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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