Graduation Research Project

"Category Performance Analysis fordevelopment of Option Plan for SS18"

For JACK & JONES

SUBMITTED BY

Neha KadamMFM/15/12

Under the Supervision of

Mr. Yashwant Misale Assistant Professor

IN PARTIAL FULFILLMENT OF THE POST GRADUATE DEGREE "MASTEROF FASHION MANAGEMENT"

Submitted to

Department of Fashion ManagementStudies (FMS)

National Institute of Fashion Technology(NIFT)

Plot no. 15, Sector 4, Kharghar, NaviMumbai, Maharashtra, PIN- 410210

Ph. 022 2774 7100, Fax: 022 27745386

Web: www.nift.ac.inMay, 2017

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DECLARATION

I Ms. Neha Kadam, hereby declare that the Graduation Research Project (GRP) entitled "Category Performance Analysis for development of Option Plan for SS18" is the result of my own research work carried out by me during the period from 9th January 2017 to 21st April 2017 except as cited in the references. This reporthas not been submitted to any other University or Institution for award of any degree/diploma etc.

Signature Name of the Student: Neha Kadam Date: 18 May 2017

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CERTIFICATE

This is to certify that Ms. Neha Kadam of National Institute of FashionTechnology (NIFT), Mumbai has successfully completed his/her GRPwork titled "Category Performance Analysis for development ofOption plan for SS18" in partial fulfillment of requirement for thecompletion of 2 Years Post Graduate Programme "Master of FashionManagement (MFM)" as prescribed by the Department of FashionManagement Studies (FMS), National Institute of Fashion Technology.

This 'Graduation Research Project' report is the record of authenticwork carried out by him/her during the period from 9th January 2017to 21st April 2017 under my mentorship.

Mr. Yashwant Misale

Assistant Professor

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ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep regards to my industry mentor Mr. Amith Reddy (Retail Planner, Jack & Jones) for his exemplary guidance, monitoring and constant encouragement throughout the course of my internship at Bestsellers India for Jack & Jones. I also take this opportunity to express a deep sense of gratitude to the entire team of Jack & Jones for their valuable support and guidance during my internship.

I would like to thank my faculty mentor Mr. Yashwant Misale (Assistant Professor, Department of Fashion Management Studies, National Institute of Fashion Technology, Mumbai) for his support andguidance.

Finally I extend my gratitude to National Institute of Fashion Technology for giving me this opportunity.

Neha Kadam

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RECOMMENDATION

The Research scholar Ms. Neha Kadam presented the salient features of his/her GRPwork. This was followed by questions from the External Jury members. Thequestions raised by the Jury Examiners were also put to the scholar. The scholaranswered the questions to the full satisfaction of the jury members.

Based on the scholar’s research work, his/her presentation and also theclarifications and answers by the scholar to the questions, the board recommendsthat Ms. Neha Kadam be awarded the Master Degree in "Master of FashionManagement (MFM)"

1. (Name of the Jury Member with Signature)

2. (Name of the Jury Member with Signature)

3. (Name of the Jury Member with Signature)

4. (Name of the Jury Member with Signature)

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INDEX

1. COVER PAGE ...1

2. DECLARATION ...2

3. CERTIFICATE ...3

4. LETTER OF COMPLETION ...4

5. ACKNOWLEDGEMENT ...5

6. RECOMMENDATION ...6

7. INDEX ...7-8

8. EXECUTIVE SUMMARY

...9

8.1. RESEARCH OBJECTIVE

8.2. RESEARCH METHODOLOGY

9. THE COMPANY - BESTSELLER ...10 - 18

9.1. GENERAL OVERVIEW

9.2. ORGANISATIONAL STRUCTURE

9.3. SWOT ANALYSIS

9.4. PEST ANALYSIS

10. JACK & JONES - THE BRAND ...19 - 30

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10.1 GENERAL OVERVIEW

10.2. THE DEPARTMENT & PROCESSES

11. CATEGORY ANALYSIS & STUDY ...31 - 43

11.1 SHIRTS - THE CATEGORY

11.2 OPTION PLAN

11.3. ATTRIBUTE PERFORMANCE ANALYSIS

11.4. IN DEPTH OPTION ANALYSIS AND COMPARISON

11.5 A COMPARISON OF ATTRIBUTE WISE CONTRIBUTION & SELL THROUGH

11.6 MAJOR FINDINGS

12. STORE VISITS & PERSONAL INTERVIEWS - STUDY & OUTCOMES ...44

12.1 INFERENCES & RECOMMENDATIONS

13. TREND FORECASTING ...45-49

13.1. FASHION FORECASTING

13.2. THE TRENDS

14. RECOMMENDATIONS & LEARNING OUTCOME ...50

15. SUGGESTED OPTION PLAN ...51

16. BIBLIOGRAPHY ...52

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8. EXECUTIVE SUMMARY

This project is aimed at performing a thorough study of Shirts category by analyzing the behavior and performance of the Shirts category for SS17 Season (Mid Season). The objective of this being recommendations for Option Plan for SS18. A trend analysis has also been done to support the recommendations. The brand is operated and marketed by Bestsellers Ltd.,in the mid premium segment.

The study was initialized with analysis of the Shirts category performance in Season (14 weeks). The reports taken into consideration were the Season Sell through Report. Analysis of reports was accompanied by weekly visit to stores and market place to interact with customers and observe their buying behavior and conduct Personal Interviews with the Store Managers.

Lastly, trend analysis was done so as to support the quantitative suggestions.

8. 1 Objective

The objective of the project is

Carry out analysis on the performance of Shirts category Identify the gaps/strengths of various options offered in the category

for the SS17 season (Mid Season) Provide recommendations for the option Plan for SS18 backed by

Trend analysis Develop an option plan for SS18

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8.2.Research Methodology

To study this, the following methods were used:

• Analysis of Season Sell through Reports • Weekly Store Visits and Personal Interviews with Store Managers• Trend Analysis by referring to forecasts by WGSN

9. Bestseller - The company

9.1.General Overview

BESTSELLER is a privately held, family-owned clothing and accessories

company founded in Ringkobing, Denmark in 1975 by Merete BechPovlsen

and TroelsHolchPovlsen. They provide fast affordable fashion for women,

men, teenagers and children. Their products are available online, in branded

chain stores, in multi brand as well as in department stores.

(www.bestseller.com)

Their Global CEO and owner is Anders HolchPovlsen, son of Bestseller’s

founders Merete BechPovlsen and TroelsHolchPovlsen.

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Their global head office is in Brande, Denmark. In India, their head office is in

Andheri, Mumbai.

VISION

One World, One Philosophy, One Family is the symbol of the company

culture in Bestseller.

One World: The Company is built upon fairness, opportunities and a sense

of responsibility towards our surroundings. We believe that cultural

differences are an advantage promoting quality, good results and strong

values. Our world may be large but we strive to create nearness despite

distance.

One Philosophy: We make Bestseller’s 10 basic principles come alive. They

define our values and are reflected in the way we interact with the world

around us. We base all relations on trust, respect and honesty. Our basic

principles guide our actions and determine how we do business.

One Family: The feeling of being part of a family unites our organisation

across borders, brands and departments. We help our colleagues and are

proud of them when they succeed. We take pride in the good examples we

set for one another. We treat all people as individuals but we think and act as

a team.

MARKETS

Bestseller markets its products in 70 markets across most of Europe, the Middle

East, Canada and India and globally via e-commerce. They have more than 3000

branded chain stores across 38 markets worldwide and its products are sold in

approx. 15,000 multi-brand and department stores.

The largest markets for them are China, Norway, Germany, The Netherlands,

Sweden and Spain.

EBOs in 38 markets | SIS in 53 markets (*EBO: Exclusive Brand Outlet | SIS: Shop In

Shop)

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HISTORY

YEAR LAUNCHED1975 Started in Ringkobing1979 Wholesale1987 Vero Moda in Fredskovvej1990 Jack & Jones in Sweden1995 ONLY launched &Anders H. Povlsen became the CEO,

Bestseller1997 Selected2003 Pieces2006 Bestseller makes its foray into the e-commerce space2008 Bestseller starts operations in INDIA2017 Junarose

BRANDS UNDER BESTSELLER

Figure 2: (http://bestseller.com/?forcecountry=GB&redirected=1)

Jack & Jones, Only, Vero Moda and Selected are the few brands out of the lot

to be available in India.

Junarose is coming to India soon.

FOOTPRINT IN INDIA

In such a short span, Bestseller has grown tremendously in numbers and

geographically. They are now present in over 57 Indian cities in both EBOs

and shop-in-shops. The national partners for shop-in-shops are Shoppers

Stop, Lifestyle and Central.

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Country Head – Vineet Gautam

CPO - Ashish Kumar

Planning – Shoeb Khan

Imports&Exports – Manoharan Nayyar

BD – Sunit Suneja

Projects – Santosh Dubey

IT – Rajan Sharma

Sales & Op - Mrityunjai

BH (ONLY) - Sugam

BH (J&J) - Aditya

BH (Vero Moda) - Purva

Marketing - Aarti

CFO – Pratap Swaroop

They forayed in the online market in 2013 and within 2 years they are in that

top market as well. Their partners are Jabong, Snapdeal, Patym, Amazon,

Myntra, Flipkart, Abof and Limeroad.

9.2. ORGANISATIONAL STRUCTURE

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Organizational structure is a system used to define a hierarchy within

an organization. It identifies each job, its function and where it reports to

within the organization.

Bestseller shares a Line and staff Organisational structure. Line structure is

the one that has direct vertical relationships between different levels in the

firm. On the other hand, staff structure is the one on the basis of expertise

for a particular job. A combination of both, the line and Staff is the one that

Bestseller follows. These organisations have direct, vertical relationships

between different levels and also specialists responsible for advising and

assisting line managers. Staff departments provide line people with advice

and assistance inspecialized areas (for example, quality control advising

production department).

The Country head of Bestseller is Mr. Vineet Gautam. A Country Manager

works to represent a company in a foreign country. A Country Manager’s job

involves working to manage operations, develop business and increase

profitability for a company in a specific region or country. Within corporate

relocations and international removals, a Country Manager needs to have

specialist skills and knowledge relating to his sector. Under his umbrella are

the chief/heads of various departments and brands in the company. These

heads are responsible for growth and proper operations in their department

and to maintain a synchronisation between organisational and departmental

goals.

SOCIAL RESPONSIBILITY

Social responsibility is something that comes from within the spirit of the

company. If we are able to help others, then we have an obligation to do so.

It is about having the extra surplus of both energy and resources to help

other people.

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Established in 2015, BESTSELLER FOUNDATION is a private

philanthropic foundation that provides projects and businesses with

tools, skills and financial opportunities that enable them to improve the

lives of less privileged communities in Southern & Eastern Africa, China

and India. The foundation invests in projects and businesses that

contribute to sustainable economic and environmental development

through the following focus areas:i. Agriculture & Food Productionii. Jobs & Entrepreneurshipiii. Environmental & Nature Conservation

The foundation serves as a means to give something back to some of

the poorest and most vulnerablepeople on the planet.

Bestseller has also established THE WILDLAND ORGANISATION- an

organisation that works to preserve and regenerate nature and its wild

beauty. The first project is called ‘Leaota’ which is a wilderness situated

in the Carpathians, Romania. ((www.bestseller.com)

SUSTAINABILITY STRATEGY

Figure 6: (http://about.bestseller.com/en/SustainabilityContent/Sustainability-Strategy.aspx)

In autumn 2013, BESTSELLER adopted a new strategy called ’20 by 20’

which will guide our sustainability work towards the year 2020.

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The aim is that our sustainability work will bring us among the best in the

industry. We want to make it easier for our customers to choose products

manufactured with less impact on the environment, and we want our

colleagues throughout the whole company to take part in the sustainability

work. Our aim is to even higher degree, to integrate sustainability into the

way we run our business and hereby prove how sustainability contributes to

the business.

We have formulated four broad goals which will be indicators for our

sustainability work:

Supply Chain management Workers Communities Products Environmental & Chemicals(www.bestseller.com)

9.3. SWOT Analysis of BESTSELLER

STRENGTHS

1. Bestseller is a huge company with different brands under them which

caters to different audience.

There are 21 brands under BESTSELLER which caters to different audience

like Men’s, Women’s and Kids of different age groups. Like Vero Moda,

Only caters to women’s wear, Jack & Jones, Selected caters to men’s

wear, Junarose, little pieces caters to kids wear, mamalicious caters to

maternity wear.

2. Strong brand equity and are available through thousands of outlets all

over the world like in all over the Europe, Asia etc.3. Strong distribution & sales network4. Strong marketing. Different campaigns like Trendy Vero Moda, Denimize

the World for Only.

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WEAKNESSES

1. Brand presence is not strong in tier-2 & 3 cities because the share or

volume of stores is more in metropolitan cities so they contribute more to

the business.More number of stores are present in metropolitan cities as compared to

tier-2 & 3 cities.

OPPORTUNITIES

1. Growing Indian markets like in tier-2 & 3 cities.2. Brand loyal customers end up buying here3. New markets, globally as well4. Online sales of all three brands.

Various websites like Jabong, Myntra, Snapdeal, Flipkart, Limeroad,

Abofetc are our partners where we working well.

THREATS

1. Strong competition for all brands like Levi’s, Tommy for JJ and Forever21,

H&M, Zara for VM & ON.

Figure 8: (Source : Author)

2. Product substitutions and cheaper imitations3. Consumer taste changes quickly4. Different seasons in India & Denmark in AW. (Source: Author)

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9.4. PEST Analysis

POLITICAL

Foreign direct investment (FDI) regulation:

A majority of global brands consider wholly owned subsidiaries or joint

ventures as their preferred medium to enter India after the government

relaxed foreign investment norms early last year to allow up to 100 per cent

FDI. In the last few years as the foreign direct investment rules are begin

softened in particular with regard to the more flexibility in the 30 per cent

domestic sourcing and clarification on brand ownership norms, there is an

increasing preference for international companies to enter the Indian market

with some form of ownership.

Now, Bestseller as a company is dividing into six:

VeroModa Retail Pvt. Ltd. for brand VeroModa, Only Retail Pvt. Ltd. for brand

Only and Best united comfort Retail Pvt. Ltd. for brand Jack&Jones whereas

Selected will run under Bestseller FashionPvt. Ltd. Bestseller Retail Pvt. Ltd.

will take care of the MBO’s and Bestseller Wholesale Pvt. Ltd. will look after

SIS’s.

ECONOMICAL

Increase in disposable income directly resulting in increased sales.

SOCIAL

1. Brand consciousness - People are becoming more brand conscious

nowadays and want to show off by wearing branded and expensive

clothes instead of shopping from local markets.2. Social cultural adapted by Indians - International brands operating in

India also face a market with cultural complexity.

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3. Well-travelled, Educated and Aware Consumers - The consumer in

India is extremely value conscious; they are now well travelled and

educated and therefore are aware of what is available in the western

world. People travelling abroad increased nearly 10.8 billion in 2012 and

they are getting more aware of International brands and now consumer is

getting more of brand conscious and people are spending in premium and

luxury product more.

TECHNOLOGICAL

The new opportunities to expand on the Internet through online and now

even sales by Smartphone have allowed all four brands in India yet another

channel to market. All the brands are selling through different e-com portals

like Jabong, Myntra, Flipkart, Snapdeal, Limeroad, Abof and Paytm. (Source:

Author)

10. JACK & JONES - THE BRAND

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Figure 3: (http://www.jackjones.in/)

10.1 General Overview

The story of JACK & JONES begins in 1990 when BESTSELLER sends a young,

fiery soul to the Oslo fashion fair with a modest, but carefully chosen

collection aimed at young men. The reception exceeds all expectations and

the creation of a new menswear brand is a reality. In the following years JACK 

& JONES manifests itself as one of the strongest jeans brands on the market

and within a few years, the brand has several hundred stores. Today, JACK & 

JONES is one of Europe’s leading producers of menswear with more than one

thousand stores in 38 countries and JACK & JONES clothes are sold by

thousands of wholesale partners all over the world. Jeans are still regarded

as the backbone of JACK & JONES’ business. We continue to have a high level

of expertise when it comes to the craftsmanship, quality and design of jeans.

The three values for JACK & JONES are:

Men’s comfort zone Value for money Top 10 trends

JACK & JONES are now defined and represented by five unique brands:

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JACK & JONES VINTAGE

PREMIUM BY JACK & JONES

ORIGINALS BY JACK & JONES

CORE BY JACK & JONES

JACK & JONES TECH

It was globally established in the year 1990. It came to India in August 2008. As on date, they have more than 71 EBOs, 238 SIS and 10 Online Partners.

The product categories under Jack & Jones are:

OUTERWEAR PANTS SHOES ACCESSORIESJackets Chinos Sneakers ScarvesLeather Jackets Tailored Trousers Boots TiesDenim Jackets Shorts Dress Shoes CapsTOPS KNITS &

SWEATS

UNDERWEAR Belts

T- shirts Jumpers Tees & vestsLong sleeve t-

shirts

Cardigans Underwear

Polo Shirts SWEATSHIRTS SocksJEANS SPORTSWEARSkinny SHIRTS T-shirtsSlim Casual SweatshirtsRegular Formal Bottom

10.2. The Department

Jack & Jones functions through various departments. It is the efficient

functioning of every department that makes the brand successful. All the

departments with their major functions and roles are explained below:

Planning

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The planning department is the one that decides upon the quantities of

merchandise to be purchased in each category against the budget for a

given season. Planning helps an organization chart a course for the

achievement of its goals. The process begins with reviewing the current

operations of the organization and identifying what needs to be improved

operationally in the upcoming year. From there, planning involves envisioning

the results the organization wants to achieve, and determining the steps

necessary to arrive at the intended destination-success, whether that is

measured in financial terms, or goals that include being the highest-rated

organization in customer satisfaction. The planning department performs a

set of functions:

The planners decide upon the Contribution Mix of the brand.The sheet helps

in finding out the no of styles to be purchased for the next season. The

planners also study the past sales reports to come up with the Open to buy

quantity. An open-to-buy plan is a retail inventory management tool that

helps you figure out how much inventory you need to buy on a monthly basis

to make your sales projections. It's a guide for the amount of money the

brand has to spend on merchandise, and constantly flexes based on how

business is doing.

All the stores in Bestseller are segregated into clusters ranging from A – best

performing to D – Worst performing. Based on the sales generated by every

store, the planners put the stores into respective clusters and then setting

individual sales target for the stores accordingly.

Not only this, the planners give out the final order quantity to be purchased

to the sourcing team with the deadline and the sourcing team places an

order accordingly. The planners keep a close check on the allocations been

made to the cluster wise stores so as to check whether the allocated qty is

enough for them to achieve the targets set. A summary of Z-stock is

maintained by the planners with respect to the stock lying n the warehouse

for further allocation. The planners are responsible for calculating Sell

Through for EBO’S, SIS & ONLINE on weekly basis to keep a track of no. of

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units sold for every style to be presented to the brand head in weekly review

meet.

Buying

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. His

job is to analyze consumer buying patterns and predicting future trends.

Regular review of performance, such as sales and discount levels helps them

in predicting future trends and reacting to the changes in consumer demand.

Buyers also have to attend trade fair in India as well as overseas to select

and assemble new collection which is then presented to other departments.

They are closely linked with the sourcing team for the selection of fabric,

colour, cost etc.

The buying department, also called retail buyers, purchasing managers or

purchasing agents, select and order the apparel that is sold in retail stores.

They maximize a company's profits by making sure that the products on

store shelves appeal to consumers. Theyare responsible for finding the

clothes and accessories that project a store's desired image to consumers.

They analyse consumer buying patterns and predicting future trends. The

buyers have to be reactive to changes in demand so as to be up to date with

changing consumer preferences and tastes. Buyers at Jack & Jones attend

trade fairs in India & overseas, to select and assemble a new collection of

products. This helps them in training and mentoring the designers about the

prevailing trends.

Sourcing

The main function of sourcing team is to source fabric for garment sample

development and for the bulk production. They make sure that the fabric

which they have sourced is of good quality and is within the budget. They

have to negotiate with the supplier regarding the cost and place the order

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with the partner with most trust worthy vendors and suppliers. Once the

sample is selected by the buyer they have to give the approvals to the

suppliers and calculate the delivery period for the decided quantity. They

deal with fabric suppliers for quality related issue, fabric to be reprocessed

and rejected fabrics so the product is developed as per buyer’s requirement.

Some other functions of sourcing teams are to study market trends, analyse

and calculate costs of procurement and suggest methods to decrease

expenditure, negotiation with the suppliers, estimate risks and apply risk

minimizing techniques, giving out approvals to the suppliers for the samples

received.

Designing

As a fashion designer, the main task of the design team is to develop and

create various pieces of apparel. The team ought to have a design

background and expertise in apparel designing. The head at Jack & Jones

does her research while others designers in the team depend on trend

reports published by fashion industry trade groups and also keeping a close

watch on competitor’s collection.

The design team keep up to date with emerging fashion trends as well as

general trends relating to fabrics, colours and shapes. They attend frequently

held fashion shows and haute couture collection launch as well as use

software like WGSN to keep a track of what the future entails. Trend reports

help them know what styles, colours and fabrics will be popular for a certain

season in the near future.

It’s not only the apparels that Jack & Jones offers. It also offers a perfect

ensemble of lifestyle. Thus, design team is always working on developing

either a new style or even a complete range. They also undertake styling of

merchandise to obtain a perfect look. They monitor the current fashion

trends and movements with the purpose of designing products that meet

contemporary purchasing preferences.

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The design team works with many other people. The design head is in charge

of supervising the design team, who does most of the actual drawing and

cutting of specific design ideas. In addition to this, the team also works with

the marketing team to determine the best way to present their ideas to the

target customer. Not only this, the team works closely with sales, buying and

production teams on an ongoing basis to ensure the item suits the customer,

market and price points. The reason behind consulting the buying team is

the fact that the members of the buying team are made to attend various

trade shows and fashion shows to know more about market trend in terms of

fabric, trims and styles. The buying team conducts the trend spotting. Hence,

it is wiser for the design team to work closely in sync with the buying

department.

This department understands the design from a technical perspective, i.e.

producing patterns and technical specifications of a design so as to attain

efficiency and effectiveness while producing a style. Technical aspect

includes the fabric properties and functions etc. The design team also assist

the buyers while buying the readymade styles during the buying meet as

they are aware of the technicalities of the fabric and the garment.

Merchandising

Merchandising refers to the process of making goods available to the retail

stores. Merchandising department acts s a link between the manufacturing

unit and the retail. The job of a merchandiser is to co ordinate with the entire

department in the office as well as the customers. The merchandiser is the

one who creates a good relationship in between exporter & buyer.

Merchandising is a specialized management functions within the fashion

industry. It is the business that moves the world fashion from designers

showroom to retail sales floor and in to the hands of consumers. It is the

internal planning that takes place within a retail organization in order

ensures adequate amount of merchandise are on hand to be sold at prices

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that the consumers are willing to pay to ensure a profitable operation. The

merchandisers undertake planning of product ranges and preparing sales

and stock plans in conjunction with buyers. They are aware of the quantities

available and the budget approved. Accordingly they estimate the tentative

sales to be made to achieve the targeted profit. Hence, the merchandisers

work closely with all work groups, be it buyers, designers, stores or

distributors.

The merchandisers maintain a comprehensive library of appropriate data.

From the sell through reports to the Purchase Invoice of different partners,

the merchandisers have it all. They need to have a record of all the details

available of every particular style so as to prepare purchase invoice for

different partners as to keep a track of movement of merchandise from the

warehouse.

The merchandisers produce layout plans for stores. Layout plan include the

no. of items under various categories to be available on floor at a given time

and also the quantity of different product type to be kept as additional stock

during peak season or EOSS or even regular days. One of the major functions

of the merchandiser is to control stock levels based on forecasts for the

season. If the sale forecast for the season is estimated to be high, the

merchandiser makes sure that the sock level is maintained in the warehouse

so as to achieve the targeted sales. A merchandiser analyses every aspect of

the best performing style for a particular season or a story (for example, the

bestselling price points, colours or styles) and ensuring that they reach their

full potential. The bestselling product feature is helpful in making future

buying as the customer preference is known.

The first thing a merchandiser at Jack & Jones does every day is to update

himself regarding competitors' performance. For online merchandisers, they

visit their online partner’s web page to keep a track of their competitor’s

position in the portal.

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A merchandiser is also responsible for monitoring slow sellers and taking

action to reduce prices or set promotions as necessary for the same. They

are in constant touch of the store manager who updates them in regard to

the performance of different styles. These interactions help them in

gathering information on customer’s reactions to products and aid them in

inviting scope for improvement.

The merchandising manager analyses the previous season's sales and

prepares the current report on the current season's lines making financial

presentations to senior managers relating to the overall performance of the

brand for a particular season, category wise. A merchandiser arranges for

meetings with the buyers and manages the distribution of stock by

negotiating cost prices, ordering stock, agreeing timescales and delivery

dates and completing the necessary paperwork.

The Merchandising Department is bifurcated into EBO (Exclusive Brand

Outlet), SIS (Shop in Shops) and Online.

EBO

The Merchandising department has segregated its working into three

heads for convenience and better management of the stock. The

bifurcation is done on the basis of type of outlets. EBO, Exclusive Brand

Outlets are the exclusive stand alone stores that are solely dedicated to a

particular brand. The EBO for Jack & Jones accounts for approximately

60% of the total sales. Thus it is the major outlet for making the products

available to the customers. The EBO merchandising team is given the new

collection prior to the other type of outlets. More merchandise is allocated

by the merchandisers to the EBOs than to any other store type. As the

merchandise move from the warehouse to the EBOs, there are a number

of document prepared. The process of merchandise flow in EBO is as

follows:

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W/O – Work Order Stock Transfer Order (STO) Picking

Post Good Issue (PGI)Way Will PermitStore (EBO)

W

Work Order – It is an order received by Jack & Jones from a respective EBO

requesting for a certain quantity of merchandise category wise separated.

This decision is taken by the EBOs on the basis of the past sales data and

the store location.

Stock Transfer Order – This order in created by the merchandiser against

the quantity requested by the store. The merchandiser analyses the work

order and approves the quantity keeping in mind the merchandise

available for EBOs. If the requested quantity I not acceptable, the

merchandiser makes changes in the W/O and sends it back to the store

for acceptance. The stock transfer order acts as a licence for the

merchandise to be approved for transfer to the store.

Picking & Packing – Once the order is confirmed, the merchandise is

picked up from the bins and packed for delivery to the store.

Post Good Issue –This particular order changes the ownership of the goods

from the company to the EBO. It is the last step involved in outward

movement of the stock from the warehouse. This issue is generated by

the warehouse and contains the tracking ID of the merchandise. This is

done as a safety measure for the stock so that the products don’t get lost

in transit.

Way Will Permit – The Way will permit is a permit generated by the

warehouse in charge granting the transport service to carry the

merchandise out of the warehouse.

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Finally the merchandise reaches the store and the entries in regard to all

the good is made by the store manager in the SAP.

SIS and ONLINE

Shop in Shops or Multi brand outlets are the ones where the merchandise

of different brands are kept under one roof and offered for sale. The floor

space is leased to the brand on the basis of its performance and

contribution to the total sales of the shop in shop.

Online, on the other hand is the web based outlet where the merchandise

is offered for sale over the internet. Jack & Jones has tie-ups with major

online partners in India. The online partners with their percentage of sales

are listed below:

The merchandise flow for SIS and Online are the same. There is a slight

difference in the process from that of the EBO. The difference is in the

documents created to validate the merchandise movement.

W

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Purchase Order (PO)Purchase invoice (PI)W/O – Work Order

Sales Order (SO)PickingPost Good Issue (PGI)

Way Will Permit SIS store /online partner

Purchase Invoice – A purchase invoice is an itemized statement of the

goods or services provided by the merchandiser to the buyer. It indicates

the quantity and price of each product or service provided or to be

provided. In other words, it contains the details of the styles they wish to

offer for sale to online partners and SIS partners. The purchase invoice is

different for different partners.

Purchase Order – A purchase order is the first official offer issued by the

partners to the merchandisers indicating types, quantities, and agreed

prices for the styles they wish to purchase out of those that were offered

to them in the purchase invoice (PI).

Sales Order – Sales order is the confirmation document sent to the

partners prior to initiating the movement of merchandise from the

warehouse. The partner’s PO is the originating document which triggers

the creation of the sales order. A sales order, being an internal document,

can therefore contain many customer purchase orders under it.

Visual Merchandising

The visual merchandising department consist of a brand head under

whom is a stylist and assistant visual merchandiser. The major task of VM

head is to coordinate with teams such as buying, design and marketing to

create design themes and plans, often months in advance, including

window and in-store displays, signage and pricing concepts of the store.

They also conduct research on current and future trends in design and

lifestyle, and associated target market features so as to make the store

visuals attractive and relatable at the same time to the target customers.

They study the moods of the customers at a given point in time. The

visual merchandiser is responsible for identifying the appropriate supplier

of props, hardware and lighting to be sourced in bulk for every store as

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the visual display remains the same for every store throughout the

country. Not only this, the VM staff work with architectural features of

stores to maximise the available space so that the merchandise is visible

to the customers and the store doesn’t look cluttered at the same time.

Other tasks to be performed by the VM department include, creating

visual merchandising packs to communicate visual guidelines including

layout principles, visual dressings and signage, Visiting branches to coach

in-store visual merchandising or sales teams to interpret the guidelines

and training them in the execution of the visual concept, Assembling or

dismantling visual displays in windows or in-store, Leading and motivating

teams to complete displays to tight deadlines, Seeking feedback from

colleagues and customers on the visual impact of displays and

implementing changes, Arranging & handling Photo-shoots

Marketing

Communicating with target audiences and managing customer

relationships through social network.

Sourcing advertising opportunities and placing advertisements.

Organising photo shoots.

Arranging the effective distribution of marketing materials.

Maintaining and updating customer databases.

Organising events.

Evaluating marketing campaigns.

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Monitoring competitor activity.

Sponsorships of events.

11. Category Analysis & Study

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11.1 SHIRTS the CATEGORY IN JACK & JONES

ACCESSORIES; 3%

Jeans; 23%

Knits; 6%

Outerwear; 14%

Pants; 1%Shirts; 23%

Shoes; 3%

Shorts; 0%

Sweat; 3%Tailoring; 4%

T-shirts & Tops; 17%

Underwear; 1%

Sales Contribution

Table 1: CATEGORY WISE SALES CONTRIBUTION FOR JJ (AW16)

As indicated in the above chart, Shirts have the highest contribution in terms of value indicating its importance as a category.

Category Sales Quantity Stock Quantity Sell throughSweat 14333 16972 84%Knits 32533 40823 80%Pants 7270 9177 79%Shorts 1293 1724 75%

ACCESSORIES 83647 115963 72%Jeans 67562 94062 72%

T-shirts & Tops 173297 246505 70%Outerwear 27981 40281 69%

Shirts 111487 181746 61%

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SHI

RTS

SHI

RTS

Lon

g S

lee

ve

Lon

g S

lee

ve

Tailoring 11991 20940 57%Underwear 28433 71872 40%

Shoes 10256 35913 29%Grand Total 570083 875978 65%

Table 2: Category wise Sell through (AW16)

However, as shown in the table above, Shirts as a category have a Sell through of 61% which is lesser than the Weighted Average Sell through of 65%. This indicates that there is a gap that needs to be filled and a scope of improvement for Shirts as acategory as it definitely has the potential to bring in more money for the brand.

Now let us have a look at the different options offered under JJ in terms of attributes:

Table: Options in Shirts based on Attributes

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As seen above, Jack & Jones offers a wide variety of options across Shirts at various price points.

11.2. Option Plan

Before the OTB is made, an option plan for each category is made to decide the number of options that states the number of options that would be created on the basis of attributes at different price points. Below table shows the option plan for Shirts category for SS17. The total number of options is derived from the budget and the options under them at various price points based of qualitative as well as quantitative data inclusive and not limited to previous season sell through, customer response, trend analysis etc.

Table: Option Plan for Shirts for SS17

For the study of performance of various options and attributes, the data would be considered for SS17 till date.

Pricing of Shirts

Below figure gives a glimpse of the Shirts offered at various price ranges.

PRICE RANGE

ENTRY MID EXIT

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1699 2499 3499

TABLE: PRICE RANGE FOR Jack & Jones Shirts

11.3. Analysis of Attribute wise performance

Attributes Sales Qty Sales ValueLinen L/S Checks 344 9.36

L/S Denim 1712 44.72L/S Others (Stripes/Dobby/Trend) 2513 58.46

S/S Checks 268 5.53Linen L/s Plain 3210 81.31

L/S AOP 6139 129.93S/SAOP 1825 36.96

L/S Checks 7338 147.15Formal L/s Dobby/Solid 3181 84.15

L/S Plain 4695 83.62Linen L/s AOP 1272 32.32

S/S Plain 83 1.65Grand Total 32580 715.52

Table: Attributes wise Sales Contribution

Observation:

More than 70% of the quantity sold belongs to L/S whereas remaining 30% is shared by S/S

Over 92% of the sales value is contributed by L/S shirts L/S Checks have sold maximum quanitites and has contributed the most in

terms of revenue While Linen checks have sold more than S/S Checks in terms of value

contributed, it is 40% more. Hence, more investment should be made in Linen checks

Second highest sale contribution is AOP L/S followed by L/S Plain S/S Checks and Plain have both performed poorly in terms of sales qty and

sales contribution thus less investment has to be made on the same

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Inference

Thus the order of preference for Shirts inferred from the above table would be

1. Long Sleeves2. Formals3. Linen4. Denims5. Short Sleeves

In terms of Attributes1. AOP2. Checks3. Plains

11.4. In depth Option Analysis

FormalsMRP Sales Quantity Stock Qty Sell Through2499 527 2878 18%2699 216 944 23%2999 2146 8172 26%3499 292 932 31%Grand Total 3181 12926 25%

L/S AOPMRP Sales Quantity Stock Qty Sell Through1999 2361 8201 29%2199 1021 3760 27%2499 1258 7162 18%2699 227 1802 13%2999 1272 2996 42%Grand Total 6139 23921 26%

L/S ChecksMRP Sales Quantity Stock Qty Sell Through2199 2227 9976 22%2499 2826 11584 24%2699 281 2479 11%2999 2004 5595 36%Grand Total 7338 29634 25%

L/S DenimsMRP Sales Quantity Stock Qty Sell Through

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2499 543 1694 32%2699 698 1308 53%2999 79 228 35%3499 392 1731 23%Grand Total 1712 4961 35%

L/S OthersMRP Sales Quantity Stock Qty Sell Through2199 148 1392 11%2499 2181 6413 34%2999 184 534 34%Grand Total 2513 8339 30%

L/S PlainMRP Sales Quantity Stock Qty Sell Through1699 2589 7719 34%1999 102 2692 4%2199 1412 4547 31%2499 471 3476 14%2999 121 3306 4%Grand Total 4695 21740 22%

Linen L/S PlainMRP Sales Quantity Stock Qty Sell Through2499 280 3305 8%2699 2525 7015 36%2999 405 929 44%Grand Total 3210 11249 29%

Linen L/S AOP

MRPSum of Sales Quantity

Sum of Stock Qty

Sum of Sell Through

2499 501 2112 24%2999 312 3319 9%3499 459 1369 34%Grand Total 1272 6800 19%

Linen L/S ChecksMRP Sales Quantity Stock Qty Sell Through2999 344 972 35%Grand Total 344 972 35%

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S/S AOPMRP Sales Quantity Stock Qty Sell Through2195 442 2047 22%2199 1383 5105 27%Grand Total 1825 7152 26%

S/S ChecksMRP Sales Quantity Stock Qty Sell Through2199 268 918 29%Grand Total 268 918 29%

S/S PlainMRP Sales Quantity Stock Qty Sell Through1999 67 1344 5%2999 16 480 3%Grand Total 83 1824 5%

Long Sleeves

Price Plain AOP Checks DenimOthers (Stripes/Dobby/Fest)

16998

(34%) 1999 4 (4%) 8 (29%) 2195

21994

(31%) 4 (27%)11

(22%) 2 (11%)

24997

(14%)11

(18%)12

(24%)3

(32%) 6 (34%)

2699 2 (13%) 4 (11%)

4(53%)

29993 (4%) 4 (42%) 6 (36%)

1(35%) 1 (34%)

3499

4(23%)

Total 26 29 33 12 9Feature wise Sell Through 22% 26% 25% 35% 30%

Table: Option wise Sell through for Long Sleeve Shirts

Observation

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Consumer is not very price sensitive. They are willing to pay a high amount if the product is justifying the price. However, the basic entry price point of 1699 shirts has a decent sell through of 34%.

L/s Denims have the highest sell through and perform very well. 2499-2999 is the most preferred price point across

Short SleevesPrice Plain AOP Checks Denim Others 1699 1999 2 (5%) 2195 2 (22%) 2199 6 (27%) 2 (29%) 2499 2699 2999 1 (3%) 3499 Total 3 8 2 Feature wise Sell Through 5% 26% 29%

Table: Option wise Sell through for Short Sleeve Shirts

Observation

With only 2 options in S/S Checks, it has performed better than AOP S/S with 8 options in the same price range

S/S Plain is not a good performing category in spite of its price rang.

LinenPrice L/s Plain L/s Aop L/S Cks S/S Plain S/s AOP S/S Cks1699 1999 2195 2199 2499 2 (8%) 2 (24%) 2699 8 (36%) 2999 1 (44%) 6 (9%) 2 (35%) 3499 2 (34%) Total 11 10 2 Feature wise Sell Through 29% 19% 35%

Table: Option wise Sell through for Linen Shirt

Observation

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In Linen, L/S Plain have performed the best followed by AOP & Checks More options in L/S Checks can be included as mere 2 options have also

performed well.

FormalPrice L/s Dobby1699 1999 2195 2199 2499 4 (18%)2699 1 (23%)2999 12 (26%)3499 2 (31%)Total 19Feature wise Sell Through 25%

Table: Option wise Sell through for Formal Shirt

Observation

For formal wear, exit price point is performing the best which means people don't mind paying extra for premium shirts at higher price points when it comes to formal wear.

11.5 A comparison of Attribute wise contribution & Sell through

Attributes Sales Qty Stock Qty Sales Value Sales Value % Sell ThroughLinenL/S Cks 344 972 9.36 1.31% 35%

L/S Denim 1712 4961 44.72 6.25% 35%L/S Others 2513 8339 58.46 8.17% 30%S/SChecks 268 918 5.53 0.77% 29%

Linen L/s Plain 3210 11249 81.31 11.36% 29%L/S AOP 6139 23921 129.93 18.16% 26%S/SAOP 1825 7152 36.96 5.17% 26%

L/S Checks 7338 29634 147.15 20.57% 25%FormalL/s Dobby/Solid 3181 12926 84.15 11.81% 25%

L/S Plain 4695 21740 83.62 11.69% 22%LinenL/s Aop 1272 6800 32.32 4.52% 19%

S/SPlain 83 1824 1.65 0.23% 5%

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Grand Total 32580 130436 715.52 100.00% 25%

Long Sleeves

PricePlain AOP Checks Denim

Others (Stripes/Dobby/Fest)

Feature wise Sell Through

22% 26% 25% 35% 30%Feature wise contribution 16% 18% 20% 7% 5%

Table: Attribute wise Sell through & Contribution for Long Sleeves Shirt

Observation

Despite of the high sell through for Denim, the value contribution was less due to majority sales lying in the mid price points of Denim Category

Short SleevesPrice Plain AOP Checks Denim Others

Feature wise Sell Through

5% 26% 29% Feature wise contribution 2% 5% 1%

Table: Attribute wise Sell through & Contribution for Short sleeves shirt

Observation

S/S options could be kept only in AOP and Checks and Plain could be reduced. Thus either work needs to be done with the style and quality factor and if not

then just overall reduce the options.

Linen

Price L/s PlainL/s Aop

L/S Cks S/S Plain S/s AOP

S/S Cks

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Feature wise Sell Through

29% 19% 35% Feature wise contribution 7% 6% 1%

Table: Attribute wise Sell through & Contribution for Linen Shirts

Observation

Linen has a good potential due to its decent sales value contribution

PriceL/s Dobby

Feature wise Sell Through

25%Feature wise contribution 12%

Table: Attribute wise Sell through & Contribution for Formal Shirts

Observation

Great contribution and sell through shown by Formal Shirts

Total No. of Options

Price Total

% Option Contri

1699 8 5%1999 14 9%2195 2 1%2199 29 18%2499 47 29%2699 19 12%2999 37 23%3499 8 5%Total 164 100%

Options at Mid price point deliver the most

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11.6. Major Findings

Thus the order of preference for Shirts inferred from the above table would be6. Long Sleeves7. Formals8. Linen9. Denims10.Short Sleeves

In terms of Attributes4. AOP5. Checks6. Plains

S/S is a non performing category so reduce the number of options Introduce more options in entry price point for Denim Shirts Investment can be done on Linen shirts as they have got potential

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12. Store Visits & Personal Interviews - Study & Outcomes

Store Visits & Personal Interviews with the Store Managers

Based on the Store visit and interaction with the Store Managers the following were the inferences and recommendations deduced from the feedback received on the current collection, with a focus on Shirts as a category

10.1 Recommendations & Inferences

A jack & jones customer is not very price sensitive especially for Shirts as a category

Though they look for a value for price, given with an option of a great design/ style/ quality, a customer would not mind shelling out a higher amount for the same

Customers prefer long sleeves shirts, even in casuals as they can always team it up with a t-shirt for styling as well as wear it to work as semi-casual.

Customers are willing to try and also buy styles that are very different/ innovative in terms of style and design that nobody else is offering and pay a high price for the same

The customer has to find the style in shirts exceptionally good or else they find anything above 2999 a little expensive

Lesser number of options could do in shirts More colours options in solid/plain would be great as more quantity can be

sold to a single customer even if he likes the same style Creative prints & textures perform great For checks shirt, the colour options offered have to be different so as to be

able to sell more quantity to a single customer or otherwise the checks options seem too similar

For checks, more innovation in terms of textures, fabrics to be done so as to remove the mundane quotient

Too many similar looking options per attribute makes the merchandise displaylook flat and not very appealing.

Linen shirts with collars could be introduced so as to serve as office wear as well during Summers

AOP perform better for shirts in the casual section as solids do great in the formal section. Thus AOP, if creative, can fetch in high sales

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13. TREND FORECASTING FOR SS18

13.1 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 forecastingis the prediction of mood, behavior 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

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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 isto scan the market and report on the developments in color, textiles and style directions.

Forecasters reflect the earliest views on trends some eighteen months in advance ofthe 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, evaluatingpopular designer collections, surveying fashion publications, observing street fashions etc.

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13.2 The Trends

The below trends have been forecasted by WGSN

Psychotropical

This trend is an evolution of the experience economy, focused on how nature willbranch out to include virtual reality wonderlands. Expect to see a significant increase in brand activations and collaborations around this idea. Also, as digital increasingly incorporates the physical, expect ‘phygital’ design: making design more lifelike and emotionally compelling.It is a subset of the psychedelic movement. Psychotropical fashions are defined by vibrant palettes, vivid tropical patterns and prints rendered by digital engineering, and warped visual cues borrowed from nature (like sunsets and tropical undergrowth). Psychotropical apparel, beauty, and accessories are denoted by a “hyper-real perception of nature”, underscored by bright synthetic colorways. Exotic, bright and printed, from high-definition digital nature prints to mixed prints of plant and animal hybrids–from peacock feathers to psychedelic camouflage. There will also be intelligent use of recycled plastic and post-consumer waste–fabrics will be highly innovative.

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Youth Tonic

Defined by a strong sense of individuality and creativity, youth culture is influencing every area of the market. Youth itself will become a state of mind; while the growth of virtual reality and data will allow for new means of creative expression and self-identity. Adults are inspired by teens, and teens are inspired by eras that they have never experienced, such as ’90s club culture. With so many generations living longer, there is a lot to choose from in vintage inspiration, and we will see eras blending in new ways. More older adults, the Boomer generation and above, are wearing brighter, more daring clothes as theystay fit and curious.

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KinshipThe evolution of connectivity, both real and virtual, are driving the Kinship trend – which focuses on a growing sense of community, cultural sharing and breaking boundaries. We are already seeing this now, with fast fashions popping up all over the globe almost simultaneously. People get inspired from what and who they see online, and this goes beyond whatever culture they are living in. Thankfully, there will always be local style and taste, but people will be influencing others like never before.

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Slow FuturesThis is about the stripping away of excess, where new is not necessarily better. Design and technology will merge more seamlessly together, creating a rustic minimalism that will combat overconsumption.

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14. Recommendations & Learning outcomes

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Long sleeves perform the best. Thus number of options to be allocated to long sleeves have to be high

Focus on innovating in terms of style and prints should be done on Long sleeves as they are the ones fetching value in terms of money

Short sleeves options perform poorly so the options offered in them should beminimized.

More than 70% of the quantity sold belongs to L/S whereas remaining 30% is shared by S/S

For checks, the long sleeves options should be kept especially in Linen For the summers, Linen options could be developed more in terms of quantity

and style as they have potential, in both casual wear as well as formal wear More options could be added to the formals as they guaranteed bring in

higher revenues and have great sell through Despite of the high sell through for Denim, the value contribution was less

due to majority sales lying in the mid price points of Denim Category. A customer generally prefers to own only a few options of Denim shirts thus theoptions can be only increased a little in spite of the higher sell through. So to optimize the sell through of Denim shirts, more options can be allocated to the exit price points to generate maximum revenue.

15. SUGGESTED OPTION PLAN

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16. BIBLIOGRAPHY

www.bestseller.com

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www.jackandjones.com

www.wgsn.com

www.fibre2fashion.com

www.businessoffashion.com

www.scribd.com

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EXECUTIVE SUMMARY

This project is aimed at performing a thorough study of Shirts category by analyzing the

behavior and performance of the Shirts category for SS17 Season (Mid Season). The objective

of this being recommendations for Option Plan for SS18. A trend analysis has also been done

to support the recommendations. The brand is operated and marketed by Bestsellers Ltd., in

the mid premium segment.

The study was initialized with analysis of the Shirts category performance in Season (14

weeks). The reports taken into consideration were the Season Sell through Report. Analysis

of reports was accompanied by weekly visit to stores and market place to interact with

customers and observe their buying behavior and conduct Personal Interviews with the Store

Managers.

Lastly, trend analysis was done so as to support the quantitative suggestions.

8. 1 Objective

The objective of the project is

Carry out analysis on the performance of Shirts category

Identify the gaps/strengths of various options offered in the category for the SS17

season (Mid Season)

Provide recommendations for the option Plan for SS18 backed by Trend analysis

Develop an option plan for SS18