The Buying Cycle for Brides de Gala

BUYING PROCESS FOR BRIDES DE GALA
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Table of Contents 1.0      Abstract 3 2.0 Introduction. 4 3.0 Strategy. 4 3.1 Current Trends. 4 3.2 Trend Inspiration. 4 3.3 Customer Profile. 6 3.4 Competitor Activity. 7 3.5 Price Architecture. 7 4.0 Design Development 8 4.1 Designer’s Role. 8 4.2 Design Process. 9 5.0 Range Build. 9 6.0 Selection. 10 7.0 Order Placement 10 8.0 Critical Path Management 11 9.0 Production. 12 9.1 Sampling. 12 9.2 Quality Control 12 10.0 Delivery. 13 11.0 Launch. 14 12.0 The Future of Fashion Retail and Sourcing. 16 12.1 Future Trends. 16 12.2 Sourcing. 17 13.0 Final Analysis. 17 14.0 Conclusion. 18
1 Abstract
This report examines the application of the buying cycle to the production of an embroidered coat for the Hermes UK store. The report explores the various stages of the buying cycle, including product selection, order placement, production, quality control, delivery, and launch. The report also considers the potential challenges and areas for improvement in the buying process, such as communication between stakeholders, accurate record-keeping, and efficient delivery. Through this analysis, the report provides insights into the complexities of producing high-quality luxury fashion items and offers recommendations for optimizing the buying cycle for future production cycles.
Figure 1: "Brides de Gala" Embroidered Coat (Hermes, 2023).
2.0 Introduction
The fashion industry is a highly competitive and dynamic market where retailers such as Hermes must continuously strategize and innovate to stay ahead of their competitors. One of the key factors to their success is their ability to deliver the right product, at the right time, and the right price. To achieve this, fashion retailers follow a logical cycle known as the buying cycle, which is composed of nine critical steps. In this report, we will analyze and evaluate the product "Brides De Gala embroidered coat" offered by the Hermes UK store, and the retailer's effectiveness in executing each of the nine steps of the buying cycle. By evaluating the product and the retailer's strategies, we will provide insights into the effectiveness of their supply chain and identify potential areas for improvement. Through this analysis, we aim to provide a comprehensive assessment of the Hermes UK store's performance and its ability to remain competitive in the fast-paced fashion industry.
3.0 Strategy
3.1 Current Trends
The Coats and Jacket segment remains one of the biggest fashion segments that is expected to continue expanding with time. Statistica (2023) values the United Kingdom’s coats and jackets segment to be worth £2.44 billion in 2023 and expected it to continue growing by an average of 1.51 percent for the next five years.
For the Brides De Gala embroidered coat, the designers must review current trends for coats to ensure that the product aligns with the current fashion trends and customer demand. Embroidery is a timeless trend that has been used in fashion for centuries. Adams (2022) observes that there has been a significant resurgence in the use of embroidery in the fashion world among high-end designers as well as an increased embrace of the trend by celebrities. Embroidered coats remain one of the indispensable elements of fashion retailers.
3.2 Trend Inspiration
The inspiration for the Brides De Gala embroidered coat's design was drawn from the Chaîne d'Ancre motif, which was first introduced by Robert Dumas in 1938. The Chaîne d'Ancre motif is a pattern inspired by the anchor chain, which has become a best-seller for Hermes products. By combining the motif with embroidery, the designers have created a timeless product that reflects the brand's heritage while also staying on-trend.
The trend for monochrome colors has been prevalent in the fashion industry for some time. The Brides De Gala embroidered coat's color options of black and silver (noir) and beige and orange (Beige tatami) align with this trend, as both color options are neutral and can easily be paired with a variety of other colors. Additionally, the use of monochrome colors is timeless and classic, making it a smart choice for a product that aims to be timeless.
Figure 2: Color and size choices (Hermes, 2023)
The graphic or pattern trend for the Brides De Gala embroidered coat is also significant. The Chaîne d'Ancre motif is a recognizable and iconic pattern that has been associated with Hermes products for many years. By incorporating the motif into the coat's design, the designers have created a product that is instantly recognizable as a Hermes item. Additionally, the use of the motif in embroidery adds a unique and modern twist to the classic pattern.
Figure 3: Chaine d'Ancre motif on the coats (Hermes, 2023)
Finally, the fabric trend for the Brides De Gala embroidered coat is a blend of cashmere and cotton jacquard knit with a "Chaine d'Ancre" motif (63% cashmere, 35% cotton, 2% polyamide). The use of high-quality materials such as cashmere and cotton adds to the product's luxurious feel, while the jacquard knit technique adds texture and depth to the fabric.
3.3 Customer Profile
The Brides de Gala embroidered coat is a high-end luxury product with a price tag of 4,010 pounds, which makes it a premium purchase. The coat is sold in Hermes stores, which are known for their luxury and exclusivity. The target market for the Brides de Gala embroidered coat is a woman with a high-income level, aged between 25 to 60 years old. She is financially stable and values luxury, quality, and exclusivity. In terms of lifestyle, the target customer is likely to be someone who leads a high-end lifestyle and attends formal events regularly. She might be a working professional or someone who is part of the upper-class social circle. She enjoys dressing up and making a statement with her fashion choices.
Figure 4: Customer profile
Further, the target customer is likely to be someone who appreciates classic and timeless designs, as well as unique and modern twists on classic designs. She values high-quality materials and is willing to invest in pieces that she can wear for many years. Also, the target customer is likely to prefer shopping in high-end stores and is willing to pay a premium for exclusive products. She enjoys the shopping experience and appreciates the personal attention and service that luxury retailers offer.
3.4 Competitor Activity
The coats closely compete with other embroidered coats from competitors such as Gucci, Ralph Lauren, and Zara. Zara has the least expensive embroidered coat, with Gucci and Ralph Lauren offering the most expensive embroidered coats.
3.5 Price Architecture
Hermes is known for its high price points and exclusive image, and the price architecture of the Brides de Gala embroidered coat is consistent with this brand image. The price of the coat is based on a few factors such as the cost of materials, manufacturing, and distribution, as well as the perceived value of the product to the target market. The Brides de Gala embroidered coat is priced higher than many other coats on the market due to its luxury status, exclusive design, and high-quality materials. This high price point also helps to maintain the brand's exclusivity and appeal to the target market of affluent, fashion-conscious customers who are willing to pay a premium for high-end fashion products.
4.0 Design Development
4.1 Designer’s Role
The design team should remain informed about the latest fashion trends and ensure that the products being developed are in line with the current market demand. In the case of the Brides de Gala embroidered coat, the resurgence of embroidery in fashion is a trend that the buyer would have needed to be aware of during the design development phase. To remain informed about this trend, the design team may have attended fashion shows or watched digital fashion shows online to see what designs and styles are currently popular in the market.
Figure 5: Fashion show
4.2 Design Process
The design process for the Brides de Gala embroidered coat started with the theme for the year, which was "Lighthearted!". The designers were tasked with using this theme to create their designs. They took inspiration from an imaginary ocean world where every creature is alive and used vivid colors to bring this world to life. The design team, led by Hugo Grygkar, then worked on sketching out their ideas for the coat. They refined the design and selected exceptional materials, including cashmere and cotton jacquard knit, to bring the coat to life.
Collaborations with designers are an important part of Hermès' creative process, and the company's artistic directors, artisans, designers, and engineers all worked together to bring the coat to fruition. The design process involved creating a mock-up of the coat to ensure that it met the company's standards for exclusivity, quality, and pricing. Once the prototype was perfected, the coat was ready to be manufactured and brought to market.
Throughout the design process, the team works closely together, communicating and collaborating to ensure that the final product is in line with the brand's vision and meets the needs and expectations of the target market. This attention to detail and commitment to quality is a hallmark of Hermès' design process and is reflected in the final product, the Brides de Gala embroidered coat.
5.0 Range Build
The range build process for the Hermes Brides de Gala embroidered coat starts with the designer creating a prototype of the coat based on the theme given for the year, which in this case is "Lighthearted!". The prototype is then presented to the Hermes range build team, who ensure that it meets the brand's image in terms of exclusivity, quality, and pricing. The team also takes into consideration the previous bestsellers and the feedback from store managers.
Once the prototype is approved, the coat is added to the collection and made available to store managers for their store collections. These managers have the freedom to purchase coats to meet the specific needs of their customers. Twice a year, during the Podium event, 1,000 store representatives from global stores come to Paris to pick at least one item from product categories beyond the common ones. This process ensures that the coat is available in all flagship stores and meets the demands of customers worldwide.
Overall, the range-build process for the Hermes Brides de Gala embroidered coat involves a collaborative effort between the designer, the range-build team, and store managers to ensure that the coat meets the brand's image and is available to customers worldwide.
6.0 Selection
Selection is a critical stage in the buying process of the Hermes Brides de Gala embroidered coat. The designer responsible for the collection should provide the exact sample of the coat for selection. The designer also must ensure that the coat meets the brand's quality standards and is within the desired price range. On the other hand, the store manager is responsible for selecting the color to be stocked in their store, which can be a risky decision as the product is limited.
During the Podium event, store representatives from global stores come to Paris to select products for their stores (Roll 2020). In the case of the Brides de Gala embroidered coat, the store managers have to carefully consider the color they choose as the product is limited. Choosing the wrong color could result in the coat not selling well in their store, resulting in lost revenue. However, if the store manager chooses the right color, it could result in significant rewards for the store, as the product is exclusive to Hermes and highly sought after. Additionally, if the store manager manages to secure a significant amount of the product, it can result in increased foot traffic to their store and help build a loyal customer base.
In summary, the selection process for the Brides de Gala embroidered coat involves significant risks and rewards for both the designer and store managers. While the limited nature of the product can make it a risky decision for store managers to select a specific color, the exclusivity and high demand for the product can result in significant rewards for the store if the right decision is made.
7.0 Order Placement
Order placement is a crucial step in the buying process for the Brides de Gala embroidered coat. It involves the actual placement of orders for the product based on the decisions made during the selection process. At this stage, the store managers will create a purchase order sheet that contains all the necessary details about the order. The purchase order sheet will typically include the product name, the quantity ordered, the delivery date, the unit price, and the total cost. It will also include details about the payment terms, shipping instructions, and any other special requirements.
It is important to ensure that all the details on the purchase order sheet are accurate. This includes the product description, quantity, price, and delivery date. Any mistakes in the purchase order can result in delays or errors in the delivery of the product. Once the purchase order sheet is completed and reviewed for accuracy, it is sent to the supplier. The supplier will then use the information on the purchase order sheet to prepare and deliver the product.
8.0 Critical Path Management
Critical path management is an essential element of the buying process for the embroidered coat, as it helps to ensure that the product...