Market Research Lecture 4 PDF

Market Research Lecture 4 Homework from last week Look at the demographic projections and trends for UK consumers (eg based on the age generations: babyboomer, gen x, gen y, gen z) and forecast how this generation is changing and is likely to change the way they buy apparel. What impac...

Market Research Lecture 4 Homework from last week Look at the demographic projections and trends for UK consumers (eg based on the age generations: babyboomer, gen x, gen y, gen z) and forecast how this generation is changing and is likely to change the way they buy apparel. What impact will this have on consumer spending patterns? Examples of demographic factors might be: Household/work patterns Age groups Ethnicity Marital status Birth-rate What lessons are there to learn from the perspective of a fashion buyer/retailer about your findings? Get into groups of approximately 5 and prepare to make a short 5 minute presentation of your findings  Market research involves gathering recording and analysing information Good market research must be conducted in a systematic step by step process it cannot be haphazard MARKET It involves using information or data from many RESEARCH different sources As fashion buyers you must be able to do more than locate the information you must be able to analyse and use the information you collect  Buyers are expected to undertake continuous market research using both informal and formal research techniques Buyers do not make decisions alone they seek out and use as much MARKET information as possible before making buying decisions RESEARCH Buyers use some form of market research they seek out secondary data before trying to obtain primary data of their own  It has become imperative to understand the needs and wants of much smaller market segments, each of which ceaselessly change and shift in term of brand allegiance and fashion taste Fashion buyers Many stores want to develop a profile of their customers with respect to characteristics such as age ,income, education and spending patterns Developing a customer profile helps in making decisions such as selecting products what type of promotion to use  KNOW YOUR CUSTOMERS Key to your success will be to know your customers better than your competitors do This allows you to anticipate and capitalise on any changes occurring with customers Market research helps take the guess work out of decision making  MAKING BUYING DECISIONS USING DATA Buyers must make conclusions and recommendations based on their interpretation of the information and data collected Decisions such as How many will you buy? What colours and styles will you buy Which vendors or suppliers will you purchase from What merchandise will you eliminate from stock What new products to add With good market research you will be able to answer these questions INTERNAL AND EXTERNAL INFORMATION Key sources of information to assist the buyer in making purchasing decisions come from two key sources Internal sources and External sources  EXERCISE White board exercise Discuss what internal information from your company /retailer would be useful for making planning and buying decisions  Answers INTERNAL SOURCES Internal sources include Store records past sales and inventory records, data may reveal types of garments bought together or characteristics of customers who purchase a particular product Store management often store managers feel more involved and probably more enthusiastic about selling the merchandise if they are included and asked for input Sales associates the records and data can tell you what is and is not selling but sales staff may be able to reveal why it is selling or not selling continue next slide sales associates value  White board exercise what is SALES ASSOCIATES VALUE TO THE BUYER They are in constant contact with the customers Buyer can ask the sales associates opinion on what they think should be in stock customers pass on their wants to the sales associates Buyers can ask the sales associates opinion on new samples The more involved the sales staff are the more enthusiastic they are to sell the stock Buyers can rely on the input from sales associates they have built up a relationship with the ones they know are knowledgeable about the stock  EXTERNAL SOURCES EXERCISE White board exercise Discuss what do you think examples of external sources of information can be to help you make buying decisions  Answers EXTERNAL SOUCES OF INFORMATION Customers through marketing research to determine customer needs Magazines and trade publications subscribe to these as they keep you up to date about styles , new materials, new models and current trends Suppliers/vendors may give details about what is being ordered by others Trade bodies and associations relating to your area of retailing keep you up to date with current trends and changes in your market Comparative shopping  Fashion forecasting consultants that you use to help predict fashion trends months in advance Trade shows , fashion shows, exhibitions EXTERNAL ,fashion week in London Paris, Milan, New York SOURCES OF Buying offices can be internal and external INFORMATION sources of information as they can be 1. store owned buying offices or 2. independent buying offices Internet and social media discuss in more depth in next slide  INTERNET AND SOCIAL MEDIA The internet can be one of the most important research tools that buyers can Millions of pages of information is available at click of a button Buyers are able to obtain up-to-the-minute news and info about products they are buying Buyers now have a wealth of information at their fingertips Buyers now have access to e.g. daily fashion news, customer information, trade shows, view runway fashion shows etc Information that now took weeks to compile is available in minutes  Magazines keep buyers informed about changes in fashion  Magazines and trade publications keep buyers aware of changes in styling , new materials new shapes emerging in the fashion world long before they are available to customers Buyers need to reads several to keep up with Magazines knowledge of current trends and new product developments, economic conditions and other market and trade news that will enhance your understanding of your customers publications Trade magazines provide valuable information on the product category you are buying  Your merchandise suppliers and vendors will be able to give you information about what merchandise is being heavily ordered by other retailers USING Suppliers are usually keen to pass on useful SUPPLIERS information as they have a stake in the success of your store AND However there is a distinct difference between VENDORS accepting advice and letting the vendor make decisions for you INFO As partnerships grow you will be able to have more confidence in the suggestions they give you  Buying offices provide information to the buyers and can be 1.Independently owned buying BUYING offices or OFFICES 2. Store owned buying offices  Buying offices communicate vital marketing information to clients through reports and give much needed assistance to buyers when they visit the market Buying office also assist with SERVICES Giving information on market conditions, prices, styles available PROVIDED BY Place orders on behalf of the buyer BUYING Keep look out for new merchandise Follow up check on deliveries OFFICES Locate new resources Secure private brands for retail stores Provide fashion forecasting  Large department stores and speciality stores STORE have their own buying offices e.g. Harrods OWNED These buying offices are more economical than paying a high fee to outside buying offices BUYING These buying offices perform the same function OFFICES except they don’t share information with other retailers INDEPENDENT BUYING OFFICES  INDEPENDENT BUYING OFFICES Independent buying offices serve as consultants and advisers to buyers They provide assistance to buyers telling them what is hot and what is not Buying offices help small retailers compete with industry giants The internet is taking over from a lot of buying offices as a useful source of information  Fashion buyers need to be fervent watchers of society and changing trends Research can be informal such as scrapbook of photos, looks, images acting as inspiration RESEARCH Or visit nightclubs to stay up-to-date with fashion trends (street fashion and subcultures) The marketing mix and the fashion buyer Fashion buyers would not generally consider themselves as pure marketers but they are the main drivers of the marketing mix They define the product They have a major input into retail pricing They decide (along with the merchandiser) which outlets the products will be stocked in They provide input into any associated promotional activity Formal market research Buyers need to keep abreast of all things related to the fashion business and the competition covered in the press There are also a number of market reports such as: Mintel (mintel.com) Verdict (verdict.co.uk) Euromonitor (euromonitor.com) Key Note (keynote.co.uk)  Fashion forecasters are business consultants that you can hire to help predict fashion trends months in advance Fashion trends change so quickly and buyers need to be aware of the latest trends so that the shop has the right products to meet the wants and needs of its customers FASHION These services help with long range planning FORECASTERS Many retailers consult more than one forecasting firm Forecasting firms may be expensive but most major retailers agree they cannot afford not to use them Trend Forecasting Many buyers will look at colour forecasting agencies such as Pantone, whose famous PMS (Pantone Matching Service) is used for a wide variety of mediums from paper to fabric (https://www.pantone.com/) Pantone’s brand has become a leader in colour forecasting and is highly respected Trend-setting agencies are also useful such as UK based WGSN or Stylesight who deliver their information either online or in a physical trend/lookbook format (https://www.wgsn.com/content/board_viewer/#/81068 The trend books carry clear colour illustrations, fabric swatches or hanks of yarn, useful when discussing and developing ranges with a supplier  Buyers usually join trade assoccations related to your area of retailing These organisations publish newsletters updating members on current trends and TRADE market conditions ASSOCIATIONS They also give buyers the opportunity to create important personal contacts and discuss matters relevant to a particular retailing area Trade associations typically sponsor trade shows as part of conferences where vendors exhibit new products  TED TALK TREND FORECASTING https://www.youtube.com/watch?v=xlgnWJx9oxc There are also a range of international fashion fairs, shows and exhibitions  EXERCISE Why are trade shows and fairs important to the buyer? Why trade shows and fairs are important They enable buyers to: Stay abreast of the latest developments and ranges of existing and new suppliers, brands or designers Gather new ideas to help develop future ranges Network with other people, organisations and business to ensure currency of own thinking and ideas Find new potential suppliers, brands or designers not currently used Confirm that the ranges already developed and developing in the business are still relevant to the forthcoming season(s) Potentially all place orders – mainly for those buyers in smaller or independent businesses that buy designer and manufacture brands Trend forecasting Many stands will have products that may not be directly relevant to the buyer, but that will nevertheless enable them to encounter a new shade, texture, style or print that will create ideas for potential use in the future Buyers and designer sketch garment or details that are new and innovative or take photos as they wander around (please note that using a camera may not be permitted)  PRETTY LITTLE THING https://edited.com/customers/prettylittlething/ Comparative shopping Comparative shopping Since most exhibitions and shows are held in fashion capitals of the world, it is normal for buyers to also take time out to do comparative shopping An opportunity to discover new or previously undiscovered brands and shops Most businesses will allow buyers to take or purchase important or innovative products that they find Being out and about in a fashionable city also provides opportunities to spot new trends bubbling up at street level  Buyers should study the promotional campaigns of competing stores Study their ads as well as their online offering and advertising to obtain info on price and quality When visiting competing stores look to see what is being stocked and what is featured in displays and what appears to be selling COMPARATIVE Observe prices, assortments, services and customer response to the merchandise stocked SHOPPING Comparison shopping gives you the chance to get information abput items not carried by your stores Buyers sometimes assign comparative shopping to assistant buyers Few retailers are successful if they merely copy another stores merchandise and pricing FASHION WEEKS TRADE FAIRS EXHIBITIONS Fashion weeks, trade fairs and exhibitions are held biannually to enable designers and branded manufacturers of fibre, yarn and fabric as well as garment manufacturers, to exhibit their next season’s range to international buyers Generally held in Jan, Feb and March and September, Oct, and Nov 2020 has had cancelled shows due to Covid-19 pandemic Fibre, yarn and fabric fairs Fibre, yarn and fabric fairs Fibre,yarn and fabric fairs are always the first in the cycle – and take place at least a year ahead of the garment season Own-label buyers would be more likely to attend such fairs that would branded buyers Key yarn fairs are: Pitti Filati (Florence) Exporfil (Paris) Key fabric fairs are: Indigo and Premiere Vision (Paris) Inter Textile (Shanghai) Paris2020 International Fashion weeks  The main cities influencing international fashion are Paris for womenswear and Milan for menswear The other important international fashion weeks are those held in New York and London although debate INTERNATIONAL rages each season as to which is the most influential FASHION WEEKS Fashion weeks are made up largely of a combination of runway shows and static exhibitions, with events usually spread across cities in a variety of prestigious locations They attract buyers, international press, fashionistas, bloggers , influencers International Ready to Wear International ready-to-wear trade fairs These biannual events are generally held in large exhibition halls and typically consist of static stands with displays with some fashion being shown on live models Key fairs and cities include Pret a Porter in Paris, CPD in Dussledorf, MAGIC in Las Vegas, ISF in Tokyo, Pitti Uomo, Pitti Bimbo and Modaprima in Florence and Pure in London These shows attract brand manufacturers from all over the world Smaller businesses will actually place orders at these shows while larger own-label buyers will undertake research probably having placed production and orders much earlier with unbranded manufacturers It is worth bearing in mind, a large proportion of the world’s factories produce solely for own-label buyers and would not be represented at this type of fair  These shows generally run for four to five days they attract a wider audience with both independent and small store buyers attending alongside buyers from the larger groups Some shows specialise in one product, some INTERNATIONAL are unisex, or focus solely on childrenswear while others aim to attract younger and edgier READY TO WEAR buyers These shows attract brand manufacturers from all different countries however some aim to attract more home producers  Thinking about the Primark to Prada effect identify a luxury or mid to low market trend that shortly afterwards trended in the opposite market EXERCISE What is the trend ? GROUP DISCUSSION Which market did it start in? Why and how do you think it crossed over? Check out the following resources for a real flavour of what buyers can view in order to get better informed about market, social and cultural trends… Videos/articles to look at: https://www.youtube.com/watch?v=xlgnWJx9oxc https://www.promostyl.com/service-trendbook/ https://edited.com/data/ https://edited.com/customers/arcadia/ https://edited.com/customers/boohoo/ https://edited.com/customers/prettylittlething/ https://www.stitchfix.com/ https://www.ft.com/content/621d20c0-7033-11e6-a0c9- 1365ce54b926 HOMEWORK IN GROUPS OF 3,4 or 5 Do a 5-10 minute presentation to the class Visit a high street retailer or look online write a brief one page report entitled This seasons main Fashion looks , fabrics and colours are ….