Randi Nolan Isc Spring05
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Transcript of Randi Nolan Isc Spring05
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Randi Nolan Principal
Kurt Salmon Associates
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“If a man can… make a better mousetrap…
the world will make a beaten path to
his door.”-Ralph Waldo Emerson, 1803-1882
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“If a man can… make a better mousetrap…
the world will make a beaten path to
his door.”-KSA, 2005
offer fashionable
every 8-10 weeks,
^all of his doors
^
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1. Define your consumer2. Define product development strategy3. Define assortment strategy/positioning4. Accelerate speed to market5. Balance efficiency and effectiveness6. Integrate sourcing and development activities7. Enhance information availability
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Effective Product Development
Newness
Speed
Discipline
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Newness
Speed
Discipline
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Newness retail leaders see results
4.4
7.0%
5.5
6.8
16.2%
10.6%
Turns
Margin
Turns
Margin
Turns
Margin
Traditional model
Updated model
Newness model6.8
Source: KSA Analysis
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Finding the right new product
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59%
80%Too many of today’s
fashions are designed for younger consumers
Clothing manufacturers don’t understand what
styles I like
Base: Total Respondents: % who agree strongly/somewhatSource: KSA Bi-annual Consumer Outlook Survey 2003
Chasing hot fashion frustrates consumers
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Have you defined your “Stephanie”?
Clearly define your target consumer:
Style
Lifestyle
Hobbies
Entertainment
Demographic
11Source: KSA Survey 2003
74%
68%Have NOT defined a target consumer
INEFFECTIVELY integrated consumer input into product
development process
“Stephanie” is not pervasive…
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Who is doing “newness” well…Talbots: We want customers to know that if they see something they love, they should buy it now, because it may not be here in a few weeks…”
“…[Chico’s] has been able to sustain stellar sales growth over the past several years because of the retailer’s reputation for flowing in new merchandise. To the consumer, it creates a sense of urgency and the need to shop frequently.” –WWD, 02/24/04
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1. Define your consumer2. Define assortment strategy/positioning3. Define supply chain strategy
4. 5. 6. 7.
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Newness
Speed
Discipline
15Source: KSA Survey 2003
Comparing apples and oranges
Retail Timeline
Branded Wholesale Timeline
Market Week
Lead-times
6 Months
9Months
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Today’s wholesale cycle times are highly inefficient
-11 -7 -5 -3 0In-store
Design begins before read on previous seasonal sales
Seasonal overlap makes it impossible to “focus”
Starting too early allows everyone to change their minds
Issues
Market Week
-13Months
-1
6-7 Months 5-6 Months
-9
11-13Months
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Retailers view of the timeline will shift
2007
-11 -7 -5 -3 0In-store
-13Months
-1-9
Today
Market Week
Fashion Injections(reserved OTB)
Continuous “Market Week”
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Stop studying Zara!!!
“ [Zara] can design, produce and deliver a new garment and put it on display in its stores worldwide in a mere 15 days…”
-Harvard Business Review 11/04
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Collaborative Spec Development / Transfer Activities to Vendors
Elimination of Separate PD and Sourcing Groups
Visibility to Product and Process Performance
Tomorrow’s top 3
Phase Develop Decisions
Create Greater Overlap of Design, Technical Development and Sourcing
Create Strategic Alliances
Today’s top 3
How can you reduce cycle time?
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Who is doing “speed” well…
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1. Define your consumer2. Define product development strategy3. Define assortment strategy/positioning4. Accelerate speed to market5. Balance efficiency and effectiveness6. Integrate sourcing and development activities7.
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Newness
Speed
Discipline
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Leaders have three traits
1. Integrated process/ calendar
2. Calendar management process and adherence
3. Planning throughout the supply chain
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A calendar or a marriage?
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Do you really have a calendar?
Source: KSA Survey 2003
39%
16%
36%1. Integrated
calendar
2. Calendar management process
3. Strong calendar adherance
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What’s your plan?
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How do the leaders instill discipline?
Web-based PLM tools
Collaborative Development and Product Information
On-line Visibility to Process Tracking
Alerts, Notifications, and Exception Management
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Discipline: Just Do It
“…PLM tools, not only to help… manage information about their products, but also to… standardize the process that controls the commercialization of styles while [providing]… reporting visibility…
-Paul Herring, CTO, NikeApparel Magazine 12/01/04
“…PLM tools, not only to help… manage information about their products, but also to… standardize the process that controls the commercialization of styles while [providing]… reporting visibility…
-Paul Herring, CTO, NikeApparel Magazine 12/01/04
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1. Define your consumer2. Define product development strategy3. Define assortment strategy/positioning4. Accelerate speed to market5. Balance efficiency and effectiveness6. Integrate sourcing and development activities7. Enhance information availability
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1. Define your consumer2. Define product development strategy3. Define assortment strategy/positioning4. Accelerate speed to market5. Balance efficiency and effectiveness6. Integrate sourcing and development activities7. Enhance information availability
31
Newness
Speed
Discipline
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