Mapping the Fashion Promotion Profession - Designer Clustering.

Designer clustering is something that has happened over time where businesses have to cluster together for reasons that rely heavily on their businesses' current economic situation. Gone are the days when businesses were able to sit alone and merchandise individually. It is now so common for stores to be grouped together, based on their commonality for each other. This sounds as though it makes perfect sense as allocators cannot handle rows of stores themselves, so grouping together stores is a logical thing to do.

Although, research has shown that there are flaws in these clustering methods. Therefore, they should be revised as they was created in the 1980s and simply do not work in this current, economic climate. As the reason why these methods were used in the first place was because there were limitations of merchandising systems. Although, now the systems are much more precise and do not have as much problems. 

Today's clustering methods are largely based on volume; both financial and the number of cluster variants. Although, by businesses using these methods based on just volume alone it tends to be problematic. Firstly, the cluster information used is often based on old data. One of the more productive ways to carry out clustering methods is to use either historical data or demand forecasts. Historical data is the best one to use, as the businesses would be able to see missed opportunities that happened in the past. Therefore, not only does this incorporate lost sales, but it also includes possible future trends as well. 

Secondly, the cluster information is not updated enough. So the businesses are often implementing the wrong strategies, as times have changed since the cluster reports were written. Businesses cluster information should be evaluated as often as possible. Therefore, businesses should have their cluster information implemented when a buying plan is made. And again evaluated and implemented when the buy is being processed. It should then be carried out again when the purchase is pre-allocated, and another when the products have gone on sale. This should then become a cycle and happen like clockwork, and although there are factors that can stop this process it should not be ignored. 

Another factor that should be taken into consideration is when stores re-stock their goods. At this time businesses behaviour is very erratic, especially in fashion, in tern they should not rely on in-season clusters. With today's technology it can identify how well each store and individual product is doing. Evaluating the steps that need to be taken for that specific store accordingly.  

To conclude, businesses are definitely using more sophisticated ways to carry out cluster information reports, but there could still be many improvements made. Climate is a factor that should be included when carrying out these information reports, as it is a very common factor as to how stores are clustered. There are also many more that should be included, such as: price points (merchandise), economic status (store), fashionability (products) and how consumers behave towards where the business has been situated.