The Business of Textile and Fashion

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1 The Business of Textile and Fashion Ladok code: 51FÖ01 The exam is given to: DTEKO13 Exam Code: Date of exam: Time: Means of assistance: Calculator Total amount of point on exam: 40 Requirements for grading: G = 20 VG= 30 Additional information: Question 1-14 should be given in the template on page 1 Question should be given under each question or on a separate sheet of paper. Don t forget to write your exam code on each paper you hand in Next re-exam date: June 1 st 2015 The results are for the most part posted within three weeks after the exam. Good Luck! Katrin

2 FILL IN YOUR ANSWERS WITH A X FROM QUESTION 1 14 Only one answer per question is allowed! Q 1 A B C Q 2 Q 3 Q 4 Q 5 Q 6 Q 7 Q 8 Q 9 Q 10 Q 11 Q 12 Q 13 Q 14

3 1. A supplier that buys all materials and produces the products according to the buyer s specifications and delivers them under the customer s brand is called a: (1 mark) A. Own label supplier B. CMT supplier C. Full package supplier/ contractor 2. Which statement is correct regarding samples? (1 mark) A. All fashion companies produce their samples in-house before they are sent to manufactures and suppliers B. Making samples is an inexpensive process and it only requires one approval process before the bulk production starts C. Product developing fashion companies rely heavily on their suppliers to perfect and develop samples for them, it s an expensive and sometimes long process 3. What statement is correct when it comes to showing a collection at a showroom? (1 mark) A. It is always best for a wholesaler to show in a showroom rather than at a trade show/fair B. Showrooms are only recommended for small companies that cannot afford to show at a trade show/fair C. A showroom can better portray a company s image and style of merchandising and gives the retailers the possibility to look at a collection in privacy.

4 4. Which statement is correct regarding a Branded Manufacture (1 mark) A. A company that buys or sells a brand on a specific market, it has no product development, no production and no own stores B. A company that carries inventory for ready-made shipment to retailers C. A company that develops and produces its own brand with own production or outsourcing and has its own retail stores or sells to other retailers 5. What is the definition of a mega trend? (1 mark) A. A name given to lines or collections that correspond to season of the year when consumers would most likely wear the merchandise B. The general trend and social spirit of a given time period during the fashion season C. A large scale shift that cross industry lines, involve shifts in lifestyle or mirror economy cycles and that will give effects for a decade or more 6. What is an SKU? (1 mark) A. The name of the process of disassembling stacked cut fabric pieces and reassembling them grouped by garment size, color and quantity B. A computer program whereby retail sales/stockout data are reviews by the manufacture and replenishment are ordered as often as required C. A number or a code used to identify each distinct product and service that can be purchases and systematically tracked 7. What does the abbreviation CMT stand for? (1 mark) A. Consumer Marketing Trend B. Corporate Management Tool C. Cut Make Trim

5 8. Which statement is correct regarding a retail company s decision to integrate backwards in the value chain? (1 mark) A. The retailer wants to create a private label to gain partial or full control over the manufacture of the product B. The retailer wants to find an easier and faster way to expand into new markets C. The retailer wants to gain partial or full control over the communication to the end consumer 9. What are the characteristics of the ready-to-wear industry? (1 mark) A. The industry is characterized by a number of large corporations that operates though a vertically integrated marketing channel from processing the fiber to finishing the garment. B. The industry is characterized by mass production techniques, standardized sizes and a diversity of companies C. The industry is characterized by a monopoly of chain stores, fast fashion supply chains and standardized sizes 10. Which statement is correct regarding the definition of a company that can be classified as Fashion Interpreters (1 mark) A. It s a company that produces knock-offs or similar designs of fashion that has received media attention. Catwalk trends are translated to high street. B. A company run by top-end designers who are famous for their previous work at a design house or companies with creative business models C. Companies that look at successful innovative trends from other companies for their own target market. Communicating the design is important.

6 11. Which statement is correct regarding fast fashion? (1 mark) A. A fashion trend that is usually not much more than a fad; lasts weeks not months B. A term used for transportation companies when they ship garments fast by air C. Ultra-fast supply chain that focus on consumer demand of fashion goods 12. What is a value driver on a garment? (1 mark) A. Indicates the most important thing that gives the style the correct look and right appearance in order to make it valuable for customers B. It is one of four factors that indicates the performance of a garment C. A part of the garment that indicates how consumers feel about the garment 13. In fashion retailing one of the most critical elements that affect the success of a seasons line is: (1 mark) A. Forecasting B. Marketing C. Neither one of them 14. Which statement is correct regarding the definition of market weeks A. Are the times of the year when fashion designers, brands or design houses show their collections and latest trends on catwalks in the main fashion capitals like New York B. Are the times of the year when wholesalers and buyers meet at showrooms or trade shows to sell and buy the seasonal fashion lines C. Are the time of year when special merchandise are being sent to stores for specific marketing campaigns

7 The answers should be given under each question. If you need more room you can use extra sheets of paper. Make sure you write your exam code on each sheet. 15. SKU Range A fashion retailer with a normal range of products in store and the sales of 35,000 SKUs per year has the following product groups in the store: Items: Accessories, knitted sweaters, shirts, denim jeans, slacks and blazers. For each item there are 10 styles. Each item and style is represented in 5 colours. All items are in 4 sizes except accessories (only 1 size). In order to keep inventory cost at a minimum there are 3 units on-floor for each SKU. A. Calculate the number of SKUs in store. (2 marks) ANSWER: B. Calculate how large is the SKU Range is. (2 marks) ANSWER:

8 16. The initial buying cost for a jacket is 700 SEK. The mark-up is 400 SEK. A. Calculate the mark-up percentage (2 marks) ANSWER: B. How large is the margin in percentage? (2 marks) ANSWER: 17. Name and briefly explain 3 different types of data sources that can be used for forecasting. (3 marks)

9 18. According to the book the Business of Fashion the process from idea to finished product consist of 8 different steps. This has also been illustrated as a general model of a fashion supply business that has been discussed during the course. a) Fill in the missing text boxes in the model on the next page to name all the 8 steps. ( 4 marks) b) Give an example of a company that has a process like the one indicated in circle A and give estimation on how long that company s process from idea to finished product might take. (1 mark) c) Give an example of a company that has a process like the one indicated in circle C and give estimation on how long that company s process from idea to finished product might take. (1 mark) d) Briefly describe the process in step 3, give at least 4 different examples of decisions that are being made or tasks that are being performed in this step. (4 marks) A C

10

11 19. In the year 2030 scientists project that there will be 9 million people on this planet where 4.9 million people will belong to the global middle class. Discuss how this increase will this affect the fashion industry from a sustainable perspective and give examples on how companies can work for a more sustainable production and consumption of fashion goods. Max 300 words. (5 marks) If you want you can use Didrikson or Lindex as examples in your discussion.

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