Short order

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To stay one step ahead of the trends or at least to keep up with the trend the retailers are increasingly going for quick-response collections / short orders. Here is the detail.

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Short order

  1. 1. Short Order
  2. 2. Short Order  Fashion MARKETING is the process of managing the flow of merchandise from the initial selection of designs to be produced to the presentation of products to retail customers, with the goal of maximizing a company’s sales and profitability.  Successful fashion marketing depends on understanding consumer desire and responding with appropriate products.
  3. 3. Short Order  The business of buying merchandise, here, clothes, from manufacturers and selling them to customers is known as retail.  Retailers make initial purchases for resale three to six months before the customer is able to buy the clothes in-store.
  4. 4. Short Order  Buy in season rather than forward ordering – is what is know as Short order
  5. 5. Short Order  It helps the retailer to react quickly in order to capture current fashion trends.  Hence, it is also sometimes referred as “quick- response collection”
  6. 6. Short Order  Independent research conducted amongst buyers showed that over the next year they will be looking to spend almost double on trans- seasonal and short order buying rather than forward order.
  7. 7. Short Order  It is the progressive retailers stocking younger labels in particular who favour short order, and seek fresh individual fashion keeping them upbeat with the high street.
  8. 8. Short Order  Buyers feel that :  the short order is easier to manage although buying is stressful as it is hard to find”.  “short order responds better to the current trends, changing the concept of buying within the industry.
  9. 9. Short Order  Womens wear brands is allocating more funds to short order as it is more trend-driven (than menswear, which tends to be brand-driven and is predominantly forward order)
  10. 10. Short Order  To be able to react to emerging trends, short- order mid-season buying is becoming more important.  Buyers are allocating about 25% of their budget to short order. It’s a risky strategy but many feel it’s a risk worth taking
  11. 11. Short Order  But for some buyers it depends what they find during the season.  If they find a product or brand that is niche or a one-off, they will be prepared to buy it as they are always looking for a point of difference.
  12. 12. The Benefits  Fundamental to the process “Short Ordering” is that goods are produced during the season.  When they are produced well before the season starts then they need to be transported to a storage facility and then stored until they are required.  Both these actions require additional resources, staff time and effort.
  13. 13. Short Order  When they are stored some degree of heating/lighting, security is required and again these take up resources.  The direct benefit is in cost reduction of accommodating stock and produced goods for longer period.
  14. 14. The Benefits  Since the merchandise is delivered during the season and delivered to stores more quickly, the money is blocked for shorter period, (which retailer has to pay for the manufacturer) and results in direct saving of capital cost.  It also helps in reducing the pressure on working capital.
  15. 15. Potential Drawbacks to Short Order  The only drawback to a system such as this can be reluctance on behalf of staff to believe that it will work effectively.  Without doubt “Short Order approach” takes a great deal of trust on the merchandise providers and Buyers to ensure that the merchandise is available at the right time.
  16. 16. (prepared for internal training)

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