Sourcing 2
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- Words: 1,237
- Pages: 34
Dhyana van der Pols
SOURCING & CALCULATIONS: MARKET ENTRY HOW TO BE PREPARED? Sourcing- design- product calculations
Sourcing & Calculations Content 1. Product Calculations: Collection Diamond 2. Trade offer: Product & Sales Structure
1. Product Calculations 1.1 1.2 1.3 1.4
Bottom up calculating Top- Down Retailer Price Brackets/ Categories Your sample collection
Product Calculations 1.1 Bottom up calculating • • • • • • • • • • • • • •
Fabric+ consumption Trims Accessories Packing Washing Embroidery Bank & Handling Payment conditions: f.i. 10 days 4% Delivery Conditions: DDU- In warehouse/ at border 5% unforeseen 2% seconds- defects Profit margin Agent fee or trade channel fee Final price
Product Calculations 1.1 Bottom up calculating • Costing sheet calculation assignment 1. Trouser
1. Product Calculations 1.2 Top- Down: Mark-up • Importing Wholesaler: + 25%-40% Importing Manufacturer : Buy at 10 Euro; sell at 17; in store at 59,95 Euro • 59,95: 3,4= 17,6x 40% minus= 10,5 Euro • Retail Chain Group + 45%-55%
1. Product Calculations 1.2 Top- Down: Mark-up 59,95:3=19,9 retailer mark up between 2,63,4 19,9:1,7=11,7 importer/ wholesaler mark up 11,7:12%import duties=10 10 minus CIF/ air shipment=8,50 8,50 including 15% GM= 7,3 manufacturing cost
Product Calculations 1.2 Top- Down Exporting manufacturers Importing Wholesalers
Importing Manufacturers
Importing Retailers Department Stores
Clothing multiples
Home Shopping companies
Selling and/or buying houses
Non importing retailers
Other retailers
Agents
Product Calculations 1.3 Retailer Price Brackets/ categories Collection Diamond
Product Calculations 1.3 Retailer Price Brackets/ categories Collection Diamond Basic NOS15%
Core collection
Profile 6-14%
Basic 20% Core
concept 45-58% Collection Diamond vBasic: NOS: never out of stock: Service Products vCore: mainstream collection: concept vProfile Items: trends+ window stoppers
Product Calculations 1.3 Retailer Price Brackets/ categories Collection Diamond Collection Diamond vBasic: NOS: never out of stock: Service Products vCore: mainstream collection: concept vProfile Items: trends+ window stoppers
Basic NOS15%
Core collection
Profile 6-14%
Basic 20% Core
concept 45-58%
Basic: T shirt long/short sleeve/ round/ V neck 5 pocket twill trouser Basic jeans in 4 waist/ 2 inseam sizes Stock service products at non seasonal prices Fixed retail value T shirt: 9,95-19,95 5pocket Twill: 39,95-49,95 Jeans at 39,95
Product Calculations 1.3 Retailer Price Brackets/ categories Collection Diamond Basic NOS15%
Core collection Basic 20% Core
concept 45-58%
Profile 6-14%
Core concept: Thematic fashion actuals: seasonal collection 4-6 times a year Identity collection; fashion statements, seasonal colors, all relevant style details Divided over themes and color cards
Product Calculations 1.3 Retailer Price Brackets/ categories Collection Diamond Basic NOS15%
Core collection Basic 20% Core
concept 45-58%
Profile 6-14%
Profile items Catwalk styles, Window stoppers, Trend setting/ adapting; “style lab” Diesel f.i. Communicating you are up to date and informed and able to translate design elements in RMG
Product Calculations 1.3 Retailer Price Brackets/ categories v Basic: NOS: bigger volume- repeat orders: small prices: commodity v Core collection: big sample collections, sales men samples, showroom selling; no repeats- max. 3000pcs per style: mid price level: profits above 10% v Profile items: small series, luxury part of collection: GM 15%+
Product Calculations 1.3 Retailer Price Brackets/ categories Example: WE GROUP v v v v v v
Basic T- shirt: 9,95 Basic polo: 19,95 Basic shirt: 19,95 Basic trouser: 39,95 Collection: 49,95/ 59,95/ 69,95 Profiled Items: 89,95, 119,95, 139,95
Product Calculations 1.3 Retailer Price Brackets/ categories Collection Diamond Basic NOS15%
Core collection Basic 20% Core
concept 45-58%
Profile 6-14%
Your sample collection
First determine which part of the diamond is yours to shine
Product Calculations 1.4. Your sample collection Collection Diamond
vUp to date – trend following for mainstream customers
Basic NOS15%
Core collection Basic 20% Core concept 45-58%
Your sample collection should be:
Profile 6-14%
vContain the season style elements vRight color: seasonal vRight fashion fabric/ print/ texture vRight accessories: zips, puller, drawstrings, labels!!, buttons vRight washing
Product Calculations 1.4. Your sample collection v v v v v v v v v v
Should be labeled properly with: Date Style number/ reference customer Client code Size, pattern code Collection reference: theme winter 2007 Your address data/ contact data Fabric code, description Washing Code if applicable Optional Price Optional Delivery conditions
2.1 Sales Structure: Chains/ Channels & Commissions
• Agents/ Local buying houses: 7-12% on product price or CMT price • Agents: independent: min. 10% + bonus • Agents: selling capacity: 5% commission • Sales organization in target market • Sales representative: on pay roll • Importing manufacturers: 1,4- 1,7
2.2. Sourcing Strategy : What do you control? Pre production services The Supply Chain YOU Raw material producer
Procurement
Production
Trims+ rest
Wholesaler
Material management Logistic management
Logistic management: the control of the supply chain without owning it
Retailer
Physical distribution
Customer
2.3. Sourcing Strategy: How? LC procedure in buying and selling v v v v v
LC at sight LC 30 days LC 60 days LC net LC back to back!!!!! Supply chain control requires active banking system
2.4. Trend Info: be Informed
2.4. Trend Info: be Informed • International Fairs • International fabric fairs • Suppliers: fabric manufacturers: color cards • Buyers: have info available on trends/ colors and patterns • Through Internet • Design books • Branch Magazines • Cluster • Agents
2.5. Trend Info- Fairs
2.6. Trend Info- Fairs Fashion Forecast
2.7. Trend Info- MagazinesDesign
Date
Modelname
Season
Modelcode
Stylesheetno.
Pattern
PDNG 8212
Basic pattern Client
DYNAMIC
2.8 Product: Size charts+ tolerances SIZES
128
140
152
164
176
Description
REQ
REQ
REQ
REQ
REQ
1/2 CHEST
35,00
+1
37,00
+0.50
39,00
+1
41,00
+1
43,00
+1
1/2 WAIST
32,00
OK
34,00
OK
36,00
OK
38,00
OK
40,00
OK
1/2 BOTTOM HEM
35,50
+1
38,00
+1
40,50
+0.5
43,00
OK
45,50
OK
1/2 ARM HOLE
19,00
- 0.50
20,00
- 0.50
21,00
- 0.50
22,00
-1
23,00
- 0.50
SLEEVE LENGTH
46,00
+0.50
49,00
+0.50
52,00
+1
55,00
+1
58,00
+0.50
1/2 CUFF OPENNING
10,00
OK
10,50
OK
11,00
-0,50
11,50
- 0.50
12,00
- 0.50
CENTER BACK LENGTH
46,00
+1
48,00
+ 1.50
50,00
+1
52,00
+ 1.50
54,00
+1
2.8. Product Specifications Size Charts Size table for women's outerwear (body sizes) in cm character sizes
•XS
•S
•M
•L
•XL
•XXL
•figure sizes
•34
•36
•38
•40
•42
•44
•46
•48
•50
•chest width
•80
•84
•88
•92
•96
•100
•104
•110
•116
•waist size
•61
•64
•68
•72
•76
•81
•86
•91
•97
•hip girth
•86
•90
•94
•98
•102
•106
•110
•114
•118
2.8. Product Specifications Size Charts Size table for men's outerwear (body sizes) in cm, except trousers/jeans character sizes
•XS
•S
•M
•L
•XL
•XXL
•figure sizes
•42
•44
•46
•48
•50
•52
•54
•56
•58
•60
•chest width
•84
•88
•92
•96
•100
•104
•108
•112
•116
•120
2.8. Product Specifications Size Charts Size table for men's trousers (garment sizes) in cm: figure sizes
•40
•41
•42
•43
•44
•45
•46
•47
•48
•49
•waistband width
•68
•68
•72
•72
•76
•76
• 80
•80
•84
•84
•side length
•100
•108
•102
•110
•104
•111
•104
•112
•106
•112
figure sizes
•50
•51
•52
•53
•54
•55
•56
•58
•60
•62
•waistband width
•88
•88
•92
•92
•97
•97
•102
•108
•114
•120
•side length
•106
•113
•108
•114
•108
•114
•111
•111
•111
•111
2.9. Product Specifications Visualize total offer- Correspondence
2.9. Product Specifications Visualize total offer- Correspondence
Target the EU countries Right Right Right Right Right Right Right Right Right Right
Product Price distribution channel country & segment sample color fabric flexibility- minimum lead time service communication
SOURCING & CALCULATIONS: MARKET ENTRY HOW TO BE PREPARED? Sourcing- design- product calculations
Sourcing & Calculations Content 1. Product Calculations: Collection Diamond 2. Trade offer: Product & Sales Structure
1. Product Calculations 1.1 1.2 1.3 1.4
Bottom up calculating Top- Down Retailer Price Brackets/ Categories Your sample collection
Product Calculations 1.1 Bottom up calculating • • • • • • • • • • • • • •
Fabric+ consumption Trims Accessories Packing Washing Embroidery Bank & Handling Payment conditions: f.i. 10 days 4% Delivery Conditions: DDU- In warehouse/ at border 5% unforeseen 2% seconds- defects Profit margin Agent fee or trade channel fee Final price
Product Calculations 1.1 Bottom up calculating • Costing sheet calculation assignment 1. Trouser
1. Product Calculations 1.2 Top- Down: Mark-up • Importing Wholesaler: + 25%-40% Importing Manufacturer : Buy at 10 Euro; sell at 17; in store at 59,95 Euro • 59,95: 3,4= 17,6x 40% minus= 10,5 Euro • Retail Chain Group + 45%-55%
1. Product Calculations 1.2 Top- Down: Mark-up 59,95:3=19,9 retailer mark up between 2,63,4 19,9:1,7=11,7 importer/ wholesaler mark up 11,7:12%import duties=10 10 minus CIF/ air shipment=8,50 8,50 including 15% GM= 7,3 manufacturing cost
Product Calculations 1.2 Top- Down Exporting manufacturers Importing Wholesalers
Importing Manufacturers
Importing Retailers Department Stores
Clothing multiples
Home Shopping companies
Selling and/or buying houses
Non importing retailers
Other retailers
Agents
Product Calculations 1.3 Retailer Price Brackets/ categories Collection Diamond
Product Calculations 1.3 Retailer Price Brackets/ categories Collection Diamond Basic NOS15%
Core collection
Profile 6-14%
Basic 20% Core
concept 45-58% Collection Diamond vBasic: NOS: never out of stock: Service Products vCore: mainstream collection: concept vProfile Items: trends+ window stoppers
Product Calculations 1.3 Retailer Price Brackets/ categories Collection Diamond Collection Diamond vBasic: NOS: never out of stock: Service Products vCore: mainstream collection: concept vProfile Items: trends+ window stoppers
Basic NOS15%
Core collection
Profile 6-14%
Basic 20% Core
concept 45-58%
Basic: T shirt long/short sleeve/ round/ V neck 5 pocket twill trouser Basic jeans in 4 waist/ 2 inseam sizes Stock service products at non seasonal prices Fixed retail value T shirt: 9,95-19,95 5pocket Twill: 39,95-49,95 Jeans at 39,95
Product Calculations 1.3 Retailer Price Brackets/ categories Collection Diamond Basic NOS15%
Core collection Basic 20% Core
concept 45-58%
Profile 6-14%
Core concept: Thematic fashion actuals: seasonal collection 4-6 times a year Identity collection; fashion statements, seasonal colors, all relevant style details Divided over themes and color cards
Product Calculations 1.3 Retailer Price Brackets/ categories Collection Diamond Basic NOS15%
Core collection Basic 20% Core
concept 45-58%
Profile 6-14%
Profile items Catwalk styles, Window stoppers, Trend setting/ adapting; “style lab” Diesel f.i. Communicating you are up to date and informed and able to translate design elements in RMG
Product Calculations 1.3 Retailer Price Brackets/ categories v Basic: NOS: bigger volume- repeat orders: small prices: commodity v Core collection: big sample collections, sales men samples, showroom selling; no repeats- max. 3000pcs per style: mid price level: profits above 10% v Profile items: small series, luxury part of collection: GM 15%+
Product Calculations 1.3 Retailer Price Brackets/ categories Example: WE GROUP v v v v v v
Basic T- shirt: 9,95 Basic polo: 19,95 Basic shirt: 19,95 Basic trouser: 39,95 Collection: 49,95/ 59,95/ 69,95 Profiled Items: 89,95, 119,95, 139,95
Product Calculations 1.3 Retailer Price Brackets/ categories Collection Diamond Basic NOS15%
Core collection Basic 20% Core
concept 45-58%
Profile 6-14%
Your sample collection
First determine which part of the diamond is yours to shine
Product Calculations 1.4. Your sample collection Collection Diamond
vUp to date – trend following for mainstream customers
Basic NOS15%
Core collection Basic 20% Core concept 45-58%
Your sample collection should be:
Profile 6-14%
vContain the season style elements vRight color: seasonal vRight fashion fabric/ print/ texture vRight accessories: zips, puller, drawstrings, labels!!, buttons vRight washing
Product Calculations 1.4. Your sample collection v v v v v v v v v v
Should be labeled properly with: Date Style number/ reference customer Client code Size, pattern code Collection reference: theme winter 2007 Your address data/ contact data Fabric code, description Washing Code if applicable Optional Price Optional Delivery conditions
2.1 Sales Structure: Chains/ Channels & Commissions
• Agents/ Local buying houses: 7-12% on product price or CMT price • Agents: independent: min. 10% + bonus • Agents: selling capacity: 5% commission • Sales organization in target market • Sales representative: on pay roll • Importing manufacturers: 1,4- 1,7
2.2. Sourcing Strategy : What do you control? Pre production services The Supply Chain YOU Raw material producer
Procurement
Production
Trims+ rest
Wholesaler
Material management Logistic management
Logistic management: the control of the supply chain without owning it
Retailer
Physical distribution
Customer
2.3. Sourcing Strategy: How? LC procedure in buying and selling v v v v v
LC at sight LC 30 days LC 60 days LC net LC back to back!!!!! Supply chain control requires active banking system
2.4. Trend Info: be Informed
2.4. Trend Info: be Informed • International Fairs • International fabric fairs • Suppliers: fabric manufacturers: color cards • Buyers: have info available on trends/ colors and patterns • Through Internet • Design books • Branch Magazines • Cluster • Agents
2.5. Trend Info- Fairs
2.6. Trend Info- Fairs Fashion Forecast
2.7. Trend Info- MagazinesDesign
Date
Modelname
Season
Modelcode
Stylesheetno.
Pattern
PDNG 8212
Basic pattern Client
DYNAMIC
2.8 Product: Size charts+ tolerances SIZES
128
140
152
164
176
Description
REQ
REQ
REQ
REQ
REQ
1/2 CHEST
35,00
+1
37,00
+0.50
39,00
+1
41,00
+1
43,00
+1
1/2 WAIST
32,00
OK
34,00
OK
36,00
OK
38,00
OK
40,00
OK
1/2 BOTTOM HEM
35,50
+1
38,00
+1
40,50
+0.5
43,00
OK
45,50
OK
1/2 ARM HOLE
19,00
- 0.50
20,00
- 0.50
21,00
- 0.50
22,00
-1
23,00
- 0.50
SLEEVE LENGTH
46,00
+0.50
49,00
+0.50
52,00
+1
55,00
+1
58,00
+0.50
1/2 CUFF OPENNING
10,00
OK
10,50
OK
11,00
-0,50
11,50
- 0.50
12,00
- 0.50
CENTER BACK LENGTH
46,00
+1
48,00
+ 1.50
50,00
+1
52,00
+ 1.50
54,00
+1
2.8. Product Specifications Size Charts Size table for women's outerwear (body sizes) in cm character sizes
•XS
•S
•M
•L
•XL
•XXL
•figure sizes
•34
•36
•38
•40
•42
•44
•46
•48
•50
•chest width
•80
•84
•88
•92
•96
•100
•104
•110
•116
•waist size
•61
•64
•68
•72
•76
•81
•86
•91
•97
•hip girth
•86
•90
•94
•98
•102
•106
•110
•114
•118
2.8. Product Specifications Size Charts Size table for men's outerwear (body sizes) in cm, except trousers/jeans character sizes
•XS
•S
•M
•L
•XL
•XXL
•figure sizes
•42
•44
•46
•48
•50
•52
•54
•56
•58
•60
•chest width
•84
•88
•92
•96
•100
•104
•108
•112
•116
•120
2.8. Product Specifications Size Charts Size table for men's trousers (garment sizes) in cm: figure sizes
•40
•41
•42
•43
•44
•45
•46
•47
•48
•49
•waistband width
•68
•68
•72
•72
•76
•76
• 80
•80
•84
•84
•side length
•100
•108
•102
•110
•104
•111
•104
•112
•106
•112
figure sizes
•50
•51
•52
•53
•54
•55
•56
•58
•60
•62
•waistband width
•88
•88
•92
•92
•97
•97
•102
•108
•114
•120
•side length
•106
•113
•108
•114
•108
•114
•111
•111
•111
•111
2.9. Product Specifications Visualize total offer- Correspondence
2.9. Product Specifications Visualize total offer- Correspondence
Target the EU countries Right Right Right Right Right Right Right Right Right Right
Product Price distribution channel country & segment sample color fabric flexibility- minimum lead time service communication
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