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MERCHANDISING

PRESENTED BY:
SUNIL MEHRA
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Introduction
Merchandising is integral to all parts of
textiles and apparel trade.
Lines of textile fibers,
yarns and fabrics must be
planned, developed, and
presented.

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Introduction
Lines of findings, such as like buttons, zippers
and threads must be merchandised for sale to
finished goods manufacturers.
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Merchandising
The marketing methods and techniques of
presenting products for sale. (Branson)
Any activity to stimulate trade interest in
moving the product to the
prospect. (Wright)
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Merchandising
The planning involved in marketing the right
merchandise at the right place, at the Right
time, in the right quantities, and at the right
price.(American Marketing Assoc.)
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Merchandising
In Eastern Europe, particularly in Russia, the
term merchandising is commonly used
within
the trading industry and denotes all marketing
and sales stimulation activities around PoS
(point of sale): design, creation, promotion,
care and training of the sales staff.
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Definition
P H Nystrom defined merchandising as
careful planning, capable styling and
production or selecting and buying and
effective selling.
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Definition
Kean proposed the following definition :
Merchandising is the analysis and response
to the
changes and process which occur in the
planning,
negotiation, acquisition and selling of the
product/services from their inception to their
receptions and use by the target customer
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Definition
MERCHANDISE:
Products that the
entrepreneur deals on
a commercially viable
scale.
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Definition
MERCHANDISING:
Merchandising is
basically planning, buying
and selling the
merchandise for a profit.
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Definition
MERCHANDISER:
Driver who have logical and
analytical thinking with
intuitive and expressive
capability to transform the
entire range into 3D
MERCHANDISE.
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Definition
In the manufacturing environment, apparel
merchandising involves the
conceptualization,
development, procurement of raw materials,
sourcing of production, and delivery of
apparel products to either buyer or retailer.
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Types
EXPORT MERCHANDISING:
In an Export Production House
In Buying House
RETAIL MERCHANDISING:
For domestic Market
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Types
In a big manufacturing unit the role of
merchandising may be classified as below
Marketing Merchandiser
Who take care of marketing
Production Merchandiser
Who take care of all Inhouse activities
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Types
Development Merchandising
Who take care of product development
Sourcing Merchandising
Who take care of procurement
Planning Merchandising
Who take care of production planning.
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Qualities of Merchandiser
Merchandiser should
Think in Analytical Manner
Be able to speak & write fluently
Get along with subordinates and
customers
Be very particular about Merchandising
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Qualities of Merchandiser
Develop a sense of Curiosity
Be creative
Be alert
Have good memory power
Have managerial skill to delight authority
and responsibility
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Advantages of Merchandising
Prestige
Good Pay
Relatively rapid advancement
Opportunity of economy growth
Opportunity of personnel growth
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Advantages of Merchandising
Opportunity to work every where
Travel
Self expression
A lead to other carrier opportunity
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Disadvantages of Merchandising
Hard Work
Long hours work
Pressure
Competition
Accountability
Limitations in advancement
Excessive travel
Rigidity in training
program
Anti social Focus
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Structure of Apparel Industry
Buying House
Buyer
Manufacturer
Flow of Orders in Apparel Industry
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Structure of Apparel Industry
Over a period of time, Apparel Industry
experienced dramatic growth, and new
technologies provided
manufacturers with
the ability to respond
quickly to change.
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Structure of Apparel Industry
The position, responsibilities, and authority
of the apparel merchandiser evolved as apparel
companies made the transition from the
traditional focus on production efficiency to
more focus on changing consumer needs.
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Structure of Apparel Industry
This evolution took
place over 40 years and
involved five distinct
structural changes in the
typical apparel
organization.
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Stage 1
President /
CEO
Sales Manufacturing
The structure represents the immediate post
World War II era.
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Stage 2
President/CEO
Sales Marketing
Advertising
Manufacturing Finance/Admin
In the early 1960s, brand recognition became very
important. The concept of marketing was embrace in by
the apparel industry.
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Stage 3
President/CEO
Marketing
Advertising Sales Merchandising
Design
Manufacturing Finance/Admin
In the late 60s
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Stage 4
President/CEO
Merchandising
Design
Sourcing
Marketing
Market
Research
Advertising
Sales
Manufacturing Finance/Admin
In the 70s and 80s
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Stage 5
President/CEO
Merchandising
Creative
Design
Marketing
Market
Research
Advertising
Sales
Sourcing
Technical
Design
Product
Managers
Manufacturing Finance/Admin
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Role of Merchandiser
Merchandising development based on
buyers objective
To interact with the Buyer
To interact with the various departments of
manufacturing unit
To do the costing of Garments.
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Role of Merchandiser
To send the samples to buyers
Development of lab-dip / desk looms
To take the approval from buyers
Procurement of Fabrics/Trims
To carry out the final Inspection
To make sure that shipment goes on time
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Buying House
Buying house work as intermediaries the
buyer & the vendor
60 -70% world wide buying routes
through the buying houses
These are situated predominantly at the
sourcing locations
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Buying House
Work on profit percentages / commissions
/ expense coverage
Large buying houses in India Landmark
/ Triburg /H & M / Li & Fung
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Role of Merchandiser
Bridges the gap between buyer and vendor
Analysis of market / vendor / order
processing / QA
group buying
Wholesale activities
Unit control services
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Role of Merchandiser
Private brand programmes
Foreign buying
Sales promotion buyer / vendor &
development of catalogues
Fashion divisions /offices
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Buyer
A Buyer is a Brand.
For example: GAP, NIKE, Adidas etc are
brands
as well as buyers.
Most of the brands in the world go for the
outsourcing of their merchandise.
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Buyer
All these buyers work through their local
office known as Liaison Office
Further, all the Liaison Offices works under
the Head Office of the Buyer/Brand.
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Role of Merchandiser
To select the vendor for the garment
manufacturing
To work in between the Head Office and
Factory
To take the samples on time
To give all the approvals on time
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Role of Merchandiser
Planning of merchandise
Vendor management
On time shipment
To visit the factory time to time to check all
the details regarding product, quality,
compliances as specified in the Manual
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Role Of Merchandiser
A Merchandiser must be a multi faceted
individual who is involved in all functions that
result in the creation , development, execution
and delivery of the product
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Role Of Merchandiser
MERCHANDISER
MARKET
KNOWLEDGE
PRODUCT
DEVELOPMENT
PRODUCTION
AUTHORIZATIO
N
INTERFACE
WITH SALES
SOURCING
INTERFACE
WITH
MANUFACTURIN
G
MATERIAL
MANAGEMENT
PLANNING &
CONTROLING
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Market Knowledge
A merchandiser must have an intimate and
comprehensive knowledge of his or her
companys target market.
Merchandiser is responsible for knowledge of
consumer preferences for silhouettes, colors,
fabrics and trims.
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Market Knowledge
In order to monitor the pulse of market, it is
necessary for merchandiser to visit regularly to
retail outlets and to meet with buyers.
Shopping the competitors merchandise is
Also an effective means of evaluating styling
strengths and weaknesses.
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Market Knowledge
Researching past sales records is also an
effective means of detecting styling trends.
Merchandisers must also stay current with
the textile markets to keep themselves update
on newest fiber development, fabric
constructions, fabric finishes, color trends and
prints directions.
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Planning and Control
Another important function of merchandising
is planning effectively and maintaining control.
Merchandising is responsible for critical
planning and control functions.
Merchandiser plays a vital role in strategic
planning.
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Planning and Control
Merchandiser must ensure timely line
development in accordance with market needs
and companys capacities and capabilities.
Merchandiser must integrate company
functions within the total SCM, right from global
sourcing of both RM and Finished products
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Planning and Control
The merchandising calendar is the basic tool
used to accomplish and control.
The merchandising calendar establishes
responsibilities for, and sets forth, starting dates
and deadlines for completion of all key events
for a season.
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Product Development
Merchandiser is responsible for coordinating
design activities.
Merchandising must provide rigorous controls
of the product development process to ensure
that balanced groupings of styles are ready for
each offering.
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Product Development
Fabric
Selection
Market
Research
Line
Planning
Sampling
Spec
Sheet
Concept
Develop
ment
Quick
Costing
Sampling
Line
Review
The merchandiser must monitor the calender
to see that each function is completed on time or
must make adjustments for any missed deadlines.
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Costing
Developing accurate cost estimates for new
products is a critical merchandising function.
Merchandisers must be capable of calculating
the cost of producing each garment,
determining selling prices.
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Interfacing with Marketing
Line planning, style selection, and line
presentation require a close working
relationship among merchandising, sales and
marketing.
The merchandiser is responsible for fashion
forecasting.
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Interfacing with Marketing
Sales and marketing can give valuable inputs
for current style which are in retail for selling
and trend projection, which is required for the
product development process
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Production Authorization
It is very important to decide what and how
much to produce before meaningful sales.
Merchandisers use past sales histories,
current market research, advance sales advise,
and sales forecasting models to make
production authorization commitments
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Interfacing with Manufacturing
It is important for the merchandiser to
maintain close communications with
manufacturing.
A mix of styles must be issued that can
optimize manufacturing capabilities as well as
satisfy customer requirements
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Material management
Raw materials , including fabrics and trims,
can represent one half to two third the total cost
of the garment.
The purchasing and scheduling of these raw
materials must be programmed for the delivery
as close to their required usage as possible.
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Sourcing
Merchandiser must understand the
complexities of domestic and international
sourcing.
Determining how and where to manufacture
apparel products has become a major concern
of the companies.
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Sourcing
Merchandiser must have a working
knowledge of manufacturing processes, quality
assurance procedures, garment costing, product
development, export/import legislation,
international culture and business practices, and
international banking and legal procedures
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Traits of Merchandiser
In todays high tech, competitive, global
apparel industry, a merchandiser must posses a
rare blend of traits, skills and experience.
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Traits of Merchandiser
Merchandiser must be part..
Designer
Engineer
Computer Expert
Marketer
Entrepreneur
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Traits of Merchandiser
A merchandiser is involved in every stage of
the process from design to sales they
advise the designer on market trends,
collect specifications from the buyers,
get the samples approved
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Traits of Merchandiser
and also negotiate the price.
even responsible for ensuring that
consignments are delivered to the customers
in time.
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The Life of a Merchandiser
Most work in fashion merchandising involves
juggling the past, present, and future.
Merchandisers spend a great deal evaluating
sales from previous time periods in order to plan
and make decisions for future sales.
This requires an ability to forecast trends &
then translate them into a profitable business
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Knowledge Base.
Trend and fashion movement; Forecast
interpretation and range development
Product development and feasibility
Fabric or leather and other input
appreciation
Processing and finishing
Market knowledge; Customer profile and
behavioural change
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Knowledge Base.
Cost and price; Quality assurance and control
Delivery procedure; Supply chain and logistics
management;
Government policy, procedures and
operations (for Export and Import)
Buyer coordination, communication and
feedback
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Skill-Sets
Pattern making and measurement grading,
Sample development and sewing operations
IT tools, Marketing communication
Team management and coordination,
Leadership, Personality development
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Skill-Sets
Human resource development, Managerial
and functional skills.
Quality testing, approvals
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Buying Cycle
Season
Order
Confirmation
Order
Delivery
Fall
Dec
Jan
Feb
Mar
April
May
Holiday
Mar
April
May
June
July
Aug
Spring Summer
June
July
Aug
Sep
Oct
Nov
Sep
Oct
Nov
Dec
Jan
Feb
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