Fashion Merchandising
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1 Fashion Merchandising February 2016 Needs Assessment Prepared by Danielle Pearson Date: February 10, 2016 Fashion Merchandising Fashion Merchandising Needs Assessment Page 1
2 Scope Data compiled in this report covers San Bernardino, Riverside, Orange, and Los Angeles counties. Data were drawn from external sources, including the Employment Development Department s California Labor Market Information and the U.S. Department of Education s Integrated Postsecondary Education Data System (IPEDS), and Chaffey College s Colleague Administrative database. Data Sources and Calculations Educational Program Data TOP Code Program of Study Fashion Merchandising The Taxonomy of Programs (TOP) is a standardized system used at the state level to classify programs and courses that are intended to achieve the same outcome at California Community Colleges. The TOP title and code assigned to the Fashion Merchandising program is CIP Code Program of Study Apparel and Textile Marketing Management The Classification of Instructional Programs (CIP) is a standardized coding system used at the federal level to facilitate accurate tracking, assessment, and reporting of fields of study and program completion at educational institutions throughout the country. The CIP title and code associated with the Fashion Merchandising TOP Code is Apparel and Textile Marketing Management, All educational program data in this report are based on these TOP and CIP codes. Completions Data Degree and certificate data regarding students at Chaffey College were collected from the Colleague Administrative database. Degree and certificate data for all comparison schools were collected from the U.S. Department of Education s Integrated Postsecondary Education Data System (IPEDS). All comparison institutions included in this report are postsecondary and have provided data to IPEDS. IPEDS defines postsecondary education as a formal program designed primarily for students beyond high school age. These include academic, vocational, and continuing professional education, and exclude avocational and adult basic education programs. Occupational Data SOC Code Occupational Title Marketing Managers Wholesale and Retail Buyers, Except Farm Products The Standard Occupational Classification (SOC) system is used by federal statistical agencies to classify workers into occupational categories. The Apparel and Textile Marketing Manager CIP code was mapped to the SOC codes listed in the table above using the crosswalk described in the paragraph below. Fashion Merchandising Needs Assessment Page 2
3 Educational Program to Occupation Crosswalk The TOP-CIP-SOC Crosswalk (Employment Development Department, 2009) was used in this report to map California Community College-specific Taxonomy of Program (TOP) codes to federal Classification of Instructional Program (CIP) and Standard Occupational Classifications (SOC) codes. This crosswalk allows the user to estimate labor market demand for California Community College program completers using SOC based projections from the Labor Market Information Division. Industry Data The North American Industry Classification System (NAICS) is used by federal statistical agencies to classify business establishments for the purpose of conducting and reporting research on the U.S. business economy. Using the Standard Occupational Classification codes listed above, associated NAICS industries that employ the occupations listed above were identified. Fashion Merchandising Needs Assessment Page 3
4 Introduction and Contents Contents Background Information 5 Regional Job Outlook 7 Largest and Fastest Growing Industry Employers 9 Regional Graduation Summary 11 Chaffey College s Performance on Core Indicators.12 Purpose and Goals Chaffey College currently offers a unit Associate s degree and a unit certificate in Fashion Merchandising. The College Catalog Fashion Merchandising program description reads as follows: Fashion Merchandising prepares students for employment in all aspects of retailing related to apparel and accessory merchandise buying and management. Other career avenues are sales representatives for manufacturers, visual display, distribution, importing and exporting, and sales promotions. The purpose of this report is to integrate and analyze data from multiple sources to determine labor market needs for the Fashion Merchandising program at Chaffey College. Regional Definitions Inland Empire includes the Riverside-San Bernardino-Ontario Metropolitan Statistical Area (MSA) Los Angeles County includes the Los Angeles- Long Beach-Glendale Metro Division Orange County includes the Santa Ana- Anaheim-Irvine Metro Division Key Terms and Concepts Replacement Jobs: Replacement jobs refer to the number of job openings due to workers leaving an occupation. Annual Openings: Annual openings are calculated by adding the number of new jobs to the number of replacement jobs, divided by the number of years in the projection period. Projections: Projections of employment are calculated by the Employment Development Department and are based on a mathematical formula that includes historical employment and economic indicators along with national, state, and local trends. Occupation: Jobs are grouped into occupations using the federal Standard Occupational Classification (SOC) system. Industry: Occupations are grouped into industries using the North American Industry Classification System (NAICS). Wages: Hourly wages are reported in percentiles and averages. The 25th percentile is a useful proxy of entry-level wages and the 75th percentile of experienced-level wages. Fashion Merchandising Needs Assessment Page 4
5 Background Information Fashion Merchandising Fashion programs in California Community Colleges educate students in fashion and its influence on individuals and society, including fashion s principles and concepts as related to merchandising and selection. Fashion Merchandising programs specifically focus on merchandising of fashion and related articles in retail and wholesale establishments. 1 The descriptions of job duties for Fashion Merchandising-related occupations provided below are supplied by the Occupational Information Network (O-NET). 2 Marketing Managers 2 Marketing Managers plan, direct, or coordinate marketing policies and programs, such as determining the demand for products and services offered by a firm and its competitors, and identify potential customers. They develop pricing strategies with the goal of maximizing the firm s profits or share of the market while ensuring the firm s customers are satisfied. They oversee product development or monitor trends that indicate the need for new products and services. Typical Tasks Identify, develop, or evaluate marketing strategy, based on knowledge of establishment objectives, market characteristics, and cost and markup factors Formulate, direct, or coordinate marketing activities or policies to promote products or services, working with advertising or promotion managers Evaluate the financial aspects of product development, such as budgets, expenditures, research and development appropriations, or return-on-investment and profit-loss projections Develop pricing strategies, balancing firm objectives and customer satisfaction Compile lists describing product or service offerings Direct the hiring, training, or performance evaluations of marketing or sales staff and oversee their daily activities Consult with product development personnel on product specifications such as design, color, or packaging Use sales forecasting or strategic planning to ensure the sale and profitability of products, lines, or services, analyzing business developments and monitoring market trends Negotiate contracts with vendors or distributors to manage product distribution, establishing distribution networks or developing distribution strategies Coordinate or participate in promotional activities or trade shows, working with developers, advertisers, or production managers, to market products or services 1 California Community Colleges, Chancellor s Office, Taxonomy of Programs, Sixth Edition (Corrected Version). 2 O*Net Online: Fashion Merchandising Needs Assessment Page 5
6 Wholesale and Retail Buyers, Except Farm Products 2 Wholesale and Retail Buyers, Except Farm Products, buy merchandise or commodities, other than farm products, for resale to consumers at the wholesale or retail level, including both durable and nondurable goods. They analyze past buying trends, sales records, price, and quality of merchandise to determine value and yield. They select, order, and authorize payment for merchandise according to contractual agreements. They may conduct meetings with sales personnel and introduce new products. This includes assistant wholesale and retail buyers of nonfarm products. Typical Tasks Buy merchandise or commodities for resale to wholesale or retail consumers Negotiate prices, discount terms, or transportation arrangements with suppliers Examine, select, order, or purchase merchandise consistent with quality, quantity, specification requirements, or other factors, such as environmental soundness Recommend mark-up rates, markdown rates, or merchandise selling prices Obtain information about customer needs or preferences by conferring with sales or purchasing personnel Authorize payment of invoices or return of merchandise Monitor and Analyze sales records, trends, or economic conditions to anticipate consumer buying patterns and determine what the company will sell and how much inventory is needed Collaborate with vendors to obtain or develop desired products Inspect merchandise or products to determine quality, value, or yield Conduct sales meetings to introduce new merchandise Fashion Merchandising Needs Assessment Page 6
7 Regional Job Outlook Projected Regional Job Outlook The table below displays 2012 employment estimates and 2022 projections for Marketing Managers and Wholesale and Retail Buyers (Non-Farm). Jobs for both occupations are expected to grow at a moderateto-high rate across all regions. The most growth is project in the Inland Empire and Orange County for both Marketing Managers and Wholesale and Retail Buyers. Total Estimated 2012 Jobs Total Projected 2022 Jobs Projected Growth (%) Ave. Annual New Job Openings Ave. Annual Replacement Job Openings Ave. Annual Total Job Openings Marketing Managers State of California 30,300 36,900 6,600 (21.8%) ,310 Inland Empire 880 1, (26.1%) Los Angeles CO 7,300 8,610 1,310 (17.9%) Orange CO 3,550 4, (22.0%) Wholesale and Retail Buyers, Except Farm Products State of California 17,600 20,400 2,800 (15.9%) Inland Empire 1,000 1, (28.0%) Los Angeles CO 5,980 6, (12.5%) Orange CO 1,740 2, (25.3%) Indicates there are no data available. Source: Labor Market Information Division, Employment Development Department, Occupation Profile, on the Internet at: (visited February 10, 2016). Projected Regional Job Growth The graphs below show the projected growth from 2012 to 2022 of Fashion Merchandising related jobs. The field is experiencing high levels of growth, particularly within the Inland Empire and Orange County. 30 Marketing Managers % Growth California Inland Empire Los Angeles County Orange County Fashion Merchandising Needs Assessment Page 7
8 30 Wholesale and Retail Buyers, Except Farm Products % Growth California Inland Empire Los Angeles County Orange County Source: Labor Market Information Division, Employment Development Department, Occupation Profile, on the Internet at: (visited February 10, 2016). Regional Hourly Wages This table displays the first quarter 2015 hourly wage statistics for Marketing Managers and Wholesale and Retail Buyers (Except Farm Products). Marketing Managers can expect much higher wages, in the range of approximately $35 - $76 per hour, depending on region and experience. Median ranges vary from $53.23/hr to $72.90/hr. Wholesale and Retail Buyers can expect to earn between $16/hr and $35/hr depending on region and experience level. No wage data specific to Orange County were available. Mean Hourly Rate 25 th Percentile Median Hourly Rate 75 th Percentile Marketing Managers State of California $77.14 $53.52 $72.90 N/A Inland Empire $60.05 $34.76 $53.23 $76.48 Los Angeles CO $69.93 $48.15 $67.30 N/A Orange CO Wholesale and Retail Buyers, Except Farm Products State of California $28.11 $18.65 $25.40 $34.12 Inland Empire $29.89 $18.16 $25.70 $34.36 Los Angeles CO $26.75 $16.53 $24.26 $33.78 Orange CO Source: Labor Market Information Division, Employment Development Department, Occupation Profile, on the Internet at: (visited February 10, 2016). Fashion Merchandising Needs Assessment Page 8
9 Largest and Fastest Growing Industry Employers Largest Industry Employers of Fashion Merchandising Occupations The graphs below display the 2012 staffing patterns of the largest industries employing Marketing Managers and Wholesale and Retail Buyers across the state of California. The top industry employing both Marketing Managers and Wholesale and Retail Buyers is Management of Companies and Enterprises. This field accounts for almost one-third of all Marketing Manager and Wholesale and Retail Buyer positions Number of Employees Marketing Managers 2500 Wholesale and Retail Buyers, Except Farm Products Number of Employees Source: Labor Market Information Division, Employment Development Department, Staffing Patterns, on the Internet at: (visited February 10, 2016). Fashion Merchandising Needs Assessment Page 9
10 Change Over Time of the Largest Industry Employers of Fashion Merchandising Occupations The graphs below display projections of staffing changes from within the largest industries employing Marketing Managers and Wholesale and Retail Buyers in the state of California. One industry, Electronic Instrument Manufacturing, is expected to reduce positions for Marketing Managers in the ten year period of interest, and one industry, Machinery and Supply Merchant Wholesale, is expecting no growth for Wholesale and Retail Buyers. Particularly high growth is expected in Management and Technical Consulting Services for Marketing Managers and in Electronic Markets and Agents/Brokers and Building Materials and Supplies Dealers for Wholesale and Retail Buyers. 80% 60% Marketing Managers Percent Change 40% 20% 0% -20% -40% Wholesale and Retail Buyers, Except Farm Products Percent Change 40% 35% 30% 25% 20% 15% 10% 5% 0% Source: Labor Market Information Division, Employment Development Department, Staffing Patterns, on the Internet at: (visited February 10, 2016). Fashion Merchandising Needs Assessment Page 10
11 Regional Graduation Summary Education and Training 1 A bachelor s degree is required for most Marketing Management positions. Marketing Managers typically have work experience in advertising, marketing, promotions, or sales. They require analytical, communication, decision-making, and interpersonal skills. Educational requirements vary for Wholesale and Retail Buyers, largely dependent on the size of the organization. Although a high school diploma may be sufficient for some organizations, many businesses require applicants to have a bachelor s degree. Buyers typically get on-the-job training for more than 1 year. During this time, they learn how to perform their basic duties, including monitoring inventory levels and negotiating with suppliers. Few employers require certification, but certifications available for buyers include the Certified Professional in Supply Management (CPSM) credential, the Certified Purchasing Processional (CPP) certification, and the Certified Supply Chain Professional (CSCP) credential. Regional Completers in Fashion Merchandising Programs The table below displays the number of program completers in the academic year at regional institutions offering Fashion Merchandising programs. With the inclusion of Chaffey College, there were 15 institutions offering certificates and two year degrees below the baccalaureate level across California. Institution Name < 1 year Certificate 1 to < 2 year Certificate Award Level Associate s Degree 2 to < 4 year Certificate Chaffey College El Camino Community College District Fashion Institute of Design & Merchandising Los Angeles Fullerton College Long Beach City College Los Angeles Trade Technical College Mt. San Antonio College Orange Coast College Saddleback College Santa Ana College Santa Monica College Total Note: -- indicates that this type of degree is not offered. 0 indicates that this degree/certificate level is offered but no degrees or certificates were granted. Source: National Center for Education Statistics, U.S. Department of Education, Integrated Postsecondary Education Data System, on the Internet at: (visited February 10, 2016) 1 Bureau of Labor Statistics, United States Department of Labor, Occupational Outlook Handbook, Edition, on the Internet at: (visited February 10, 2016). Fashion Merchandising Needs Assessment Page 11
12 Chaffey College s Performance on Core Indicators The Perkins IV Career and Technical Education Improvement Act of 2006 mandates that all state and local postsecondary institutions provide data on six core performance indicators for their career and technical education programs. These indicators are: 1) Technical Skill Attainment; 2) Completions; 3) Persistence and Transfer; 4) Employment; 5) Nontraditional Participation; and 6) Nontraditional Completion. Performance goals are set at the state and local levels and progress is monitored based on a comparison between the actual percentage of students who master each performance area and the negotiated levels of performance Chaffey College Performance on Core Indicators The table below displays negotiated and actual core performance indicator levels for all Chaffey College students classified under the Fashion Merchandising TOP code. Chaffey College students performed above the district negotiated level for Core 2, Completions, and Core 3, Persistence and Transfer. Core Performance Indicators Negotiated Level State District Chaffey College Performance Percent Above or Below District Negotiated Level Fashion Merchandising Core 1 Technical Skill Attainment 89.50% 89.50% 86.96% -2.5 Core 2 Completions - Credential, Certificate, Degree, or Transfer Ready 81.50% 75.61% 94.74% 19.1 Core 3 Persistence and Transfer 86.50% 83.24% 89.13% 5.9 Core 4 Employment 80.85% 77.65% 75.00% N/A Core 5a Non-traditional Participation 22.60% 20.29% N/R N/R Core 5b Non-traditional Completions 26.50% 22.49% N/R N/R Note: The DR notation indicates privacy requirements EDD requires that counts less than six not be displayed. N/A (Not Applicable) indicates denominators 10 or N/R (Not Reported) indicates that no participants were reported. Source: CA Community Colleges Reporting Services, Fashion Merchandising, College Core Indicator Information by 6-Digit TOP ( Fiscal Year Planning). Fashion Merchandising Needs Assessment Page 12
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