1.

VENDOR MANAGED INVENTORY (VMI)

Vendor Managed Inventory (VMI) is a business model in which a buyer sends

information to the seller, and the vendor has full responsibility for keeping an
agreed-upon inventory of the item, usually at the customer's consumption
location.VMI provides a mutually beneficial partnership. As a result, it decreases the
likelihood of stock outs while also ensuring inventory reduction. In order to manage
and monitor consumption, the vendor may station agents at the retailer's location.
This way, the vendor can ensure that their product display in the store meets their
expectations, and the store's retail personnel is likewise aware of or familiar with
the product features, assisting both the retailer and the vendor in increasing
product sales.

VARIATIONS OF VMI INCLUDE:

Based on the parties involved in the programme, there are two popular VMI
variations:

1. Inventory-driven VMI – The VMI interaction between the maker and his or her
suppliers – Manufacturers have complete control on predicting.

2. VMI driven by consumption – The VMI interaction between retailers and their
suppliers – The vendor has forecasting control based on the information available at
the time of sale. Consumption at the point of sale at the retailer's location, rather
than inventory levels at the retailer's location, drives inventory replenishment.

Benefits for the buying company

1. Purchases and inventory management are simplified.
When a corporation automatically shares inventory data with a supplier, it saves time
on demand forecasts, purchasing, and inventory optimization. Instead, these
responsibilities are delegated to the supplier, who must ensure that neither
overstocking nor stock-outs occur.

2. Inventory space requirements are reduced.

With vendor-managed inventory, a corporation can avoid storing safety stock and
instead keep only the quantities of stock that are needed within a specific time frame.
The supplier keeps track of inventory levels, and when a reorder threshold is reached,
stock is supplied.
3. Reduced costs
Having less room for stock and spending less time on supplier relations, inventory
optimization, forecasting, and other tasks also means spending less labour and money,
allowing the organisation to focus on other aspects of the business.

Benefits for the supplier

1. Forecasting is easier.
When a supplier has a complete, real-time picture of their customer's inventory needs,
they may make extremely accurate projections and establish processes that make
delivery easy. Better communication also ensures that suppliers are constantly
informed about market developments affecting the buying organisation, allowing for
greater flexibility in the event of demand swings.

2. Improved inventory management

Vendor-managed inventory benefits the buying organisation in more ways than one.
Vendors can improve their inventory management by developing more accurate
demand estimates and anticipating client requests.

3. Increased consumer loyalty

Vendor-managed inventory necessitates a high level of trust on the buyer's part from
the start, but if done well, it can dramatically boost trust in the supplier. It's always
about giving people what they want when they want it in business. VMI provides
suppliers with the information they need to improve their processes and respond
swiftly to customer requests.

DISADVANTAGES OF VMI
Loss of control
Giving a third party access to your data can be unsettling for some firms. You might
not want an outsider to manage your inventory, especially if you're not sure if that
vendor can handle your specific requirements. Furthermore, you may be hesitant to
hand out your data due to security concerns.
Options are limited.

If you become dissatisfied with a supplier's services after you've partnered with them to
manage your inventory, it could interrupt your supply chain. You may come across vendors
who provide better products at lower prices. However, if you are in a VMI relationship with
your supplier, you may not be allowed to switch until the partnership ends.

Market Sensitivity

The VMI approach is not for you if you consider yourself an authority on market demand
variations. Your provider may not be delivering accurate data while reviewing the data
insights and supplying inventory accordingly. As a result, you may not have access to the
most accurate sales estimate, forcing you to base your business operations on inaccurate
data.

STEPS FOR OFFERING A NEW APPAREL LINE

A clothing line is a collection of clothing that is tailored for a specific demographic

and sold in stores and/or online. Creating a clothing line in the clothing industry
entails forming a company, designing the outfits, choosing materials, and sourcing
the production process. You'll then need to develop retail sales channels or
construct a brand that can be found in online stores all over the world.

Things to be considered

● Starting a clothing line requires a lot of time and effort.

● There will surely be difficulties, especially if this is your first business.
● This isn't to say you shouldn't pursue your dreams. You owe it to yourself to
do everything you can to make your own clothing line a reality if you know
your heart is in the fashion industry.

The labels and brands that crop up for the first time have to go through a lot
of ground work and research. There are certain steps to be followed to
introduce a new apparel line. The steps are as follows,

1. Determine a market requirement.

A successful clothing line will not be built on the personality of its founder.
Consider a market segment that isn't already being served. Is it a tee that can
 be worn to a formal event? Is it a line of hoodies that accentuates someone's
contours in an attractive way? Determine what product should exist that a
large apparel brand does not currently offer.

2. Create a company strategy.

Your entire career as a fashion designer and clothes producer will be guided
by this. Consider the following question: What is my ultimate goal for this
product? Do I want to be a Nordstrom and Macy's brand name? Do I want to
start my own private label for a retailer like Target or H&M? Do I want to
launch a high-end line that will be offered in a boutique on Melrose Avenue
in Los Angeles or SoHo in New York City? Determine your aim and keep it in
mind while you develop your brand.

3. Determine who you want to reach.

This step is almost identical to the first. Your goal is to find not only a
clothing item that should exist, but also the customer market for that
product. After all, great design is useless if there are no potential clients.
Consider the advantages and disadvantages of targeting specific
demographics. Young people, for example, are style-conscious and may be
more sensitive to web marketing and word of mouth, but they may also have
limited financial resources. Customers in their forties and fifties may be able
to pay a higher price point, but they may be less interested with style and
already committed to a brand.

4. Begin creating.

Assuming that this is your strong suit, now is your moment to shine
creatively. The first collection you release to the public will say a lot about
you as a designer, so make sure it's something you'd be proud to use as a
calling card in the future. Think practically at the same time. Whatever you
create will have to be produced at a reasonable price. Being a successful
fashion designer requires a balance between ideals and realities.

5. Locate a garment producer.

You'll need a manufacturing partner unless you plan to source, cut, and sew
all of your materials yourself. This can refer to a variety of things. Perhaps
you're just looking for somebody to help you produce clothes in your home
studio. Maybe you're looking for a cloth vendor. Perhaps you're seeking for a
fully operational factory that can produce a small number of boutique items
alongside mass-produced items from a well-known brand. Clothing
production has been headquartered outside of the United States for decades.
As a result, it's very likely that your search for a manufacturer will bring you
to China, Vietnam, Sri Lanka, or Bangladesh, or you will source locally on
inland basis. Although you may wish to visit the manufacturer in person,
 novice designers on a budget will have to conduct their entire vetting
procedure over the phone and over email. You might be able to manufacture
your goods locally, such as at a nearby print-on-demand screen printing
plant, if your fashion aims are less ambitious—such as a new logo printed
atop current streetwear or casual wear.

6. Select a brand name, logo, and market profile.

Creating a public profile is the next step if it appears that your apparel products can
be made at a reasonable cost. This includes deciding on a company name, logo, and
tagline, as well as creating a website with an ecommerce platform. Customers want
companies that tell a captivating story, so include one in your brand name, logo, or
website. By the time the manufacturing process is finished, this work should be
completed. This way, you'll be able to sell your products as soon as they're finished.

7.Pick a price range for your items.

This step is related to identifying and comprehending your target market. Choose a
pricing point that covers your production costs while not alienating the customers
you'll need to get your fashion business off the ground.

8. Start the marketing campaign.

Your new business requires brand awareness at this point. Many Instagram
influencers are ready to promote new fashion brands in exchange for merchandise,
and Instagram has become a popular medium for this.

9. Set attainable sales and distribution targets.

Don't be hesitant to team up with a business expert to take this move. Just because
you have a fashion sense doesn't mean you understand how clothes are distributed.
You can continue to grow according to your business plan if you meet your sales
targets.

10. Begin with a soft launch and then seek further funding and partnerships.

One is ready to bring in possible business partners and co-investors once you have
a proof of concept—clothing that you can sell in small numbers. owning your
business altogether and keeping all of your future revenues would be ideal.
However, as most businesses grow, they will require additional funding. The most
traditional method is to hire a company partner who can supply that capital in
exchange for a share of future profits.
 Once the brand is up and running, a very important and mostly neglected aspect in
some of the brands is customer care. Take excellent care of your clients. You will
make more sales if your customers are happy. Your best marketing is happy
customers. The most successful kind of marketing is word of mouth.

So make sure you adopt good customer service from the beginning. If something
goes wrong and they complain, you should deal with them humanely and in their
best interests. Put yourself in their place and think of ways to assist them. How will
you deal with customer complaints, returns, and delays? Talk to your customers,
listen to them, and just assist them. Put your ego aside and use the information to
improve your products and expand your business in the future.

All this leads to a successful setting up of a new apparel line and also ensures its
smooth running.

3. WHAT IS A PLANOGRAM

Planograms are considered as tools for visual merchandising and are visual representations
of a store's products or services on display.A planogram is "a schematic drawing or plan for
displaying merchandise in a store so as to maximize sales." The effectiveness of the
planogram can be measured by the sales volume generated from the specific area being
diagrammed.
 · Planograms are predominantly used in retail businesses for defining the location
and quantity of products to be placed on display. The rules and theories for
creating planograms are set under the terms of merchandising.
· Manufacturers often send planograms to stores ahead of new product
shipments. This is useful when a vendor wants retail displays in multiple store
locations to have the same look and feel. Often, a consumer goods manufacturer
releases a planogram with each new product to show how the product can relate
to existing products.
· Fast-moving consumer goods organizations and supermarkets mostly use text
and box-based planograms to optimize shelf space, inventory turns and profit
margins. Apparel brands and retailers are more focused on presentation and use
pictorial planograms that illustrate the look and brand identity for each product.

PLACEMENT METHODS

1. Visual

· Visual product placement is supported by different theories including;

horizontal, vertical, and block placement. Horizontal product placement
increases the concentration of a certain article. Research studies suggest
that a product's relation to customer eye levels directly correlates to its
sales. This depends on the customer's distance from the unit.
 · Vertical product placement puts products on more than one shelf level
to achieve 15 centimetres (5.9 in) – 30 centimetres (12 in) of placement
space. Similar products are placed in blocks.

· A planogram can be compared to a book. A store is the book and its

individual modules represent the pages. The customer gradually “reads”
individual modules and automatically proceeds from the left to the right,
from the top to the bottom as if he/she read a book.

· The rules say that goods should be arranged on a shelf from the least to
the most expensive ones.

· Goods may also be arranged in the reverse order, depending on the kind
of goods that the dealer wishes to promote. This makes the difference
between dealers of cheap and luxury goods.

2. Commercial
Commercial placement is determined by both market share placement and margin
placement.[5] Market share research companies like ACNielsen collect sales data for various
products and calculate market share of products in various market segments. Margin
placement is determined by the profit margin of a specific item. Higher margin places a
product closer to the front of the store, where it is most likely to attract attention.
3. Derivative objectives

· To communicate how to set the merchandise

· To ensure sufficient inventory levels on the shelf or display

· To use space effectively (e.g., floor, page, and screen)

· To facilitate communication of retailer's brand identity

· To assist in the process of mapping a store

· To improve customer satisfaction by shelves that are organized and visually-

appealing

BENEFITS OF PLANOGRAM

1. More revenue generation

Using the planogramming technique, retailers display products with the highest sales and
high margin at the prime location of the store, which helps in more revenue generation.
2. Lower out-of-stock situations

Planogramming techniques create a system and order in the retail store. The retailer will
learn immediately when a product is running out of stock by looking at the emptying
shelves and can place an order on time to avoid out-of-stock situations.

3. Inventory management

Using planogramming techniques, the retailer has control over the stock left in inventory.
In this way, the retailer has to spend less on inventory management. Moreover, a balance
can be created between the demand of customers and shelf inventory.

4. Proper use of retail space

Retail space is significant for a retailer as he pays for this space. Therefore, using
planogramming techniques store space can be used effectively to generate maximum
profit.

5. The strategic advantage of suppliers and manufacturers

A supplier or manufacturer can provide a high margin on his products to retailers to get his
product’s prime location in the store. The placement of products at prime location means
more sales. In this way, the supplier can get maximum Return on Investment (ROI).

4. WHAT IS COOL HUNTING

The term coolhunting was coined in the early 1990’s to refer to a new kind of marketing
professionals who make observations and predictions in changes of new or existing "cool" cultural
fads and trends. Coolhunting is also referred to as "trend spotting," and is a subset of trend analysis.
The main objective of cool hunting is to predict when the mass population will undergo a shift in
direction and adopt a certain trend, which can be influenced by social, cultural, economical,
environmental, or political elements.

METHODOLOGY USED FOR COOL HUNTING

1. Focus Groups

For Coolhunting, focus groups can be a great way to get information as they provide direct
insight into the thoughts and feelings of the youth demographics. Furthermore, this allows cool
hunters to monitor what individuals say and observe their movements and body language. To
get an even closer look into the youth demographic, cool hunters sometimes hire popular
leaders or influencers to gather information secretly among their peers and report back their
findings.

2. Online Surveys
Another great methodology to use is online surveys. Now, Gen Z (i.e., those born between 1997
to 2012) are dominating social media and their online presence is expected to grow. Technology
has been a part of Gen Z’s life from the start and they have become the most connected
generation. Therefore, market research firms like Drive Research can utilize more online
platforms to interact with this demographic.

Insights gained from coolhunting are often bought and sold by companies in the hope of staying
innovative, competitive, and figuring out what the “next best thing is”. It might be surprising to
know that many large companies also have in-house coolhunting departments, a good example
being Viacom's MTV television network. Overall, coolhunting is a great tool in market research
and can be utilized for companies of all sizes and industries. It also allows businesses to
develop an in-depth understanding of a hard-to-reach, younger demographic which can lead to
increased sales and success. Insights gained from coolhunting are often bought and sold by
companies in the hope of staying innovative, competitive, and figuring out what the “next best
thing is”. It might be surprising to know that many large companies also have in-house
coolhunting departments, a good example being Viacom's MTV television network.

Overall, coolhunting is a great tool in market research and can be utilized for companies of all
sizes and industries. It also allows businesses to develop an in-depth understanding of a hard-
to-reach, younger demographic which can lead to increased sales and success.