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Tang,
TAN13404675
Report Title:
Assignment 1: Range Plan
Name: Stephanie Tang, TAN13404675
Table
of
Contents
Executive
Summary
..........................................................................................................
3
1.
Introduction
to
Topman
.............................................................................................
4
2. Capsule Collection
......................................................................................................
6
2.1 Range Introduction
............................................................................................................
6
2.2 Range Options
.....................................................................................................................
6
2.3 Fashionability
......................................................................................................................
7
2.3 Country of Origin
................................................................................................................
8
2.4 Allocations
............................................................................................................................
8
2.5 Ethical component of range
...........................................................................................
9
3.
Discussion
on
roles
of
Buyer
and
Merchandisers
...........................................
11
3.1
Role
of
the
Buyer
and
the
range
plan
.........................................................................
11
3.2 The Buyer within the Concept to Carrier bag model
........................................
11
3.3 The Buyer and external functions
............................................................................
12
3.4 Role of the Merchandiser and the range plan
.....................................................
13
3.5 The Merchandiser within the concept to carrier bag model
..........................
13
3.6 The Merchandiser and external functions
............................................................
14
3.7 The Buyer and Merchandiser working together
.................................................
15
Report
Summary
.............................................................................................................
16
Appendix
............................................................................................................................
17
Appendix
1.
................................................................................................................................
17
Appendix
2.
................................................................................................................................
18
Appendix
3.1
Topman
Comp
Shop
.....................................................................................
19
Appendix
3.2
River
Island
Comp
Shop
.............................................................................
24
Appendix
3.3
Urban
Outfitters
Comp
Shop
.....................................................................
28
Appendix
4.
SWOT
Analysis
of
Topmans
product
range
..........................................
32
Appendix
5.
................................................................................................................................
33
Appendix
6.
Range
Plan
.........................................................................................................
34
Appendix
7.
Range
Plan
Drops
............................................................................................
35
Appendix
8.
Fashionability
mix
pie
chart
........................................................................
36
Appendix
9.
Fashionability
mix
unit
buy
pie
chart
......................................................
36
Appendix
10.
Fashionability
mix
selling
value
pie
chart
...........................................
37
Appendix
11.
Allocations
table
...........................................................................................
37
Bibliography
.....................................................................................................................
38
Online
Resources
.....................................................................................................................
38
Electronic
Resources
..............................................................................................................
40
Books
...........................................................................................................................................
40
Executive
Summary
This report has been compiled with the aim of researching and creating a range plan
suited to the target customer of Topman. This has been done through discussing and
analysing the importance of the role of a fashion buyer and merchandiser.
Research was undertaken to understand the current product range of Topman and
its suitability to its target customer. Understanding the customer is paramount so
research was done to identify Topmans competitors, and comparative shops of the
retailers were conducted. Information was also gathered from speaking to various
sales assistants.
Following research of the company beginnings of the range plan could begin taking
shape through trend research, the decision of options, fashionability, country of origin
and cost price. Justifications for each component has been made in the report
An ethical component was required of the range with Fairtrade and Organic
certification being chosen.
Following on from product development the buyer and merchandisers role through
the concept to carrier bag process has been analysis. A discussion on their
independent duties as well as collaborative duties has ben made.
1.
Introduction
to
Topman
Topman is the male counterpart to the stylish fast fashion retailer Topshop.
Established in 1978, Topman is part of the family of brands under Arcadia Group
owned by Phillip Green. Please refer to Appendix 1 for a company profile.
Topman has 185 stores in the UK and 100 stores worldwide. A rapidly expanding
international brand Topman has also recently entered into the Chinese, Hong Kong
and German market (Fashion United, 2013). As well as stand alone stores the brand
also has concessions in department stores within the UK and internationally. Not only
is the brand seeing success in bricks and mortar stores but also its online store
where topman.com receives 160,000 unique visits a week (Topman.com, 2013).
Much like Topshop, Topman prides itself on efficiently delivering the latest trends at
affordable prices to fashion conscious males aged in their mid teens to early 30s.
The brand can be described as dynamic, exciting and having street credibility. This is
clearly reflected in their edgy yet contemporary store windows and modern store
interiors as seen in Appendix 2.
Topman has various product lines from a year round casual range, and cutting edge
designs to suits. The Topman in house-designed range is the largest however
Topman Design, shown at London Fashion Week exhibits Topmans trend lead
image for the brand. As well as providing trend led casual wear Topman also has a
refreshingly youthful formal range in stores, which caters for males looking for
affordable suits or smart casual attire. Each range presents a slightly different
product offering to the Topman customer, which is why the brands target market is
quite broad.
As informed by Topman staff, the brand sees their customers fall into four distinct
categories: Basics Buyer, Fashion Regular, Experimental Young Thing and the
Formal Buyer.
As well as Topman these customers also shop at River Island, Urban Outfitters and
H and M. Comp shops for Urban Outfitters and River Island can be seen in Appendix
3. All these brands share the fast fashion category with Topman and can be found
within a short walking distance from each other on Oxford Street. A SWOT analysis
in Appendix 4 further explorers Topmans product strengths and weaknesses.
2. Capsule Collection
2.1 Range Introduction
The capsule collection, Moody Nature is for the season S/S14 and will be delivered
in stores on the 1st of February. This is part of Topmans in house design range.
Research gathered from trend forecasting websites WGSN and Stylesight assisted in
the development of the trend. A decision was made to create a range based on
nature as the over arching element with references to the ambivalent ocean.
Appendix 5 shows a mood board and colour palette for the range. Turbulent in nature
the ocean can at times be soothing, at others wild and choppy yet deep under the
waves one can find stillness and calm. January averaging at a high of 9 degrees is
still quite cold, and customers are not yet thinking of wearing bright T-shirts and
shorts. A moody sentiment has been captured in the range shown to represent the
brooding nature many are feeling towards the end of the winter period.
2.2 Range Options
Within the range there is a 3:1 ratio of tops to bottoms. As this is a capsule collection
there could not be too many styles or the range would not look coherent. Therefore
three of these styles provide two options each as seen in the range plan in Appendix
6. Despite Topman not display by range but category, providing a few options in the
one style customers can be given choice. To avoid an overstock of that style the
options are phased in, in different weeks as can be seen in Appendix 7. This will
help avoid the instance where a customer might debate to only purchase one style
over another if there are similar products in store.
High fashion pieces cost more to buy, retails at a higher selling price and will not suit
the tastes of every customer however they add interest and excitement to the range.
A slim line coat predicted to be a new trend piece for S/S14 may not sell out, yet has
been included as customers see Topman as a leading fashion high street retailer.
Keeping the risk factor of this option in mind this high fashion item has much lower
unit buys compared a core item such as the boxy tee. Furthermore a higher intake
margin of 78% has been decided not only because the option can command a higher
selling price, but also to take into consideration the need for markdown spend.
Fashion items have similar unit buys but depending on the category, selling values
varies. This is so as a contrast cuff sleeve boxy tee cannot retail at the same price as
a bomber jacket due to materials and end usage. Furthermore the selling value of the
contrast cuff sleeve boxy tee may seem low compared to other fashion options
however research through visiting stores and completing comp shops revealed that
T-shirts and vests made up 28% of the range. With a 3:1 tops to bottom ratio there is
ample choice of T-shirts for customers. This means a lower selling value as unit buys
of tops are spread between the various options.
Core options have the highest unit buys yet their total selling value is similar to High
Fashion options which has low unit buys as demonstrated in Appendix 9 and 10. The
boxy tee and relaxed jeans are expected to sell due to their simple designs and
mass-market appeal yet they do not sell for much therefore total selling value is low.
Customers may like shopping with Topman due to the brands fashionable image, yet
it was discovered that Topman also has a customer group known as the Basics
As can be seen in Appendix 11 Core has the lowest percentage allocation of buy as
core items are expected to sell high volumes. To accommodate this, higher units of
excess stock is kept in the stockroom allowing for quick replenishment. This results
in a larger first delivery as opposed to High Fashion items, which have a small first
delivery. High fashion items have the highest percentage allocation of buy, as the
first delivery does not leave many excess units after the initial allocation. There is no
Being an in house designed range all options are available in all sizes. The exception
to this is High Fashion items as they are more exclusive and have a higher need for
markdown spend. Size ratios take on a bell curve shape with the most stocked size
being M units declining towards XXS and XXL.
2.5 Ethical component of range
This range was developed with ethical consideration in mind. The product itself was
the main focus with the decision to use fair trade and organic cotton in garments that
were made of 100% cotton.
Concern towards unethical cotton sourcing is evident within the Arcadia group as on
their website, it states that all their retailers are banned from trading with suppliers
who source their cotton from Uzbekistan due to child labour exploitation. Furthermore
Topman is involved in Fairtrade Fortnight where for two weeks in February to March
a capsule collection consisting of Fairtrade certified garments are sold in stores
(Fashionbeans, 2012).
Fairtrade certification means full transparency in all process from the farmers field to
the finished product and therefore a Fairtrade certified product able to display the
Fairtrade Certification Mark. This will give customers visual proof of Topmans ethical
awareness. By having Fairtrade certified products permanently in store Topman can
educate and slowly be accepted as a definite ethical retailer by their skeptical yet
concerned customers (Hill, J. and Lee, H, 2011). As only core products are
Fairtrade, prices could be kept to a minimum. Prices were calculated against
Topmans previous Fairtrade Fortnight ranges.
10
A buyer plays an integral role within a retailer as they are in charge of efficiently
selecting product for a specific market according to their company (Goworeck, 2007).
It is essential the planned range created by the buyer suits the retailer as such
decisions can dictate the strategic direction of a business and the popularity of the
range generates revenue for the business. Within the range plan buyers decide on
the product offering ensuring there are enough options and that fashionability levels
are inline with brand and customer expectations. The buyer also determines country
of origins for each product. An important part of range creation, country of origin
needs to meet customer expectations in quality yet ultimately provide the cheapest
possible option for the lowest total cost price.
There is no set job description for a buyer as depending on the structure of the
company a buyers role can vary. In the case of a large company such as
Debenhams a buyer would report to a specific department such as menswear, and
within that department allocated a product range such as knitwear or accessories.
While the range is specific they would be required to deal with larger financial
turnovers and total buy units, as the range will require larger quantities of stock.
Smaller companies like in Topman roles are not as structured and buyers may be
required to play a part in design and quality assurance. Smaller companies calls
upon the versatility of a buyer yet allows for more flexibility in their range creation.
3.2 The Buyer within the Concept to Carrier bag model
Through the concept to carrier bag process, the buyer serves the qualitative aspect
of the range by ensuring the product serves as a problem solver (Clark, 2013). This
is ensured through the initial process of understanding the target customer, research
through reviewing past seasons ranges and identifying its weaknesses and
11
The sourcing process in contrast within fast fashion retailers is longer. This is so as
numerous suppliers are sourced based on product aesthetic, cost, assessable
location, minimums and ethical requirements. Being a mid market retailer, cost is a
big concern to Topman so most of their suppliers would be in Asia, Middle East and
South Africa which also contributes to the longer sourcing process. It is within the
sourcing process that buyers need to utilise skills of negotiation and communication
as strong supplier and retailer relations could mean a reduction in cost price or
shorter lead-time. With garments manufactured the buyer will oversee shipping of
products to the warehouse however Topman looking to cut down lead time could
ship direct from the factory to stores effectively cutting out the time and costs
associated with warehousing.
3.3 The Buyer and external functions
The buyer does not work independently but with numerous internal and external
functions within the supply chain. Internal functions the buyer liaises with are design,
quality assurance, marketing and most frequently merchandisers. Topmans buyer
12
A buyer is charged with the creation of a range however the merchandiser in
conjunction with the buyer also plays a large part in the range plan. Charged with
overseeing the financial aspects of the range plan such as ensuring allocations,
intake margins, sell through rates and rate of sales are realistic resulting in profit from
the range it can be argued that a merchandiser is in charge of setting the financial
parameters of a garment range however product also plays a large part in the
merchandisers role. Without knowledge of product, the merchandiser is unable to
aid the buyer in finalising the range plan. The merchandiser needs to be aware of the
roles each type of product plays to allow for suitable allocations. (Clark, 2013) Being
a merchandiser requires logic for a methodical way of working.
Like the buyer the merchandiser needs to conduct research upon the creation of the
range. Their focus however is upon the product itself.
13
Sourcing and manufacturing is largely part of the buying sphere yet merchandisers
are in charge of phasing and allocation of stock, so they will track and negotiate if
necessary the delivery dates of stock. It is with within the distribution process that the
merchandiser takes the most active role. A Weekly Sales Stock Intake to manage the
supply of product and phase the open to buy budget is created by the merchandiser.
This is a crucial document as this allows the buyer to phase in stock creating stories
within a range and also for different delivery times from suppliers. Ultimately the
WSSI connects the merchandising, buying and finance departments. Merchandisers
are very involved on a retail level as there are many factors for the merchandiser to
consider in allocation of to which stores; store size, location, demographic of
customers at the store and volume replenishment required per store is all calculated
by the merchandiser.
3.6 The Merchandiser and external functions
Like buyers merchandisers also works with numerous different functions within the
fashion value chain. Internally they work closely with buyers as already discussed,
the finance team and retail stores. Externally the merchandiser works with logistics,
warehousing and distribution.
14
Throughout the concept to carrier process the buyer and merchandiser work closely
together to deliver the range in stores. This is not only because both roles take an
active part in the creation of the range plan, but because each role works in a
different method and they rely on the other to offer guidance in unfamiliar areas in
the creation of a range. The buyer with their time investing in trend research and
product range often neglects to think about the finances planning process. This is
where the merchandiser with their knowledge of finances can check that the range
figures make sense. Not one role is more important than the other as it takes the co
ordination of buying and merchandising together to create and deliver a successful
range.
15
Report
Summary
Research through comparative shops, and trend analysis has allowed for the
creation of a range in line with Topmans brand image and customer expectations.
As customers are the ones purchasing a range, product needs to serve their needs
whilst simultaneously creating profit for the company. The ones who ensure these
results is the buyer and merchandiser. Both have a different method of working and
is in charge of separate parts of the range plan however their understanding of the
range is limited if they do not work together and with other functions internal and
external to the company.
16
Appendix
Appendix
1.
Company
Profile:
Topman
An
energetic
and
exciting
retailer
providing
dynamic
and
trend
driven
fashion
at
affordable
prices.
The
brand
prides
itself
in
delivering
the
latest
trends
yet
also
showing
men
how
to
take
an
authoritative
attitude
towards
fashion
and
shopping.
Established:
1978
Group:
Arcadia
Country:
UK
Competitors:
River
Island,
Urban
Outfitters,
Next,
H
and
M,
Asos,
Burton,
Hollister,
Republic,
New
Look
Stores:
165
stores,
8
Flagships
and
stores
in
20
countries
Target
market:
16-
early
30s
Experimental,
trend
conscious
young
thing
Fashion
regular
Basics
buyer
Formal
wear
buyer
Product
Lines
Basics
In
house
designed
main
range
Premium
Collection
Topman
Lux
Topman
Design
Topman
Limited
Formal
wear
75,000 pairs of feet storm its 15,000 square
17
Appendix
2.
Window
display
at
Topman
Oxford
Circus
Instore
display
at
Topman
Oxford
Circus
18
Topman
Comparative Shop
Supply the Fashion Product
The Consumer and buying behaviour
In range planning it is vital to fully understand the target customer. The customer must be at
the forefront of the minds of all involved in product selection, range planning and pricing.
19
The Collection
Is the collection appropriate to the target customer? Justify your answer with examples.
Topman displays product not in ranges but in product categories. This is so (as informed by a
sales assistant) men tend to come in wanting a particular item. Splitting product into
categories makes it easier for the customer to see all available products in one section and
prevents customers from getting overwhelmed. Men shop differently to women and tend to
spend less time in stores so displaying product in ranges as in womens wear would confuse
the customer, and they may not see a T-shirt they would have liked because they did not walk
to that section of the store.
From looking at stocked t-shirts there was about 20% basic, 50% fashion and 30% high
fashion tees. 20% does not seem high for basics however Topman also has a Basic range,
which offers basic pieces in classic styles and colours year round.
Based on the discovered Topman customer and their personalities, the collection adequately
caters to the needs and expectations of the customer. Topman is a fast fashion retailer so a
fashion items were expected to be the highest fashionability category
20
12%
Polyester/Cotton
Cotton
Sweatshirts and
hoodies
15%
Cotton
Polyester/Cotton
Polyester
Jumpers and
Cardigans
17%
Acrylic
Acrylic/Wool
Cotton
Wool
16%
Wool Blends
Cotton
Polyurethane
Acrylic
11%
Cotton
Shorts
(Denim, Chino,
Swim)
3%
Cotton
Polyester
India
Bangladesh
Romania
Turkey
China
Mauritius
20-170 pounds
25-205 pounds
China
15-166 pounds
China
30-257 pounds
Turkey
Pakistan
Egypt
24-101 pounds
Turkey
Pakistan
Egypt
18-60 pounds
21
Colour
% Split
25%
White
30%
Sand
20%
Burgundy
7%
Burnt Orange
3%
Dull Yellow
5%
Dark Brown
5%
Navy
Identify the % split by fabric:
Fabric
% Split
Cotton
65%
Polyester/Cotton
Polyester
9%
Acrylic
Acrylic/Wool
Wool
Wool blends
21%
Polyurethane
4%
Leather
3%
22
Price Range
Average number
of units on display
per option
Core basic
20%
12-20 pounds
21
Fashion
50%
20-50 pounds
16
High fashion
30%
51 - 195 pounds
12
23
River Island
Comparative Shop
Supply the Fashion Product
The Consumer and buying behaviour
In range planning it is vital to fully understand the target customer. The customer must be at
the forefront of the minds of all involved in product selection, range planning and pricing.
24
The Collection
Thorough research into the type of product and identifying the % split of the collection will
give you a good understanding of how the buyer has spent the Open to Buy. The range is
meticulously planned before the OTB is spent and knowing the % split of past ranges and
current competing ranges will help the Fashion Buyer in deciding on a well-balanced,
profitable product range, appropriate to the target customer.
The Collection
Is the collection appropriate to the target customer? Justify your answer with examples.
Once again like Topman, River Island has arranged their product in stores in product
categories with the exception of their formal range, which has their own area in the store. The
formal range however was also arranged in product categories within its designated area.
Observation of products revealed a lot of fashion and high fashion items. There were
numerous (mostly white) printed tees available. High fashion tops included mesh overlay tops
and digital printed, spliced sweatshirts.
The available collection was suited to the customer as River Island is a fast fashion brand that
continually receives range drops to keep on trend. Fashion conscious customers will go to
River Island with the intention of finding fashion and high fashion items. For the more
conservative customer the brand has fashion basics and a year round core basics collection
for customers looking to supplement their wardrobe.
Rhianna, a popular female singer catering to the urban, hip crowd in the teens to late 20s has
worked with River Island on numerous collections for women. This has given a huge boost in
the brands image on street credibility, popularity and fashionability. With these associations,
River Islands customer expects to be able to go into the store and be confident that what
they are purchasing is the latest trend.
25
30%
Cotton
Cotton mesh
Shirts
(Casual shirts)
15%
Polyester/Cotton
Cotton
Sweatshirts and
hoodies
12%
Cotton
Polyester/Cotton
Jumpers and
Cardigans
14%
Acrylic
Acrylic/Polyester
Acrylic/Nylon
11%
Cotton
Polyurethane
Polyurethane/Wool
Nylon
Nylon/Wool
11%
Cotton
Shorts
(Denim, Chino,
Swim)
7%
Cotton
Nylon
Bangladesh,
Pakistan
14-35 pounds
Bangladesh
Romania
20-65 pounds
Turkey
Pakistan
20-45 pounds
Turkey
China
20-55 pounds
China
40-180 pounds
India
25-80 pounds
India
16-35 pounds
26
% Split
Cotton
62%
Polyester/Cotton blend
13%
Acrylic
Acrylic/Polyester
Acrylic/Nylon
14%
Polyurethane
Polyurethane/Wool
6%
Nylon
Nylon/Wool
5%
Identify the % split by fashionability:
Fashionability
% Split
Price Range
25%
14-25 pounds
Average number
of units on display
per option
14
55%
22-50 pounds
11
30%
51 - 180 pounds
Core basic
Fashion
High fashion
What is the top: bottom ratio?
3:1
For every 3 tops there is 1 bottom
27
Urban Outfitters
Comparative Shop
Supply the Fashion Product
The Consumer and buying behaviour
In range planning it is vital to fully understand the target customer. The customer must be at
the forefront of the minds of all involved in product selection, range planning and pricing.
28
The Collection
Is the collection appropriate to the target customer? Justify your answer with examples.
Despite having so many brands under one roof Urban Outfitters has carefully curated a family
of brands that caters to the interests, lifestyle and fashion sense of their customer.
The store stocks a very limited line of core basics and offers a small selection of fashion
basics. As each brand is only offered a small space within the store each brand tries to boost
sales by stocking fashion and high fashion items. Customers also seemed interested in going
in store to purchase items that represent who they are so basics are not high on their priority
list.
The Urban Outfitters customer has subcultural interests such as music and bands, vintage,
skate culture and is looking for something on trend yet different. They want their fashion
choices to reflect the tribe they belong to and want to look fashionable and on trend yet not
generic. Urban Outfitters provides this through brands that stock loads of fashion items and
sizable selection of high fashion items. A common theme was logo emblazoned garments
and cheeky slogans on tees and sweatshirts.
29
30%
Cotton
Shirts
(Casual shirts)
15%
Cotton
Polyester/Cotton
Sweatshirts and
hoodies
14%
Cotton
Polyester/Cotton
Jumpers and
Cardigans
11%
Acrylic
Wool/Acrylic
13%
Cotton
Polyurethane
Leather
Nylon
Polyester
12%
Cotton
Shorts
(Denim, Chino)
5%
Cotton
Cotton/Linen
N/A as
depending on the
brand country of
origin varied
N/A as
depending on
the brand
product
categories
varied in price.
While most
brands were
priced within a
similar price
band, some
more premium
brands such as
Lacoste had
slightly higher
selling prices.
30
% Split
51%
Polyester/Cotton blend
Polyester
15%
Acrylic
Wool/Acrylic
13%
Polyurethane
7%
Nylon
9%
Leather
5%
Identify the % split by fashionability:
Fashionability
% Split
Price Range
20%
14-25 pounds
52%
22-50 pounds
33%
51 - 180 pounds
Core basic
Fashion
High fashion
Average number of
units on display per
option
9
(Done by averaging
displayed stock of
various brands)
7
(Done by averaging
displayed stock of
various brands)
5
(Done by averaging
displayed stock of
various brands)
STRENGTHS
31