Journal Of Fashion Marketing And Management-Myassignmenthelp.Com

Question: Discuss About The Journal Of Fashion Marketing And Management? Answer: Introducation Sun Worship Leisure Wear which is dealing in swimwear and accessories will be having estimated to increase in sales in the first quarter in the sales of all 4 categories of the products it is dealing. The expected sales for the first quarter will be 9260 units consisting of all the products that are to be sold in the months January, February and March it will be amounting to around $762400. The amount of sales of all the products for the month of January will be $279000, for the month of February $245900 and March will be $237500. The sales will tend to be decrease in the next two quarters which will be around $386300 for the months of April to June (Drury, 2013). Likewise there is slight increase in the sales but not like the first quarter which will be around $373000 for the period of July to September. There will be increase in the sales in the last quarter it will be results to a total sale of $720800 which will be having contribution of October month sales $225900, November $225 900 and December $269000. So company must focus on more sales during the period of October to march it will help the organization to earn good amount of profit (Matz, et al., 2011). Production analysis While analyzing the production budget it is observed that finished goods inventory with the organization is available is around 624 units at the beginning of the year at the same time it is also required to maintain 50% sales of the next period to be maintained as planned inventory for the present year so it will be 50% of 2980 units which will be 1490 and total inventory that are needed to be produced in the month of January will be 4267 units. This process will be continued in next months (Zimmerman, and Yahya-Zadeh, 2011). The inventory production needs are highest in the month of January which will gradually fall in the later months from February to July and thereafter there is need to increase the production gradually till the end of the year. Contribution margin by Product Particulars Bikini Board Shorts Towels Beach Bags Sales (in units) 12000 11220 1560 2560 Selling Price per unit $100 $75 $55 $45 Sales (in $) $1,200,000 $841,500 $85,800 $115,200 Variable costs per unit 32.25 34.25 31.5 26.5 Total Variable Cost $387000 $384285 $49140 $67840 Contribution Margin $813,000 $457,215 $36,660 $47,360 Cash Position As per the analysis of the cash budget it is observed that company is having enough cash in hand throughout the year. There is need to invest this cash in some more productive investments so that higher returns can be generated by the company. Companies always need to have good amounted of cash so that to manage daily operations. It is also recommended that the maintaining the cash budget and cash position will leads to know about the possible expenses and income of the organization so that the managers are able to manage operations in case of any kind of contingencies (Weygandt, et al., 2015). Company is having cash position of $167936.2 at the beginning of the year at the same time this cash balance has reached to 1 million in the month of $1024865.4 and it also rose to 1.7 million till the end of December. Analysis of market condition The clothing sector is wide spread industry which is having large variety of products. It is serving various kinds of demographic and competition between local and international brands. There are various changes that are faced by the retailing industry in past few years. These challenges rose due to intense competition in the market due to presence of large number of retailers in the market. The second challenge faced by this sector is the cautious consumer spending, customers are comparing products and they are also aware of price difference so it has resulted to change in preference and purchasing behaviors of the customers. Higher rents affected the revenues and profits of the retailers but industry revenues are going to be growing at 2.0% rate annually over the period next five years (IBISWorld, 2017). Availability of clothing products on the online channels has resulted to awareness and consumers are now cautious about spending, but now the economic conditions and preferences ar e shifted towards purchasing the products online as well as offline. The monthly comparison of the clothing trend has an increase of 0.2% in November 2017. At the same time the overall rise in the industry trend for sales of the clothing, footwear and other personal accessories were increased up to 1.6% when compared on the seasonally basis (Australian bureau of statistics, 2017). There is also possibility that the clothing retailing will increase about 0.3% with seasonal increase of about 2.2% in cloth retailing. Based upon the information and past trends in the retail clothing it is recommended that there will be increase in the sales of the clothes in year 2019. It is estimated that Australian GDP will be having a growth of 2.5% supported by an estimate of 2% growth in retail sector. It is less in comparison to past performance which was 3.7% in year 2013-2017. It is also observed that fashion is rapidly changing with the change in the season various products are having huge change in demand within short period of time (OSullivan, et al., 2017). It is required that the major spending by the company should be on promotion with managing finance and managing funds so that they are able to maintain good market position in the competitive market. Summary of Recommendations As per analysis of the sales budget it is clear that company is having good amount of sales in the 6 months starting from 1st quarter and in the 4th quarter. So it is needed that the organization must focus on advertisement of the products in the remaining period of six months so that the sales can be boosted. The company is also required to provide additional discounts on its product range so that it will be having more sales during this period of time (Lanen, 2016). It is also suggested that organization will need to introduce more products in the portfolio so that it will be having more business in future. While analyzing the production budget it is analysed that organization must focus on more efficiency and there is need to bring the cost of material and labour hours also needed to be bring down as company is facing issues of lower profits (Drury, 2013). Company must also analyse the costs and overheads so that the costs which are not giving productive returns they need to be eliminated. While analyzing the cash position of the organisation it is recommended that the organization need to take more amount of money at the time of sales company will have to increase cash collection to 25% at the time of sales. At the same time it is needed that the payments for the purchases are needed to be brought down to 20% at the time of purchases and remaining payment must be paid in 40%, 20% and 20% in the following months respectively (Weil, et al.,2013). It will also help to repay the loan that is to be repaid by the company. Company also needs to develop some branding strategy since it is analysed that the Australian market is having high competition. It is also recommended that the company have to admit its presence on online platform which is preferred as the best method for selling the products its global presence and any time accessibility are the key attracting features for the companies (Szymoszowskyj, et al., 2016). References: Australian bureau of statistics (2017) 8501.0 - Retail Trade, Australia, Nov 2017. [Online]. Available at: https://www.abs.gov.au/ausstats/abs@.nsf/0/3DDA13ECDC094B1CCA257734002042F2?Opendocument [Accessed on: 19 January 2017]. Drury, C. M. (2013)Management and cost accounting. Berlin, Germany: Springer. IBISWorld (2017) Clothing Retailing in Australia: Market Research Report. [Online]. Available at: https://www.ibisworld.com.au/industry-trends/market-research-reports/retail-trade/other-store-based-retailing/clothing-retailing.html#readMore [Accessed on: 19 January 2017]. Lanen, W. (2016)Fundamentals of cost accounting. USA: McGraw-Hill Higher Education. Matz, A., Usry, M. F., and Hammer, L. H. (2011) Cost accounting: Planning and control. Cincinnati: South-Western Pub. Co. OSullivan, G. A., Hanlon, C., Spaaij, R., and Westerbeek, H. (2017) Womens activewear trends and drivers: a systematic review,Journal of Fashion Marketing and Management: An International Journal,21(1), pp. 2-15. Szymoszowskyj, A., Szymoszowskyj, A., Winand, M., Winand, M., Kolyperas, D., Kolyperas, D., ... and Sparks, L. (2016) Professional football clubs retail branding strategies,Sport, Business and Management: An International Journal,6(5), pp. 579-598. Weil, R. L., Schipper, K., and Francis, J. (2013)Financial accounting: an introduction to concepts, methods and uses. USA: Cengage Learning. Weygandt, J. J., Kimmel, P. D., and Kieso, D. E. (2015)Financial Managerial Accounting. US: John Wiley Sons. Zimmerman, J. L., and Yahya-Zadeh, M. (2011) Accounting for decision making and control,Issues in Accounting Education,26(1), pp. 258-2