Podcast
Questions and Answers
Which factor has significantly changed the accessibility of fashion in recent years?
Which factor has significantly changed the accessibility of fashion in recent years?
Fast fashion brands typically offer fewer clothing seasons compared to traditional apparel brands.
Fast fashion brands typically offer fewer clothing seasons compared to traditional apparel brands.
False
What has been one major environmental impact of the fast fashion industry?
What has been one major environmental impact of the fast fashion industry?
Damage to the environment and pollution.
Fast fashion has raised several _______ issues due to its practices.
Fast fashion has raised several _______ issues due to its practices.
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Match the following terms with their descriptions:
Match the following terms with their descriptions:
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What percentage of merchandise do fast fashion retailers typically sell on markdowns?
What percentage of merchandise do fast fashion retailers typically sell on markdowns?
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Emerging economies have led to a decline in the luxury sector's growth.
Emerging economies have led to a decline in the luxury sector's growth.
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What major challenge does fast fashion pose to the environment?
What major challenge does fast fashion pose to the environment?
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What trend did online shopping surpass for the first time during Black Friday weekend in 2016?
What trend did online shopping surpass for the first time during Black Friday weekend in 2016?
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Customers are now less interested in the transparency of product sources from retailers.
Customers are now less interested in the transparency of product sources from retailers.
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Name one emerging market for garment production.
Name one emerging market for garment production.
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The trend of shrinking bricks and mortar stores while increasing online shopping is known as __________.
The trend of shrinking bricks and mortar stores while increasing online shopping is known as __________.
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Match the following factors with their possible impacts on the global fashion market:
Match the following factors with their possible impacts on the global fashion market:
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Which of the following areas has become a leading importer of textiles to Europe and the USA?
Which of the following areas has become a leading importer of textiles to Europe and the USA?
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Global dispersion of fashion supply chains has no significant impact on garment production locations.
Global dispersion of fashion supply chains has no significant impact on garment production locations.
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Fast fashion challenges include the rapid __________ of fashion product life cycles.
Fast fashion challenges include the rapid __________ of fashion product life cycles.
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What distinguishes an omnichannel approach from a multichannel approach in retailing?
What distinguishes an omnichannel approach from a multichannel approach in retailing?
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Omnichannel retailing only includes e-commerce and excludes brick-and-mortar stores.
Omnichannel retailing only includes e-commerce and excludes brick-and-mortar stores.
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What must retailers improve to handle same-day delivery and 'buy online, pick up in store' services?
What must retailers improve to handle same-day delivery and 'buy online, pick up in store' services?
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Customers expect retailers to remember their past _____ regardless of the touchpoint.
Customers expect retailers to remember their past _____ regardless of the touchpoint.
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Match the challenges of omnichannel retailing with their descriptions:
Match the challenges of omnichannel retailing with their descriptions:
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Which of the following is NOT a consumer behavior trend mentioned in the content?
Which of the following is NOT a consumer behavior trend mentioned in the content?
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The concept of _____ is focused on consumers interacting with retailers from multiple touchpoints such as smartphones and social media.
The concept of _____ is focused on consumers interacting with retailers from multiple touchpoints such as smartphones and social media.
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Retailers must ensure that stock levels in stores are not affected by online orders.
Retailers must ensure that stock levels in stores are not affected by online orders.
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Study Notes
Business Context
- TOPSHOP is a fashion retailer.
The Retail Environment
- Understanding the retail environment is crucial for buying decisions.
- Online retailing has significantly altered the retail environment, affecting how buyers make decisions.
- Mobile and social media strategies can effectively benefit retail buyers.
- Multichannel retailing differs from omnichannel, involving diverse channels versus seamless integration.
- Omnichannel retail strategies are implemented by various retailers, showcasing different approaches.
- Identifying current retail and buying trends is crucial.
Retail Buying
- Forecasting consumer wants and needs is essential.
- Planning merchandise assortments to meet consumer demands.
- Choosing vendors to purchase merchandise from.
- Negotiating contracts with vendors for merchandise purchase
- Pricing merchandise appropriately
- Maintaining records of sales and inventory.
- Reordering merchandise as needed.
Retail Environments
- Fashion retailers operate in diverse formats.
- Fashion retailers target specific demographics based on their retail typology.
- Fashion has a rich history, with notable brands like Gucci.
- Retailers like Marks & Spencer evolved from market stalls.
- Asos and Net-a-Porter have unique positions in e-retailing.
Different Retail Formats
- Luxury retailers, such as Chanel, often offer a wide range of products.
- Department stores, like John Lewis, provide wide distribution.
- Top Shop exemplifies wide distribution.
- Supermarkets, like Sainsbury's, may include Tu products.
- Discount stores, such as TK Maxx, offer lower prices for a wide array of products.
- Specialist retailers like Accessories, focus on specific product lines.
- Niche retailers, such as Timberland and Boden, cater to specific customer segments.
- Catalogue retailers, provide merchandise through catalogues
- Pure play online retailers sell exclusively online, such as In the Style.
National Brand v Private Label
- Retailers either manufacture products for themselves (private label) or source existing brands (national brands).
- Department stores and smaller independent shops frequently combine these strategies.
National Brands v Private Label
- Branded buying involves selecting specific product lines.
- Private label buying necessitates assistance from designers to develop new product lines, particularly for specific seasons.
- Retailers often find higher profit margins with private label due to direct sourcing.
The Brand is the Label
- Some retailers use their name as their only brand.
- Retailers like Gap, H&M, and Pink employ this strategy.
E-Commerce and Online Retailing
- Retail e-commerce sales in the United States increased from 2016 to 2022.
- E-commerce and online retailing continue to grow globally.
- This growth has led to a notable shift in consumer shopping habits, transitioning away from in-store purchases to online shopping.
- UK retail e-commerce sales have also increased, with a notable shift in percentage from different retail modalities: e-commerce, tablet, phone, and PC over the years 2012-2018.
- The evolution towards clicks-and-mortar retail models is noted.
Benefits of Online Retailing (Consumers)
- Convenience and ease of access is a benefit.
- Ability to compare prices easily.
- Broad range of sizes, colors, and merchandise available online.
Benefits of Online Retailing (Retailers)
- Eliminating storefront costs and facilitating more cost-effective warehousing.
- Cost-effective advertising and promotion.
- Greater flexibility in communicating and adjusting pricing and promotions in real time.
Challenges of Online Retailing
- Navigating the internet, security, and privacy concerns.
- Inability to see or try products before purchase.
- Simplicity of in-store returns may not be possible online or be an added expense/difficult.
- Fast delivery is an added expense.
- Impulse purchases in stores seem to be higher than online. Social aspects are often lost when shopping alone online and rather than in the store.
Online Shopper Expectations
- Online shoppers expect personalized experiential services.
- Live chat and social media integration are important.
- High-quality visual content, quick service, and user-friendly checkouts are essential elements.
Future of Retailing
- Despite increased popularity of e-commerce, physical stores still have a significant presence.
- Retail methods are changing and blending in and out of stores and online.
- Consumers desire to interact with sales associates to try and evaluate merchandise.
- Showrooming and web rooming are becoming common practices.
- Omnichannel approaches are gaining traction.
Omnichannel v Multichannel
- Omnichannel describes seamless integration across multiple touchpoints, including a physical store and online channels.
- Multichannel refers to separate, independent channels.
- Touchpoints across many channels are connected in omnichannel versus multichannel.
Retailing Omnichannel
- Today’s shoppers utilize a variety of tools and methods to select, evaluate, and buy merchandise.
- Retailers are implementing strategies to connect many touchpoints seamlessly across channels.
- Previously, retail was primarily brick-and-mortar but changed in the 1990s with the internet.
Omnichannel v Multichannel
- Retailers used to operate using multichannel, where they operated their physical stores and then their e-commerce sites independently versus integrating these touchpoints.
- The concept of multichanneling was outdated and omnichannel became the norm.
- Omnichannel involves integrating multiple channels to provide a unified customer experience, whereas multichannel operates separately.
Challenges of Omnichannel Retailing
- Same-day delivery is now vital.
- Improved visibility and better forecasting of inventory is important.
- Maintaining sufficient stock levels is essential.
- Customers want a record of their past purchases using any channel, regardless of touchpoint.
- Retailers need to be truthful regarding inventory at all channels.
- Returns are an important factor.
Future of Retailing
- Evolving customer expectations demand speed.
- Quick responses to trends, instant gratification, and quality are key aspects.
- Offering new customer experiences.
- Faster and more efficient methods of shopping in stores are wanted by customers.
Future of Retailing
- Online shopping surpassed in-store shopping for the first time in 2016 during Black Friday.
- Data analysis, past sales data, customer feedback, and social media trends are now significant aspects of retail strategies.
- Physical stores are being retained while simultaneously expanding online presence and including methods like curb side pickup for increased consumer accessibility and convenience.
Future of Retailing
- Retailers need data from various customer contact points.
- Streamlined engagement with customers.
- Predictive analytics are crucial today.
Globalization
- Economies of scale and buying power have improved.
- Customers demand transparent information about product sources.
- Global distribution of fashion supply chains is common
- Garment production is shifting away from developed nations to emerging economies.
- Business necessities determine countries where resources are needed.
- Product life cycles in fashion are accelerating.
Globalization
- Global sourcing is important for buyers.
- Wage rates and costs of production vary significantly across global markets.
- The need to monitor global market trends and conditions is emphasized.
Factors for Buyers to Be Aware of in a Global Market
- Exchange rates fluctuate significantly.
- Oil prices affect manufacturing costs.
- Economic downturns (bank crises, recessions) are also important factors for retailers.
- Daily events, including weather events, can impact demand.
Democratization of Fashion
- Fashion is now accessible to all, regardless of social standing.
- Digital technology has made fashion easily available world-wide.
- Expanding reach is an important and current component for fashion retailers.
Other Issues Impacting the Retail Environment
- "Democratization of Fashion" influences fast fashion trends.
- Zara's strategy of bringing stylish fashion to the mainstream is a factor..
- Celebrity culture influences fast fashion trends
- Fast fashion trends involve frequent changes and fast turnaround to keep up with trends.
- Sales use markdowns to sell unsold merchandise
- Small orders and frequent deliveries are prominent aspects of retail.
- Ethical issues are now commonly raised about fast fashion.
Luxury Sector
- Growing demand from emerging economies is driving growth in the sector.
- Internationalization is important for success.
- Strategic mergers and capital access is vital.
- Major UK department stores faced difficulties, losing market share.
Fast Fashion
- Biannual seasonality is no longer relevant but is being replaced with weekly, near-constant changes to meet trends.
- Fast fashion is becoming a dominant force in consumer markets, offering quick change and access to styles.
- Fast fashion impacts the environment significantly, with environmental protection and sustainability increasingly a factor in consumers decisions.
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Description
This quiz explores the vital aspects of retail buying, including strategies, trends, and the impact of online and mobile retailing. It highlights the importance of understanding the retail environment for effective purchasing decisions and discusses methods such as forecasting consumer needs and managing vendor relationships.
