Formation of an Assortment of Light Industry Goods

The Ministry of Science and Higher Education of the Russian Federation 
Kazan National Research Technological University 
E. Pankova, G. Rakhmatullina, V. Tikhonova
F O R M A T I O N  
O F  AN ASSOR TMENT OF  LI GHT
I N D U S T R Y  G O O D S
A Study Guide 
Kazan 
KNRTU Press 
2023 

UDC 67(075) 
Published by the decision of the Editorial Review Board  
of the Kazan National Research Technological University 
Reviewers: 
Candidate of Sciences in Technology N. Degtyarev  
Candidate of Sciences in Technology Associate Professor V. Abdullina 
Pankova Е. 
Formation of an Assortment of Light Industry Goods : a study guide / 
E. Pankova, G. Rakhmatullina, V. Tikhonova; The Ministry of Education
and Science of the Russian Federation, Kazan National Research
Technological University. – Kazan : KNRTU Press, 2023. – 84 p.
ISBN 978-5-7882-3327-7
A study guide contains general information about the product, presents 
the classification and life cycle of goods, describes in detail the competitiveness of 
goods. The basics of assortment formation and management are given, as well as 
an assortment of fur and fur goods and genuine leather are presented. 
It is intended Master’s degree students majoring in the field of training 
29.04.01 “Technology of light industry products”. 
Prepared at the Department of plasma technology and nanotechnology of 
high molecular weight materials. 
UDC 67(075)
ISBN 978-5-7882-3327-7 
© E. Pankova, G. Rakhmatullina, 
V. Tikhonova, 2023
© Kazan National Research Technological 
University, 2023 
2 

Contents 
INTRODUCTION .............................................................................. 4 
1. THE DEFINITION OF GOODS .................................................... 6 
1.1. The classification of goods ...................................................... 8 
1.2. The classification of furs ....................................................... 12 
1.3. The classification of leather goods (products) 
....................... 14 
1.4. Life cycle of a good (product) ............................................... 15 
1.5. The competitiveness of goods ............................................... 20 
1.6. The competitiveness and valuation of goods (products) ....... 24 
1.7. Methods of assessing the competitiveness of goods.............. 27 
Questions to check ........................................................................ 32 
2. THE MARKET SEGMENTATION AND TYPES
OF CONSUMERS 
............................................................................ 33 
Questions to check ........................................................................ 42 
3. PRODUCT DEVELOPMENT AND MANAGEMENT 
.............. 44 
3.1. Methods of formation of the assortment 
................................ 50 
3.2.The assortment (range) of furs 
................................................ 57 
3.3. The range (assortment) of natural leather .............................. 62 
Questions to check ........................................................................ 75 
CONCLUSION................................................................................. 77 
LITERATURE 
.................................................................................. 79 
3 

I N T R O D U C T I O N
Light industry (manufacturing) is one of the leading branches of 
the global industrial complex, also, the significant increase in the trade 
turnover (more than 200 %) over the last fifteen years indicates the constant 
economic growth of this industry. Undoubtedly, this increase is the result of 
several reasons: the increase in the world's population and the improving 
people's living standards. However, the overall positive dynamics does not 
reflect the situation within the industry. Some economic factors (the growth 
of euro, the decline in business activity) have caused significant changes in 
the industry, which have led to a change of the world market leaders. 
The result was the relocation of the mass production centers from the USA 
and some European countries to the Southeast and Central Asia and the 
countries of South America. 
Russia is not currently a leader in the field of light industry, as its 
share in the world trade is only 1.9 %. Most of the Russian-made light industry goods (products) are exported to the CIS and Baltic countries and 
only a small number – to foreign countries. The structure of the export of 
light industry goods in Russia in comparison with world leaders has fundamental differences. The most important part of the leading export countries are finished goods (clothing, shoes, leather and furs, etc.), i.e., 
the products with high added value. Raw materials and semi-finished goods 
with low added value (such as leather semi-finished goods, partially processed cotton and linen fabrics, etc.) are the basis of light industry export 
goods in Russia.  
The expert evaluation showed the possibility of dividing the world 
market of light industry goods (by the “price – quality” classification) into 
four categories (niches). In accordance with this, the domestic goods occupy the position of goods of average quality with simple design and average 
prices. 
The situation will be corrected by a set of measures designed to 
stimulate innovation activity in the industry, to improve the technical and 
technological state of production, to ensure conditions for increasing 
the volume of manufacturing high-quality competitive products.  
The assessment of macroeconomic indicators and development 
trends confirms that the market capacity of light industry goods in Russia 
may increase by 41.7 % (more than 2.83 trillion rubles) if the objectives in 
the strategy of development of light industry of the Russian Federation are 
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fulfilled. According to this strategy, the increase in the participation of domestic goods in retail turnover is possible up to 50.5 % (1.43 trillion rubles), due to the increase in domestic demand for light industry products, as 
a result in: 
– the improving of the welfare of the population in Russia, which 
will increase the demand for more expensive and high-quality clothing, 
shoes, leather and furs and other products; 
– the growing of the world popularity of the natural fibers products 
and the anticipated expansion of their range of applications in clothing collections. The result of this can be the desire of the sewing industry (including Russian) to match to the fashion and increase the use of fabrics of natural fibers, especially linen; 
– creating the equal conditions for competing Russian and foreign 
production goods in the market, as well as increasing interest in the market 
of Russian and foreign countries consumers; 
– creating conditions for ensuring the scale of production and 
the production of high-quality competitive products, expanding the assortment by developing new products with the use of breakthrough technologies. 
It is expected that the domestic market will be saturated with 
the high-value-added Russian products, while maintaining the main product 
groups, but increasing the share of products of the new generation. 
In general, the structure of consumption of light industry goods will 
retain its proportions, and the priority in consumption will belong to the 
individual buyer. Government procurement goods, having increased in absolute terms, will maintain its current share. The structure of the Russian 
market improvement can be due to the implementation of a set of measures 
aimed at civilized, competitive market formation and the stimulation of 
the organization of the modern commodity production networks. 
5 

.  T H E  D E F I N I T I O N  O F  G O O D S  
Everything that may be the object of transactions in the market relations between sellers and buyers is considered to be goods. Thus, the definition of this category is as follows. A good – is a product of activity (including work, services) for sale or exchange. The concept of “good” is multifaceted because it includes: functionality; aesthetics; safety and harmlessness. A product that is characterized by high quality can be considered to be 
conditionally perfect. Products are divided into two significant types:  
1) tangible (material) goods;  
2) intangible (non-material) goods.  
The product type classification is shown in Fig. 1.1. 
 
 
Fig. 1.1. Types of goods 
 
From the point of view of merchandising, the main characteristics 
of goods are assortment, quality, quantity and price. 
The first three characteristics of goods (assortment, quality and 
quantity) are for human needs (physiological, social, psychological, etc.) 
and determine the usefulness of goods for certain groups of consumers. 
In addition, the goods are commercially traded what determines the price 
characteristics which is not, however, merchandising.  
The list of categories, which make up goods are shown in Fig. 1.2. 
6 

 
 
Fig. 1.2. The list of categories which make up goods 
 
The consumer value is very important when we are evaluating 
a good (a product). The good (product) has a set of characteristics for satisfying human needs, which determines the usefulness of the good and its 
consumer value, which connects closely with the consumer characteristics 
of goods.  
The ability of a good to satisfy human needs determines its consumer value. Making a purchase or receiving any service, the person analyzes them, reveals their positive or negative features, comparing their consumer value (objective and subjective). Therefore, the definition of the consumer value of a good is more capacious than its usefulness. The role of 
the consumer value is that it is the material basis of the objective of 
the production and social relations in the context of the commodity production. Since the good is produced by the manufacturer for not his own consumption, but for other people, it should be considered as a public consumer value. The public consumer value, connecting the production and the 
consumption, is an important intermediate element. It determines the processes by which the goods are being sold. The consumer value is directly 
combined with the good quality and therefore with the production efficiency. In addition, the consumer value carries the exchange value.  
The exchange value – is the ability of a good to exchange for other 
goods in certain respects. The exchange value is a very important basic element in the exchange process. All goods, involved in this process, are 
quantitatively comparable. That shapes their value. There is the definition 
of the public consumer value, which includes not only the amount of labor, 
but also the quality of the good, i.e., its useful effect. 
7 

At first sight, the exchange proportions in the exchange process are 
occasionally established. In fact, there is and it is determined first of all by 
the proportion of supply and demand for the particular good (product) at 
the particular time. However, the systematic exchange of goods helps to average proportions. As mentioned above, the possibility of quantitative comparison of goods is determined by the existence of something common, 
namely the consumer values. Goods differ from each other in qualitative 
characteristics and are sometimes not commensurable with each other. Therefore the exchange values cannot be compared with the consumer values. 
1.1. The classification of goods 
It is difficult to classify the variety of currently available goods 
(products). There are several approaches to this problem, namely, so, 
the classification can be done by different criteria. The purpose is the priority feature for the classification (Fig. 1.3).  
 
 
 
Fig. 1.3. The classification of goods by purposes 
 
The first category shows private goods, so-called consumer goods. 
They are purchased for personal family or household consumption. 
The second category are intermediate goods. The third category are industrial goods, i.e., they are a part of the production of other goods or the economic activity of the enterprise.  
There is a classification according to the type of use (consumption) 
of goods (Fig. 1.4). 
8 

 
 
Fig. 1.4. The classification of goods by use (consumption) 
 
Goods with the long-term use include products with a long life, 
such as machines, furniture, etc. Short-term goods are goods consumed in 
a short period of time, such as bread, beverages, soap, toothpaste, washing 
powders, etc. Disposable goods are used once. Services are in a separate 
category includes services as objects of sale in the form of actions, benefits 
or satisfaction. 
The classification of goods by the raw materials are divided by 
their use (Fig. 1.5). 
 
 
Fig. 1.5. The classification of goods of raw materials by their use 
 
This classification is necessary in order to ensure the required conditions of storage of goods, their sale and operation. 
There are also technically difficult goods, when it is necessary to 
have special knowledge for implementation and operating (e.g., TV, splitsystems) and not technically difficult (electric iron, kettle), for sale and operation, where is not needed any additional training. In this case, the pro9