Assortment Planning - United Colors of Benetton

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Graduation Project
On
To Develop Spring-Summer’14 Assortment Plan For
United Colors of Benetton Outlets in Lifestyle Departmental Stores
(Delhi NCR Region)
Submitted By
Delwin Arikatt
Batch: 2011-2013
Post Graduate Program in Fashion Management
Under the guidance of
Mr Annaji Sharma
Associate Professor
Department of Fashion Management Studies
National Institute of Fashion Technology
Hyderabad
2013

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ACKNOWLEDGEMENT
I am grateful to NIFT for providing me an opportunity to do research work on “To Develop a Spring-
Summer’14 Assortment Plan for United Colors of Benetton Outlets in Lifestyle Departmental Stores –
Delhi NCR Region”. I express my whole hearted thanks to my guide, Mr Annaji Sharma for his
encouragement and moral support in giving me valuable tips for making it presentable. I am indebted
to Ms Supreet Gandhi, my industry mentor who has guided and supervised me throughout this study.
I have no words to express my gratitude to her.
I am also thankful to Mr Digvijay Pandey for providing me the details of conducting the research from
its inception. My thanks are also due to Mr Bijit Nair for his advice in collecting data and other
relevant information. I will be failing in my duty if I do not mention the name of my CC
Mr Annaji Sharma and other faculty for his help in my Research Project I am appreciative of Dr Bandi
who allowed me to get access to the library and for motivating me to finish the study on time.
NAME: Delwin Arikatt
Master of Fashion Management
Date of submission: 16-05-13

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DECLARATION
I, Delwin Arikatt, hereby declare that the Project entitled “To Develop a Spring-Summer’14
Assortment Plan for United Colors of Benetton Outlets in Lifestyle Departmental Stores – Delhi NCR
Region” is my original work and no part of the project has been copied from any other reports or any
other were carried by someone else and this have been submitted for any other degree/award.
However, any material taken from any other published sources has been suitably referred and
acknowledged at various places.
Name: Delwin Arikatt
Roll Number: 5
Batch: 2011 -2013
Centre: NIFT-Hyderabad
Date: 16-05-2013
Place: Hyderabad

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CERTIFICATE OF AUTHENTICITY
This is to certify that the Project entitled “To Develop a Spring-Summer’14 Assortment Plan for
United Colors of Benetton Outlets in Lifestyle Departmental Stores – Delhi NCR Region” submitted
towards the partial fulfilment of Post-Graduate Degree in Fashion Management by Delwin Arikatt is
his original work under my guidance and the results are based on the research done by him.
Mr Annaji Sharma
Associate Professor,
Dept. of Fashion Management Studies
NIFT-Hyderabad
Date: 16-05-2013

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TABLE OF CONTENTS
Chapter No. Contents Page No.
1 Objective 10
1.1 - Sub-Objective 10
2 Research Design
2.1- Secondary Research 11
2.2- Primary Research 11
3 Research Methodology 12
4 Significance, Limitations and Scope 13
5 Executive Summary 14
6 Introduction 16
7 Company Profile
7.1- United Colors of Benetton 20
7.2- Benetton India Private Limited (BIPL) 25
7.3- BIPL: Business Model 26
7.4- BIPL: Introduction to Channels 27
7.5- BIPL: Organizational Structure 27
7.6- BIPL: Key Success factors 28
8 Functioning of various Departments Related to Buying 29
8.1- Buying 30
8.2- Supply Chain 33
8.3- Production 36
8.4- Product Development 37
8.5- Commercial 38
9 Literature Review
9.1- Assortment Planning 39
9.2- Merchandise Planning Process 41
9.3- Fashion Forecasting 45
9.3.1-Direction of Fashion Change 46
9.3.2-Drivers of Fashion Change 47
9.3.3-The Future of Forecast 51
10 Spring Summer (SS14) Forecast
10.1- Key Colors 52
10.2- Theme 1: Digital Aesthetic 53
10.3- Theme 2: Next Nature 54
10.4- Theme 1: Neo Geo 55
10.5- Key Shapes and Detailing’s 56
11 Store Based Comparative charts
11.1- Ghaziabad Store 59
11.2- Gurgaon Store 61
11.3- Noida Store 63
11.4- Rohini Store 65
11.5- Vasantkunj Store 67
12 Spring Summer (SS13) - Sell Through Analysis 71
12.1- Category Analysis and Summary 72
12.2- Sub-Category Analysis and Summary 74
12.3- Price Analysis and Summary 76
12.4- Size Analysis and Summary 78
12.5- Color Analysis and Summary 82

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Chapter No. Contents Page No.
13 Spring Summer (SS12) - Sell Through Analysis 88
13.1- Category Analysis and Summary 89
13.2- Sub-Category Analysis and Summary 90
13.3- Price Analysis and Summary 92
13.4- Size Analysis and Summary 94
13.5- Color Analysis and Summary 99
14 Proposed Merchandise Budget for SS14 103
15 Findings
15.1- Forecast Findings 104
15.2- Findings for SS'13 105
15.3- Findings for SS'12 107
16 Suggestions
16.1- Assortment Plan - Gurgaon 110
16.2- Assortment Plan - Noida 111
16.3- Assortment Plan - Ghaziabad 112
16.4- Assortment Plan - Rohini 113
16.5- Assortment Plan - Vasantkunj 114
17 Bibliography 115
18 Annexures 116
19 Soft Copy Format – Spring-Summer 12/13 Data 121

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LIST OF TABLES
Serial No. Contents Page No.
1 Ghaziabad
11.1 - Options in Knit Tops 59
11.2 - Options in Knit Bottoms 59
11.3 - Options in Denims 59
11.4 - Options in Woven Bottoms 60
11.5 - Options in Woven Tops 60
2 Gurgaon
11.10- Options in Woven Tops 62
3 Noida
4 Rohini
5 Vasantkunj
6 11.26 - Comparison of Average prices in Spaghetti 69
7 11.27 - Comparison of Entry, Average and Exit prices of Round and V-neck Top 69
8 11.28 - Comparison of Entry, Average and Exit prices of Chest Printed Knit Top 69
9 11.29 - Comparison of Entry, Average and Exit prices of Overall Printd Knit Top 69
10 11.30 - Comparison of Entry, Average and Exit prices of Value Added Knits Top 69
11 11.31 - Comparison of Entry, Average and Exit prices of Knit Dresses 70
12 11.32 - Average prices od Denim Sub-Category 70
13 11.32 - Average prices od Woven Bottoms 70
14 11.33 - Comparison of Entry, Average and Exit prices of Woven Dress 70
15 11.34 - Comparison of Entry, Average and Exit prices of Woven Tops 70

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LIST OF IMAGES
Serial No. Contents Page No.
1 7.0 - Business Division Structure 26
2 7.1 - Multi Brand Channel Structure 26
3 7.3 - Organization Structure 27
4 8.0 - Process from Range Development to Buying 29
5 9.1 - Range and Assortment Planning Hierarchy 40
6 9.2 - Planning Process 41
7 10.0 - Key Colors 52
8 10.1- Theme 1 53
9 10.2 - Theme 2 54
10 10.3 - Theme 3 55
11 10.4 - Key Shapes - Dress 56
12 10.5 - Key Shapes - Knits 56
13 10.6- Key Shapes - Detailing 57
14 10.7 - Key Shapes - Woven Tops 57
15 10.8 - Key Shapes - Woven Bottom 58
16 10.9 - Key Shapes - Denim Looks 58
17 10.10 - Carry Forward Concepts 58

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CHAPTER 1
OBJECTIVE
 To develop a Women’s Spring Summer’14 Assortment plan for Benetton outlets in Lifestyle
International Departmental stores in Delhi and NCR regions
SUB OBJECTIVE
 To do complete forecast for Women’s Spring Summer’14 collection
 To study the range plan for Women’s Spring Summer’12 collection.
 To map the past sales (Spring-Summer 12) as well as current sales (Spring-Summer 13) based on
category, sub category, price, size and color levels.
 Study of the competitors (Forever 21, Veramoda, Only), product offerings for SS 2013 collection
with respect to: Key trends, Price points, Sizes, Styles and options.
 Comparison of competitors’ price offering with that of UCB.

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CHAPTER 2
RESEARCH DESIGN
A) SECONDARY RESEARCH
 Desk Research: The data that was collected from the stores by means of observation it was
verified through respective websites of various brands.
 Information on trends for SS14 was collected through WGSN forecasts.
B) PRIMARY RESEARCH
 To work hands on within the product team and to be part of buying activities and projects to
understand the basic working of the organization.
 The data about the working of the departments was collected through interactions with
department employees.
 Market Research includes visits to all United Colors of Benetton and competitors stores in
Delhi and NCR region to study the SS 13 trends and merchandise offering through observation
and unstructured interviews.
 Market visits included:
 Great India Place, Noida
 Metropolis Mall, Gurgaon
 CityCenter Mall, Rohini
 Ambience Mall, Vasantkunj
 Mahagun Metro Mall, Ghaziabad
 Study of sales data provided by the department and to analyse the performance.
 To observe the changes in the actual product at Benetton and its impact on the company’s
output and image and conduct Sales Associate interviews.
 To be part of the order boking team and therefore be able to analyse past sales data as well as
how the changes in the product, prices, MRPs and the actual delivery schedules of the product
impact the final sell through.
 A major part of this research is based on the feedback given by various Floor and Store
managers.

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CHAPTER 3: RESEARCH METHODOLOGY
Project Ideation
Introduction
Formulate Research Objective: 1
To develop a Women’s Spring Summer’14 Assortment plan for Benetton outlets in Lifestyle International
Departmental stores in Delhi and NCR regions
Sub Objective 1
Study of the
competitors (Forever
21, Veramoda, Only),
product offerings for SS
2013 collection with
respect to: Key trends,
Price points, Sizes,
Styles and options.
Sub Objective 2
To map the past sales (Spring-
Summer 12) as well as current sales
(Spring-Summer 13) based on
category, sub category, price, size and
color levels.
Sub Objective 3
Analyse and study women's
trend forecast for Spring
Summer 14
Primary Secondary Secondary
Literature Review
Assortment Planning Merchandise Planning
SS14 Trend Analysis
Competitor Product Assessment
Sales data Analysis
Recommendations
Assortment Plan development

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CHAPTER 4
SIGNIFICANCE, LIMITATIONS AND SCOPE
LIMITATION:
 The information collected about departments other than buying is an overview as they do not
disclose the in depth information.
 The study of the project was restricted to malls of Delhi and NCR only.
 In total 3 competitor brands were studied which were specified by UCB.
 The stocks were updated frequently at the stores due to which the Rate of Sale data may vary.
SIGNIFICANCE OF STUDY:
 As retailers look to overcome the problem of generating growth while the economy is
slumping, getting smarter about allocations will be a necessity. In order to gain greater share of
wallet, retailers will be required to offer more customer-centric assortments that appeal to the
emerging trends in local markets.
 This study would help in providing an optimum plan to maximize revenues for future seasons.
 It would provide insights in to consumer preferences to by marking a certain course of trend
movement.
SCOPE OF RESEARCH
The research provides a basis for many future research projects:
 To develop better educational methods for a clothing buying process;
 To develop more accurate assortment plans;
 To reduce constraints in assortment planning of fashion sensitive goods; and
 To develop a computer program for assortment planning

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CHAPTER 5
EXECUTIVE SUMMARY
Despite the importance of assortment planning, a reliable process model for assortment
planning activities is rarely found in either the industry or the academic arena. However, this is a
critical function in retail. The purpose of this research was to develop an established assortment-
planning model identifying procedures and activities for retail buyers.
The major ideation for this project is the shift of Benetton – India’s selling model from
Outright to Sell or Return (SOR) model. In the Outright model, the buyers (Lifestyle International)
where responsible for the merchandise purchased from the brand, whereas, in SOR the brand (United
Colors of Benetton) would be making all the merchandise buying for all the counters throughout
Lifestyle stores in India, and any merchandise which will not sell would be the brand’s responsibility.
Thus making an optimum Assortment Plan a crucial juncture for profitability.
Major Reasons which has led to the conceptualisation of this project are:
 For Spring Summer 14 Benetton-India has targeted growth at a rate of 30%, since in the
previous season the assortment was conservatively planned.
 The forecasted sell-through for Spring Summer SS13 is declining in contrast to SS12, in spite
of a conservative approach in Merchandise planning, which indicates an opportunity for
improvisation.
This research project encompasses, a complete analysis of Spring Summer-SS12 (Outright Model –
Last season) and Spring Summer-SS13 (SOR model – 1st
Season)on Category, Sub-Category, Price,
Size and Color parameters, along with comparative analysis of suggested competitor brands
(Veromoda, Only and Forever 21) has been done. This has resulted in understanding the major buying
approaches during both adopted models. Based on this a complete assortment plan for 5 stores in Delhi
NCR, namely – Ghaziabad, Gurgaon, Noida, Vasantkunj and Rohini has been made for SS14 along
with a complete understanding of Spring Summer 14 Forecast.
Objective of this Research Project is:
 To develop a Women’s Spring Summer’14 Assortment plan for Benetton outlets in Lifestyle
International Departmental stores in Delhi and NCR regions
Sub-Objectives of this Research Project are:
 To do complete forecast for Women’s Spring Summer’14 collection
 To study the range plan for Women’s Spring Summer’12 collection.
 To map the past sales (Spring-Summer 12) as well as current sales (Spring-Summer 13) based on
category, sub category, price, size and color levels.
 Study of the competitors (Forever 21, Veramoda, Only), product offerings for SS 2013 collection
with respect to: Key trends, Price points, Sizes, Styles and options.
 Comparison of competitors’ price offering with that of UCB.

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The Research Methodology which was followed during the course of this research is as follows:
Project Ideation
Introduction
Formulate Research Objective: 1
To develop a Women’s Spring Summer’14 Assortment plan for Benetton outlets in Lifestyle International
Departmental stores in Delhi and NCR regions
Sub Objective 1
Study of the
competitors (Forever
21, Veramoda, Only),
product offerings for SS
2013 collection with
respect to: Key trends,
Price points, Sizes,
Styles and options.
Sub Objective 2
To map the past sales (Spring-
Summer 12) as well as current sales
(Spring-Summer 13) based on
category, sub category, price, size and
color levels.
Sub Objective 3
Analyse and study women's
trend forecast for Spring
Summer 14
Primary Secondary Secondary
Literature Review
Assortment Planning Merchandise Planning
SS14 Trend Analysis
Competitor Product Assessment
Sales data Analysis
Recommendations
Assortment Plan development

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CHAPTER 6
INTRODUCTION
INDIAN RETAIL INDUSTRY
The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized
sectors, India retail industry is one of the fastest growing industries in India, especially over the last
few years. Though initially, the retail industry in India was mostly unorganized, however with the
change of tastes and preferences of the consumers, the industry is getting more popular these days and
getting organized as well. With growing market demand, the industry is expected to grow at a pace of
25-30% annually.
GROWTH OF INDIAN RETAIL
According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail
industry is the most promising emerging market for investment. In 2007, the retail trade in India had a
share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%.
Retail formats in India
 Hypermarts/supermarkets: large self-servicing outlets offering products from a variety of
categories.
 Mom-and-pop stores: they are family owned business catering to small sections; they are
individually handled retail outlets and have a personal touch.
 Departmental stores: are general retail merchandisers offering quality products and services.
 Convenience stores: are located in residential areas with slightly higher prices goods due to the
convenience offered.
 Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types of
products and services including entertainment and food under a single roof.
 E-trailers: are retailers providing online buying and selling of products and services.
 Discount stores: these are factory outlets that give discount on the MRP.
 Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small
items can be bought via vending machine.
 Category killers: small specialty stores that offer a variety of categories. They are known as
category killers as they focus on specific categories, such as electronics and sporting goods.
This is also known as Multi Brand Outlets or MBO's.
 Specialty stores: are retail chains dealing in specific categories and provide deep assortment.
Mumbai's Crossword Book Store and RPG's Music World are a couple of examples.

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THE FUTURE
The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833
billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of
10%. As the country has got a high growth rates, the consumer spending has also gone up and is also
expected to go up further in the future. In the last four year, the consumer spending in India climbed up
to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year
2013, the organized sector is also expected to grow at CAGR of 40%.
RETAIL BUYING
Beginning with the turn of the century and continuing for many years, retailers and buyers for retail
stores (retail purchasing) concentrated all of their buying efforts on the selection of merchandise items
they thought their customers would like and would purchase. These buyers were product oriented. It
was called subjective retailing because the buyer based the buying decision on a personal view of the
likes and dislikes of customers.
Within recent years the consumer movement (consumerism) has forced a change in the retailers buying
efforts from a subjective to that of an objective one. The retailer now has to measure the likes and
dislikes of the customers before a buying decision can be made. The buyer has to be consumer-
oriented. Retailing has entered into the new era of the marketing of merchandise.
In the retail industry, a buyer is an individual who selects what items will be stocked in a store, based
on his or her predictions about what will be popular with shoppers.
Retail buyers have had an important role to link between manufacturers and consumers in the clothing
industry complex. To predict and buy what consumers want from their stores for the next season, retail
buyers can get information from store records and past experience, market representatives and agents,
competitors, magazines, recommendations, trade directories, trade shows, films and exhibitions.
Buyers have a pivotal role within retail organizations, not least for the fact that it is their responsibility
to make reality the retailer’s positioning statement through their selection of appropriate products and
services. Consequently, the contribution of the buyer to the success of the retailer is considerable and
requires that they possess a range of skills and talents, not least of which is the ability to identify,
interpret and satisfy consumer needs and wants. Various attempts have been made to locate the
requisite competencies of a successful buyer, and among those that have been identified include skills
of market and numerical analysis, negotiation and communication.

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Furthermore, and perhaps the most important of buyer’s skills, is that of flair and creativity
(which is arguably an intuitive competence), and which is evident as part of the process of range
development and product selection.
THE PRINCIPAL BUYING ACTIVITIES
In some respects, it is impossible to provide a definitive and comprehensive account of the
responsibilities of the buyer, not least for the fact that buyer’s roles are as varied as the companies that
employ them. For example, for an independent retailer, the buyer may be the owner of the business, as
well as the manager of the retail outlet. As such, their responsibilities will be more wide-ranging than
for a buyer responsible for the ‘cut-flower offer’ for a super market group. However, despite these
significant role differences, it is possible to identify a number of activities which are integral to the
buying function as a whole – and these can be grouped into five categories as follows:
1 Analysis of market opportunity: A crucial responsibility of all buyers is the identification of
profitable market opportunity for the business. This necessitates that the buyer undertakes an analysis
of trends and developments I consumer buying behavior in general, as well as in relation to the buyer’s
specific area of responsibility. Essential to this process is the evaluation of competitor performance,
particularly in terms of their development of new products and services. From this evaluation, the
buyer must identify continuing and new market opportunities for the retailer and from this develop a
merchandise plan.
2 Creation of the merchandise plan: Substantiated by sound market and competitor analysis, the
merchandise plan details the nature and characteristics of the product range in terms of its breadth (the
range of different product categories) and depth (the choice of products within a specific category).
The merchandise plan must also include a forecast of future sales and profit margin within each
product category. This plan is then used as the basis for determining retail price levels within the
company. A sales and profit budget by week, month, quarter and year will also be included.
3 Selecting the supply base: Derived from the analysis of market opportunities and based upon
financial forecasts, it is then the buying function’s responsibility to identify appropriate sources of
supply. This investigation will include the application of supplier selection criteria that will typically
extend beyond merely price of supply considerations, to include issues pertinent to the supplier’s
record on employee’s rights and the use of child labour. Having identified an appropriate supply base,
the responsibility for agreeing terms of trade with the supplier is negotiated on the retailer’s behalf by
the buying and merchandising team.
4 Product development and supplier performance management: Motivated by the desire to
improve profit margins and secure customer loyalty through distribution exclusively, many buyers,
particularly those employed by the larger multiple retailers, have developed own brand ranges. This
development has in many cases resulted in retail buyers assuming significant control over the supply

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chain, principally through their determining of product specifications. This shift in power in favor of
the retailer has meant that suppliers must adhere to strict performance criteria, particularly in relation
to product quality standards, and availability levels.
5 Presentation of merchandise at point of sale: In recognition of the need to ensure that merchandise
is presented in sufficient quantity to meet demand and in a manner that is conducive to prompt
customers to purchase the range, it is appropriate that the buying team should be involved in decisions
pertinent to the presentation of merchandise at the point-of-sale. The involvement of the buying team
in this area may include their directing the nature and form of product packaging, determining the
mechanisms by which products will be displayed to consumers, as well as proposing the amount of
space that is allocated to product categories in order that target sales volumes can be achieved.
The most important part of a retail buyer’s role in a retail company is satisfying company objectives by
making accurate and timely decisions of merchandise planning and assortment planning, because
decisions related to the acquisition of merchandise are critical to the profit potential of a retail
company. Therefore, the clothing product retail buyer plays an important role in the success or failure
of a retail store.

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CHAPTER 7
UNITED COLORS OF BENETTON
TIME LINE:
 The seed of the Benetton phenomenon was sown in the late 1950s when three brothers and a sister
merged their flair for fashion and their business acumen. Luciano Benetton, with sister Giuliana and
brothers Carlo and Gilberto, turned $2,000 and a global vision into a multinational empire in less than
20 years. Luciano and Giuliana started work early in their childhood to maintain the family. Giuliana
liked to knit brightly coloured jumpers which she designed. In the late 1950s Luciano convinced her
that he could sell the brightly coloured garments, which are still the company's distinguishing mark.
 In 1965, Luciano Benetton, the eldest of four children, was a 30-year-old salesman in Treviso. He
saw a market for colourful clothes, and sold a younger brother's bicycle in order to buy his first
second-hand knitting machine. His initial small collection of sweaters received a positive response in
local stores in the Veneto region, and soon after he asked his sister and two younger brothers, Gilberto
and Carlo, to join him. In 1965, the entity known as the "Benetton Group" is formed.
 In 1966, the Benetton’s opened their first store in Belluno and three years after in Paris, with
Luciano as chairman, his brother Gilberto in charge of administration, their younger brother Carlo
running production, and Giuliana as a chief designer.
 The company's core business remains their clothing lines. Casual clothing is marketed as the
"United Colors of Benetton" there is also a fashion-oriented “Sisley" division, "Playlife" leisurewear.
Their products include women’s wear, menswear, children’s wear and underwear and they have
expanded into toiletries, perfumes, and items for the home such as kitchen accessories and baby
products. The Group produces over 150 million garments every year and has a network of around
6,000 contemporary stores around the world.
 As well as having over 9,511 (2009) employees, Benetton has developed a network of small
suppliers who do contracting in the Northern Italian region around Treviso. The company is known for
sponsorship of a number of sports, and for the provocative and original "United Colors" publicity
campaign. The latter originated when photographer Olivier Toscani was given carte blanche by the
Benetton management. Under Toscani's direction, ads were created that contained striking images
unrelated to any actual products being sold by the company.
 Benetton Group entered Formula One as a sponsor of Tyrrell in 1983, then Alfa Romeo in 1984
this arrangement was extended to both Alfa and Toleman in 1985. Benetton Formula Ltd. was formed
at the end of 1985 when the Toleman and Spirit teams were sold to the Benetton family. The team saw
its greatest success under Flavio Briatore, who managed the team from 1990 to 1997. Michael
Schumacher won his first Drivers' Championships with the team in 1994 and 1995, and the team won
their only Constructors' title in 1995.

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 From 1996, the team raced under an Italian license although it continued to be based, like
Toleman, in Oxford shire in England. The team was bought by Renault for US$120m in 2000 and was
rebranded Renault F1.
 In 1979, Benetton first sponsored their (then amateur) local rugby team, A.S. Rugby
Treviso. Benetton Rugby has since become a major force in Italian rugby, with 11 league titles and
supplying many players to the national team.
 In 1982, the company bought its local basketball team, Pallacanestro Treviso, now commonly
known as Benetton Basket. Their Sisley brand sponsors the local volleyball team, Sisley Volley
Treviso.
PRICING AND LOGISTICS
In the mid-1990s Benetton adopted a strategy of price-reduction worldwide. The strategy was
designed to enable the company to guarantee its clients an ever more suitable and competitive supply
of products. Simultaneously, Benetton decreased production costs. This combination of price and cost
reductions resulted in an 8 percent increase in both, items produced and sold in 1994. Benetton also
has an extensive system of outlet stores in which to sell clothing at significant discounts, as a result of
the price cuts.
In the late 1990s Benetton restructured its distribution network in order to implement a new
system that would integrate a logistics system in which the warehouses are the system’s junction and
are part of the distribution system rather than just places for storing facilities. The new system would
eliminate fragmentation of inventories across the world by concentrating the finished goods in three
sorting centre’s, one in the US, one in Italy and one in the Far East. The automatic distribution system
handles over 30,000 packages a day and is managed by a 10-member staff, rather than a traditional
system that requires a staff of 400. These new automated systems, along with the production facilities,
have improved the efficiency and speed of customer service, and reduced transport costs by more than
10 billion lire in 1996. One feature that was crucial to Benetton's success in its early years was its
advanced dyeing process, whereby the finished product could be dyed instead of dying the yarn first.
As tastes in color changed with the whims of the fashion industry, this innovative dyeing system
allowed Benetton to establish a customized production system that keeps up with the latest market
trends.

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COMMUNICATIONS
Benetton's communications strategy was developed, as a result of the company's desire to
produce images of global concern for its global customers. The communication strategy targets issues
rather than clothes as the leading player, with a portion of the advertising budget devoted to
communicating themes relevant to young and old people worldwide. The company claims, "We
realized some time ago that we had a unique tool for communicating worldwide, as we are present in
120 countries, and that it would be cynical to waste it on self-serving product promotion. We trusted in
the intelligence of our customers worldwide and decided to give space to issues over redundant
product claims."
Benetton believes it is important for companies to take a stance in the real world rather than use
its advertising budget to encourage consumers to think they will be happy through the purchase of the
company's products. This strategy challenges Benetton to come up with a selling theme that appeals to
all consumers and overcomes local biases. Through this strategy, the Benetton Group has developed
advertising campaigns that are international, homogeneous, and characterized by universal themes,
which have been not only a means of communication but also an expression of the time. Through its
universal impact, the company has succeeded in attracting the attention of the public and in standing
out among the current clutter of images.
SPORT AND EVENT SPONSORSHIP
One of the avenues through which Benetton communicates to all of its customers is sports.
Benetton Sport system was renamed Playlife in 1998. This division houses the famous brand name
product lines, i.e. Prince, and reflects the Benetton Group's involvement in the sports arena, focusing
on the world of sports from skiing and in-line skating to tennis or snowboarding. Through the Playlife
label, Benetton designs sportswear clothing as well as state-of-the-art sports equipment to meet the
technical demands of various athletes and athletic teams. Benetton sponsors sporting teams in the
areas of basketball, rugby, volleyball, motorcycling, and until recently, the Formula One racing team,
which was just sold. Many young athletes acquire their first taste of sport in the variety of junior clubs'
teams sponsored by Benetton. In addition, Benetton's success in communicating through sports can be
seen by its efforts in developing sport facilities. In 1985, the sport center at La Ghirada outside of
Treviso, Italy was built and is used today by all enthusiasts. Also, the Palaverde, a multifunctional
complex, was opened in 1983 and is used for sporting events as well as concerts, shows and cultural
activities with a capacity for a 6,000-member audience. Playlife, in essence, is the passport to the
Benetton world, a new way of embracing every-day life in the spirit of sport.

23
COLORS MAGAZINE
Benetton communicates through its award winning, bi-monthly magazine, Colors. It is
distributed in six bilingual editions in Europe, the United States, Latin America, and Asia.
FABRICA PROJECT
The company also communicates through the Fabrica project, which is a workshop
environment and a center of communications for a group of twenty students selected from countries
around the world. Research into future trends and new ideas is conducted among the students, who
actively research the field of communications.
IMAGE ADVERTISING
Unlike the traditional advertising for most companies, Benetton's images do not have a copy or
a product, only the company's logo. The ads do not tell an individual to buy Benetton clothing or even
imply this! Their ads simply attempt to promote a discussion and create awareness about global issues
that might be overlooked if conveyed through other channels. However, as far as their products are
concerned, the company advertises through its many strategically placed stores, its catalogues, and
fashion editorials that display them directly to the consumer. Also, there are public relations offices in
all of the countries that have a liaison with fashion editors. These offices utilize traditional marketing
techniques to ensure the products receive the necessary exposure or sales personnel, among other
criteria.
CAMPAIGNS
Benetton's advertising campaigns have centred on social issues and current worldwide issues
such as AIDS, peace, war, and death. Many of their communications initiatives support international
humanitarian associations. For example, Benetton was part of the first global project to redistribute
clothing to people in need in 1993; it was called the "clothing redistribution project" and was assisted
by the International Federation of the Red Cross, as well as other groups. This campaign also utilized
the shock value of imaging, as Luciano Benetton appeared nude in these advertisements. As part of
their AIDS campaign, the 1994 ads showing the words "HIV Positive" tattooed on a person's arm,
abdomen and backside are additional examples of the shockvertising conducted by Benetton..
Those ads were used as metaphors for the more extensive branding practiced throughout
society towards those who are different. With those images, Benetton wished to highlight not only the
main channels through which HIV can be transmitted, but also the dangers of stigmatizing certain
social groups and their lifestyles.
In 1998, a human rights campaign was initiated as a result of a United Nations proposal to
launch a world communications exercise to mark the fiftieth anniversary of the Declaration of Human
Rights, which was approved by the United Nations General Assembly on December 10, 1948. One of
the ads for this campaign showed images of children of all colors and ages to emphasize that "every

24
child shall be entitled from his birth to a name and a nationality" (See In addition, Benetton's recent
campaign during 2000 addresses capital punishment by showing images of some of America's death
row inmates. This campaign aims to show the public the reality of capital punishment, so that no one
around the world will consider the death penalty as just a distant problem or as news that occasionally
appears in the media.
The campaigns have won numerous awards, prizes and acclaim in all of the countries in which
the company is present; however, they also have aroused various strong reactions. Benetton is aware
of the controversy that surrounds the images of these campaigns. However, they believe that all
worthwhile stances will have critics and supporters. Benetton hopes that people will move away from
the discussion of whether or not a company is entitled to show its point of view in its advertising
campaigns, to a discussion of the issues themselves. This has occurred in some countries already,
which supports the company's goal of becoming the vehicle for discussion rather than its focus.

25
BENETTON INDIA PVT LTD (BIPL)
 Company - Benetton India Private Limited
 Mode of presence in India - 100 per cent subsidiary
 Year of entry - 1991-92
 Key business - Apparel & accessories retail
"Benetton has fairly understood the Indian market, possibly because it is one of the first international
apparel brands to enter the country. The Group has demonstrated this through sharp product pricing
and marketing communication that is in tune with consumer perceptions and willingness to pay.”
(Sarah Jacob, ET Bureau Nov 17, 2009)
Benetton's USP has also been its ability to cater to varied age groups and needs across its flagship
brand Benetton, leisure-oriented Playlife as well as innerwear and kids wear. It has tied up with Tata
Group Company Trent Ltd to penetrate its high-end fashion brand Sisley in India.
Benetton entered the Indian market in 1991-92, as a 50:50 joint venture with the DCM Group in Delhi,
and launched its flagship label UCB. Effective 22nd December 2004, Benetton became a wholly
owned subsidiary of the Benetton Group; Italy.UCB is today a leading brand in India. The retail
network is a mix of owned and franchised stores.
Benetton India has a manufacturing unit in Gurgaon (Haryana) where almost 50 percent of the
garments required for Indian stores are manufactured. The remaining sourcing for the Indian market
happens through contract manufacturing from Ludhiana(Punjab),Delhi, Bangalore (Karnataka),
Chennai (Tamil Nadu),Nepal and Benetton International. The designs are selected from the global
collection created by the product design and development team based in Italy. Once the final collection
is ready, Benetton franchisees from across the world assemble in Italy and pick up the products for
their countries. They place their purchase orders with the parent company, which then ships the
manufactured lines to the respective countries as per their orders. India is also used as a market for
Benetton Group's global sourcing especially for kids' apparel.

26
UCB - BUSINESS MODEL
The Group’s commercial presence is guided by a flexible operational approach, applying market
development strategies through two different distribution channels: wholesale which represents
around 76% of aggregate Apparel sales and retail, which represents around 24%.
(http://www.benettongroup.com/group/profile/group-history, assessed on March, 2013)
BUSINESS DIVISION STRUCTURE
Business of UCB India is separated into three divisions namely Exclusive Brand Outlet (EBO), Multi
Brand Chanel (MBO) and Benetton Factory Outlet.
MBC (MULTI BRAND CHANNEL) DEPARTMENT-
Multi branding means process of marketing/selling of two or more widely similar and competing
products by the different brands names under a single roof. Multi-brand retail comes in different
formats like supermarket, hypermarket, departmental store, multi brand outlet and e-commerce
websites. UCB multi brand business is divided into four channels names as Key Accounts, E-
commerce, Distribution Network, and School Business.
United Colors
of Benetton
OUTLET
MBO
EBO
United Colors
of Benetton
EBO
MBO
OUTLET
Key Accounts
E-Commerce
Distribution (I’m
working here)
School Business
(Fig: 7.0)
(Fig: 7.1)

27
INTRODUCTION OF CHANNELS
 Key Accounts-> All the large formats stores/ departmental stores or nationally known MBO
retail chains fall in this channel from which the company generates major revenue.
 E-Commerce-> Selling of UCB merchandise through online portal like: Myntra, flipkart; etc
in India fall under this department.
 Distribution network-> through this channel, the company is trying to capture those market
which are not yet covered and trying to make their presence in big Retail MBOs in tier ll, lll,
and IV cities.
 School Business-> This channel covers selling of those merchandise of UCB which comes
under school business like: bags ,water bottles and shoes; etc for kids.
ORGANIZATIONAL STRUCTURE:
Fig: (7.3)

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KEY SUCCESS FACTORS IN INDIA
1. Continued importance given by the parent company since it became a 100 per cent
subsidiary of the Italian parent-
Benetton views India as one of its growth engines and hence has continued to give importance to
this market. The vision for growth and the resulting strategy of the Indian subsidiary is today in
tune with Benetton's global vision. The company has always endeavoured to give its Indian
customers an international experience not only in its collection range, but also the ambience and
fixtures of its retail outlets. The product range available in the Indian market is chosen from its
international range, keeping in mind the Indian taste in clothing.
2. Flexible and adaptable merchandising strategy-
The company has also established a flexible and adaptable merchandising strategy. Its merchandise
mix varies from location to location, to connect directly with the local tastes and preferences.
3. Strong contribution of franchisee partners-
Partnerships with professional retailers and investors with a passion for retail and expertise in this
area are critical to Benetton's success in India. For instance, its franchisee partner in the north has
been an important ingredient in its success in India and was the catalyst for Benetton's shift into
large format flagship retailing.
In India, UCB Identified as the most popular Youth Brand across age group 18-30 year. It is Single
Largest Brand with men’s wear, ladies wear and kid’s wear presence across more than 100 cities in
India, Spread across 375 EBO’s & 450 Shop-in-Shops through which brand reaches out to millions of
its consumers.

29
CHAPTER 8 - FUNCTIONING OF VARIOUS DEPARTMENTS
RELATED TO BUYING
There are various departments in Benetton India private ltd. which have to work in a well-coordinated
way to make sure the process flow is smooth and in time.
Process from Range Development to Production
VARIOUS DEPARTMENTS
1. Buying 2. Production 3. Product 4. Supply Chain 5. Sales
Product Development
Men Women Kids
Initial range is selected by product and the buying team in Italy Collection Meet
Buying, Product and Key Retailers decide
the final styles
Color Selection
Range is offered to Production team for estimation of cost and to
see if the designs can be produced
Presentation of costing Approved
Unapproved MRPs are decided
Rework, Negotiation, Changes in
garment/substitution of fabrics/trims
Freezing Purchase orders and delivery
plans are finalized
Production starts
Warehouse Movement
Range is handed over to production
department for sample development
Merchandise in store
New season launch
The range is presented to the Franchisees
and their orders are booked
Fig: (7.4)

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BUYING DEPARTMENT
The buying at Benetton happens 6 months before the season is launched. Following are the steps
involved:
Step 1: Sell-through analysis
During the season sell-through is calculated after every two weeks and is written on the photo master
of that season. It helps the buyer to see which styles did well and which didn’t do that well. The photo
master is divided according to the gender, category and sub category level. The categories are Tricot,
Woven Tops, Woven Bottoms, Denims, Knit Tops, Knit Bottoms and accessories; hence category as a
whole can also be categorized.
Step 2: Market analysis
The buying team constantly keeps a check on the trends and the competitor offerings so that the
strengths and the weaknesses of UCB can be measured. The gaps in term of product offering, price
points, sizes etc are tried to overcome in the next season.
Step 3: Range Selection
The product and buying team goes to Italy and selects the range for the Indian Market. This buying is
based on the option plan prepared by considering two major stores. Then the second level of range
selection is done in India which includes styles and color selections from the samples brought from
Italy. Also there are insertions made at India level by the product team as per needs and demands of
the target market which is not a very huge percent for ladies and kids. Majorly the insertions are done
in Men and Accessories.
Step 4: MRP
Once the range is selected MRP is done for individual style depending on the perceived value and the
margins. The costing of the garment is done by the production department on the basis of cost of
production. Then the buying and commercial department decides the final MRP of styles.
Step 5: Range Grading
The buying takes over the control at this stage. Each style is graded as Key, A+, A and B. It is done on
the basis of past sales figures. The highest grade is given to the styles that are expected to get volume
in the business and so on. Also the key or must buy styles are identified which represent the look of the
season. These styles should be present at all major locations.

31
Step 6: Size ratio analysis
The analysis of sizes sold at various stores is done in order to provide the stores with right sizes so that
they are not out of stock. UCB doesn’t allow its stores to display merchandise with broken sizes, hence
in order to display all the sizes should be present at the stores.
Step 7: Category Sheet
This is one of the most important steps in buying process whereby the category sheets for the season
are prepared by the buying team. This comprises of budget allocation on the basis of gender, category
and sub-category level for each store. Also the number of options and the average depth of each option
is planned in order to meet the sales target. This requires the study of past performance in terms of
sales contribution, sell through rate and size wise split up in each category.
Step 8: Franchisee Buying
Benetton comprises of stores that are owned by the company as well as those that are given under
franchisee contracts. In order to buy for the franchisees, there is a trade show that happens for around
25 days where the individual franchisee comes to place the order for the upcoming season. Buyers give
a proper theme presentation to each of the franchisees and introduce them to the range in order of
grades allocated to each style. The franchisee then books each style as per the budget suggested by the
company buyer or their own budget, but the same has to be agreed upon with the buying and
commercial team. Before the buying for each store starts, everyone is informed about the store
capacity in terms of the options and the depth appropriate for the respective store. Thereafter buying is
done taking into consideration the target market of the store. After the buying is done, the buyers go
through the franchisee buy to cross check whether the buy is appropriate and correct or not. They make
changes wherever required.
Step 9: BIPL Buying
Once the Franchisee Buying is over, the buyer starts buying for the company owned stores where they
buy as per the category sheets prepared by them. The parameters which are considered for options at
stores are the location, target customer, past performance and the theme trends for the season.
Step 10: Order Uploading
This step comprises of compiling the orders of different franchisees and thereby forwarding them to
supply chain in order to get it uploaded in SAP. Post that it is the responsibility of Production and
Supply Chain department to ensure that everything is produced on time and delivered to the respective
locations as per their decided deliveries. The deliveries are categorized as A, B, C and D. A means first
set of delivery; B means second set of delivery of merchandise and so on. This ensures freshness in the
store.

32
Step 11: After Launch
Once the stock is available at store for sale, the buyers start reviewing the performance vis-à-vis
competition and simultaneously start the buying process for the next season. The buyers also decide
the stock movement between the stores to achieve the best results.
Step 12: Mini collections
The mini collections are launched during the season. These are also proposed by Head Office in Italy.
These collections are according to the latest trends which are seen in the ongoing season. The
collections also ensure newness in the store during the season.

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SUPPLY CHAIN DEPARTMENT
Benetton works on three main verticals as they like to call it namely
- Purchasing
- Warehousing/Inventory management
- Distribution
PURCHASING
The process starts from the purchasing department as they are responsible for the sourcing of all kinds.
They are responsible for the raw material sourcing for the merchandise as well as for the office and
administration commodities.
WAREHOUSING
Warehousing or inventory management takes care of the storage facilities for the merchandise after it
is received from the vendors. Benetton has two ware houses at Sona road, Gurgaon, Haryana and in
Kapashera, Delhi and their warehousing and logistics partners are Safexpress. They have vendors all
over India from which the goods are received at the ware house at gurgaon as it is their main
warehouse. The imports are also received at gurgaon warehouse. The Delhi warehouse is smaller as
compared to the gurgaon one as it is used for the inward for the vendors based in Delhi only. Benetton
also have their company owned manufacturing unit in gurgaon from which the inward happens in the
gurgaon warehouse as well.
The stock is categorized into fresh, surplus and defective each of which has their own process to be
dealt with. The warehousing process starts when the finished goods or stock is taken inward. First task
that is undertaken is checking the stock for the documentation of quality check to ensure the styles
which are being received are approved from the quality department and is requisite standard. Next is
the stacking process where the styles are stacked onto the racks according to the brand. The stacking is
done systematically as the racks are segregated on the basis of brand, categories, size and SKU level.
For all different brands like Benetton, Sisley and O12 there are separate racks duly marked for
reference.
ALLOCATION
Then follows the allocation stage. Allocation is one of the main tasks done by the supply chain team as
it holds with it the success of the following processes. Allocation is done for every season which
explains the quantity of stock that has to be delivered to various stores whether they are company
owned or franchisee owned.

34
Benetton functions on three different business models
- Wholesale franchisee
- Management contract
- Company owned
They prioritize their delivery according to the working format. Foremost priority is given to the
franchisee and then comes the company owned stores. 70% logic is followed by Benetton for
allocation according to which the allocation is started only when 70% of the ordered quantity is
received in the warehouse. This is mainly done to avoid broken sizes in delivery. For example
generally the ratios in which the quantity is ordered or received is 1:2:2:1 or something in which two
of the sizes contribute approximately 60% and the rest two 40%. Suppose in case of t-shirts the sizes
M and L in the ration S:M:L:XL are the main contributor which is 60% most often. So suppose the
stock received is in the ratio 1:1:2:3, the sizes which would be delivered to the franchisee can have
missing sizes of the very same styles. To avoid such situation the allocation is pushed to an extent till
70% of the stock ordered is received containing a mix of all the sizes.
PICK-SLIPS
After the allocation process pick slips are generated by the supply chain department on the basis of
which the styles are picked from the racks in the warehouse and packed. The pick slips contain details
like the store location, quantity, style details, and size information etcetera. Multiple pick slips are
generated in a day according to which the packing is done for delivery of goods. The cartons are not
packed until it is full. It is done to avoid damage to the goods or theft. Each pick slip may not contain
all the styles and number of pieces that are enough to fill the carton so multiple slips are generated
which may have different style but the idea is to optimize the carton space. The pieces in the cartons
are scanned individually to avoid any difference in the count as there can be an error in the manual
picking. If suppose seven styles are to be delivered at a franchisee of which three are in the Delhi
warehouse they are distributed separately unless the store is in Delhi. For Delhi stores the merchandise
is consolidated at the Delhi warehouse and then distributed to avoid some of the permit charges.
DISTRIBUTION
Deliveries are done on the basis of season, the delivery dates decided, styles etcetera. The merchandise
is segregated according to the style into four categories namely A, B, C, D. Suppose for a winter
collection the styles are to be allocated according to the nature of the garment. So the A and B
deliveries will contain the lighter styles may be full sleeves t-shirt and cardigans which will have their
delivery dates earlier in the season and as the season goes on the delivery C and D will kick in
containing the heavier styles like sweater and jackets. The delivery dates have to decide according to
the merchandise as it has to be known what merchandise will sell at what time of the season.

35
STOCK TRANSFERS
In case a particular style is not selling in a specified area so in that case the stock is transferred from
one store to another where the style might be doing well. These stock transfers are not done directly
from one store to another. The store which has the slow moving stock sends it to the office along with
a stock return note (SRN). From the office again the stock is transferred.
POOL CODES
These can be considered as virtual stores to which merchandise is allocated as well. These are like the
store codes except the fact that these are virtual in nature and don’t really exist at that point of time. It
can be for any new stores coming up in the future for which the buying is already been done. These
may also contain stock for any further deliveries which have not been scheduled. It can be considered
as a buffer stock for emergency situations as well.
SURPLUS STOCK
After EOSS (end of season sales) generally there is surplus stock left. Even after a season there is
some amount of surplus stock left. This stock in most cases has broken sizes and the styles are also
depending upon availability because this is the unplanned leftover stock. This surplus stock is stored
separately from the fresh styles and is even categorized differently. The garments are segregated on the
basis of category and then size as it may not have some of the colors or sizes or even styles. The
accessories are segregated on the basis of category, sub category and then further on size. So for this
leftover stock Benetton have their own factory outlets to which these are sent. Most of the times, this
stock gets sold out at the factory outlet because of the low prices. Sometimes the franchisee partners
also buy the left over stock to use them as fill ins. These partners buy them in bulk irrespective of
styles or sizes.
DEFECTIVE STOCK
Sometimes due to various reasons the customers may return the garments or exchange the piece. In
such cases the garments are sent back to the head office to the quality department. The quality
department checks the pieces for the defects in the garment and determines if the defect is there in that
particular piece or in the style itself. If the style is faulty and there are complaints from multiple store
and franchisee the style is called back. Before calling the style back they also analyze if the defect can
be rectified. If the defect can be rectified the necessary changes are made and the styles are returned to
the stores in the same quantity it has been called back. Before the stores complain about a style or send
it back they make a whole list of different styles which are faulty because tottering around for every
single style again and again can be unnecessary elongation of the project. If the stock at the warehouse
becomes three to four seasons old it is not sent to any kind of stores to maintain the image of the brand
and are donated to NGO’s.

36
PRODUCTION DEPARTMENT
 The production department is responsible for costing of the range, sampling process, getting
the goods manufactured. The production department has different parts namely, purchase, sourcing,
manufacturing, quality etc. After the range selection it is sent to the production department for costing.
 The production department is divided into four parts – Flat knits, Fine knits, Woven’s and
Accessories.
 The production department usually gets about 2-3 weeks for the costing of a range. The
deadlines are mentioned for each and every task in the company and are indicated in SAP, so that any
person of Benetton across the world can check the in what stage is the work in which country.
 The production department has to meet their deadline of costing so as to follow up the process
of setting the MRP’s which is done by product and buying department. The company has certain
margin for each category and sub category which has to be attained. If the costing is satisfactory to
achieve that margin the MRP’s are set, otherwise the product department sits with the production
department to discuss if any changes can be made in the costing which include minor changes in the
styling or material used which does not hinder the original look or quality of the garment.
 After the costing is done the MRP’s are set, the sampling takes place and the production
department has around 60-90 days to start the production process. Following the production process
the goods are taken in house.
 Benetton outsources almost 100% of their production from all over the country. For different
categories vendors are selected from different parts of the country e.g. Majority of flat knits are
sourced from Ludhiana.
 Generally the range in winters is more in value as well volume from summers, so the
production timelines can vary accordingly.
 Few of the vendors which Benetton deals with are DRC Clothing, R. B. Knits, S. V. Exports,
Mehrasons, Shreyansh, S. R. V. Knit tech, Winsome Knitwear.

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PRODUCT DEPARTMENT
 Product department is one of the main departments with which the buying department
functions.
 The main range for Benetton stores is conceptualized and designed at the Italy head office.
Once the range is ready, the product & the buying teams from different corporate offices around the
world visit Italy for the selection of the designs.
 The selection of the designs is based on the suitability of the designs to the Indian customers
and weather conditions.
 After the selection of pieces is done, the color selection is made according to the themes and
the selected styles are then sent to the corporate offices around the world around 8 months in
advance of the season.
Insertions
 Since all the styles made in Italy are not meant for the Indian market due to some reason or
the other ,the product development team along with the product head prepare their own styles meant
for India .These are known as INSERTIONS.
 The insertions depend on the category and the gender as well. In India 60% of business
comes from men’s wear which is not very successful in Italy so about 80% of the men’s wear ranges
are insertions. The category in men’s which are mainly insertions constitute of knit tops and shirts.
In ladies only 20% of the ranges are insertions.
 So when Italy is preparing its own range, the product team along with the product head is
developing the insertions simultaneously.
 The range is then sent for costing to the production department for which the production
department has approximately three weeks. The costing is followed by the process of setting the
MRP’s which is done by the buying and product department together.
FIXTURE OF MAXIMUM RETAIL PRICE (MRPS)
 Once the range is complete, the buying and product team reach to a target MRP for all the
styles in the range. The range is arranged according to theme and category and one by one each style
is picked out and MRP is fixed upon.
 The MRP is generally settled upon by multiplying the cost price by the multiplication factor
(MF). The MF may vary from one product category to another.
 E.g. It is easy to have an MF of 3-4 on a tee shirt which has a cost of 150 or 200 but if we
keep the same MF for a formal jacket whose cost is 3000, its sale will not be high since it will be
highly priced. So for one product category Benetton fixes a high MF and for the other it fixes a
lower MF so that its average is such that it does not have to compromise on its profits.


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COMMERCIAL DEPARTMENT
The three main functions of the Sales department are:
 Expansion
If the brand is performing well and up to the mark and its presence needs to be increased in the
territory.
 Franchisee Handling
The sales managers work with the buying department while presenting the range to the
franchises in their respective territories. The sales managers have to assist the buyers in
convincing the franchisee owners to buy products in different categories on the basis of the
sales records and performance of individual stores. Before going through the meetings with the
franchises the buyers brief the sales managers and showcase the entire collection
 Location Study
The sales department also keeps a look out for new locations that are favorable for the brand
considering factors like target market, competition, economy, customer traffic etc.
The sales department also works in conjunction with the Marketing department. Different cities are
clubbed together into territories and every territory has designated sales and marketing managers. They
have to put promotional efforts for each individual store as per its requirements and ensure that its
performing at par with the competitors.
The sales department has to keep a tight track of the performance of all the stores in their territory that
includes determining:
 if the store is performing or not
 why/why not
 whatneeds to be done to improve its performance
 channels-MBO/SIS
 performance of the products
 franchisee+buying in the buying process

39
CHAPTER 9: LITERATURE REVIEW
ASSORTMENT PLANNING
An assortment plan is an organized collection of related merchandise, which includes
specifications for brands, colors, sizes, and material. The assortment plan is built or organized
according to the classification system used by the retailer. The system should be made with customer
attracting features in mind because the system will be used to plan the merchandise that will be bought
by the buyer. The process of developing this plan is the assortment planning process. The buyer must
develop this plan to use as a shopping guide before ordering merchandise. The assortment plan is
created by a merger between the forecast and the sales plan. The forecast provides the products that
are to be purchased, organized by the classification system, and the general sales plan provides the
cashs that are to be used to buy the merchandise. From this information, the buyer will predict the
exact number of items of each type that will be purchased. Merchandise that is reordered each season
can be determined with a revision of the previous season's assortment plan; however, in the fashion
business limited amounts of merchandise are ordered by straight reorder. More and more of items in
the stock for a fashion retailer are ordered as a new order without previous purchases. The assortment
plan can also be used to determine specific quantities of merchandise within each class or subclass.
The more diverse the product assortment is for the retailer, the more need is present for a detailed
assortment plan, which should be prepared prior to the buying trip.
The assortment plan may have several versions. The version that is most closely related to the
forecast will be one that is organized as the customer might shop. The style features that would be
considered first in the shopping process by the consumer would be the major classes within the
merchandise classification and subclasses would be categories of additional features, and finally color,
size, and vendor. With the addition of sales cash and quantities, the assortment plan becomes the
quantitative or detailed sales forecast. This quantitative forecast with both styles and volume is based
on the quantitative information from the sales plan and the six-month plan and is used to make the
buying lists for market trips. The detailed forecast combines the style information from fashion
forecasting with the cash information from sales planning. An assortment plan is developed in both rows
and columns. The rows are established with the following steps: (a) select general classifications of
products, (b) divide the general classes into subclasses, (c) identify additional characteristics of the sub-
classes that will be needed (e.g., colors, fabrics, and sizes), and (d) set up a spread sheet with rows for
classes, subclasses, and sub-subclasses.

40
Next, the columns must be created for the percentage for each level, the cash amounts for the
levels, unit costs, and the number of units. The steps to complete the columns are (a) establish a total
cash amount, (b) determine the proportion or percentage for each class and subclass, (c) disperse the
cash according to percentages, (d) determine the unit costs for each item, and (e) calculate the units for
each class or subclass. The percentage or proportion of each class within the total plan is part of the
forecasting that the buyer must do. The buyer must plan how much of each type of merchandise is
wanted.
RANGE & ASSORTMENT PLANNING
• Range plan enables company plans
• Range offering complete
• Price points appropriate
• Store clustering enabled
• Localised pricing and promotions possible
• Assortment supportive of demand chain
• Reduction of markdowns
• Planned rather than tactical promotions
• Maximised margins and inventory
RANGE AND ASSORTMENT PLANNING HIERARCHY: Fig: (9.1)

41
RANGE & ASSORTMENT PLANNING ELEMENTS
 Sales
 Average retail prices
 Expected margins
 Planned markdowns
 Inventory
 Weeks of supply
 Space
 Staff
 Planned by - Department and classification
 Period
 Store
Fig: (9.2)

42
Assortment planning, also known as product line selection and product portfolio optimization, is
concerned with the problem of choosing which products to offer or display or "put on the shelf".
Assortment planning is a key element in retail merchandizing, and as Alan (1993) indicates in an early
review, it is a vital factor in the final profitability of retailers. Displaying or offering a larger variety of
products increases market share, as it attracts a more heterogeneous set of customers and satisfies
customers' variety-seeking tendencies Tang (2006). The need to choose arises because there is a limit
on the number of products that can be offered or displayed, i.e., there is "limited shelf space".
Assortment planning is not limited to traditional bricks-and-mortar stores, which have to
decide which products to carry in the store. It is crucial too for modern on-line retailers, which have to
decide how to allocate the available screen space on their websites. Similar decision situations arise
when space to hold safety stocks is limited or when trained and knowledgeable sales staff is in short
supply. In the airline industry, and more generally service industries, assortment planning manifests
itself in the selection of fare classes to offer. Of course in this case it is not only the shelf space that is
limited, i.e., a limited number of fare classes can be offered, but product inventory, i.e., the seats, itself
is bounded.
The value of assortment planning is clearly illustrated by Kok and Fisher (2007), who
develops an optimization-based methodology and report that their recommendations for a grocery
store chain, when compared with the existing approach, result in profit increases of more than 50%.
Similarly, Rajaram (2001) use a non-linear integer programming model for assortment planning in a
large catalog retailer specializing in women's apparel, and report a profit increase of 40%. Russell and
Urban (2010) extend assortment planning by not only deciding a product's allocated space, but also
it's location: it has been shown that the location of a product affects its sales. They consider a setting in
which products are categorized as part of a family, and the integrity of a family should be maintained.
An important aspect of the research in the above-mentioned papers, and much of the assortment
literature, is modeling product substitution. Product substitution occurs when a customer's preferred
product is not offered and the customer decides to purchase a different, but similar product. Van Ryzin
and Mahajan (1999), Mahajan and van Ryzin (2001), Li (2007), and Gallego et al. (2011) for
more on product substitution using Multinomial Logit models, Smith and Agrawal (2000) for more
on product substitution using exogenous models, and Gaur and Honhon (2006) for more on product
substitution using locational choice models. Most of the research related to product substitution in
assortment planning assumes that the demand distribution is known in advance and can thus be
categorized as static assortment planning.

43
In the above papers, it is assumed that the retailer has full knowledge about the demand
function. Even though there are new and improved methods to forecast sales, e.g., using inventory and
gross margins data as illustrated in Kesavan et al. (2010), the assumption of full information is far
from reality in settings where there is limited historic data available, and the retailer needs to learn
about demand during sales horizon. When assortment planning is coupled with demand learning, it is
categorized as dynamic assortment planning. Caro and Gallien (2007) develop a stylized dynamic
assortment planning model to study the sale of fashion items, where the size of the market is
unknown. They employ a finite horizon multi-armed bandit model with several plays per stage and
Bayesian learning. To solve the model, they use Lagrangian relaxation to handle the weakly coupled
dynamic programs, an approach that we will also use. The results of the model are converted into a
desirability index that can be used to choose the products to display in each period. In related research,
Caldentey and Caro (2011) study an assortment planning setting in which a retailer can choose from
basic and fashion items and where the vogue is modeled as a stochastic process. Rusmevichientong et
al. (2011) pursue a similar line of research and consider an environment in which a retailer chooses an
assortment of products so as to maximize profit subject to a capacity constraint. They model the
demand under substitution and study both a static case, where the parameters of the demand function
are known, and a dynamic case, where the parameters of the demand function are unknown. They
develop an adaptive policy that learns the unknown parameters from past data, and that, at the same
time, optimizes the profit.
The problem discussed in the recent paper by Posen and Levinthal (2011) has many of the
characteristics of dynamic assortment planning. The paper shows how an organization chooses, or
should choose, its strategy in a changing environment. (The problem can be viewed as assortment
planning with a shelf space of size one.) Learning, more specifically exploration to generate new
knowledge about the environment, is incorporated to enhance the quality of decision making. The
main message of the work, in the terminology of dynamic assortment planning, is that care has to be
taken when incorporating mechanisms to learn the demand when that demand itself may be changing.
Price optimization, or pricing, is concerned with the problem of choosing what to charge for a product
when demand is price-sensitive. A high price may turn some customers away, but a low price reduces
the profit margin. A major portion of the academic literature focuses on dynamic pricing which,
adopting the definition of Weatherford and Bodily (1992), arises in situations where a perishable and
nonrenewable product has a stochastic demand over a finite period of time.

44
That is, in situations where a given stock of items has to be sold by a certain deadline, and
where demand is stochastic and a function of the offered price. The problem is to dynamically adjust
the price to maximize the total revenue over the sales horizon. In such a setting, if the demand
function is known fully and in advance: the changes in the optimal price arise only because of the
limited inventory and the stochasticity of the demand. Furthermore, the analysis of various models has
shown that dynamically changing the price is not necessary to achieve high profits; a fixed-price
policy is near-optimal. We refer to Gallego and van Ryzin (1994, 1997) for a detailed analysis.
Another reason for adjusting prices is demand learning. We refer to Araman and Caldentey (2009)
and Gallego and Talebian (2012) for two recent studies about dynamic pricing with demand learning.
For an example of non-parametric learning, we refer the reader to Besbes and Zeevi (2009).
Finally, there is some existing literature on joint assortment and pricing. Chen and Hausman
(2000), for example, formulate a nonlinear integer optimization problem, where the nonlinearity is due
to considering a sum of linear ratios. Ratios correspond to the probability of purchasing a product and
is derived by dividing each product's attractiveness by sum of the products' attractiveness. Fractional
programming properties are used to solve the model. Schon (2010a) extends this work in two respects.
First, by assuming that the seller can practice price discrimination and therefore has to decide the price
to charge different groups of customers. Second, by introducing fixed costs associated with choosing a
product line.
The analysis is restricted to the case where prices have to be chosen from a set of discrete
values. This restriction is removed in Schon (2010b). Aydin and Ryan (2000) study joint pricing and
assortment planning under substitution. Rodriguez and Aydin (2011) study joint assortment and
pricing for configurable products under demand uncertainty. Cachon and Kok (2007) study joint
assortment and pricing in a competitive setting with two retailers. They compare the prices and variety
levels under decentralized management and under centralized management, and show that
decentralized management results in higher prices and less variety. The study is extended in Kok and
Xu (2011), where it is shown that the order of consumer decisions, i.e., whether consumers first
choose the product type or first choose the brand, has a critical effect on the optimal management
policy.From a methodological perspective, we use discrete-time finite-horizon dynamic programming
for a short but rigorous introduction and Powel (2007) for a review of approximation methods). The
exploration vs. exploitation trade-off is well-known in dynamic programming, where information
about a state can only be obtained by visiting it.
Therefore, a state can be visited because it is profitable (exploitation), or to gain information
about it (exploration). In a landmark paper, Gittins and Jones (1974) show that learning, or what they
call the information acquisition problem, and the exploration vs exploitation tradeoff can be reduced to
a series of one-dimensional problems using an index policy.

45
FASHION FORECASTING
To cope with the ever-changing world, the marketing segmentation and targeting techniques are
rapidly evolving from traditional, static, demographic-based criteria towards dynamic, mood, lifestyle
and psycho graphic influences. Fashion forecasting is the prediction of mood, behaviour and buying
habits of the consumer. It is no longer a question of identifying your customers by age, geography or
income, but looking into how and why they buy, based on their mood, beliefs and the occasion.
Fashion is a style that is popular in the present or a set of trends that have been accepted by a wide
audience. But fashion itself is far from simple. Fashion is a complex phenomenon from psychological,
sociological, cultural or commercial point of view. Fashion trends are the styling ideas that major
collections have in common. They indicate the direction in which the fashion is moving. Fashion
forecasters look for styles they think are prophetic, ideas that capture the mood of the times and signal
a new fashion trend.
The fashion system has spread across all other sectors, from cosmetics to cars via politics and sports.
All sectors observe fashion as an endless source of inspiration. Gilles Lipovetsky points out that the
more the fashion society develops, the less importance will be given to the affordability of clothes! To
hold on to its role as a pioneer and enhance its brand image, fashion has to continue to innovate.
Forecasting the future demand for particular styles, fabrics and colors is an important aspect of the
fashion industry. Textile specialists work two years ahead to determine the general guidelines for each
fashion season. Fashion forecasting is an important activity to ensure that the process of observation
related to short and long term planning can be based on sound and rational decision making and not
hype. Forecasting can bridge the gap between ambiguous, conflicting signs and the action taken by the
design team. "Fashion forecasting combines theories of fashion changes with the process of organizing
and analyzing the information and synthesizing the data into actionable forecasts." (Brannon 2000)
Forecasting is a creative process that can be understood, practiced and applied. Forecasting provides a
way for executives to expand their thinking about changes, through anticipating the future, and
projecting the likely outcomes. (Lavenback and Cleary 1981)
Long term forecasting (over 2 years ahead) is used by executives for corporate planning purposes. It
is also used for marketing managers to position products in the marketplace in relationship to
competition.
Short term forecasting is used by product developers, merchandisers and production managers to
give style direction and shape collections. For short term forecasting most apparel companies subscribe
to one or more services, whose job is to scan the market and report on the developments in color,
textiles and style directions.

46
Forecasters reflect the earliest views on trends some eighteen months in advance of the season. At this
stage, color is a crucial consideration of yarn mills. It is also the focus of discussion among others who
are interested in very early trend decision-making. Fashion forecasters combine the views emerging
about color and fabric from the early yarn and fabric trade shows with their socio-economic and
cultural analysis. Major trends in lifestyles, attitude and culture in particular music, sport, cinema and
television are used to predict changing consumer demands.
Fashion forecasting involves the following activities such as studying market conditions, noting the
life style of the people, researching sales statistics, evaluating popular designer collections, surveying
fashion publications, observing street fashions etc.
THE DIRECTION OF FASHION CHANGE
Observation is not enough. If the trend watcher is to take advantage, he needs a framework for
explaining how the trend began and its likely path within a social system. The directional theories of
fashion change trickle down, trickle up and trickle across to make prediction easier by pointing to the
likely starting points for a fashion trend, the expected direction that trend will take and how long the
trend will last.Some trend watchers visualize the dynamics of fashion as a pyramid of status level. In
some theories, fashion trickles down from a highly visible elite. In others, fashion trickles up from
street once it is discovered by the fashion elite and introduced to mainstream audiences in an edited
version. If a fashion look is promoted by the media and manufactured rapidly enough, the look can
trickle across all levels of the market simultaneously for denim, introduction of an unusual color range,
a modification in a silhouette or detail, a different way to wear an accessory or a mood expressed in a
distinctive style. The pattern of acceptance (or rejection) can be mapped in time.
Fashion responds to whatever is modern i.e., to the spirit of the times or the Zeitgeist. People choose
among competing styles, those that "click" or connect with the spirit of the times. This collective
selection forms a feedback loop between the fashion industry and the consumer, a feedback loop
moderated by aesthetic trends and social-psychological processes. The Look; Design Concept As
fashion insiders and forecasters have a mental map of the marketplace, the locations where innovations
are likely to be glimpsed early, the supply chain of the textile/apparel industry and the retail conduct to
consumers. Fashion insiders also have another mental map - the map of seasons and shows. When
consumers shop for winter coats or summer swimsuits, fashion insiders are seasons ahead in their
thinking. Forecasters use these mental maps to organize their observations of directional information.
Since innovations rarely apply to the entire marketplace, information must be tagged for the
appropriate price point, category and classification. In this way, forecasters turn random bits of data
into useful information for decision support, points and style directions.

47
THE DRIVERS OF FASHION CHANGE
Social and cultural changes are major determinants of emerging fashions. However, they are
themselves affected by the other drivers of change that include globalization of world markets and
accessibility of more sophisticated communications technologies. The latter has provided people with
faster and wider access to more ideas and influences from other cultures and societies, driving demand
for wider choice in fashion products.
THE FASHION FORECASTING PROCESS
a) Trend forecasting businesses
French companies based in Paris have traditionally dominated fashion forecasting. Although a number
of larger ones are still based in Paris, many with satellite offices around the world, a number of new
niche forecasters have emerged offering their own specialties of product and services. Some better-
known trend forecasters include: SachaPacha. Peclers Trend Union. Line Creative Partners. Au Studio
Promostyl. Promostyl. Forecasting is more than just attending runway shows and picking out potential
trends that can be knocked off at lower prices (although that is part of it). It is a process that spans
shifts in color and styles, changes in lifestyles and buying patterns and different ways of doing
business. What appears to be near random activity is in fact a process of negotiation between the
fashion industry and the consumer, and between the various segments in the supply side chain.
b) Consumer research
Manufacturers and retailers may ask consumers directly about their buying preferences. Consumer
reactions are compiled and tabulated to find preferences for certain garments or accessories, colors or
sizes and so on ,or products to fit specific consumer tastes. Surveys, by telephone or mail are
conducted by publication and market research companies for manufacturers and retailers. These
surveys include questions about income, life-style, fashion preference and shopping habits. Customers
are usually selected by the market research firm to meet with manufacturers or retailers. In-store
informal interview can help researchers obtain information by simply asking customers what they
would like to buy, what styles they like that are currently available and what merchandise they want,
but cannot find. Because of their close contact with their customers, owners of small stores can often
do this most effectively. The apparel supply chain has one purpose, i.e. to provide an appealing and
desirable product to satisfy customer needs, wants or aspirations.
When successful, the connection results in a sale, because this connection is the purpose of the
process. Every forecast begins with the customer, by observing the customer's adjustments to the
marketplace and in the unexpected ways the customer adjusts the marketplace to his lifestyle and
preferences.Consumer research figures are important in decisions about product development, brand
marketing and retailing.

48
c) Colour Forecasting
Stimulating sales is the driving force behind color forecasting. Color grabs the customers' attention,
makes an emotional connection and leads them to the product. Even when the basic product stays the
same, changing the color gives a sense of something new. Color consultants help companies decide on
the right color story to sell the product. Some consultants specialize in advising on color. Others
develop color forecasts as part of their overall product development function. Some large companies
have departments dedicated to setting color directions for multiple lines.
Professional color organizations bring together experts to collaborate on forecasts for industries like
women's wear, men's wear, children's wear and residential and non-residential interiors.
d) Textile Development
Frequently, the development of a completely new product is the result of a particular functional need,
but often it is driven by the benefits offered by a new fabric. Specialist forecasters make the point that
the technology is changing the range of product, as through the ranges of benefits that designers can
build into garment product through the textiles used in construction.
Fabrics range from slick surfaces like leather and futuristic plastic to softer surfaces like cashmere,
from flat weaves to heavy textures like boucle and from the solid structure of flannel to the web-like
open structure of crochet. Clothing has been called "the second skin" in recognition of its intimate
connection with a person's physical and psychological comfort (Horn, 1975). So it is not surprising
that news about which fabrics are "in" or "out" plays such a prominent role in forecasting fashion.
Newness in fabrics comes from the introduction of new fibers, the manipulation of yarn and fabric
structures, variation in pattern and prints and innovative finishing processes. These innovations are
introduced in trade shows and exhibitions held in the fashion capitals of the world.
e) The Range of shows - The fashion shows:
The word here is its widest possible interpretation to refer to the range of organised textile and fashion
garment trade shows, operating over the 16 months preceding season. Trade shows, whether yarn,
fabric or product have a basic function, which is to sell products.
Visitors vary according to the nature of the show. A yarn show will attract a range of people including
fabric manufacturers, some retail buyers and designers. The fabric show performs a more balanced role
with great emphasis on then sales of the fabric, but with more retail designers and buyers attending, as
the product on the show has a greater relevance to garment design. Garment design shows are much
more diverse, ranging from the products trade shows through to the high profile Ready -to-wear
Designer shows like London Fashion week and then the exclusive Couture shows.
Continuing this sequence, specialist product trade shows are held after the fabric shows. These shows
are segmented according to broad sector like men's wear or women's wear, and by specialist product
categories, like sportswear or lingerie. These shows are a good indicator of color, fabric, styling and
new products

49
f) Sales Forecasting
Forecasting is relatively easy, straightforward and accurate for products with long lifetime and steady
sales. However, the fashion apparel business is one of the most volatile, because it creates products
that are new, highly seasonal or have short lifetimes. In such situations forecasts become increasingly
inaccurate. Errors in sales forecasting result in two kinds of losses:
Markdowns, when retailers have unwanted goods remaining at the end of a selling period, such goods
then must be sold, even at a loss. . Lost sales on more popular items because of stock outs
(merchandise not available in stock at the time when consumers request it.
Companies have been slow to recognize the changing market environment and adapt forecasting
practices to decrease the uncertainty about product demand. Sales forecasting impacts every apparel
executive's work life, whether they help develop the analysis, read and act on the reports or merely
react to the result of over- or under-estimating sales. For this reason, apparel executives need a basic
understanding of the traditional approaches to sales forecasting and the leading-edge technologies
making real-time marketing a reality in the apparel industry.
Eventually, a manufacturer and retailer researches his own sales record. Rising sales statistics show
what fashion trends are developing and declining sales show what styles have passed their peak.
Overall sales show, that as style is not meeting consumer needs for quality or fit , it’s time to drop it
from the line and move on to new styles.
Introducing Innovation
While attention is showered on the most exciting and extreme runway fashions, the mechanisms of
fashion change work in the background to create patterns familiar to the most experienced fashion
watchers. When an innovation arrives on the scene, individuals consider it for adoption. The
cumulative effect of those decisions can be tracked in sales and visually on the street. In fashion terms,
the innovation may be the invention of a new fibre or a new finish.
g) Cultural Indicators
In the apparel field, companies need an early warning system so that specific product categories can be
fine-tuned to trends within a market segment. While timing is important, an agile and responsive
company will be able to capitalize on trends whenever they are spotted; sometimes just as a glimmer
far in the future and sometimes as a phenomenon in the building stage. Waning trends are another
signal. When some avocation, interest or lifestyle loses cultural power, it is a good time to survey the
information landscape for the next big thing.

50
h) Final Stage of fore casting
The 'Fashion look' for the season is therefore the result of a process of development that combines the
evolved views of textiles and product trade show, forecasters, designers buyers and ready to wear
shows. Like collage, the final picture emerges after various layers have come together. Even though
these shows have an impact on some last minute high street fashion buys, their major impact is mainly
on reflecting the final views on trends close to the season. Crucially, the media coverage of the shows
is another important dimension in the trend development process, as it highlights fashion trends that
fashion editors believe will be strong for the forth coming season. Such 'authoritative' coverage of the
media, focusing attention on aspects of fashion, including the 'must-have' looks, colors and products
influences the consumers' acceptance of hot trends for a season.

51
THE FUTURE OF FORECASTING
For apparel executives, hitting the target requires a balancing act between anticipation of future
developments and improvisation in the face of change. The marketplace locks into one pattern, holds it
briefly and then cascades into a new configuration with the slightest jar to the equilibrium. In the
marketplace, those shifts may correlate with:
 Changes in taste or lifestyles.
 Immigration.
 Technological developments.
 Shifts in the prices of raw materials.
Thus Fashion forecasting is used within the fashion/textile industry as a means of directing companies
into new ideas of color/fabric/theme/mood and yarn developments for different product types and
levels. Knowledge of trends and future market requirements is increasingly important to the industry.
While there is no definitive fashion story, accessing the right color palette, researching fabric and
styling trends to suit a particular niche and customer profile is essential. The degree and quality of
information available to designers and its interpretation, given an effective marketing strategy,
effectively dictates their success.
FORECASTING FASHION IN THE INDIAN SCENARIO
The phenomenon of fashion moving from the ramp to the road seems to have started happening in
India. Over the last one year, fashion has been highly visible, at least on the streets of metros. Western
winds of fashion are reaching metros like Mumbai and New Delhi virtually overnight. We also see
new categories added to customer wardrobes like club wear, travel gear and loungewear. This indicates
a segmentation of the customers' wardrobe. This also means that there are new brands and labels,
although not heavily advertised, easing into the market riding on the trend of new segments. We expect
this trend to rise further, mainly because fashion as a market allows brands to be created mainly on the
product look. The biggest achievements are not from increasing efficiency, but by risk management.
This would mean that by riding on fashion trend one would fetch maximum benefits. However, there is
no agency today, which brands or retailers can follow for fashion forecast of domestic market. We still
have to follow international forecasts and thereby miss out on lot of opportunities.

52
CHAPTER10: SPRING SUMMER 14 FORECAST
OVERVIEW:
 Impact of Online Culture
 Inspiration from Nature, Organic Appeal
 Redefined, Clean and Engineered
 Design Focus on Function and Invention
THEMES:
1. New Digital Aesthetic
2. Next Nature
3. Neo Geo
KEY COLORS FOR THE SEASON – WOMEN:
The key colors for Spring Summer 14 are Mint, Astroturf, Violet, Denim, Sand, Shadow, Ink,
Beetroot, Mustard, Deep Pink, Fresh Green and Pale Pink.
Fig: (10.0)

53
THEME: DIGITALAESTHETIC
FORECASTED SILLHOUTTES FOR WOMEN:
The 1st
theme is Digital Aesthetic were inspiration is been taken from the digital age of sophistication
and minimalism, where neutral colors with a tinge of bright are been used to give the desired effect.
The forecasted silhouettes for women’s Spring Summer 14 are misplaced seam pattern, Minimalism,
Sculptural slicing, sheer Technical Layers, Neon Accent, Smart crisis look.
Fig: (10.1)

54
THEME: NEXT NATURE
The 2nd
forecasted theme for SS14 is been inspired from nature were bold abstract and geometrical
patterns have been used. The forecasted silhouettes are clashing abstract patterns, Dense Decoration,
Tropical Prints, Geometric Play, Clean Tailoring, Urban Feminine look
Fig: (10.2)

55
THEME: NEO GEO
The 3rd
Theme for SS14 is been inspired by a combination of nature-tribal and the digital age,
classified as “Neo-Geo”. A strong visual display of tribal influence, wild and bright colors, geometric
pattern combinations, elegant tailoring with abstract prints have been used.
Fig: (10.3)

56
KEY SHAPES: WOMEN
DRESSES:
The dress shapes forecasted are Handkerchief style, vintage tennis, A-line maxi, Flared Dress, Double
layered, Waist band crossing, knot detailing, coated hemlines, Sheer drop hems.
KNITS:
For Knits, the shapes forecasted are – Cocoon top, V-shaped tee, peplum vest, cropped lengths, Wrap-
over tops.
Fig: (10.3)
Fig: (10.5)

57
DETAILING:
The detailing’s forecasted for SS14 are, Tie at collar, Folded neckline, peephole collars, Angular
collars and sleeves, cape shoulders and extended sleeves.
WOVEN TOPS:
For woven tops, the shapes forecasted are – Cocoon shirt, Fish tail Drape Top, panelling, Peasant Top,
Big Pockets.
Fig: (10.6)
Fig: (10.7)

58
WOVEN BOTTOM:
For woven Bottoms- the key shapes forecasted are – Cuffed Pleats, slim line cargo, wide leg crop,
Draped Pants, cropped chinos, slit at front, pleated skirts, Layered shorts.
DENIM LOOKS:
The major denim looks forecasted for
SS14 are Animal Prints, Heavy Acid
Wash and Leather coatings.
Detailing’s which are forecasted to be
carried forward from SS13 are- Neon
Accent, Tuxedo Stripe, Embellished
tuxedo, Contrast Placket, Contrast
Reverse, Tribal Detailing, Tapestry Inserts,
Patch Works.
Fig: (10.8)
Fig: (10.9)
Fig: (10.10)

59
CHAPTER 11
STORE BASED COMPARITIVE CHARTS (GHAZIABAD)
 OPTIONS IN KNIT TOPS:
 OPTIONS IN KNIT BOTTOMS:
FOREVER 21 VERO MODA ONLY
Track Pants/Capris 8 0 3
Dresses 30 15 22
Skirts 12 4 2
Jumpsuits 3 1 0
Leggings 14 3 2
Total 67 23 27
Fast Moving Sub-Cat Dresses Dresses Dresses
Fast Moving Price-Point 1300 1600 1350
 OPTIONS IN DENIM
Basic 6 4 6
Shorts 3 4 6
Capri 5 2 3
Skirt 0 0 3
Jumpsuit 0 0 0
Slight wash 12 8 15
Heavy wash 3 0 4
Value Added 2 0 1
Total 31 18 38
Fast Moving Sub-Cat Slight Wash Slight Wash Slight Wash
Spaghetti 10 13 8
R/N, V/N 25 0 8
Basic Polo 0 0 0
Chest Print 35 10 30
All over Prints 400 13 26
Tube Top Basic 2 0 0
Value Added 50 22 25
Total 162 58 97
Fast Moving Sub-Cat Value Added Value Added All over Prints
Fig 11.1
Fig 11.2
Fig 11.3

60
 OPTIONS IN WOVEN BOTTOMS
Trousers 19 12 8
Capri 6 3 3
Shorts 6 6 8
Skirts 24 6 4
Jumpsuits 4 0 0
Dresses 40 20 14
Total 99 47 37
 COMPARISON OF OPTIONS IN WOVEN TOPS
Casual-H/S 7 3 4
F/S 3 3 4
3/4th
6 6 0
Sleeveless 0 0 0
Tops 35 30 26
Total 51 42 34
Fast Moving Sub-Cat Casual-H/S F/S F/S
Fig 11.4
Fig 11.5

61
STORE BASED COMPARITIVE CHARTS (GURGAON)
 OPTIONS IN KNIT TOPS:
Spaghetti 8 15 10
R/N, V/N 20 0 12
Basic Polo 0 0 0
Chest Print 23 11 25
All over Prints 30 20 20
Tube Top Basic 2 0 0
Value Added 35 18 24
Total 118 64 91
Fast Moving Sub-Cat Value Added Chest Print All Over Prints
 OPTIONS IN KNIT BOTTOMS:
Track Pants/Capris 10 0 4
Dresses 22 15 22
Skirts 10 5 4
Jumpsuits 3 2 0
Leggings 10 4 2
Total 55 26 32
 OPTIONS IN DENIM
Basic 8 10 8
Shorts 4 10 6
Capri 5 4 5
Skirt 0 0 5
Jumpsuit 0 0 0
Slight wash 12 8 18
Heavy wash 4 2 4
Value Added 2 15 7
Total 35 49 53
Fast Moving Sub-Cat Slight Wash Slight Wash Slight Wash
Fig 11.6
Fig 11.7
Fig 11.8

Assortment Planning - United Colors of Benetton

Assortment Planning - United Colors of Benetton

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