IGNOU| BASICS OF APPAREL INDUSTRY AND ENTREPRENEURSHIP (BHC - 005)| SOLVED PAPER – (DEC - 2023)| (CAPMER)
CERTIFICATE IN APPAREL MERCHANDISING
(CAPMER)
Term-End Examination
December - 2023
BHC–005
BASICS OF APPAREL INDUSTRY AND ENTREPRENEURSHIP
Time: 3 Hours
Maximum Marks: 100
Note: Attempt any five questions. All questions carry equal marks.
1. What is Apparel Merchandising? Differentiate between
apparel and fashion merchandising. Further, give an overview of Textile and
Apparel industry. 20
Ans:- Apparel merchandising is the process of
planning, purchasing, and promoting apparel products to meet the needs and
wants of target consumers. It involves selecting merchandise, determining
quantities, pricing, and presenting products in a manner that maximizes sales
and profits.
Apparel
merchandising refers to the process of promoting, selling and distributing
clothing and fashion products. It includes all the activities involved in
bringing a fashion product to market, including design, sourcing, production,
marketing and sales. Apparel merchandisers play a vital role in coordinating
various departments within the apparel industry and keep a close eye on the
production of apparel products to ensure that they meet the buyer's
requirements.
Difference
between Apparel and Fashion Merchandising:-
(i) Apparel
Merchandising: Apparel merchandising involves activities related to
planning, buying and selling of clothing items. It focuses on the overall
management of the production and sales of apparel products, ensuring that they
meet market demands and profitability.
(ii)
Fashion Merchandising: Fashion merchandising is a specialized area within
apparel merchandising that emphasizes the marketing and selling of
fashion-forward clothing items. This includes activities ranging from fashion
forecasting, design and product development to retailing, catering to the
latest trends and styles.
In short, while
apparel merchandising covers the broad spectrum of clothing management, fashion
merchandising is more specialized, focusing on the marketing and selling of
trendy and stylish apparel products.
The main
differences between apparel merchandising and fashion merchandising are:-
(i) Apparel
merchandising focuses on the business aspects of the apparel industry, such as
buying, selling and promoting apparel products. Fashion merchandising is a
broad term that includes apparel merchandising as well as the creative aspects
of fashion, such as trend forecasting and visual merchandising.
(ii) Apparel
merchandisers work for retailers, wholesalers and manufacturers to ensure that
the right products are available at the right time and place. Fashion
merchandisers work for fashion brands and retailers to create a cohesive brand
image and shopping experience.
(iii) Apparel
merchandising requires strong analytical and business skills, while fashion
merchandising requires a blend of business acumen and creative flair.
Overview of
Textile and Apparel Industry:-
The textile
and apparel industry is an important global sector that plays a vital role in
the economy.
The main
points about this industry are as follows:-
(i)
Industry size: Globally, retail sales of textiles, apparel and apparel
amount to $2 trillion annually, with the US textile and apparel industry contributing
significantly to the economy.
(ii)
Employment: This industry is very popular in the U.S. It directly employs
more than 4 million people in the U.S., including in a variety of roles such as
merchandisers, designers, buyers, and marketing professionals.
(iii)
Education and Careers: Academic programs in textile, fashion merchandising
and design prepare individuals for diverse careers in the industry, including
roles such as assistant designer, fashion merchandiser, retail manager, and
quality control specialist.
(iv)
Innovation and creativity: The industry constantly seeks new ways to create
and market sustainable products, requiring individuals with problem-solving
skills and a creative mindset to thrive in this dynamic sector.
The textile
and apparel industry is a multidisciplinary sector that blends business, art,
design, science and history, offering a wide range of career opportunities and
contributing significantly to the global economy.
The textile
and apparel industry is a global, multi-trillion dollar industry that involves
the design, manufacturing, distribution, marketing, retailing, and consumption
of clothing, footwear, and accessories. Major sectors of the industry
include:-
(i) Fiber
production (e.g. cotton, wool, synthetic fibre)
(ii) Yarn and
textile manufacturing
(iii) Apparel
design and production
(iv) Retail
and distribution
The industry is
highly globalized, with production often outsourced to countries with lower
labor costs. Key challenges facing the industry include sustainability,
transparency and adapting to changing consumer preferences and purchasing
behaviour.
2. Describe the organizational structure and departments
of a garment manufacturing unit. Use illustrations wherever necessary. 20
Ans:- A typical apparel manufacturing unit has the
following organizational structure and departments:-
Organizational
Structure:
The
organizational structure of an apparel manufacturing unit is usually
hierarchical, with the managing director or CEO at the top, followed by various
department heads and managers, and then employees and operators.
The major
departments in the apparel manufacturing unit are:-
(A)
Production Department:
(i) Responsible
for the entire production process from cutting to finishing
(ii) It includes
sub-departments like cutting, sewing, finishing and quality control
(iii) Headed by
a production manager who reports to the general manager
(B) Trading
Department:
(i) Handles
order processing, costing and coordination with buyers
(ii) To liaise
with the production department to ensure timely delivery
(iii) Headed by
a merchandising manager who reports to the general manager
(C)
Purchasing Department:
(i) Purchases
raw materials like cloth, trims and accessories
(ii) Negotiates
prices and terms with suppliers
(iii) Headed by
a purchasing manager who reports to the general manager
(D)
Accounts and Finance Department:
(i) Handles
financial transactions, budgeting and reporting
(ii) Ensures
timely payment to suppliers and workers
(iii) It is
headed by an accounts manager who reports to the managing director
(E) Human
Resource Department:
(i) Responsible
for hiring, training and managing employees
(ii) Handles
salaries, benefits and employee relations
(iii) It is
headed by a human resource manager who reports to the managing director
(F)
Marketing and Sales Department:
(i) Promotes the
company's products and services
(ii) Finds new
customers and markets
(iii) It is
headed by a marketing manager who reports to the managing director
Organizational
Chart:
Here is an
example of an organizational chart for an apparel manufacturing unit:-
In this chart,
the managing director is at the top, followed by the general manager who
oversees the production, sales and purchasing departments. The accounting,
human resources and marketing departments report directly to the managing
director. Each department has its own in-charge or supervisor who manages the
workers and operators.
The
organizational structure and departments may vary depending on the size and
complexity of the apparel manufacturing unit, but the basic principles remain
the same.
3. Describe the different retail formats covered by the
apparel industry in India. 20
[COMING SOON]
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