Ppt on Merchandising

5/21/2018 Ppt on Merchandising

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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 inmoving 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 rightprice.(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 andeffective 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 theproduct/services from their inception to their

receptions and use by the target customer

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Definition

MERCHANDISE:

Products that the

entrepreneur deals ona commercially viable

scale.

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Definition

MERCHANDISING:

Merchandising is

basically planning, buyingand selling the

merchandise for a profit.

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Definition

MERCHANDISER:

Driver who have logical and

analytical thinking withintuitive and expressive

capability to transform the

entire range into 3DMERCHANDISE.

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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 MerchandiserWho 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 MerchandisingWho 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 fluentlyGet 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 alertHave 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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Over a period of time, Apparel Industry

experienced dramatic growth, and new

technologies providedmanufacturers with

the ability to respond

quickly to change.

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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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This evolution took

place over 40 years and

involved five distinctstructural 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


In the late 60s

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Stage 4

President/CEO

Merchandising

Design

Sourcing

Marketing

Market

Research

Advertising

Sales


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


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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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To send the samples to buyers

Development of lab-dip / desk looms

To take the approval from buyersProcurement 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 routesthrough 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 IndiaLandmark

/ Triburg /H & M / Li & Fung

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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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Private brand programmes

Foreign buying

Sales promotionbuyer / 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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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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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

MANUFACTURING

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 andprints directions.

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Planning and Control

Another important function of merchandising

isplanning 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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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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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

SpecSheet

Concept

Development

QuickCosting Sampling LineReview

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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Merchandiser must be part..

Designer

Engineer

Computer Expert

Marketer

Entrepreneur

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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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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 inputappreciation

Processing and finishing

Market knowledge; Customer profile andbehavioural 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 andfeedback

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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

DecJan

Feb

MarApril

May

Holiday

MarApril

May

JuneJuly

Aug

Spring Summer

JuneJuly

Aug

SepOct

Nov

SepOct

Nov

DecJan

Feb

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Documents

Ppt on Merchandising