Marks_and_Spencer

Fashion Industry Introduction The aim of this report is to define the role of the fashion buyer, within the fashion industry, and to look at the importance of this role. I will also be identifying the PEST factors effecting Fashion Buyers, and analysing the effects these have. Role of Fashion Buyer A fashion buyer is someone who pre-determines your wardrobe. A fashion buyer will work for department stores, retail chains, independently owned stores and whole sale distributions. They use their knowledge of past fashion sales, stay well informed about present fashion sales and predict future fashion sales in order to provide a selection of clothing in a variety of sizes and price ranges to suit each particular consumer market needs. Ref: Independent, 2005, Fashion Buyer Careers, http://www.independent.co.uk/student/career-planning/getting-job/fashion-buyer-careers-long-climb-to-the-paris-catwalk-517593.html, 10/01/09 Fashion buyers are also responsible for selecting merchandise, planning the long-term buying strategy and negotiating contractual terms with suppliers (for example the price, delivery date, specific merchandise requirements. Fashion buyers use the buying cycle to ensure they meet their deadlines and timings. Their calendar is split up into two sections Autumn/Winter and Spring/Summer. PEST Factors Political factors include areas such as tax policy, employment laws, environmental regulations, trade restrictions and tariffs and political stability. Economic factors are economic growth, interest rates, exchange rates and inflation rate. Social factors often look at the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Technological factors include ecological and environmental aspects and can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Technological factors look at elements such as R&D activity, automation, technology incentives and the rate of technological change • Ref: Quick MBA, 2007, PEST Analysis, http://www.quickmba.com/strategy/pest/, 10/01/09 Economic Factors Economic factors have huge impacts on the role of fashion buyers. The current economic problem is the credit crunch. The credit crunch is causing many people to loose their jobs, or have money problems. Consumer spending confidence index, surveyed 14,000 adults about their spending habits. This showed a sequential decline in consumer spending. The November index declined to 93.4 from 96.5 in October, as consumers felt less confident about the economy and their personal finances. Meanwhile, 46 percent of those surveyed said they felt their finances were worsening. Ref: Econ brief, 2007, Consumer Spending Down In November, http://us-recession-2007.blogspot.com/2007/12/consumer-spending-down-in-november.html, 10/01/09 Consumers are growing increasingly concerned about the state of the economy and how to adjust their finances. Therefore consumers have less disposable income to spend on luxury items such as new clothing. Fashion buyers have to take this into consideration when buying. They need to plan ahead, to ensure that the clothing they buy is what the consumers want, and at they price they want it too, as currently customers are not willing to spend huge amounts of money on clothing. They are going to have to tighten their budgets and ensure they get the best quality for the best price. They also need to ensure that they get the correct stock quantity, as retailers do not want left over stock in their stores/shops which they cannot sale, consumers are spending and buying less, the buyers cannot afford to have left over stock. Social Factors Social factors are issues such as consumer trends and demands. Fashion buyers have to know and understand the future fashion trends. To be able to buy stock that is going to be fashionable and sell. Knowing the future trends is very important to the buyers as it gives them knowledge of what fabrics, garments and accessories to buy. They need to know what is going to be in fashion and what’s not. Fashion buyers learn this knowledge buy going to the latest catwalk shows and predicting the future trends. Buyers also need to know what is socially accepted and what isn't. For example a huge number of consumers are becoming more eco-friendly shoppers. Therefore refusing to buy clothes made from sweatshops, or using chemicals that harm the earth. Therefore buyers need to take these factors into account when buying goods. Another factor maybe religion, for example Muslim women prefer to cover up their bodies, and do not wear revealing clothes. Therefore it would be very inappropriate to sell very revealing/sexy clothing in a very strict Muslim country such as Saudi Arabia. Political Factors Political factors look at employment laws and tax policies. Political factors effecting fashion buyers, are the buying of products from less economically developing countries. A lot of goods bought from less economically developed countries, such as India, have been made in sweatshops, and using child labour. A sweatshop is a working environment with very difficult or dangerous conditions, usually where the workers have very few rights. This can include exposure to harmful materials, hazardous situations, extreme temperatures, or abuse from employers. Sweatshop workers are often forced to work long hours for little or no pay, regardless of any laws mandating overtime pay or a minimum wage. Although consumers are wanting to spend less for there products, you have to ask yourself is this product ethically right. The conditions for the people working in the sweatshops are ethically wrong. Consumers are also becoming more aware of these issues and therefore refusing to buy products made in those conditions. This is a factor fashion buyers need to take into consideration. Technological Factors The main technological factor which has had the most impact on fashion buyers is the use of the computer and internet. The use of the internet has helped fashion buyers to make contacts all around the world, find and buy cheaper products and enable quick, cheap communication via email. It has also enabled the fashion buyer to have a wider range of customers, the internet is worldwide. By using the internet fashion buyers are able to purchase cheaper products from other parts of the world, this then therefore maximises the profits for retailer. Another technological factor is the use of spreadsheets and databases. This enables buyers to create budgets using spreadsheets. This makes the calculations quicker and easier, it also means less human error mistakes are made, therefore being more reliable. Another way in which buyers can use spreadsheets is to control the level of stock they have, therefore knowing the exact amounts they have and need. This saves a huge amount of time and again means less human errors are made. It also means that buyers do not but too much stock which is not needed, and therefore doesn’t waste money. By using a database system, a fashion buyer is able to keep a computerised collection of all their contacts, making it very easy to find and keeping the document safe if ever a paper based contact was to get lost etc. Conclusion Overall I believe all of the PEST factors have significant effect on the role of a fashion buyer. I believe for a fashion buyer to be successful, they need to ensure that they are well aware of the new fashion trends, and be able to fulfill the needs of their target market. If they cannot do this than then the clothes they buy will not sell and therefore the retailer will not make a profit. The credit crunch is going to make it a very difficult time for all retailers therefore the fashion buyers are going to have to tighten their budgets, and ensure they get the cheapest deal possible. Fashion buyers also need to ensure that their products/goods that they buy are ethical. Bibliography Books •        Andrew Neman and Peter Cullen, 2002,  Retailing Environment and Operations •        Dave Hall, 2004, Business Studies Third Edition, Causeway Press Limited, Lancashire •        Frances Brassington and Stephen Pettitt, 2004, Principles of marketing, Pitman Publishing, Essex Websites • Econ brief, 2007, Consumer Spending Down In November, http://us-recession-2007.blogspot.com/2007/12/consumer-spending-down-in-november.html, 10/01/09 • Independent, 2005, Fashion Buyer Careers, http://www.independent.co.uk/student/career-planning/getting-job/fashion-buyer-careers-long-climb-to-the-paris-catwalk-517593.html, 10/01/09 • Quick MBA, 2007, PEST Analysis, http://www.quickmba.com/strategy/pest/, 10/01/09