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Session: 1,2,3Subject: Merchandising
Content: Fundamentals of Fashion Merchandising,
Types of merchandising-Retail, Export and Buying
House
Jagriti Mishra, NIFT, Gandhinagar
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Merchandising
The methods, practices, and operations used
to promote and sustain certain categories of
commercial activity.
Merchandise management - Analysis,
planning, acquisition, handling, and control of
the merchandise investments
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Merchandiser
Merchandisers work very closely with Buyersand determine range of goods to be sold
When to buy them
Their price
How they will be presented
Merchandiser responsible for range ofmerchandise, content, price
Merchandiser could be responsible forpromotion, display, sales forecast and stocklevels
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- A Supply Chain consists of :
- Aims to Match Supply and Demand, profitably for products & services
SUPPLY SIDE DEMAND SIDE
The rightProduct
HigherProfits
The rightTime
The rightCustomer
The rightQuantity
The rightStore
The rightPrice =
++ ++ +
- Achieves
Supplier Manufacturer Distributor Retailer Customer
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Suppliers Manufacturers Warehouses &Distribution Centers
Customers
Material Costs
TransportationCosts
TransportationCosts Transportation
CostsInventory CostsManufacturing Costs
Plan Source Make Deliver Buy
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Functions of an export merchandiser
Coordination with factories and buyers Updates on colors, fabrics, and styling for the forthcoming
season
New product development
Costing and pricing of merchandise Order booking
Working on submits such as yarns/ lab dips, bulk fabrics, fitsamples, pre-production samples
Quality checks and production supervision
Pilot run
Production follow- up
Ensuring timely delivery
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Buying House Merchandising
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
Works on profit percentages / commissions /
expense coverage
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Role of Merchandiser (Buying House)
Bridges the gap between buyer & vendor
Analysis of market / vendor / order processing /QA
Group buying
Wholesale
Unit control
Foreign buying
Sales promotion
buyer / vendor & developmentof catalogues
Fashion divisions /offices
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Buyer
Buyer - Brand
GAP, NIKE, Adidas etc.
Most of the brands in the world go for the
outsourcing of their merchandise
All these buyers work through their local
office known as Liaison Office
Further, all the Liaison Offices works under the
Head Office
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Retail Merchandising Work closely with Buyers to determine ranges of goods
when to buy, price and how presented Produce financial plans on a seasonal basis:
Sales and stock level
Gross/net margins
Gross profit
Space planning
Mark up/downs
Monitoring the performance of these measurable targets on
a weekly basis
Working within the buying team ensuring suppliers deliver
on time
Monitoring the allocation & distribution of stock
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Retail Merchandiser
Buying
Selling
Transportation
Warehousing of merchandise
Produce current sales figures
Sales History Reports Produce Forward Estimates
Visit Supplier Base and Warehouses Determine a strategywith the Category or Merchandise Manager
Plan the size of the BUY
Monitor stock management & allocation to stores
Work closely with retail buyers in forecasting stockrequirements and mark down decisions
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Retail Buyers
Operate with combination of buying and merchandising teams
Buyers responsible for the product selection
Merchandisers responsible for planning and financial control
Ensuring purchase order raised to budgets
Ensuring orders from factories arrive on time
Taking initial brief from customer via buyer for the season
Negotiating cost prices with factories
Negotiating on cost to customer i.e. selling price
Approving pre-production samples Organizing shipping documents
Monitoring pre-production
Stock control
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Skills required of a merchandiser
Decisiveness
Excellent communication skills
Negotiation skills
Analytical skills
Numerical skills
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