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AMID-R 100 Exam 1 Review (October 11, 2016)

by: Abigail Dolbeer

AMID-R 100 Exam 1 Review (October 11, 2016) AMID-R

Marketplace > Indiana University > AMID-R > AMID R 100 Exam 1 Review October 11 2016
Abigail Dolbeer

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This exam review covers the material we have talked about in class for the first exam (midterm)
Introduction to Retail Design and Merchandising
Lauren Reiter
Study Guide
Apparel and Merchandising, buying, retail, ownership
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This 10 page Study Guide was uploaded by Abigail Dolbeer on Saturday October 1, 2016. The Study Guide belongs to AMID-R at Indiana University taught by Lauren Reiter in Summer 2016. Since its upload, it has received 319 views.


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Date Created: 10/01/16
Intro to Retail Design and Merchandising (AMID­R 100) Exam 1 Study Guide October 11, 2016 THE BASICS Fashion design: the art of application of design and aesthetics or natural beauty to clothing and  accessories; influenced by cultural and social attitudes; has varied over time and place Merchandising: getting merchandise to stock the stores; activity of promoting the sale of goods, especially by their presentation in retail outlets Marketing: promotes fashion and generates interest in new styles and products; helps set trends Image clothing: photographed/drawn (form) Written clothing: described in language (words) Real clothing: seeing the garment/technological (action of manufacture) Shifters: real to image, real to language, image to language Translation: technological, iconic, written, spoken Fashion relies on transformation Trend: general direction or movement of a fashion Fad: sweeps in and impacts a limited amount of population and then leaves quickly Classic: style or design that remains in basic need and remains in general fashion acceptance for  an extended period of time High fashion: new style accepted by a limited number of fashion leaders who want to be the  first to adopt changes in innovation in fashion Mass fashion: consists of styles that are widely accepted HISTORY OF THE INDUSTRY WWI (1914­1918): women first wore pants because they were working the men’s’ jobs while  the men fought the war Post WW! (1919­1929): more freedom because women had the right to vote (rebellion); world’s fair; jazz age The Great Depression (1930­1938): clothing was the first thing people stopped buying WWII (1939­1945): everyone was in the fight together Post WWII: glamour; television influenced fashion Cuban Missile Crisis/Vietnam/Civil Rights: peasant style, mod fashion, Audrey Hepburn and  Jackie Kennedy were heavily influential Music, Television, Music, Glam Rock (1970s): cultural rebellion; manmade fibers created  (polyester) End of the Recession (1980s): American casualwear (shoulder pads); decade of the designer Fall of the Berlin Wall, Communism, Gulf War, The Internet (1990s): trade agreements with other nations made possible by the internet (global communications); marketing changed; hip  hop/grunge influence Terrorism/the European Union (2000s): art, culture, celebrity, music, fashion began to blend;  celebrity clothing lines, full digitalization of the supply chain; individual and social identity TRENDS TO EMERGE FROM EACH DECADE: 1910: over the ankle skirts 1920: LBD­ Coco Chanel 1930: floral patterns; fur stolls  1940: color blocking 1950: full skirt silhouette (Dior) 1960: Mondrian dress (YSL); Nehru jacket; Chanel suit; mini skirt 1970: pantsuit (YSL); denim jeans; words on shirts 1980: underwear as fashion; spandex 1990: shoulder pads 2000: oversized clothing FASHION AS ART:  Lindsey Creel ted talk  Went on PR to push herself creatively and mentally  Creative process begins with who: “Who is my customer?”  Business is the antagonist of the creative process  To be relevant, you have to be present  Your work will propel you instead of you propelling it  Dr. Reiter:  The challenge of being a designer is taking something that used to be 2D and turning  it into something that is 3D  As you are moving through school, start your own story.  Where do you see creativity within fashion design/merchandising/marketing?  Design:   Make a statement  Bring new ideas  Keep creative spirit going  Definitions  Color: can define rank, profession, or customer preferences of the time (pantone)  Texture: look and feel of material  Style: characteristic or distinct appearance of a garment (makes it different)  Silhouette: overall outline or contour (shape or form)  Details: individual element that gives a silhouette its form or shape (length, sleeve,  shoulder, waist)  Fashion design: the art of application of design and aesthetics or natural beauty to  clothing and accessories; influenced by culture and social attitudes  Merchandising: getting merchandise to stock the stores, the activity of promoting the  sale of goods, especially by their presentation in retail outlets  Marketing: promotes fashion and generates interest in new styles and products; help  set trends  How do we determine the line between art and design?  Art is the essence of fashion; design is for places like Macy’s or Kohl’s  What are ways in which we can keep/preserve creativity within the business of fashion?  Appreciate the creativity that already exists  Push the envelope even further  Keep the individual in the industry: get away from mass marketing FORECASTING:  Fashion forecasting: a global career that focuses on upcoming trends  A fashion forecaster predicts the colors, fabrics, textures, materials, prints, graphics,  beauty/grooming, accessories, footwear, street style, and other styles that will be  presented on the runway and in the stores for the upcoming seasons  Analytic cards, detailed cards, trend cards  Forecasting services: WGSN, Trend Union CAREERS IN THE INDUSTRY: Design and Production: designer, merchandiser, sales rep, showroom sales rep, product  manager  Design: Create fresh ideas, work as a team, good people skills, work well under  pressure, may work with larger design teams or as an assistant (contemporary lines),  may have to work or collaborate with other departments in the company, may have to  create an entire line  Production: work as a liaison between manufacturing, design, and merchandising,  work behind the scenes, must be decisive/detail oriented/good time management,  come up with creative solution to manufacturing and product development problems  Sales rep/account executive: salesperson, work out of a showroom, retail buyers are  your clients, must understand your product and customer as well as competitors and  their products, should be getting sales experience now Marketing & Merchandising: buyer, coordinator, retail merchandiser, visual merchandiser,  store manager, boutique owner  Merchandising: study trends and forecast (always be up to date), analyze past sales,  calculate production costs, understand competition and target market, multitask, work with design/product dev./production/sales/and marketing teams, leadership and  communication  Retail buyer: must understand their customers and competitors, predict and identify  trends, willing to travel, budget conscious, good with math, negotiating traits and  aggressive/firm, responsible for store profits, high level of stress, if you want to want  a business someday this is good experience, start in executive trainee position in a  larger company Fashion Media and Promotions: writer, stylist, PR specialist, editor, illustrator, graphic  designer, photographer  Public relations: constant contact with editors at newspapers/magazines/blogs,  capture customers’ attention, manage company’s image, large companies have in­ house PR and small companies hire outside, must be assertive, extroverted, good  communicator (written and verbal), knowledgeable about pop culture, typically low  salary (other types of business)  Journalism: need to be thick skinned, 24/7 job, required to meet deadlines constantly,  will need examples of your work, research top magazine publishing companies General Skills Needed: Work experience, written and verbal communication skills, geography, industry  knowledge, problem solving, strategic thinking, analytic skills, flexibility, predict  retail/fashion trends, organization, learn quickly, work ethic THEORY OF FASHION FLOW: Trickle Down Theory: The trickle up theory suggest that fashion acceptance begins among  designers; fashion flows vertically from the upper classes to the lower classes within society,  each social class influenced by a higher social class. Trickle Up Theory: The trickle up theory suggests that fashion acceptance begins among the  young or lower income groups; the fashion then moves upward to people in older age groups or  higher income levels; designers often look for street trends among avant­garde youth or fashion  trends inspired by the minority groups Trickle Across Theory: Fashion moves horizontally between groups on similar social levels. In  the trickle­across model, there is little lag time between adoption from one group to another.  THE FASHION CYCLE: Introduction: fashion innovators purchase from the retailers who “lead” fashion Rise: fashion leaders purchase from traditional retailers in their “better” departments Acceleration: fashion followers purchase from traditional retailers in “moderate priced”  departments Mass acceptance: fashion followers purchase from mass merchants Decline: fashion followers may purchase a few items at greatly reduced prices from discounters Obsolescence: no one is buying; “you can’t give it away!” Variations in the fashion cycle:  Fad: super popular but very short lived Flop: very low sales, very short period of time Seasonal staple: anything that rotates through ENTREPRENEUR THINKING: process of searching for a problem­solution FASHION THEORY:  Postmodernism: 1970s end of belief in universal truths, history as progress, science as  knowledge; bias underlie social interaction Deconstruction: 1960s­1980s; literally criticism, attention to omitted, forgotten, self­ defined hierarchies, preserve social structure Post structuralism: 1980s; culture central to human action, leading to meaning Cultural studies: critique and reformation to society’s power structures Performativity: creating identity through meaning CULTURAL MEANINGS OF DRESS: Meaning­delivery capacity: join culture and goods together as advertising Invents new cultural meanings: social elite, trickle­down theory, pop culture Radical meanings: violate cultural norms, marginalized areas of society­ hippies, punk,  drag Fashion invents new cultural meanings MOVING FROM AN ARTISTIC SPACE TO A BUSINESS PLACE: Designers: disorganized (star) Business managers: rational (manager) Both must be inspired Isaac Mizrahi/Chanel: one of the most inspired designers but was never able to  turn a profit, so Chanel dropped him FROM DESIGN TO RETAIL:  Design: trend > color > data  Retail: forecast > past seasons > price point Goals:  Storyboards/trend boards: method of displaying original designs; the best storyboards  create vivid visual images that are interesting and appealing to viewers; the storyboard  “tells the story” of the designer’s idea Good design:  Aesthetic trend  Retail statistics  Price points  Quality  Marketing o Sometimes the idea can be compromised Steps:  Idea to artwork  Artwork to design specification (spect)  Outside influence  Management of ideas  Sampling  Production Manufacturing Design  90% innovation, 10% inspiration  Come up with better products to meet market demand  Oftentimes designers have lack of technical education experience making it difficult to  translate their idea into a product  Trial and error process What’s the Difference?  Designer Label  Private Label: designating a product manufactured or packaged for sale under the name  of the retailer or designer rather than that of the manufacturer OR retailer/designer’s  name, as used on a product sold by this retailer but manufactured by another company;  specific to one place­ made by that place; think exclusive  Logo  Trademark Supply Chain  The apparel supply chain is global, comprised of millions of small, medium, and large  manufacturers in every region of the world, all operating under pressure to hold down  costs, innovate products, and deliver on tight deadlines Department Stores  Bon Marche­ Paris 1852  Brick and stone­ brick and mortar­ physical retail buildings Boutiques  A small store selling fashionable clothes and accessories  A business that serves a sophisticated or specialized clientele Omni­channel  A multichannel approach to sales that seeks to provide the customer with a seamless  shopping experience whether the customer is shopping online from a desktop or mobile  device, by telephone, or in a physical store ECONOMY AND THE INDUSTRY:  $250 billion spent annually on fashion in the US  Employ 1.9 million people in the US  Largest fashion hubs: NYC, LA o San Francisco, Nashville, Columbus rising Apparel and Textiles Impact  Integrated markets  Business model for profit  Exchange of goods­ import and export o Imports: goods coming into the country o Exports: goods going out of the country  Top exporters:  China  Hong Kong  Italy  Bangladesh  Germany  India  Turkey o 2014: US exported $6 billion, imported $32 billion  Top 5: China, Vietnam, Bangladesh, Indonesia, Mexico  Sourcing: procurement practices aimed at finding, evaluating, and engaging suppliers for  acquiring goods and services  Outsourcing: the process of contracting a business function to someone else Making Money and Keeping Creativity  Creative o 200 schools across the country offer fashion related programs o Met Gala: The First Monday in May  Monetary o FIT has 200,000 visitors each year, creating $280 million for New York o NYC has a $98 billion fashion industry At Home and Abroad  Domestic o Diminished in the last 20 years o Technology o US industry today; high value parts of global supply chain, research and  development (R & D); design and marketing o Apparel manufacturing has declined in last 20 years; 940,000 in 1990 to 144,000  in 2013  International o Race to the bottom: who can make the goods the fastest and the cheapest o Textiles: 33.0 million in 2014 o Apparel: 24.8 million in 2014 Measuring the Impact  Product Lifestyle o Materials o Manufacture o Distributions o Use o Disposal  Supply Chain o Planning o Manufacturing o Transportation o Distribution center o Delivery o Retail Type of Industry  Big o On average, within 15 months of a new Wal­Mart store’s opening, as many as 14  existing retail establishments close o Higher pay for workers o US made goods o Government subsidies  Small o Must differentiate themselves to due to less resources o Customer characteristics: finding target market niche o Technology: production/quotas o Government influence: labor and publicity/delays in product o Economy­ recessions/booms SELLING TO THE CONSUMER: Merchandising: getting merchandise to stock the stores; the activity of promoting the sale of  goods, especially by their presentation in retail outlets Marketing: trying to get people to have interest in buying the products Consumer Shopping Trends 12 predicted trends of 2016: 1. More payment options 2. Mobile plays bigger role 3. Unify data (online/offline) 4. Remove shopping friction 5. In store mobile devices 6. Remove loyalty programs 7. Omni­channel will continue 8. Cloud based 9. Omni­channel fraud protection 10. Social media as omni­channel 11. Specialize stock: overstored­ more retail items than the market demands 12. Internet of things (IOT): everyday objects have network connectivity, allowing them  to send and receive data i.e. merchants using in store devices to automatically ring up  customers, track real time shopping behaviors, tailored offered to customers Ways in Which We Shop: Website Social media In store Banner ads Mobile App Blogs New Consumerism 1. Be transparent 2. Authentic brand value 3. Sustainable processes 4. Retail technology 5. Help customers achieve goals 6. Price products competitively 7. Efficient services 8. Provide experiences 9. Embrace sharing economy 10. Recognize individuality Neuro­marketing: science of human decision Marketing Tactics: Specialized retailer: offer limited lines of related merchandise targeted to a more specific  customer; define their customers by age, size, or shared tastes General merchandise retailer: retailers that sell many kinds of merchandise in addition to  clothing; try to appeal to a broad range of customers; general merchandisers; several price ranges (ex: Macy’s) Department stores: general retailer most familiar to the buying public; prestigious and can be a  certain landmark Off­price: selling of brand name and designer merchandise at lower than normal retail prices  when they are at the late rise or early peak in the fashion cycle (regular discounters sell  merchandise in the late peak and decline stages of fashion cycle) Discount: any retail operation that sells goods at less than full retail prices Factory Outlet: discount operation run by a manufacturer (perhaps by a designer); provide  manufacturers and designers with a backup channel of distribution, which improve inventory  control Other types of retailers: Direct selling: 2009 a $30 billion industry; people who buy merchandise from a large firm and  distribute it by selling it to customers in their territory Catalog: mail order retailing, 19080s; magalog: catalogs that have editorial content, not just  advertising TV home shopping: QVC, HSN Visual merchandising: silent selling technique that helps to reduce the employee mix and  increase per square feet returns and can further help in reducing marketing budgets; the activity  and profession consists of developing the floor plans and 3D displays in order to maximize sales Types of ownership: Mom and pop: single stores managed by the owner with a few assistants; usually specialty stores Chain: group of centrally owned stores (4 or more) each which handles similar goods and  merchandise Leased departments: sections of a retail store that are owned and operated by outside  organizations Franchise: the franchise owner/operator pays a fee plus royalty on all sales for the right to  operate a store with an established name in an exclusive trading area; the parent company  provides merchandise and assistance in organizing and merchandising, plus training Showcase: manufacturer/designer store that sells merchandise at the introductory and early rise  stages of the fashion cycle; also testing grounds for new products Buying Merchandise: Category/classification: chain store; buyers that are typically assigned to buy a specific category or classification of apparel within a department instead of buying all categories for a department  the way a department store buyer does Departmental: buy for a specific department Category killers: superstores or category specialists carry one type of goods that they are able to offer in great amounts at low prices because of volume buying; drive out and kill specialty stores


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