benetton, the eldest of four children, was a 30-year-old salesman in Treviso. Hesaw a market for colourful clothes, and sold a younger brothers bicycle in order to buy his firstsecond-hand knitting machine. His initial small collection of sweaters received a positive response inlocal stores in the Veneto region, and soon after he asked his sister and two younger brothers, Gilbertoand Carlo, to join him. In 1965, the entity known as the "Benetton Group" is formed. In 1966, the Benetton’s opened their first store in Belluno and three years after in Paris, withLuciano as chairman, his brother Gilberto in charge of administration, their younger brother Carlorunning production, and Giuliana as a chief designer. The companys core business remains their clothing lines. Casual clothing is marketed as the"United Colors of Benetton" there is also a fashion-oriented “Sisley" division, "Playlife" leisurewear.Their products include women’s wear, menswear, children’s wear and underwear and they haveexpanded into toiletries, perfumes, and items for the home such as kitchen accessories and babyproducts. The Group produces over 150 million garments every year and has a network of around6,000 contemporary stores around the world. As well as having over 9,511 (2009) employees, Benetton has developed a network of smallsuppliers who do contracting in the Northern Italian region around Treviso. The company is known forsponsorship of a number of sports, and for the provocative and original "United Colors" publicitycampaign. The latter originated when photographer Olivier Toscani was given carte blanche by theBenetton management. Under Toscanis direction, ads were created that contained striking imagesunrelated to any actual products being sold by the company. Benetton Group entered Formula One as a sponsor of Tyrrell in 1983, then Alfa Romeo in 1984this arrangement was extended to both Alfa and Toleman in 1985. Benetton Formula Ltd. was formedat the end of 1985 when the Toleman and Spirit teams were sold to the Benetton family. The team sawits greatest success under Flavio Briatore, who managed the team from 1990 to 1997. MichaelSchumacher won his first Drivers Championships with the team in 1994 and 1995, and the team wontheir only Constructors title in 1995.
21 From 1996, the team raced under an Italian license although it continued to be based, likeToleman, in Oxford shire in England. The team was bought by Renault for US$120m in 2000 and wasrebranded Renault F1. In 1979, Benetton first sponsored their (then amateur) local rugby team, A.S. RugbyTreviso. Benetton Rugby has since become a major force in Italian rugby, with 11 league titles andsupplying many players to the national team. In 1982, the company bought its local basketball team, Pallacanestro Treviso, now commonlyknown as Benetton Basket. Their Sisley brand sponsors the local volleyball team, Sisley VolleyTreviso.PRICING AND LOGISTICSIn the mid-1990s Benetton adopted a strategy of price-reduction worldwide. The strategy wasdesigned to enable the company to guarantee its clients an ever more suitable and competitive supplyof products. Simultaneously, Benetton decreased production costs. This combination of price and costreductions resulted in an 8 percent increase in both, items produced and sold in 1994. Benetton alsohas an extensive system of outlet stores in which to sell clothing at significant discounts, as a result ofthe price cuts.In the late 1990s Benetton restructured its distribution network in order to implement a newsystem that would integrate a logistics system in which the warehouses are the system’s junction andare part of the distribution system rather than just places for storing facilities. The new system wouldeliminate fragmentation of inventories across the world by concentrating the finished goods in threesorting centre’s, one in the US, one in Italy and one in the Far East. The automatic distribution systemhandles over 30,000 packages a day and is managed by a 10-member staff, rather than a traditionalsystem that requires a staff of 400. These new automated systems, along with the production facilities,have improved the efficiency and speed of customer service, and reduced transport costs by more than10 billion lire in 1996. One feature that was crucial to Benettons success in its early years was itsadvanced dyeing process, whereby the finished product could be dyed instead of dying the yarn first.As tastes in color changed with the whims of the fashion industry, this innovative dyeing systemallowed Benetton to establish a customized production system that keeps up with the latest markettrends.
22COMMUNICATIONSBenettons communications strategy was developed, as a result of the companys desire toproduce images of global concern for its global customers. The communication strategy targets issuesrather than clothes as the leading player, with a portion of the advertising budget devoted tocommunicating themes relevant to young and old people worldwide. The company claims, "Werealized some time ago that we had a unique tool for communicating worldwide, as we are present in120 countries, and that it would be cynical to waste it on self-serving product promotion. We trusted inthe intelligence of our customers worldwide and decided to give space to issues over redundantproduct claims."Benetton believes it is important for companies to take a stance in the real world rather than useits advertising budget to encourage consumers to think they will be happy through the purchase of thecompanys products. This strategy challenges Benetton to come up with a selling theme that appeals toall consumers and overcomes local biases. Through this strategy, the Benetton Group has developedadvertising campaigns that are international, homogeneous, and characterized by universal themes,which have been not only a means of communication but also an expression of the time. Through itsuniversal impact, the company has succeeded in attracting the attention of the public and in standingout among the current clutter of images.SPORT AND EVENT SPONSORSHIPOne of the avenues through which Benetton communicates to all of its customers is sports.Benetton Sport system was renamed Playlife in 1998. This division houses the famous brand nameproduct lines, i.e. Prince, and reflects the Benetton Groups involvement in the sports arena, focusingon the world of sports from skiing and in-line skating to tennis or snowboarding. Through the Playlifelabel, Benetton designs sportswear clothing as well as state-of-the-art sports equipment to meet thetechnical demands of various athletes and athletic teams. Benetton sponsors sporting teams in theareas of basketball, rugby, volleyball, motorcycling, and until recently, the Formula One racing team,which was just sold. Many young athletes acquire their first taste of sport in the variety of junior clubsteams sponsored by Benetton. In addition, Benettons success in communicating through sports can beseen by its efforts in developing sport facilities. In 1985, the sport center at La Ghirada outside ofTreviso, Italy was built and is used today by all enthusiasts. Also, the Palaverde, a multifunctionalcomplex, was opened in 1983 and is used for sporting events as well as concerts, shows and culturalactivities with a capacity for a 6,000-member audience. Playlife, in essence, is the passport to theBenetton world, a new way of embracing every-day life in the spirit of sport.
23COLORS MAGAZINEBenetton communicates through its award winning, bi-monthly magazine, Colors. It isdistributed in six bilingual editions in Europe, the United States, Latin America, and Asia.FABRICA PROJECTThe company also communicates through the Fabrica project, which is a workshopenvironment and a center of communications for a group of twenty students selected from countriesaround the world. Research into future trends and new ideas is conducted among the students, whoactively research the field of communications.IMAGE ADVERTISINGUnlike the traditional advertising for most companies, Benettons images do not have a copy ora product, only the companys logo. The ads do not tell an individual to buy Benetton clothing or evenimply this! Their ads simply attempt to promote a discussion and create awareness about global issuesthat might be overlooked if conveyed through other channels. However, as far as their products areconcerned, the company advertises through its many strategically placed stores, its catalogues, andfashion editorials that display them directly to the consumer. Also, there are public relations offices inall of the countries that have a liaison with fashion editors. These offices utilize traditional marketingtechniques to ensure the products receive the necessary exposure or sales personnel, among othercriteria.CAMPAIGNSBenettons advertising campaigns have centred on social issues and current worldwide issuessuch as AIDS, peace, war, and death. Many of their communications initiatives support internationalhumanitarian associations. For example, Benetton was part of the first global project to redistributeclothing to people in need in 1993; it was called the "clothing redistribution project" and was assistedby the International Federation of the Red Cross, as well as other groups. This campaign also utilizedthe shock value of imaging, as Luciano Benetton appeared nude in these advertisements. As part oftheir AIDS campaign, the 1994 ads showing the words "HIV Positive" tattooed on a persons arm,abdomen and backside are additional examples of the shockvertising conducted by Benetton..Those ads were used as metaphors for the more extensive branding practiced throughoutsociety towards those who are different. With those images, Benetton wished to highlight not only themain channels through which HIV can be transmitted, but also the dangers of stigmatizing certainsocial groups and their lifestyles.In 1998, a human rights campaign was initiated as a result of a United Nations proposal tolaunch a world communications exercise to mark the fiftieth anniversary of the Declaration of HumanRights, which was approved by the United Nations General Assembly on December 10, 1948. One ofthe ads for this campaign showed images of children of all colors and ages to emphasize that "every
24child shall be entitled from his birth to a name and a nationality" (See In addition, Benettons recentcampaign during 2000 addresses capital punishment by showing images of some of Americas deathrow inmates. This campaign aims to show the public the reality of capital punishment, so that no onearound the world will consider the death penalty as just a distant problem or as news that occasionallyappears in the media.The campaigns have won numerous awards, prizes and acclaim in all of the countries in whichthe company is present; however, they also have aroused various strong reactions. Benetton is awareof the controversy that surrounds the images of these campaigns. However, they believe that allworthwhile stances will have critics and supporters. Benetton hopes that people will move away fromthe discussion of whether or not a company is entitled to show its point of view in its advertisingcampaigns, to a discussion of the issues themselves. This has occurred in some countries already,which supports the companys goal of becoming the vehicle for discussion rather than its focus.
25BENETTON INDIA PVT LTD (BIPL) Company - Benetton India Private Limited Mode of presence in India - 100 per cent subsidiary Year of entry - 1991-92 Key business - Apparel & accessories retail"Benetton has fairly understood the Indian market, possibly because it is one of the first internationalapparel brands to enter the country. The Group has demonstrated this through sharp product pricingand marketing communication that is in tune with consumer perceptions and willingness to pay.”(Sarah Jacob, ET Bureau Nov 17, 2009)Benettons USP has also been its ability to cater to varied age groups and needs across its flagshipbrand Benetton, leisure-oriented Playlife as well as innerwear and kids wear. It has tied up with TataGroup Company Trent Ltd to penetrate its high-end fashion brand Sisley in India.Benetton entered the Indian market in 1991-92, as a 50:50 joint venture with the DCM Group in Delhi,and launched its flagship label UCB. Effective 22nd December 2004, Benetton became a whollyowned subsidiary of the Benetton Group; Italy.UCB is today a leading brand in India. The retailnetwork is a mix of owned and franchised stores.Benetton India has a manufacturing unit in Gurgaon (Haryana) where almost 50 percent of thegarments required for Indian stores are manufactured. The remaining sourcing for the Indian markethappens through contract manufacturing from Ludhiana(Punjab),Delhi, Bangalore (Karnataka),Chennai (Tamil Nadu),Nepal and Benetton International. The designs are selected from the globalcollection created by the product design and development team based in Italy. Once the final collectionis ready, Benetton franchisees from across the world assemble in Italy and pick up the products fortheir countries. They place their purchase orders with the parent company, which then ships themanufactured lines to the respective countries as per their orders. India is also used as a market forBenetton Groups global sourcing especially for kids apparel.
26UCB - BUSINESS MODELThe Group’s commercial presence is guided by a flexible operational approach, applying marketdevelopment strategies through two different distribution channels: wholesale which representsaround 76% of aggregate Apparel sales and retail, which represents around 24%.(http://www.benettongroup.com/group/profile/group-history, assessed on March, 2013)BUSINESS DIVISION STRUCTUREBusiness of UCB India is separated into three divisions namely Exclusive Brand Outlet (EBO), MultiBrand Chanel (MBO) and Benetton Factory Outlet.MBC (MULTI BRAND CHANNEL) DEPARTMENT-Multi branding means process of marketing/selling of two or more widely similar and competingproducts by the different brands names under a single roof. Multi-brand retail comes in differentformats like supermarket, hypermarket, departmental store, multi brand outlet and e-commercewebsites. UCB multi brand business is divided into four channels names as Key Accounts, E-commerce, Distribution Network, and School Business.United Colorsof BenettonOUTLETMBOEBOUnited Colorsof BenettonEBOMBOOUTLETKey AccountsE-CommerceDistribution (I’mworking here)School Business(Fig: 7.0)(Fig: 7.1)
27INTRODUCTION OF CHANNELS Key Accounts-> All the large formats stores/ departmental stores or nationally known MBOretail chains fall in this channel from which the company generates major revenue. E-Commerce-> Selling of UCB merchandise through online portal like: Myntra, flipkart; etcin India fall under this department. Distribution network-> through this channel, the company is trying to capture those marketwhich are not yet covered and trying to make their presence in big Retail MBOs in tier ll, lll,and IV cities. School Business-> This channel covers selling of those merchandise of UCB which comesunder school business like: bags ,water bottles and shoes; etc for kids.ORGANIZATIONAL STRUCTURE:Fig: (7.3)
28KEY SUCCESS FACTORS IN INDIA1. Continued importance given by the parent company since it became a 100 per centsubsidiary of the Italian parent-Benetton views India as one of its growth engines and hence has continued to give importance tothis market. The vision for growth and the resulting strategy of the Indian subsidiary is today intune with Benettons global vision. The company has always endeavoured to give its Indiancustomers an international experience not only in its collection range, but also the ambience andfixtures of its retail outlets. The product range available in the Indian market is chosen from itsinternational range, keeping in mind the Indian taste in clothing.2. Flexible and adaptable merchandising strategy-The company has also established a flexible and adaptable merchandising strategy. Its merchandisemix varies from location to location, to connect directly with the local tastes and preferences.3. Strong contribution of franchisee partners-Partnerships with professional retailers and investors with a passion for retail and expertise in thisarea are critical to Benettons success in India. For instance, its franchisee partner in the north hasbeen an important ingredient in its success in India and was the catalyst for Benettons shift intolarge format flagship retailing.In India, UCB Identified as the most popular Youth Brand across age group 18-30 year. It is SingleLargest Brand with men’s wear, ladies wear and kid’s wear presence across more than 100 cities inIndia, Spread across 375 EBO’s & 450 Shop-in-Shops through which brand reaches out to millions ofits consumers.
29CHAPTER 8 - FUNCTIONING OF VARIOUS DEPARTMENTSRELATED TO BUYINGThere are various departments in Benetton India private ltd. which have to work in a well-coordinatedway to make sure the process flow is smooth and in time.Process from Range Development to ProductionVARIOUS DEPARTMENTS1. Buying 2. Production 3. Product 4. Supply Chain 5. SalesProduct DevelopmentMen Women KidsInitial range is selected by product and the buying team in Italy Collection MeetBuying, Product and Key Retailers decidethe final stylesColor SelectionRange is offered to Production team for estimation of cost and tosee if the designs can be producedPresentation of costing ApprovedUnapproved MRPs are decidedRework, Negotiation, Changes ingarment/substitution of fabrics/trimsFreezing Purchase orders and deliveryplans are finalizedProduction startsWarehouse MovementRange is handed over to productiondepartment for sample developmentMerchandise in storeNew season launchThe range is presented to the Franchiseesand their orders are bookedFig: (7.4)
30BUYING DEPARTMENTThe buying at Benetton happens 6 months before the season is launched. Following are the stepsinvolved:Step 1: Sell-through analysisDuring the season sell-through is calculated after every two weeks and is written on the photo masterof that season. It helps the buyer to see which styles did well and which didn’t do that well. The photomaster is divided according to the gender, category and sub category level. The categories are Tricot,Woven Tops, Woven Bottoms, Denims, Knit Tops, Knit Bottoms and accessories; hence category as awhole can also be categorized.Step 2: Market analysisThe buying team constantly keeps a check on the trends and the competitor offerings so that thestrengths and the weaknesses of UCB can be measured. The gaps in term of product offering, pricepoints, sizes etc are tried to overcome in the next season.Step 3: Range SelectionThe product and buying team goes to Italy and selects the range for the Indian Market. This buying isbased on the option plan prepared by considering two major stores. Then the second level of rangeselection is done in India which includes styles and color selections from the samples brought fromItaly. Also there are insertions made at India level by the product team as per needs and demands ofthe target market which is not a very huge percent for ladies and kids. Majorly the insertions are donein Men and Accessories.Step 4: MRPOnce the range is selected MRP is done for individual style depending on the perceived value and themargins. The costing of the garment is done by the production department on the basis of cost ofproduction. Then the buying and commercial department decides the final MRP of styles.Step 5: Range GradingThe buying takes over the control at this stage. Each style is graded as Key, A+, A and B. It is done onthe basis of past sales figures. The highest grade is given to the styles that are expected to get volumein the business and so on. Also the key or must buy styles are identified which represent the look of theseason. These styles should be present at all major locations.
31Step 6: Size ratio analysisThe analysis of sizes sold at various stores is done in order to provide the stores with right sizes so thatthey are not out of stock. UCB doesn’t allow its stores to display merchandise with broken sizes, hencein order to display all the sizes should be present at the stores.Step 7: Category SheetThis is one of the most important steps in buying process whereby the category sheets for the seasonare prepared by the buying team. This comprises of budget allocation on the basis of gender, categoryand sub-category level for each store. Also the number of options and the average depth of each optionis planned in order to meet the sales target. This requires the study of past performance in terms ofsales contribution, sell through rate and size wise split up in each category.Step 8: Franchisee BuyingBenetton comprises of stores that are owned by the company as well as those that are given underfranchisee contracts. In order to buy for the franchisees, there is a trade show that happens for around25 days where the individual franchisee comes to place the order for the upcoming season. Buyers givea proper theme presentation to each of the franchisees and introduce them to the range in order ofgrades allocated to each style. The franchisee then books each style as per the budget suggested by thecompany buyer or their own budget, but the same has to be agreed upon with the buying andcommercial team. Before the buying for each store starts, everyone is informed about the storecapacity in terms of the options and the depth appropriate for the respective store. Thereafter buying isdone taking into consideration the target market of the store. After the buying is done, the buyers gothrough the franchisee buy to cross check whether the buy is appropriate and correct or not. They makechanges wherever required.Step 9: BIPL BuyingOnce the Franchisee Buying is over, the buyer starts buying for the company owned stores where theybuy as per the category sheets prepared by them. The parameters which are considered for options atstores are the location, target customer, past performance and the theme trends for the season.Step 10: Order UploadingThis step comprises of compiling the orders of different franchisees and thereby forwarding them tosupply chain in order to get it uploaded in SAP. Post that it is the responsibility of Production andSupply Chain department to ensure that everything is produced on time and delivered to the respectivelocations as per their decided deliveries. The deliveries are categorized as A, B, C and D. A means firstset of delivery; B means second set of delivery of merchandise and so on. This ensures freshness in thestore.
32Step 11: After LaunchOnce the stock is available at store for sale, the buyers start reviewing the performance vis-à-viscompetition and simultaneously start the buying process for the next season. The buyers also decidethe stock movement between the stores to achieve the best results.Step 12: Mini collectionsThe mini collections are launched during the season. These are also proposed by Head Office in Italy.These collections are according to the latest trends which are seen in the ongoing season. Thecollections also ensure newness in the store during the season.
33SUPPLY CHAIN DEPARTMENTBenetton works on three main verticals as they like to call it namely- Purchasing- Warehousing/Inventory management- DistributionPURCHASINGThe process starts from the purchasing department as they are responsible for the sourcing of all kinds.They are responsible for the raw material sourcing for the merchandise as well as for the office andadministration commodities.WAREHOUSINGWarehousing or inventory management takes care of the storage facilities for the merchandise after itis received from the vendors. Benetton has two ware houses at Sona road, Gurgaon, Haryana and inKapashera, Delhi and their warehousing and logistics partners are Safexpress. They have vendors allover India from which the goods are received at the ware house at gurgaon as it is their mainwarehouse. The imports are also received at gurgaon warehouse. The Delhi warehouse is smaller ascompared to the gurgaon one as it is used for the inward for the vendors based in Delhi only. Benettonalso have their company owned manufacturing unit in gurgaon from which the inward happens in thegurgaon warehouse as well.The stock is categorized into fresh, surplus and defective each of which has their own process to bedealt with. The warehousing process starts when the finished goods or stock is taken inward. First taskthat is undertaken is checking the stock for the documentation of quality check to ensure the styleswhich are being received are approved from the quality department and is requisite standard. Next isthe stacking process where the styles are stacked onto the racks according to the brand. The stacking isdone systematically as the racks are segregated on the basis of brand, categories, size and SKU level.For all different brands like Benetton, Sisley and O12 there are separate racks duly marked forreference.ALLOCATIONThen follows the allocation stage. Allocation is one of the main tasks done by the supply chain team asit holds with it the success of the following processes. Allocation is done for every season whichexplains the quantity of stock that has to be delivered to various stores whether they are companyowned or franchisee owned.
34Benetton functions on three different business models- Wholesale franchisee- Management contract- Company ownedThey prioritize their delivery according to the working format. Foremost priority is given to thefranchisee and then comes the company owned stores. 70% logic is followed by Benetton forallocation according to which the allocation is started only when 70% of the ordered quantity isreceived in the warehouse. This is mainly done to avoid broken sizes in delivery. For examplegenerally the ratios in which the quantity is ordered or received is 1:2:2:1 or something in which twoof the sizes contribute approximately 60% and the rest two 40%. Suppose in case of t-shirts the sizesM and L in the ration S:M:L:XL are the main contributor which is 60% most often. So suppose thestock received is in the ratio 1:1:2:3, the sizes which would be delivered to the franchisee can havemissing sizes of the very same styles. To avoid such situation the allocation is pushed to an extent till70% of the stock ordered is received containing a mix of all the sizes.PICK-SLIPSAfter the allocation process pick slips are generated by the supply chain department on the basis ofwhich the styles are picked from the racks in the warehouse and packed. The pick slips contain detailslike the store location, quantity, style details, and size information etcetera. Multiple pick slips aregenerated in a day according to which the packing is done for delivery of goods. The cartons are notpacked until it is full. It is done to avoid damage to the goods or theft. Each pick slip may not containall the styles and number of pieces that are enough to fill the carton so multiple slips are generatedwhich may have different style but the idea is to optimize the carton space. The pieces in the cartonsare scanned individually to avoid any difference in the count as there can be an error in the manualpicking. If suppose seven styles are to be delivered at a franchisee of which three are in the Delhiwarehouse they are distributed separately unless the store is in Delhi. For Delhi stores the merchandiseis consolidated at the Delhi warehouse and then distributed to avoid some of the permit charges.DISTRIBUTIONDeliveries are done on the basis of season, the delivery dates decided, styles etcetera. The merchandiseis segregated according to the style into four categories namely A, B, C, D. Suppose for a wintercollection the styles are to be allocated according to the nature of the garment. So the A and Bdeliveries will contain the lighter styles may be full sleeves t-shirt and cardigans which will have theirdelivery dates earlier in the season and as the season goes on the delivery C and D will kick incontaining the heavier styles like sweater and jackets. The delivery dates have to decide according tothe merchandise as it has to be known what merchandise will sell at what time of the season.
35STOCK TRANSFERSIn case a particular style is not selling in a specified area so in that case the stock is transferred fromone store to another where the style might be doing well. These stock transfers are not done directlyfrom one store to another. The store which has the slow moving stock sends it to the office along witha stock return note (SRN). From the office again the stock is transferred.POOL CODESThese can be considered as virtual stores to which merchandise is allocated as well. These are like thestore codes except the fact that these are virtual in nature and don’t really exist at that point of time. Itcan be for any new stores coming up in the future for which the buying is already been done. Thesemay also contain stock for any further deliveries which have not been scheduled. It can be consideredas a buffer stock for emergency situations as well.SURPLUS STOCKAfter EOSS (end of season sales) generally there is surplus stock left. Even after a season there issome amount of surplus stock left. This stock in most cases has broken sizes and the styles are alsodepending upon availability because this is the unplanned leftover stock. This surplus stock is storedseparately from the fresh styles and is even categorized differently. The garments are segregated on thebasis of category and then size as it may not have some of the colors or sizes or even styles. Theaccessories are segregated on the basis of category, sub category and then further on size. So for thisleftover stock Benetton have their own factory outlets to which these are sent. Most of the times, thisstock gets sold out at the factory outlet because of the low prices. Sometimes the franchisee partnersalso buy the left over stock to use them as fill ins. These partners buy them in bulk irrespective ofstyles or sizes.DEFECTIVE STOCKSometimes due to various reasons the customers may return the garments or exchange the piece. Insuch cases the garments are sent back to the head office to the quality department. The qualitydepartment checks the pieces for the defects in the garment and determines if the defect is there in thatparticular piece or in the style itself. If the style is faulty and there are complaints from multiple storeand franchisee the style is called back. Before calling the style back they also analyze if the defect canbe rectified. If the defect can be rectified the necessary changes are made and the styles are returned tothe stores in the same quantity it has been called back. Before the stores complain about a style or sendit back they make a whole list of different styles which are faulty because tottering around for everysingle style again and again can be unnecessary elongation of the project. If the stock at the warehousebecomes three to four seasons old it is not sent to any kind of stores to maintain the image of the brandand are donated to NGO’s.
36PRODUCTION DEPARTMENT The production department is responsible for costing of the range, sampling process, gettingthe goods manufactured. The production department has different parts namely, purchase, sourcing,manufacturing, quality etc. After the range selection it is sent to the production department for costing. The production department is divided into four parts – Flat knits, Fine knits, Woven’s andAccessories. The production department usually gets about 2-3 weeks for the costing of a range. Thedeadlines are mentioned for each and every task in the company and are indicated in SAP, so that anyperson of Benetton across the world can check the in what stage is the work in which country. The production department has to meet their deadline of costing so as to follow up the processof setting the MRP’s which is done by product and buying department. The company has certainmargin for each category and sub category which has to be attained. If the costing is satisfactory toachieve that margin the MRP’s are set, otherwise the product department sits with the productiondepartment to discuss if any changes can be made in the costing which include minor changes in thestyling or material used which does not hinder the original look or quality of the garment. After the costing is done the MRP’s are set, the sampling takes place and the productiondepartment has around 60-90 days to start the production process. Following the production processthe goods are taken in house. Benetton outsources almost 100% of their production from all over the country. For differentcategories vendors are selected from different parts of the country e.g. Majority of flat knits aresourced from Ludhiana. Generally the range in winters is more in value as well volume from summers, so theproduction timelines can vary accordingly. Few of the vendors which Benetton deals with are DRC Clothing, R. B. Knits, S. V. Exports,Mehrasons, Shreyansh, S. R. V. Knit tech, Winsome Knitwear.
37PRODUCT DEPARTMENT Product department is one of the main departments with which the buying departmentfunctions. The main range for Benetton stores is conceptualized and designed at the Italy head office.Once the range is ready, the product & the buying teams from different corporate offices around theworld visit Italy for the selection of the designs. The selection of the designs is based on the suitability of the designs to the Indian customersand weather conditions. After the selection of pieces is done, the color selection is made according to the themes andthe selected styles are then sent to the corporate offices around the world around 8 months inadvance of the season.Insertions Since all the styles made in Italy are not meant for the Indian market due to some reason orthe other ,the product development team along with the product head prepare their own styles meantfor India .These are known as INSERTIONS. The insertions depend on the category and the gender as well. In India 60% of businesscomes from men’s wear which is not very successful in Italy so about 80% of the men’s wear rangesare insertions. The category in men’s which are mainly insertions constitute of knit tops and shirts.In ladies only 20% of the ranges are insertions. So when Italy is preparing its own range, the product team along with the product head isdeveloping the insertions simultaneously. The range is then sent for costing to the production department for which the productiondepartment has approximately three weeks. The costing is followed by the process of setting theMRP’s which is done by the buying and product department together.FIXTURE OF MAXIMUM RETAIL PRICE (MRPS) Once the range is complete, the buying and product team reach to a target MRP for all thestyles in the range. The range is arranged according to theme and category and one by one each styleis picked out and MRP is fixed upon. The MRP is generally settled upon by multiplying the cost price by the multiplication factor(MF). The MF may vary from one product category to another. E.g. It is easy to have an MF of 3-4 on a tee shirt which has a cost of 150 or 200 but if wekeep the same MF for a formal jacket whose cost is 3000, its sale will not be high since it will behighly priced. So for one product category Benetton fixes a high MF and for the other it fixes alower MF so that its average is such that it does not have to compromise on its profits.
38COMMERCIAL DEPARTMENTThe three main functions of the Sales department are: ExpansionIf the brand is performing well and up to the mark and its presence needs to be increased in theterritory. Franchisee HandlingThe sales managers work with the buying department while presenting the range to thefranchises in their respective territories. The sales managers have to assist the buyers inconvincing the franchisee owners to buy products in different categories on the basis of thesales records and performance of individual stores. Before going through the meetings with thefranchises the buyers brief the sales managers and showcase the entire collection Location StudyThe sales department also keeps a look out for new locations that are favorable for the brandconsidering factors like target market, competition, economy, customer traffic etc.The sales department also works in conjunction with the Marketing department. Different cities areclubbed together into territories and every territory has designated sales and marketing managers. Theyhave to put promotional efforts for each individual store as per its requirements and ensure that itsperforming at par with the competitors.The sales department has to keep a tight track of the performance of all the stores in their territory thatincludes determining: if the store is performing or not why/why not whatneeds to be done to improve its performance channels-MBO/SIS performance of the products franchisee+buying in the buying process
39CHAPTER 9: LITERATURE REVIEWASSORTMENT PLANNINGAn assortment plan is an organized collection of related merchandise, which includesspecifications for brands, colors, sizes, and material. The assortment plan is built or organizedaccording to the classification system used by the retailer. The system should be made with customerattracting features in mind because the system will be used to plan the merchandise that will be boughtby the buyer. The process of developing this plan is the assortment planning process. The buyer mustdevelop this plan to use as a shopping guide before ordering merchandise. The assortment plan iscreated by a merger between the forecast and the sales plan. The forecast provides the products thatare to be purchased, organized by the classification system, and the general sales plan provides thecashs that are to be used to buy the merchandise. From this information, the buyer will predict theexact number of items of each type that will be purchased. Merchandise that is reordered each seasoncan be determined with a revision of the previous seasons assortment plan; however, in the fashionbusiness limited amounts of merchandise are ordered by straight reorder. More and more of items inthe stock for a fashion retailer are ordered as a new order without previous purchases. The assortmentplan can also be used to determine specific quantities of merchandise within each class or subclass.The more diverse the product assortment is for the retailer, the more need is present for a detailedassortment plan, which should be prepared prior to the buying trip.The assortment plan may have several versions. The version that is most closely related to theforecast will be one that is organized as the customer might shop. The style features that would beconsidered first in the shopping process by the consumer would be the major classes within themerchandise classification and subclasses would be categories of additional features, and finally color,size, and vendor. With the addition of sales cash and quantities, the assortment plan becomes thequantitative or detailed sales forecast. This quantitative forecast with both styles and volume is basedon the quantitative information from the sales plan and the six-month plan and is used to make thebuying lists for market trips. The detailed forecast combines the style information from fashionforecasting with the cash information from sales planning. An assortment plan is developed in both rowsand columns. The rows are established with the following steps: (a) select general classifications ofproducts, (b) divide the general classes into subclasses, (c) identify additional characteristics of the sub-classes that will be needed (e.g., colors, fabrics, and sizes), and (d) set up a spread sheet with rows forclasses, subclasses, and sub-subclasses.
40Next, the columns must be created for the percentage for each level, the cash amounts for thelevels, unit costs, and the number of units. The steps to complete the columns are (a) establish a totalcash amount, (b) determine the proportion or percentage for each class and subclass, (c) disperse thecash according to percentages, (d) determine the unit costs for each item, and (e) calculate the units foreach class or subclass. The percentage or proportion of each class within the total plan is part of theforecasting that the buyer must do. The buyer must plan how much of each type of merchandise iswanted.RANGE & ASSORTMENT PLANNING• Range plan enables company plans• Range offering complete• Price points appropriate• Store clustering enabled• Localised pricing and promotions possible• Assortment supportive of demand chain• Reduction of markdowns• Planned rather than tactical promotions• Maximised margins and inventoryRANGE AND ASSORTMENT PLANNING HIERARCHY: Fig: (9.1)
41RANGE & ASSORTMENT PLANNING ELEMENTS Sales Average retail prices Expected margins Planned markdowns Inventory Weeks of supply Space Staff Planned by - Department and classification Period StoreFig: (9.2)
42Assortment planning, also known as product line selection and product portfolio optimization, isconcerned with the problem of choosing which products to offer or display or "put on the shelf".Assortment planning is a key element in retail merchandizing, and as Alan (1993) indicates in an earlyreview, it is a vital factor in the final profitability of retailers. Displaying or offering a larger variety ofproducts increases market share, as it attracts a more heterogeneous set of customers and satisfiescustomers variety-seeking tendencies Tang (2006). The need to choose arises because there is a limiton the number of products that can be offered or displayed, i.e., there is "limited shelf space".Assortment planning is not limited to traditional bricks-and-mortar stores, which have todecide which products to carry in the store. It is crucial too for modern on-line retailers, which have todecide how to allocate the available screen space on their websites. Similar decision situations arisewhen space to hold safety stocks is limited or when trained and knowledgeable sales staff is in shortsupply. In the airline industry, and more generally service industries, assortment planning manifestsitself in the selection of fare classes to offer. Of course in this case it is not only the shelf space that islimited, i.e., a limited number of fare classes can be offered, but product inventory, i.e., the seats, itselfis bounded.The value of assortment planning is clearly illustrated by Kok and Fisher (2007), whodevelops an optimization-based methodology and report that their recommendations for a grocerystore chain, when compared with the existing approach, result in profit increases of more than 50%.Similarly, Rajaram (2001) use a non-linear integer programming model for assortment planning in alarge catalog retailer specializing in womens apparel, and report a profit increase of 40%. Russell andUrban (2010) extend assortment planning by not only deciding a products allocated space, but alsoits location: it has been shown that the location of a product affects its sales. They consider a setting inwhich products are categorized as part of a family, and the integrity of a family should be maintained.An important aspect of the research in the above-mentioned papers, and much of the assortmentliterature, is modeling product substitution. Product substitution occurs when a customers preferredproduct is not offered and the customer decides to purchase a different, but similar product. Van Ryzinand Mahajan (1999), Mahajan and van Ryzin (2001), Li (2007), and Gallego et al. (2011) formore on product substitution using Multinomial Logit models, Smith and Agrawal (2000) for moreon product substitution using exogenous models, and Gaur and Honhon (2006) for more on productsubstitution using locational choice models. Most of the research related to product substitution inassortment planning assumes that the demand distribution is known in advance and can thus becategorized as static assortment planning.
43In the above papers, it is assumed that the retailer has full knowledge about the demandfunction. Even though there are new and improved methods to forecast sales, e.g., using inventory andgross margins data as illustrated in Kesavan et al. (2010), the assumption of full information is farfrom reality in settings where there is limited historic data available, and the retailer needs to learnabout demand during sales horizon. When assortment planning is coupled with demand learning, it iscategorized as dynamic assortment planning. Caro and Gallien (2007) develop a stylized dynamicassortment planning model to study the sale of fashion items, where the size of the market isunknown. They employ a finite horizon multi-armed bandit model with several plays per stage andBayesian learning. To solve the model, they use Lagrangian relaxation to handle the weakly coupleddynamic programs, an approach that we will also use. The results of the model are converted into adesirability index that can be used to choose the products to display in each period. In related research,Caldentey and Caro (2011) study an assortment planning setting in which a retailer can choose frombasic and fashion items and where the vogue is modeled as a stochastic process. Rusmevichientong etal. (2011) pursue a similar line of research and consider an environment in which a retailer chooses anassortment of products so as to maximize profit subject to a capacity constraint. They model thedemand under substitution and study both a static case, where the parameters of the demand functionare known, and a dynamic case, where the parameters of the demand function are unknown. Theydevelop an adaptive policy that learns the unknown parameters from past data, and that, at the sametime, optimizes the profit.The problem discussed in the recent paper by Posen and Levinthal (2011) has many of thecharacteristics of dynamic assortment planning. The paper shows how an organization chooses, orshould choose, its strategy in a changing environment. (The problem can be viewed as assortmentplanning with a shelf space of size one.) Learning, more specifically exploration to generate newknowledge about the environment, is incorporated to enhance the quality of decision making. Themain message of the work, in the terminology of dynamic assortment planning, is that care has to betaken when incorporating mechanisms to learn the demand when that demand itself may be changing.Price optimization, or pricing, is concerned with the problem of choosing what to charge for a productwhen demand is price-sensitive. A high price may turn some customers away, but a low price reducesthe profit margin. A major portion of the academic literature focuses on dynamic pricing which,adopting the definition of Weatherford and Bodily (1992), arises in situations where a perishable andnonrenewable product has a stochastic demand over a finite period of time.
44That is, in situations where a given stock of items has to be sold by a certain deadline, andwhere demand is stochastic and a function of the offered price. The problem is to dynamically adjustthe price to maximize the total revenue over the sales horizon. In such a setting, if the demandfunction is known fully and in advance: the changes in the optimal price arise only because of thelimited inventory and the stochasticity of the demand. Furthermore, the analysis of various models hasshown that dynamically changing the price is not necessary to achieve high profits; a fixed-pricepolicy is near-optimal. We refer to Gallego and van Ryzin (1994, 1997) for a detailed analysis.Another reason for adjusting prices is demand learning. We refer to Araman and Caldentey (2009)and Gallego and Talebian (2012) for two recent studies about dynamic pricing with demand learning.For an example of non-parametric learning, we refer the reader to Besbes and Zeevi (2009).Finally, there is some existing literature on joint assortment and pricing. Chen and Hausman(2000), for example, formulate a nonlinear integer optimization problem, where the nonlinearity is dueto considering a sum of linear ratios. Ratios correspond to the probability of purchasing a product andis derived by dividing each products attractiveness by sum of the products attractiveness. Fractionalprogramming properties are used to solve the model. Schon (2010a) extends this work in two respects.First, by assuming that the seller can practice price discrimination and therefore has to decide the priceto charge different groups of customers. Second, by introducing fixed costs associated with choosing aproduct line.The analysis is restricted to the case where prices have to be chosen from a set of discretevalues. This restriction is removed in Schon (2010b). Aydin and Ryan (2000) study joint pricing andassortment planning under substitution. Rodriguez and Aydin (2011) study joint assortment andpricing for configurable products under demand uncertainty. Cachon and Kok (2007) study jointassortment and pricing in a competitive setting with two retailers. They compare the prices and varietylevels under decentralized management and under centralized management, and show thatdecentralized management results in higher prices and less variety. The study is extended in Kok andXu (2011), where it is shown that the order of consumer decisions, i.e., whether consumers firstchoose the product type or first choose the brand, has a critical effect on the optimal managementpolicy.From a methodological perspective, we use discrete-time finite-horizon dynamic programmingfor a short but rigorous introduction and Powel (2007) for a review of approximation methods). Theexploration vs. exploitation trade-off is well-known in dynamic programming, where informationabout a state can only be obtained by visiting it.Therefore, a state can be visited because it is profitable (exploitation), or to gain informationabout it (exploration). In a landmark paper, Gittins and Jones (1974) show that learning, or what theycall the information acquisition problem, and the exploration vs exploitation tradeoff can be reduced toa series of one-dimensional problems using an index policy.
45FASHION FORECASTINGTo cope with the ever-changing world, the marketing segmentation and targeting techniques arerapidly evolving from traditional, static, demographic-based criteria towards dynamic, mood, lifestyleand psycho graphic influences. Fashion forecasting is the prediction of mood, behaviour and buyinghabits of the consumer. It is no longer a question of identifying your customers by age, geography orincome, but looking into how and why they buy, based on their mood, beliefs and the occasion.Fashion is a style that is popular in the present or a set of trends that have been accepted by a wideaudience. But fashion itself is far from simple. Fashion is a complex phenomenon from psychological,sociological, cultural or commercial point of view. Fashion trends are the styling ideas that majorcollections have in common. They indicate the direction in which the fashion is moving. Fashionforecasters look for styles they think are prophetic, ideas that capture the mood of the times and signala new fashion trend.The fashion system has spread across all other sectors, from cosmetics to cars via politics and sports.All sectors observe fashion as an endless source of inspiration. Gilles Lipovetsky points out that themore the fashion society develops, the less importance will be given to the affordability of clothes! Tohold on to its role as a pioneer and enhance its brand image, fashion has to continue to innovate.Forecasting the future demand for particular styles, fabrics and colors is an important aspect of thefashion industry. Textile specialists work two years ahead to determine the general guidelines for eachfashion season. Fashion forecasting is an important activity to ensure that the process of observationrelated to short and long term planning can be based on sound and rational decision making and nothype. Forecasting can bridge the gap between ambiguous, conflicting signs and the action taken by thedesign team. "Fashion forecasting combines theories of fashion changes with the process of organizingand analyzing the information and synthesizing the data into actionable forecasts." (Brannon 2000)Forecasting is a creative process that can be understood, practiced and applied. Forecasting provides away for executives to expand their thinking about changes, through anticipating the future, andprojecting the likely outcomes. (Lavenback and Cleary 1981)Long term forecasting (over 2 years ahead) is used by executives for corporate planning purposes. Itis also used for marketing managers to position products in the marketplace in relationship tocompetition.Short term forecasting is used by product developers, merchandisers and production managers togive style direction and shape collections. For short term forecasting most apparel companies subscribeto one or more services, whose job is to scan the market and report on the developments in color,textiles and style directions.
46Forecasters reflect the earliest views on trends some eighteen months in advance of the season. At thisstage, color is a crucial consideration of yarn mills. It is also the focus of discussion among others whoare interested in very early trend decision-making. Fashion forecasters combine the views emergingabout color and fabric from the early yarn and fabric trade shows with their socio-economic andcultural analysis. Major trends in lifestyles, attitude and culture in particular music, sport, cinema andtelevision are used to predict changing consumer demands.Fashion forecasting involves the following activities such as studying market conditions, noting thelife style of the people, researching sales statistics, evaluating popular designer collections, surveyingfashion publications, observing street fashions etc.THE DIRECTION OF FASHION CHANGEObservation is not enough. If the trend watcher is to take advantage, he needs a framework forexplaining how the trend began and its likely path within a social system. The directional theories offashion change trickle down, trickle up and trickle across to make prediction easier by pointing to thelikely starting points for a fashion trend, the expected direction that trend will take and how long thetrend will last.Some trend watchers visualize the dynamics of fashion as a pyramid of status level. Insome theories, fashion trickles down from a highly visible elite. In others, fashion trickles up fromstreet once it is discovered by the fashion elite and introduced to mainstream audiences in an editedversion. If a fashion look is promoted by the media and manufactured rapidly enough, the look cantrickle across all levels of the market simultaneously for denim, introduction of an unusual color range,a modification in a silhouette or detail, a different way to wear an accessory or a mood expressed in adistinctive style. The pattern of acceptance (or rejection) can be mapped in time.Fashion responds to whatever is modern i.e., to the spirit of the times or the Zeitgeist. People chooseamong competing styles, those that "click" or connect with the spirit of the times. This collectiveselection forms a feedback loop between the fashion industry and the consumer, a feedback loopmoderated by aesthetic trends and social-psychological processes. The Look; Design Concept Asfashion insiders and forecasters have a mental map of the marketplace, the locations where innovationsare likely to be glimpsed early, the supply chain of the textile/apparel industry and the retail conduct toconsumers. Fashion insiders also have another mental map - the map of seasons and shows. Whenconsumers shop for winter coats or summer swimsuits, fashion insiders are seasons ahead in theirthinking. Forecasters use these mental maps to organize their observations of directional information.Since innovations rarely apply to the entire marketplace, information must be tagged for theappropriate price point, category and classification. In this way, forecasters turn random bits of datainto useful information for decision support, points and style directions.
47THE DRIVERS OF FASHION CHANGESocial and cultural changes are major determinants of emerging fashions. However, they arethemselves affected by the other drivers of change that include globalization of world markets andaccessibility of more sophisticated communications technologies. The latter has provided people withfaster and wider access to more ideas and influences from other cultures and societies, driving demandfor wider choice in fashion products.THE FASHION FORECASTING PROCESSa) Trend forecasting businessesFrench companies based in Paris have traditionally dominated fashion forecasting. Although a numberof larger ones are still based in Paris, many with satellite offices around the world, a number of newniche forecasters have emerged offering their own specialties of product and services. Some better-known trend forecasters include: SachaPacha. Peclers Trend Union. Line Creative Partners. Au StudioPromostyl. Promostyl. Forecasting is more than just attending runway shows and picking out potentialtrends that can be knocked off at lower prices (although that is part of it). It is a process that spansshifts in color and styles, changes in lifestyles and buying patterns and different ways of doingbusiness. What appears to be near random activity is in fact a process of negotiation between thefashion industry and the consumer, and between the various segments in the supply side chain.b) Consumer researchManufacturers and retailers may ask consumers directly about their buying preferences. Consumerreactions are compiled and tabulated to find preferences for certain garments or accessories, colors orsizes and so on ,or products to fit specific consumer tastes. Surveys, by telephone or mail areconducted by publication and market research companies for manufacturers and retailers. Thesesurveys include questions about income, life-style, fashion preference and shopping habits. Customersare usually selected by the market research firm to meet with manufacturers or retailers. In-storeinformal interview can help researchers obtain information by simply asking customers what theywould like to buy, what styles they like that are currently available and what merchandise they want,but cannot find. Because of their close contact with their customers, owners of small stores can oftendo this most effectively. The apparel supply chain has one purpose, i.e. to provide an appealing anddesirable product to satisfy customer needs, wants or aspirations.When successful, the connection results in a sale, because this connection is the purpose of theprocess. Every forecast begins with the customer, by observing the customers adjustments to themarketplace and in the unexpected ways the customer adjusts the marketplace to his lifestyle andpreferences.Consumer research figures are important in decisions about product development, brandmarketing and retailing.
48c) Colour ForecastingStimulating sales is the driving force behind color forecasting. Color grabs the customers attention,makes an emotional connection and leads them to the product. Even when the basic product stays thesame, changing the color gives a sense of something new. Color consultants help companies decide onthe right color story to sell the product. Some consultants specialize in advising on color. Othersdevelop color forecasts as part of their overall product development function. Some large companieshave departments dedicated to setting color directions for multiple lines.Professional color organizations bring together experts to collaborate on forecasts for industries likewomens wear, mens wear, childrens wear and residential and non-residential interiors.d) Textile DevelopmentFrequently, the development of a completely new product is the result of a particular functional need,but often it is driven by the benefits offered by a new fabric. Specialist forecasters make the point thatthe technology is changing the range of product, as through the ranges of benefits that designers canbuild into garment product through the textiles used in construction.Fabrics range from slick surfaces like leather and futuristic plastic to softer surfaces like cashmere,from flat weaves to heavy textures like boucle and from the solid structure of flannel to the web-likeopen structure of crochet. Clothing has been called "the second skin" in recognition of its intimateconnection with a persons physical and psychological comfort (Horn, 1975). So it is not surprisingthat news about which fabrics are "in" or "out" plays such a prominent role in forecasting fashion.Newness in fabrics comes from the introduction of new fibers, the manipulation of yarn and fabricstructures, variation in pattern and prints and innovative finishing processes. These innovations areintroduced in trade shows and exhibitions held in the fashion capitals of the world.e) The Range of shows - The fashion shows:The word here is its widest possible interpretation to refer to the range of organised textile and fashiongarment trade shows, operating over the 16 months preceding season. Trade shows, whether yarn,fabric or product have a basic function, which is to sell products.Visitors vary according to the nature of the show. A yarn show will attract a range of people includingfabric manufacturers, some retail buyers and designers. The fabric show performs a more balanced rolewith great emphasis on then sales of the fabric, but with more retail designers and buyers attending, asthe product on the show has a greater relevance to garment design. Garment design shows are muchmore diverse, ranging from the products trade shows through to the high profile Ready -to-wearDesigner shows like London Fashion week and then the exclusive Couture shows.Continuing this sequence, specialist product trade shows are held after the fabric shows. These showsare segmented according to broad sector like mens wear or womens wear, and by specialist productcategories, like sportswear or lingerie. These shows are a good indicator of color, fabric, styling andnew products
49f) Sales ForecastingForecasting is relatively easy, straightforward and accurate for products with long lifetime and steadysales. However, the fashion apparel business is one of the most volatile, because it creates productsthat are new, highly seasonal or have short lifetimes. In such situations forecasts become increasinglyinaccurate. Errors in sales forecasting result in two kinds of losses:Markdowns, when retailers have unwanted goods remaining at the end of a selling period, such goodsthen must be sold, even at a loss. . Lost sales on more popular items because of stock outs(merchandise not available in stock at the time when consumers request it.Companies have been slow to recognize the changing market environment and adapt forecastingpractices to decrease the uncertainty about product demand. Sales forecasting impacts every apparelexecutives work life, whether they help develop the analysis, read and act on the reports or merelyreact to the result of over- or under-estimating sales. For this reason, apparel executives need a basicunderstanding of the traditional approaches to sales forecasting and the leading-edge technologiesmaking real-time marketing a reality in the apparel industry.Eventually, a manufacturer and retailer researches his own sales record. Rising sales statistics showwhat fashion trends are developing and declining sales show what styles have passed their peak.Overall sales show, that as style is not meeting consumer needs for quality or fit , it’s time to drop itfrom the line and move on to new styles.Introducing InnovationWhile attention is showered on the most exciting and extreme runway fashions, the mechanisms offashion change work in the background to create patterns familiar to the most experienced fashionwatchers. When an innovation arrives on the scene, individuals consider it for adoption. Thecumulative effect of those decisions can be tracked in sales and visually on the street. In fashion terms,the innovation may be the invention of a new fibre or a new finish.g) Cultural IndicatorsIn the apparel field, companies need an early warning system so that specific product categories can befine-tuned to trends within a market segment. While timing is important, an agile and responsivecompany will be able to capitalize on trends whenever they are spotted; sometimes just as a glimmerfar in the future and sometimes as a phenomenon in the building stage. Waning trends are anothersignal. When some avocation, interest or lifestyle loses cultural power, it is a good time to survey theinformation landscape for the next big thing.
50h) Final Stage of fore castingThe Fashion look for the season is therefore the result of a process of development that combines theevolved views of textiles and product trade show, forecasters, designers buyers and ready to wearshows. Like collage, the final picture emerges after various layers have come together. Even thoughthese shows have an impact on some last minute high street fashion buys, their major impact is mainlyon reflecting the final views on trends close to the season. Crucially, the media coverage of the showsis another important dimension in the trend development process, as it highlights fashion trends thatfashion editors believe will be strong for the forth coming season. Such authoritative coverage of themedia, focusing attention on aspects of fashion, including the must-have looks, colors and productsinfluences the consumers acceptance of hot trends for a season.
51THE FUTURE OF FORECASTINGFor apparel executives, hitting the target requires a balancing act between anticipation of futuredevelopments and improvisation in the face of change. The marketplace locks into one pattern, holds itbriefly and then cascades into a new configuration with the slightest jar to the equilibrium. In themarketplace, those shifts may correlate with: Changes in taste or lifestyles. Immigration. Technological developments. Shifts in the prices of raw materials.Thus Fashion forecasting is used within the fashion/textile industry as a means of directing companiesinto new ideas of color/fabric/theme/mood and yarn developments for different product types andlevels. Knowledge of trends and future market requirements is increasingly important to the industry.While there is no definitive fashion story, accessing the right color palette, researching fabric andstyling trends to suit a particular niche and customer profile is essential. The degree and quality ofinformation available to designers and its interpretation, given an effective marketing strategy,effectively dictates their success.FORECASTING FASHION IN THE INDIAN SCENARIOThe phenomenon of fashion moving from the ramp to the road seems to have started happening inIndia. Over the last one year, fashion has been highly visible, at least on the streets of metros. Westernwinds of fashion are reaching metros like Mumbai and New Delhi virtually overnight. We also seenew categories added to customer wardrobes like club wear, travel gear and loungewear. This indicatesa segmentation of the customers wardrobe. This also means that there are new brands and labels,although not heavily advertised, easing into the market riding on the trend of new segments. We expectthis trend to rise further, mainly because fashion as a market allows brands to be created mainly on theproduct look. The biggest achievements are not from increasing efficiency, but by risk management.This would mean that by riding on fashion trend one would fetch maximum benefits. However, there isno agency today, which brands or retailers can follow for fashion forecast of domestic market. We stillhave to follow international forecasts and thereby miss out on lot of opportunities.
52CHAPTER10: SPRING SUMMER 14 FORECASTOVERVIEW: Impact of Online Culture Inspiration from Nature, Organic Appeal Redefined, Clean and Engineered Design Focus on Function and InventionTHEMES:1. New Digital Aesthetic2. Next Nature3. Neo GeoKEY COLORS FOR THE SEASON – WOMEN:The key colors for Spring Summer 14 are Mint, Astroturf, Violet, Denim, Sand, Shadow, Ink,Beetroot, Mustard, Deep Pink, Fresh Green and Pale Pink.Fig: (10.0)
53THEME: DIGITALAESTHETICFORECASTED SILLHOUTTES FOR WOMEN:The 1sttheme is Digital Aesthetic were inspiration is been taken from the digital age of sophisticationand minimalism, where neutral colors with a tinge of bright are been used to give the desired effect.The forecasted silhouettes for women’s Spring Summer 14 are misplaced seam pattern, Minimalism,Sculptural slicing, sheer Technical Layers, Neon Accent, Smart crisis look.Fig: (10.1)
54THEME: NEXT NATUREFORECASTED SILLHOUTTES FOR WOMEN:The 2ndforecasted theme for SS14 is been inspired from nature were bold abstract and geometricalpatterns have been used. The forecasted silhouettes are clashing abstract patterns, Dense Decoration,Tropical Prints, Geometric Play, Clean Tailoring, Urban Feminine lookFig: (10.2)
55THEME: NEO GEOFORECASTED SILLHOUTTES FOR WOMEN:The 3rdTheme for SS14 is been inspired by a combination of nature-tribal and the digital age,classified as “Neo-Geo”. A strong visual display of tribal influence, wild and bright colors, geometricpattern combinations, elegant tailoring with abstract prints have been used.Fig: (10.3)
56KEY SHAPES: WOMENDRESSES:The dress shapes forecasted are Handkerchief style, vintage tennis, A-line maxi, Flared Dress, Doublelayered, Waist band crossing, knot detailing, coated hemlines, Sheer drop hems.KNITS:For Knits, the shapes forecasted are – Cocoon top, V-shaped tee, peplum vest, cropped lengths, Wrap-over tops.Fig: (10.3)Fig: (10.5)
57DETAILING:The detailing’s forecasted for SS14 are, Tie at collar, Folded neckline, peephole collars, Angularcollars and sleeves, cape shoulders and extended sleeves.WOVEN TOPS:For woven tops, the shapes forecasted are – Cocoon shirt, Fish tail Drape Top, panelling, Peasant Top,Big Pockets.Fig: (10.6)Fig: (10.7)
58WOVEN BOTTOM:For woven Bottoms- the key shapes forecasted are – Cuffed Pleats, slim line cargo, wide leg crop,Draped Pants, cropped chinos, slit at front, pleated skirts, Layered shorts.DENIM LOOKS:The major denim looks forecasted forSS14 are Animal Prints, Heavy AcidWash and Leather coatings.Detailing’s which are forecasted to becarried forward from SS13 are- NeonAccent, Tuxedo Stripe, Embellishedtuxedo, Contrast Placket, ContrastReverse, Tribal Detailing, Tapestry Inserts,Patch Works.Fig: (10.8)Fig: (10.9)Fig: (10.10)