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Randi Nolan Principal Kurt Salmon Associates

Randi Nolan Principal Kurt Salmon Associates. “If a man can… make a better mousetrap … the world will make a beaten path to his door. ” -Ralph Waldo Emerson, 1803-1882. “If a man can… make a better mousetrap … the world will make a beaten path to his door . ” -KSA , 2005.

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Randi Nolan Principal Kurt Salmon Associates

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  1. Randi Nolan Principal Kurt Salmon Associates

  2. “If a man can… make a better mousetrap… the world will make a beaten path to his door.” -Ralph Waldo Emerson, 1803-1882

  3. “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 ^

  4. 1. Define your consumer 2. Define product development strategy 3. Define assortment strategy/positioning 4. Accelerate speed to market 5. Balance efficiency and effectiveness 6. Integrate sourcing and development activities 7. Enhance information availability

  5. Effective Product Development Newness Speed Discipline

  6. Newness Speed Discipline

  7. Newness retail leaders see results Traditional model Turns 4.4 Margin 7.0% Updated model Turns 5.5 Margin 10.6% Newness model Turns 6.8 6.8 Margin 16.2% Source: KSA Analysis

  8. Finding the right new product

  9. Chasing hot fashion frustrates consumers 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/somewhat Source: KSA Bi-annual Consumer Outlook Survey 2003

  10. Have you defined your “Stephanie”? Clearly define your target consumer: • Style • Lifestyle • Hobbies • Entertainment • Demographic

  11. “Stephanie” is not pervasive… Have NOT defined a target consumer INEFFECTIVELY integrated consumer input into product development process Source: KSA Survey 2003

  12. 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

  13. 1. Define your consumer 2. Define assortment strategy/positioning 3. Define supply chain strategy 4. 5. 6. 7.

  14. Newness Speed Discipline

  15. Comparing apples and oranges Retail Timeline Lead- times 6 Months Branded Wholesale Timeline Market Week 9 Months Source: KSA Survey 2003

  16. Today’s wholesale cycle times are highly inefficient -13 Months -11 -9 -7 -5 -3 -1 0 In-store Market Week 11-13 Months 6-7 Months 5-6 Months Issues • Design begins before read on previous seasonal sales • Seasonal overlap makes it impossible to “focus” • Starting too early allows everyone to change their minds

  17. Retailers view of the timeline will shift -13 Months -11 -9 -7 -5 -3 -1 0 In-store Market Week Today Fashion Injections (reserved OTB) 2007 Continuous “Market Week”

  18. 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

  19. How can you reduce cycle time? Today’s top 3 Tomorrow’s top 3 • Phase Develop Decisions • Create Greater Overlap of Design, Technical Development and Sourcing • Create Strategic Alliances • Collaborative Spec Development / Transfer Activities to Vendors • Elimination of Separate PD and Sourcing Groups • Visibility to Product and Process Performance

  20. Who is doing “speed” well…

  21. 1. Define your consumer 2. Define product development strategy 3. Define assortment strategy/positioning 4. Accelerate speed to market 5. Balance efficiency and effectiveness 6. Integrate sourcing and development activities 7.

  22. Newness Speed Discipline

  23. Leaders have three traits • Integrated process/ calendar • Calendar management process and adherence • Planning throughout the supply chain

  24. A calendar or a marriage?

  25. Do you really have a calendar? 1. Integrated calendar 2. Calendar management process 3. Strong calendar adherance Source: KSA Survey 2003

  26. What’s your plan?

  27. 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

  28. 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

  29. 1. Define your consumer 2. Define product development strategy 3. Define assortment strategy/positioning 4. Accelerate speed to market 5. Balance efficiency and effectiveness 6. Integrate sourcing and development activities 7. Enhance information availability

  30. 1. Define your consumer 2. Define product development strategy 3. Define assortment strategy/positioning 4. Accelerate speed to market 5. Balance efficiency and effectiveness 6. Integrate sourcing and development activities 7. Enhance information availability

  31. Newness Speed Discipline

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