- October 1, 2012
- 12:45 pm
- Stacy Neier
- no comments
Q the Runway for Julia Raffo…and Ben & Anna.
For Loyola Quinlan undergraduates, Banana Republic has already made its impact on the 2012 fall fashion season and the 2012 fall semester. As a leading sponsor of the Career Week kick-off #qtherunway Fashion Show, Banana Republic positioned its assortment as a go-to Michigan Avenue retailer for a range of professional, yet on-trend, apparel and accessories. At Water Tower Campus, we take for granted how many Banana Republic locations (3!) are nearly in eyeshot of our classrooms (if you’re lucky to have classrooms with windows!).
On Wednesday, September 19th, my MARK360 Retailing students experienced Banana Republic’s San Francisco corporate office in a classroom (with windows!): we were fortunate to welcome Julia Raffo, Senior Inventory Analyst with Banana Republic/Gap Inc. Julia is a Loyola Quinlan alumna (Class of 2009): after graduation, she moved to San Francisco and accepted a role with Williams-Sonoma inventory planning. Two and a half years later, Julia joined the Gap Inc. portfolio of brands at Banana Republic. Julia has quickly become an industry expert, and she is fast to confirm her retailing industry knowledge as the result of taking MARK360 in Spring 2009 (with now-retired Professor Sue Vondran).
Julia proved that no runway could be cued without appropriate inventory planning. She reinforced Banana Republic’s commitment to maintaining its relatively long lead-times as a trade-off for a higher quality product line. The students Julia met were fascinated by this tactic: although fast fashion appears to set the pace of the apparel industry, Julia confirmed Banana Republic’s inventory strategy is not one to chase after products with short life cycles. Given Banana Republic’s long-term relationships with eighteen consolidated, globally sourced vendors, the brand can emphasize style details like garment dyeing versus piece-dyeing; it establishes quality control standards for trims and findings like zippers. Gross margin is earned from the basics buys. Once goods with fashion elements are ordered, there is no flexibility to buy back into the garment for the season should it sell out. The assortment must be tightly edited, and only a finite amount of inventory is owned. Julia clearly showed why Banana Republic’s positioning is far more congruent to the craftsmanship of Prada than the turn times of Zara.
Julia further fortified how inventory lead-time harmonizes with consumer segmentation. Banana Republic has trained its consumers to buy size runs and color choice allocations when the inventory is available. The consumer profiles have been socialized into the inventory buying process, and this is demonstrated through Julia’s deep buys into basics including men’s woven shirts and knit accessories. Banana Republic understands its consumer segments will buy basics at the start of its Q3; the fashion goods will peak during Q4. Furthermore, based on commentary provided by online endorsements, Banana Republic sees immediate approval or dislike of key buys. The products endorsed with three stars are the first to be liquidated to save gross margin dollars. Combining inventory sales patterns with online endorsement comments, consumer profile segments emerge. Banana Republic refers to its ultimate buyers as Ben and Anna. Quickly say Ben and Anna three times. Ben and Anna. Ben and Anna. Ben and Anna. Did you hear it?!
Julia’s remarks resonated with the students, and she represented far more than retailing and fashion apparel trends. Her early career success as a young Quinlan alumna is a model that current undergraduates are working to achieve. Banana Republic is currently ranked 10th in North American brand share amongst all apparel brands (Euromonitor Intl Passport GMID), and Julia ranks as one to watch in this sector.
Many thanks, Julia, for visiting with us!
Take a look at some of the comments directly from the students:
“Julia’s presentation taught me how far in advance retailers must plan and forecast.”
“Inventory strategy is crucial to retail success because it ensures that every part of the business comes together cohesively.”
“It is important to pursue a career in a field that you are passionate about; it is also important that you truly understand the core concepts.”
“Banana Republic creates its fashion lineup one year prior based on forecasted trends.”
“As a retailer, Banana Republic chooses not to be involved in “fast fashion” and only orders a 6-8 week buy of product.”
“It is far more efficient to produce inventory faster in a basics-driven company.”