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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Newness

Speed

Discipline

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Randi Nolan Isc Spring05

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