A Strategic Direction in Forecasting
Introduction & Summary
Klaus Obermeyer is an innovator in the high-end skiwear industry. The company began with down filled jackets and slowly began to diversify its product line with high-altitude suntan lotion, turtlenecks, nylon wind-shirts, mirrored sunglasses and more. In 1961, the first Sport Obermeyer factory warehouse opened in Aspen, and the innovations continued with “soft-shell” jackets, double lens goggles, and the first waterproof-breathable fabrics to be used in clothing.
Sport Obermeyer is a high-end fashion skiwear design and merchandising company with its headquarters located in Aspen, Colorado. The company specializes in selling its products in U.S. department stores and ski shops. Although the company has a global supply network, most of its outerwear products are channeled through Obersport.[1]
In the fashion skiwear industry - demand is very dependent on several factors that are difficult to predict. The inconsistent nature of the economy, fashion trends and weather create a significant challenge for a firm such as Sport Obermeyer. By actively applying a selection of appropriate forecasting methods and continuing to adapt to this fast-paced industry, Obersport would be able to remain competitive and retain or increase its 1992 high market share entering into the 1993/94 season.
Analysis
A joint venture was established between Klaus Obermeyer and Raymond Tse in 1985. This company gained the title of Obersport Ltd. This joint venture allowed Obermeyer to manage supply and production operations in Hong Kong and China.[2]
Until the mid-1980s, Obermeyer followed a simple design-and-sales cycle: ➢ The first stage was to design the product, then fabricate and showcase samples to retailers in March usually at fairs/shows ➢ The second stage was to place production orders with suppliers in March and April after receiving retail orders from the fairs/shows.