Business in Design Subject code BTD313T Lecture 3 (hours/week) Hours/semester Credit C/NC Subject type 42 3 Non Core Theory

Based

Course objective To enable the students to draw knowledge from generic marketing and apply the principles and concepts to the fashion industry with specific reference to apparel/home textiles To impart knowledge of merchandising principles and technique, particularly with reference to apparel industry Concept domain Understanding the concepts of marketing and merchandising strategy Understanding the consumer behaviour and merchandise planning Knowledge domain Knowledge of different models used in strategy analysis 2 Knowledge of various costing, pricing, positioning

Session 8, 9, 10
Introduction to merchandising Definition & concepts Types of merchandising Basic functions of merchandising Role of a Merchandiser in various types of organisation export Merchandising vocabulary Overview of Indian home textile
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Introduction to Merchandising Definition & Concepts

Introduction to Merchandising definitions & concepts

Merchandising
Merchandising involved in encompasses marketing "planning the right

merchandise or service at the right place, at the right time, in the right quantities, and at the right price. Thus, merchandising is any practice which contributes to the sale of products
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Types of Merchandisers
Merchandising in retail house Merchandising in export house Production Merchandising Merchandising in fabric trading house Merchandising in fabric manufacturing unit Merchandising in buying house
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Retail Merchandising
Merchandisers work very closely with Buyers and determine range of goods to be sold When to buy them Their price How they will be presented He/she is responsible for range of merchandise, contents, price and he/she gives policy guidelines to Buyer He/she is responsible for promotion, display, sales forecast and stock levels
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Retail Merchandising
Retail Merchandisers need to understand all the buying systems related to: Buying Selling Transportation Warehousing of merchandise

Retail Merchandising
The Merchandiser will: Produce current sales figures Sales History Reports Produce Forward Estimates Visit Supplier Base and Warehouses, and Determine a strategy with the Category or Merchandise Manager Plan the size of the BUY Monitor stock management & allocation

Retail Merchandising
They will Manage one or two assistants and junior allocator Raise Purchase Orders to match range plan from buyers And Develop detailed spreadsheets for the buyers They Work closely with retail buyers in forecasting stock requirements and mark down decisions

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Retail Merchandising
Retail Buyers offices increasingly

operate with combination of buying and merchandising teams Buyers responsible for the product selection Merchandisers responsible for planning and financial control
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The Role of the Retail Merchandiser

Work closely with Buyers to determine the range of goods, when to buy, at what px. and the method of presentation Produce financial plans on a seasonal basis:
Sales and stock level Gross/net profit Space planning Mark up/downs

Monitoring the performance of these measurable targets on a weekly basis Follow up with buying team for timely12

Skills/Qualifications of Retail Merchandiser

Sound judgement Decisiveness and maturity Ability to cope under pressure Tough, business like approach Absolute integrity Excellent communication skills Negotiation skills
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Skills/Qualifications of Retail Merchandiser

Eye for detail Excellent numerical skills Ability to interpret data and figures and make commercial decisions based on them Good I.T. skills NIFT or a relevant qualification Be self motivated
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Retail in-store level merchandising

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Retail in-store level merchandising

It refers to the variety of products available for sale and the display of those products in such a way that it stimulates interest and entices customers to make a purchase. Also includes display techniques, free samples, on-the-spot demonstration,
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pricing, shelf talkers, special offers, and

Export house merchandising

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Introduction to Merchandising definitions & concepts

Export Merchandising
It includes activities right from sampling and idea conception to dispatching of the shipment. It involves leading and working with different departments within the organization, suppliers and buyers to ensure timely deliveries and acceptable
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Export Merchandising
Starts right from range development till the payment of shipment!!! Undertake order execution, correspondence, travel, etc. Maintain good relations with buying house/ liaison office / direct overseas buyers
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Export Merchandising
Responsibility of product development, range development & design Developing samples as per the buyer requirement Following up with design dept. for next season presentation Must have an eye for colors and design as well as penchant for numbers
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Export Merchandising
Negotiation of price from buyer Productive costing : Cost Break up Approval (Finalization of washing, embroidery, print and CM rates) Getting all necessary sample approvals from buyer i.e. Proto Samples, Size Fit Sets
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Samples,

Sales

Samples,

Samples, and P.P. samples

Export Merchandising
Responsible for sourcing the Fabric and accessories, getting initial approval and ordering bulk fabric and trim Creating and entering purchase orders (E.R.P.) Fabric / Trims follow up Merchandise A Calendar Planning and Control, Preparing and Implementing internal T &
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Export Merchandising
Booking of production capacities for each style with PPC dept. To conduct Pre-Production Meeting WIP on daily basis To arrange for final inspection

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Export Merchandising
Active involvement in all the companys activities. Ensure high level of quality, timeliness and cost effective export ensuring sustained profits and constant business growth. Motivate and Training Employees
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Coordination Functions
Merchandising with: Design Department Pattern Department Fabric Department Accessory (Trims) Department PPC
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involves

coordinating

Making/Sampling

Coordination Functions
Coordinating with: Washing/Finishing/Packing Dept. Quality Department LAB (in-house & external) Shipping(documentation) Dept. Buyers Quality Department Buyers Shipping Department
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Integral Functions of Export Merchandiser

FOLLOW UP Range booking Prepare Style file / BOM Correspondence with the client/buyer Take all approvals from the buyer/buyers representative
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planning

Costing

/Order

Integral Functions
Paying visits to the buyer in the foreign country or visiting the local liaison office/buying house/buying office Looking for new buyers

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Integral Functions
Product Development Market and Product Analysis Selling the concept Booking orders Confirming Deliveries Designing and Sampling Costing
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Integral Functions
Raw Material Flow Monitoring Internal (e.g.Production Follow-ups) & external communication (e.g.Payments Follow-ups) Sampling Lab dips
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Integral Functions
Accessories & trims Preparing internal order sheets Preparing purchase orders Advising and assisting production, Advising quality department about quality level Mediating production and quality departments
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Integral Functions
Giving shipping instructions and following shipping, Helping documentation department Taking responsibility for inspections and Following up the shipment.
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Buying House Merchandising

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Foreign brands source through. a. personal trips to the wholesale market a. Buying Office in the manufacturing markets

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Structure of buying office/house

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Country Manager GM Merchandisi ng DMM Menswear MM Senior merchandise r Merchandise r Jr. Merchandise r
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CAD

Manager Shipping

GM Quality

Accounts/ finance

DMM Kidswear

DMM Womenswea r

Country Manager GM Merchandisi ng

CAD

Manager Shipping Asst. Manager Shipping Assistant

GM Quality

Accounts/ finance

Senior Q.A. Manager Q.A. Manager

Q.A.

Q.C.
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Types of buying office/house

Buying Office can be store owned(liaison office) or independent office(agents)

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How to sell to foreign brands

An exporter can supply to foreign brands via: 1. Middlemen buying agency 1. Foreign brands resident office a.k.a. liaison office 1. Direct selling to foreign brand

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Importance, functions and services of buying house

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Purpose of Buying Office

Saves time Saves sourcing costs (multiple market trips) Monitoring Quality assurance Professional Assistance Merchandising Design input
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Order flow

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Sh ipm en t

Buyer (foreign brand) Destination country

Purcha se

order, s pec she ets, approv als

Proto, F it, size set, pro Sample -production s

Buying agency (India)

Shipment

Customs (India)

Shipment

Exporter (India)

Pu rc ha se

o ap rde pr r, s ov pe al c s sh ee ts ,

Customs (Destination country)

Pr o pr to, od Fi uc t, s tio iz n es Sa et m ,p pl ro es -

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Role of Merchandiser in Buying Office

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Responsibilities of a Merchandiser
1.Glorified clerks 1.Communication, Information conduit 1.Merchandisers need to have updated information on colours, fabrics, and styling for the forthcoming season which can be obtained from the buyers, buying foreign counterparts & of from
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agencies

Responsibilities of a merchandiser
4. Coordinating with factories for submits such as yarns/ lab dips, desk loom, bulk fabrics, fit samples, pre-production samples, etc. 1. Order enquiry Cross costing & pricing, 1. ensuring negotiations that the securing is orders distributing orders product
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Responsibilities of a merchandiser
7. To coordinate quality with factories and and bulk

buyers very closely to ensure that right samples production are shipped timely 1. Merchandisers need to be meticulous, update the records/system on time and need to systematically follow up with factories & buyers
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Responsibilities of a merchandiser
9. Coordination with Q.A. dept. ensure that all buyer comments on the samples submitted prior to production i.e. proto, fit, pre-production samples are implemented in bulk production 1. Cross check samples at the pilot run, inline and midline and track the dayto-day production output based on the
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Responsibilities of a merchandiser
11.Buyer contact & Client servicing 1. Should draw an apt sourcing & vendor management strategy 1. Ensure meeting of deadlines

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Merchandising Vocabulary
Accessories base fabric, bulk fabric, colourway, labdip, buyer, buying ethics, buying team, category CMT, cost price, lead-time, mark51

down/mark-up, COO-Country of Origin,

Merchandising Vocabulary
delivery schedule, distribution centre (DC), forward buying, Fashion, Fashionability, forecast, Fashion jockey, Merchandising,

inventory, fit sample, size set sample, sealing sample, PP sample

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Overview of Indian Home Textile Industry

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 http:// www.citiindia.com/indian_overview.asp?pgna =Overview A BRIEF REPORT TEXTILE INDUSTRY IN INDIA, MARCH 2012 http://www.cci.in/pdf/surveys_reports/indian-t

http://txcindia.com/html/comp%20table%20p

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