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MANAGEMENT AND
MARKETING OF TEXTILES
UNIT TUTOR:
Johanna Bergvall-Forsberg
The University of Manchester, UK
[email protected]
COURSE OUTLINE
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Introduction
Strategic Management
Operations Management
Marketing
The Fashion Operation
Exam
LEARNING OUTCOMES
…to understand the strategic role of the textile
manufacturing operation
…to understand the importance of marketing in
managing a fashion operation
…to recognise the importance of added value
to the textile and clothing industry
MANAGEMENT AND
MARKETING OF TEXTILES
Interpretation of
Expectations
Strategic
Decision
Product
and/or Service
Specification
Marketing
Operations
Expectations
Product
and/or Service
Customer
A CUSTOMER
DRIVEN OPERATION
“The process starts with the customer
(customer needs and use situations) and ends with
the customer (the customer’s level of satisfaction).”
(Walters, 1999)
Customer
Needs
Value
Drivers
Customer
Use
Situation
Desired
Benefits
Value
Creation
Cost of
Purchase
Customer
Satisfaction
VALUE CREATION
“A value strategy involves identifying, producing
and delivering the combination of price and
non-price related benefits the customer is
seeking.”
(Walters, 1999)
“Our premise is that buyers will buy from the firm
that they perceive to offer the highest delivered
value.”
(Kotler, 1997)
THE TEXTILE AND
CLOTHING SUPPLY CHAIN
FINDINGS SECTOR
CLOTHING SECTOR
Clothing Findings
Production
Cutting
RETAIL
SECTOR
Sewing
Garment
Finishing
FIBER SECTOR
TEXTILE SECTOR
Natural
Fibre
Weaving
Yarn
Production
Man-made
Fibre
Fabric
Finishing
Knitting
Retail
Sales
MERCHANDISE
CHARACTERISTICS
Functional Products
Innovative Products
• Low demand uncertainties
• High demand uncertainties
• More predictable demand
• Difficult to forecast
• Stable demand
• Variable demand
• Long product lifecycle
• Short selling season
• Low inventory cost
• High inventory cost
• Low profit margins
• High profit margins
• Low product variety
• High product variety
• Higher volume per SKU
• Lower volume per SKU
• Low stock out cost
• High stock out cost
• Low obsolescence
• High obsolescence
(Fisher, 1997)
FUNCTIONAL- PREDICTABLE
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
Product life cycle - more than 2 years
Contribution to overheads - 5 to 20 %
Product variety - low
Forecasting error - 10%
Mean stockout rate - 1 to 2%
End of sale mark down – not relevant
INNOVATIVE - UNPREDICTABLE






Product life cycle – 3 to 12 months
Contribution to overheads - 20 to 60 %
Product variety - high
Forecasting error – 40 to 100%
Mean stockout rate - 10 to 40%
End of sale mark down – 10 to 25%
THE TEXTILE AND
CLOTHING INDUSTRY


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New market entrants
Changes in consumer demand
Shortened product lifecycles
Globalisation of supply
“In these short life-cycle markets, being able to spot
trends quickly and to translate them into products in
the shop in the shortest possible time has become
pre-requisite for success”
(Christopher et al., 2004)
THE FASHION
MERCHANDISE RANGE

Basic Products


Seasonal Products


generally sold throughout the year
shelf life of 12-25 weeks
Short-Season Products

shelf life of 6-10 weeks or less
(Lowson, 2003)
COMPETITIVE
REQUIREMETNS
DIFFERENTIATION
Stuck in
the middle
COST
LEADERSHIP
FOCUS
(added value)
Source: Porter’s generic routes to competitive advantage