Fashion Industry 101 - NYPL

Transcription

Fashion Industry 101:How to start a fashion line in today’s market.Presented by: Global CompaniesGlobal Group Showroom

Before I get started This is a business to makemoney John BartlettDesign is an art, fashion isabout capitalizing on amoment John GallianoThank you, but we all readyhave a Tommy, Isaac, Ralphand Donna You have to decide if youwant to be Rich orFamous it’s hard to do bothIsaac MizrahiMichael KorsMarc Jacobs“Good businessis the best art.”Andy Warhol

Where to Start1. Know who you are. State your targetconsumer, the retailers that will sellyour product, your breakeven point,and how you’ll do your sales.2. Operational plan. How will youdevelop the line? Find factories? Gointo production?3. Marketing the brand. Why shouldanyone buy your line?

What you will Need to Decide Who your target marketis? What are your pricepoints? Who will you “hangwith”? What retailers fit yourmarket? What is your niche?

Target MarketFollowing the Money Trail70%60%Mass 62%50%Discounter17%Dept. Stores12%Boutiques9%Internet 1%40%30%20%10%0%Apparel

Design ConceptFollowing the Money Trail 58% of the US population is a plus sizeconsumer24% are obese12% of children under 12 are obese 38% of the US Population is a babyboomer born between 1946 and 1965 40 million Latin's live in the US Lingerie and Children boutiques had thehighest return rates last year (2005) Social occasion stores are showing stronggains

Fashion Has Very Little todo with “it”

Fashion Forecasting

Summer 2005

Fashion Books

Recycled Fashion

www.fesslerusa.comDesign Support ServicesFully Vertical In HouseGarment ProductionPatternmakingPrototype SamplesSalesmen Samples

Evolution of a Trend

Spring 2005

Fashion Forecasting

Keep it RealYou have your own look. A signature style.

K.I.S.S. Start small with key piecesDonna Karan started with her 7 easypieces collectionRalph Lauren started with ties Perfect one or two “Hot Bodies”Think Diane Von Furstenberg wrap dressPrada nylon black should bagNorma Kamali Sleeping bag coat

Product Development Research on sales &fashion trends Planning of lineconcept Development ofcollection (Flats) Order sample fabrics Sales projections

Product Development Technical designPatternsFirst samplesCostingExposure (tradeshows, markets,)Fabric orders placed not confirmedPreproduction planning (fit testdone)

Product Development Grade patterns Orders entered and reviewed forcredit Cutting tickets projected Fabrics ordered Production

Product Development Quality control checkedVendor compliance checkedCollection of pre-paymentsDistributionCollection of term accounts

Production Cheat Sheet Limit the amount of types of fabricyou use Don’t be afraid of minimums If you are buying from overseas, askfor the landed price Factories are very-specific use themfor what they are known for

Finding a Factory Use a referral service The Garment Industry Development Corp Garment Contractors Association in LA Korean Manufactures Association F.B.I. Fashion Business Incorporated Look up the registration number on a garment Contact trade commissions Ask fabric suppliers Visit sourcing shows

Fashion Director meets with design teamDesign team presents line at sales meetingConcept #1Merchandising Dept.VisualMerchandiserplans displays andwindows.Costing isapprovedProps, signage andfixtures areorderedSignage andplanagrams aresent to storesFinancial Dept.Marketing & PromotionalDept.Groups are reworkedafter sellingEvaluates displayperformanceProductionInput from the different department is taken and line is reworked. Pre-production samples are made and fabrics samples are requested. Production dates are set New styles are added for approval by Fashion DirectorAll orders are processed and the styles are put into production.A detail of best seller styles is reviewed and added to line.Goods begin to arrive at storesfollow up phone calls are madefrom sales team for reordersBased on early sellinggoods are programmedfor 2nd cuttingIn Stock goods areoffered to small accounts.Credit and term agreements are madeReview of designand displays aredone at each storeWholesale DivisionInventory is entered and invoices are madeBased on terms orders are picked and shippedPayment is receivedMargins are reviewedSpecial request from theretailers are reviewedFabric & Trim SourcingReviews events andholiday and programspromotions inaccordanceAny in store signageand advertisement isreviewed with V.M.Dept.Events andPromotions arepresented to storesSupport is given tostores in accordance toorders under thedirection of the salesmanager.After promotions are compete a review of cost efficiency is done.Plans production timeand makes samplesCosting is estimatedBudget is approvedby Financial dept.Costing isapprovedAllocates production time Buys fabricMakes road rep samplesCosting and technical designs are doneFit samples are approvedGrading is doneProduction samples are reviewed forfit and costing

Things to know. Retail Math. Retail Mark-Up Net Profit & Gross Profit Sales to Stock Ratio Sales per Sq. Foot Turn Over O.T.B. Margin

Things to Know. Costing.Basic Costing:Cost of fabrics Trims Production CostAdministrative cost: Cost of sales (reps, shows, line sheets) Samples & Pre-production Margin for chargeback's Distribution costProfit %

Things to know. Costing.How to set a base price?Work it backwards1. Know the retail price2. Know the retail mark-up3. Know the whole sale price4. Know the production cost price

Things to know. Misc. Fabrics Fabric finishes Types of trims Production terminology Garment lingo Banking terms Retail math

Critical Legal & AccountingIssues Incorporation Partners & investors Commercial leases Resale license Manufacturing license RN number Duns number Trademarks & copyrights

Financing your Line Beg and borrow . Sale everything you own Prefect personal credit Look for grant money Use a factor Sell equity in the company Have private clients Don’t quit your day job

Financing your LineMoney men don’t care about yourportfolio 1.How much you need2.How you plan on using it3.How long you need itfor4. What’s in it for them

Where the Money 3020100Season 1 Season 2 Season 3 Season 4

Exposure

Exposure Regional MarketsSales reps/Road repsTrade showsShowroomSupport for sales team Internet Catalogs/Line sheets Look books

Line Sheets

Exposure Editorial Placement Tradeadvertisement Fashion shows Sponsorship

What-Where-WhenFall IStarts to showJan-FebShipsAug-SeptReordersSept-Oct

What-Where-WhenFall IIStarts to showMarchAprilShipsOct-NovReordersNovember

What-Where-WhenSpring IStarts to showAug-SeptShipsJan-FebReordersFeb-March

What-Where-WhenSpring IIStarts to showOct-NovShipsMarchAprilReordersMay

What-Where-WhenHolidayStarts to showJune orAugustShipsEnd ofOctoberReordersNovember

What-Where-WhenResortStarts to showAugustShipsNovemberDecemberReordersJanuary

Operations Receive orders Prepare cutting tickets Check credit Factor orders Review cash flow Drop styles from line Review orders with buyers

Retail Support Visit the store or send someoneOffer to “sell it” or “work it”Truck showsHave ready made advertisingInclude promo’sOffer merchandising optionsVisuals and signage POP

Key Points on Cut to Order1.2.3.4.5.6.Limit riskPlan your salesPlan production drop datesHave clean inventoriesProgram your fabric buysWill only put into production styles thathave pre-sold7. Will only have “extra” stock on goodsthat have re-ordered.

Cut to Order ControlStyle No.Season123S5SK SpringFabricMinProductionCostCotton 1,50024.80StoreSmallMediumLargeXLargePetty Girl2442Nice Guy4884Total612126

Distribution Enter inventory into systemPull ordersPrice tagFinal production checkInvoice customerProduce pick-ticketPack and ship goods as per terms

DistributionReview and QTPick and PackDistributionWarehousingCredit ApprovalsInvoicingCollection of ARCustoms servicesTrade Mark Registration

It’s not an Order Until it’s Paid Charge backs Markdown money Co-op advertising Anticipation discounts End of season returns

Contact UsGlobal Purchasing Companies1133 Broadway Suite 908New York, N.Y. 10010212-414-4001 Fax 212-414-3156www.globalpurchasinggroup.comContact us about our flat fee line developmentprogram, our feasibility consultation & linemerchandising service.

Fashion Industry 101: How to start a fashion line in today’s market. Presented by: Global Companies Global Group Showroom. Before I get started This is a business to make money Design is an art, fashion is about capitalizing on a moment Thank you, but we all ready have a Tommy, Isaac, Ralph and Donna You have to decide if you want to be Rich or Famous it’s hard to do both .