Tailoring the product mix
There is already a high degree of variability in retail due
to the changing fashion scene and the short season windows. Product lines
multiply with the introduction of new segments every season. For example, apart
from the established lines such as golf, tennis or swimwear in sportswear, a
new segment called 'yoga' wear might be introduced.
Moreover, sizes and fits vary greatly from one market to
another on a global scale. This tends to intensify SKU availability at the
retail level.
Retailers need to manage this diversified product line
through different stages like product development, outsourcing apparel, sample
approval, production, distribution and merchandising, etc., across vast
geographical distances. By increasing the product mix, the complexity of the
operation is magnified many folds over.
Many times the impact of product proliferation goes
unnoticed by the retailer or buying houses as organisations in the Apparel
Retail Chain are seldom interconnected and there is very little coordination
between players.
Retailers have to realise that they cannot just focus on
purchasing and selling, but need to pay close attention to the entire Supply
Chain since delay at one stage in the chain will ultimately affect them. Based
on the configuration of the Apparel Supply Chain, the retailer has little scope
to exercise control in this process.
Garments are made from a combination of fabric from a
company, snaps from another and buttons or zippers from yet another, all of
which must come together in time for the finished product to be placed on the
shelf.
As product development consists of developing and selecting
fabric swatches, deciding garment style and merchandise flow, proliferation of
product mix leads to higher costs and longer design-to-market cycle time.
Typically, design-to-market time for fashion products is six to nine months, of
which 70 percent of the time is spent on non-value-added activities like
communication delay, non-approval of merchandise at various stages and waiting
time for assortments.
A judicious product mix in basic textile helps in making the
entire apparel Supply Chain more manageable without having to sacrifice the end
diversity in apparel style, fit and size that capture the customer's
imagination.
Originally published in "Inside Fashion: The Magazine
on Fashion & Retailing"; Vol 9: No. 8
