Product Manager → trend forecasting, product contribution %, open-to-buy, production calendar

What key responsibilities does a Product Manager have in retail fashion?

Trend forecasting, analyzing product contribution %, managing open-to-buy budgets, and maintaining the production calendar.

What is trend forecasting and where do forecasters find information?

Predicting future trends based on past and current styles.
Sources include fashion shows, social media, street style, red-carpet events, and fabric tradeshows.

What are the five key components of fashion forecasting?

Consumer behavior
• Trend analysis
• Color forecasting
• Fabric/material trends
• Silhouette and style evolution

What are the five stages of fashion forecasting?

 Researching:Look for new ideas and information from many sources to understand what might become a trend.

2. Sorting: Organize and filter all the collected data to find clear patterns and themes.

3. Analyzing: Study the patterns to understand why a trend is happening, what it means, and how it might develop.

4. Predicting:Use the research and analysis to forecast which trends will become popular.

5. Communicating:Share the predictions through visuals, presentations, or reports so others can use them.

What is the difference between macro and micro trends?

Macro trends: Long-term cultural/social shifts (e.g., sustainability, wellness).
• Micro trends: Short-term viral styles lasting months (e.g., balletcore, Barbiecore, Y2K accessories).

What are the three fashion trend theories?

Trickle-Down Theory

Fashion starts with high-end designers or wealthy people and then spreads to the mass market.
Example: A luxury brand releases a style → celebrities wear it → fast fashion copies it.

 Trickle-Across Theory

Fashion spreads across groups at the same time, not from top to bottom.
This happens when trends move quickly through social media. Example: Influencers, street style, and brands adopt a trend all at once.

Trickle-Up Theory

Fashion starts from the streets or subcultures and then moves upward to luxury and mainstream brands. Example: Streetwear, sneakers, and hoodies becoming high-fashion items.

What is the pendulum swing theory?

Fashion trends shift back and forth between opposite styles (e.g., skinny jeans → wide-leg jeans → skinny again).

What are the 8 R’s of logistics?

1. Right Product – Deliver the correct item the customer ordered.
   
   

2. Right Quantity – Provide the exact amount needed, not too much or too little.
   
   

3. Right Condition – Ensure the product arrives undamaged and in perfect form.
   
   

4. Right Place – Deliver to the correct location.
   
   

5. Right Time – Deliver on time, when the customer expects it.
   
   

6. Right Customer – Make sure the order goes to the intended buyer.
   
   

7. Right Price – Manage logistics efficiently so costs stay reasonable.
   
   

8. Right Customer Experience – Ensure the overall delivery process is smooth, easy, and satisfying.

What is production contribution % and why does it matter?

The percentage of total cost that comes from production.
Higher production contribution % → higher costs → lower OTB.
Lower production contribution % → lower costs → higher OTB.

How does production contribution % influence open-to-buy?

• High production cost = less money left to purchase inventory
• Low production cost = more flexible OTB
• Helps plan product mix and avoid overbuying
• Affects margins and budget planning

(Example: $1M budget → 60% production contribution = $400K OTB; at 50%, OTB increases to $500K.)

What is Open-to-Buy (OTB)?

A retail budgeting tool that calculates how much money is available for purchasing new inventory to meet demand without overbuying.

What is the Open-to-Buy formula?

Planned sales

+ planned markdowns

+ planned end of month inventory

- planned beginning of month inventory

= open-to-buy (OTB)

What do key OTB terms mean?

• Planned BOM inventory: Expected inventory at the start of the month
• Planned sales: Forecasted monthly sales
• Planned markdowns: Expected price reductions
• Planned EOM inventory: Inventory expected at month end
• Planned OTB: Dollars available to purchase new inventory

What is a production calendar?

A timeline that outlines all steps from design to delivery, helping teams stay on schedule for seasonal launches.

What does a production calendar help with?

Clear Timeline & Milestones:
Shows all steps from design to delivery so teams stay on schedule.

Dependency Management:
Shows which tasks must happen first (e.g., samples approved before production).

Resource Allocation:
Helps plan workers and materials efficiently.

Responsibility Assignment:
Clarifies who is responsible for each task.

Early Problem Identification:
Makes delays easy to spot and fix quickly.

Improved Communication:
Gives everyone a shared reference to stay aligned.

Progress Monitoring:
Shows real-time progress, keeps teams accountable, and prevents delays or extra costs.