Private Label Product Development Research Term Paper:
Assume you are an apparel buyer for a retail store. Your store operates 12 medium-priced women’s wear shops (or 12 medium-priced men’s wear shops) in a major U.S. city and its suburban areas. The stores carry a line of medium priced women’s (men’s) sportswear and accessories. Your will define and analyze your target customer specifying demographics and lifestyle. Your Open-to-Buy for this classification is $250,000.
Several years ago, the store began carrying private label merchandise to supplement its mix of established national brands. It accomplished this one department at a time. The store records show that the markup on the private label goods is significantly higher than it is able to achieve on its branded goods and exclusivity is priceless.
Your buying responsibilities include procurement of tops, shirts sweaters, suits, dresses, or any category of apparel. The owners of the chain have informed you that they would like you to begin to develop private label merchandise in your department. They have given you the authority and responsibility to begin development for the Spring 2018 retail-selling season.
Write a 12 to 15 page report (exclusive of sketches, photos and charts) outlining the entire process and explaining your actions throughout. All work must be APA format for citation and reference documentation
Your job is to detail the following tasks in the creation private label product.
- Classification: Select the classification and product style(s) you will be developing. Identify the styles by showing actual samples, pictures from magazines/catalogs, sketches or actual photographs, which are to be included in the report. (WGSN is a great source)
- Trends: Research and identify major trends in your product area with your target customer’s preferences in mind. Use trade publications such as Stylesight/WGSN, IBIS, WWD or other trade papers as references, and be sure to document your sources.
- Fabric:Evaluate the fabric you select for your product using performance specifications. Consider fabric type, weight, content, dye process, finish. (WGSN, Material ConneXion)
- Competition: Shop the market to analyze comparable product offerings. Document you findings. (Remember, your own private label product should retail for less than your branded competition). (IBIS,ABIt)
- Adaptations: Determine the changes you will make to adapt the product to your specific market and customer. Consider color, style, silhouette, fabric and trim detail. Your adaptations must be validated through trend research (WGSN<WWD)
- Costing: Cost your product and set a retail price using the cost sheet attached and the labor rates noted.Quality Control: Describe quality control practices you will implement to guarantee delivery a quality product from your contractor
- Hangtag: Create a hangtag for your product using Photoshop, PowerPoint, or Drawing Tools in Word. The tag should include art depicting the garment and verbiage to attract customers
- Merchandising: Explain the methods you will use to merchandise your private label product in your stores. Explain the methods you will use to notify your target customers of your new “line”. This should include the use of technology such as Facebook, Instagram, Pinterest, Twitter, Apps and other sources. In this segment you will discuss original price, planned promotional prices, markup percent’s for each style offered, promotional events web site and displays that will be used to present your product, placement in your stores (rack type, table, wall – where in the store will the product be placed).
- Summary and Conclusion: Briefly explain why you chose the product(s) to “knockoff”. Is this an emerging trend? Do you feel you have satisfied your target customer with a fashion forward product line of acceptable quality and at the appropriate price points? Have you dazzled your customer and your storeowners who challenged you with this assignment.