Apparel Merchandising Management: Trainee Study Book 1

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be bought ,, Return OnA PROFIT MARGIN MODEL } } }TOTAL NET SALES GROSS } }EXPENSESMARGIN COST OF GOODS NET PROFIT NET PROFIT NET PROFIT BEFORE TAX AFTER TAXES MARGIN OPERATING EXPENSES TAXES NET SALES }TOTAL INTEREST ASSET TURNOVER MODEL EXPENSE CURRENT RETURN ON ACCOUNTS } } }ASSETS ASSETS RECEIVABLEMERCHANDISE NET SALES ASSETINVENTORY TURNOVER TOTAL CASH ASSETS FIXED ASSETSOTHER CURRENTASSETS Figure 5.23 here: , price and cost 111

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5Style Transport Total C C Sales Sales Entry Entry Total Operating Unit Cost Final Cost ($) cost of VAT VAT Tax Tax Tax Tax Tax cost per less Cost per transport Rate ($) Rate ($) Rate ($) per unit ($) unit unit($) discounts ($) ($) ($)1 2.15 4128 5% 15.88 2.00% 6.35 0.25% 0.79 23.02 12.70 317.52 353.242 2.15 3715.2 5% 18.74 2.00% 7.50 0.25% 0.94 27.18 12.70 374.85 414.733 2.15 1926.4 5% 21.83 2.00% 8.73 0.25% 1.09 31.65 12.70 436.59 480.944 2.15 13760 5% 13.89 2.00% 5.56 0.25% 0.69 20.14 12.70 277.83 310.675 2.15 17200 5% 11.91 2.00% 4.76 0.25% 0.60 17.27 12.70 238.14 268.106 2.15 20640 5% 10.91 2.00% 4.37 0.25% 0.55 15.83 12.70 218.295 246.827 2.15 20640 5% 11.51 2.00% 4.60 0.25% 0.58 16.69 12.70 230.202 259.598 2.15 86000 5% 8.93 2.00% 3.57 0.25% 0.45 12.95 12.70 178.605 204.259 2.15 86000 5% 7.94 2.00% 3.18 0.25% 0.40 11.51 12.70 158.76 182.9710 2.15 123840 5% 6.95 2.00% 2.78 0.25% 0.35 10.07 12.70 138.915 161.68 Figure 5.28 6 Figure 5.29 114

PROFIT MARGIN MODEL NET SALES GROSS 142,000.00 MARGINCOST OF GOODS 71,000 SOLD 71,000 TOTAL NET PROFIT }NET PROFIT EXPENSES BEFORE TAX OPERATING AFTER TAXES EXPENSES 48280 22,720 15,904 35,000 TAXES NET SALES NET 6816 142,000 PROFIT INTEREST MARGIN EXPENSES 11.20 12,780 Figure 5.30Markdowns: it being the 115

decidesP when deciding on markdowns. Figure 5.31 116

Figure 5.32 117

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Pl O T F a Sales Forecast Assortment Planning BP Purchase Order Vendor Selection ELet us sum up understand: H I H

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Dress Ties Sports Trousers Sports Suits & Outerwear Footwear Underwear Sleepwear AccessoriesShirts Shirts wear, Formal & Socks & Gifts wear KnitsNon- Stripes Knits & Dress & Brookes Dress Boxers Pajamas AccessoriesIron T-Shirts Trousers T- Ease ShirtsClassic Prints & Golden Casual Jersey, 1818 Coats & Formal Knit Nightshirts Belts Solids Fleece Vests Collectio Blazers underwear Polos nLuxury Stain Sweaters Formal Casual Dress Robes Wallets Resistant & Vests Wear SocksSlim Bow Slippers Casual Slippers Luggage & Fit Ties Socks Briefcases Classic Accessories Cufflinks Tie KnotMen’s Wear CategoriesWomen’s Wear Categories are . S 126

5 p.m. m sectionOf Sale), , Po , 127

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10000significantly. 129

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Introduction Growth Acceleration Saturation Decline Obsolescence Looks dated Worn by Fashion The trend is The trend Fashion to wear and fashion leaders pick interpreted finds mass followersinnovators. up on trend for mass acceptance still wear nobody Includes and looks trend but are designer and market timely to wear no longer buy anymore.fashions & popularize it. lifestyle and and bought by interested in street buying. fashion. fashion fashion followers followers. purchase. Figure 6.10 138

Influence Decade Color PaletteDevelopment of aniline dyes 1850s Popularity of purpleThe Great Depression 1930s Drab brown “ The Taupe Age”Elsa Schiaparelli 1930s Shocking PinkWorld War II 1940s Heavy Grays , somber teals, and somber redsTutankhamen’s Tomb 1960s Black and whiteAndy Warhol 1960s Egyptians colors like turquoise & goldPompidou Center (architecture) 1960s Avocado green and harvest goldOp art 1970s Bold primary and secondary colorsThe Great Gatsby (movie) 1970s Pinks and whitesThe Reagan Administration 1980s RedMiami Vice (TV show) 1980s Pastels for men and womenTour of Georgia O’Keefe paintings 1980s Southwest colorsStock market crash 1987 Popularity of Black at its heightFall of the Iron Curtain 1990 Deep Baltic blues and redsThe environment – ozone layer 1990s GreenMatisse exhibit, MOMA 1994 Bright primary and secondary colorsElection year 1996 BrightsEvita (movie) 1996 “Evita Red”Hum Apke hain kaun (Hindi movie) 1997 Dark purpleNew millennium 2000 Sci-fi, space age colorsUnrest in Eastern Europe 2000 Bohemian colors Figure 6.11 ’ 139

; ; ;; ;West Figure 6.12but may ask for modifications in weight, color or pattern. 140

Figure 6.13 141