An Overview of Demand Management through Demand Supply Chain

Formation of Fashion Market

Fashion is a broad term which is defined by Christopher et al. that is typically encompassed any product or market where there is an element of style that is likely to be short-lived. They have divided the fashion market based on four characteristics. Products fallen into short life-cycle category are saleable for a very short period and these are seasonal. High volatile product group's demand is very unstable and influenced by weather, films, or even by celebrities. Products whose demands are extremely difficult to forecast are categorized as low predictability. High impulse purchasing is happening when shopper confronted with the product is stimulated to buy it. Different product groups has different kinds of impact on the market demand fulfillment and upstream influence. Vrontis and Vronti mention a diversity of factors, including socio-cultural, legal/political, physical, environmental, technological, demographic, competition and economic that determine whether the marketing mix can be standardised for all customers or whether it needs to be adapted to suit specific market conditions. Product characteristics emerge immediately as an aspect that cannot be neglected to compete in the fashion market, at least due to differences in the competences, which are required for manufacturing and distributing products.

The changes in fashion industry happen rather fast. In the past centuries, clothing was regarded by most people as a necessity and therefore apparel manufacturing mainly had a functional purpose which means that complexity related to product characteristics was less. As a result fashion market was rather uniform. They also add that most fashion industries generally launch two collections each year, corresponding to the main seasons (fall–winter and spring–summer) and also offer evergreen products, or classics, which remain on the market for multiple seasons. Apparel on those early days used to fulfill the need for basic functionality, for example serving the purpose for protecting from cold or comfort during summer. Apparently, consumers during that time were less sensitive to style and fashion, and preferred basic apparel. Today's consumer is more inclined to look beyond traditional retail venues for shopping alternatives which means more options for shopping is a requisite and on top of that they are even interested in personalizing their apparel. As a consequence fashion market is highly competitive and the constant need to 'refresh' product ranges means that there is an inevitable move by many retailers to extend the number of 'seasons', that is, the frequency with which the entire merchandise within a store is changed. So, the main difference between the early days and modern time is consumer sensitivity on fashion.