Key Factors of Garments Merchandising
What is Garment Merchandising or Retail Merchandising and Key Factors for It?
Garments Merchandising or Retail Merchandising is one of the renowned professionals in the current time. But there are so many who still don’t know the correct meaning of merchandising. Garment merchandising or retail merchandising contains some key factors which have been discussed in this article.
Definition of Merchandising:
According to American Marketing Association Merchandising encompasses “Planning involved in marketing their right merchandise or service at the right place, at the right time, in the right quantities and at the right price.”
Let’s analyze this statement:
Keeping in mind the parameters of the latest style, color, appeal, size, length of the garment, fabric, accessories print, embroideries, etc the merchandiser along with the design team and research and development team create the right merchandise as per the requirement of the buyer. In export, the designs are generally given by the buyer but at times exporters have their own design and research and development team. When e a sample range is created it is presented to the buyer. The Buyer then selects out of that range and the price is negotiated and the order is confirmed. The buyer might add or delete certain elements according to their taste.
At the point of sale [buyers’ stores], the ambiance, lighting, space utilization, and the product knowledge and attitude of the staff should be consumer-friendly. Since the Garment merchandiser is a vital link between the company and the buyer. The garment merchandiser maintains good relation with the buyer by keeping him abreast of the order right from order confirmation to shipment. A part of the clothing merchandiser’s job is also to convince the buyer to accept certain variances that feasible to his company.
The aspect is looked after by the buyer’s merchandiser in his country while retailing his goods is that the merchandise should be available and sold where there is a market for those types of merchandise. The point of sale [stores] should also be close to the consumer. Some styles sell well in certain locations and do not sell in a certain location in such cases those styles must be made available in those locations where there is a sale. The buyer’s merchandiser has to watch alertly and shift the merchandise to the location where it sells. The exporter’s Garment merchandiser sees to it that all the elements like pattern, accessories, fabric with all the details about the order reach the factory where the order is executed. The factory should have storage space to store the order till it is checked and shipped. Warehousing facilities should be made available if needed.
The merchandising planning of the development, sourcing, purchasing, manufacturing, and distribution of products should be such that the merchandise is available at the buyer’s store in time i.e. when the consumer wants to buy it. The merchandising planning should be such that the products are available as per the season e.g. winter wear should be ready to be marketed in winter, summer wear should be ready in summer.
The product should available in the quantities required by the consumer i.e. the quantity per style and the size ratio should be as per the requirement of the customer in the buyer’s country. Overstocking means an increase of inventory, Under stocking means loss of a sale both not acceptable The buyer pre-sell goods floating the sales samples in the market, based on this sale data received, the buyer’s merchandiser concludes what merchandise quantity is already pre-sold. The buyer sale analysis data based on the sale of similar styles in the past presold and planned expected sale helps the buyer’s merchandiser to conclude the quantities and ratio of different merchandise for sale.
The price of the merchandise is what value the consumer perceives he will derive from the merchandise. Competitors price for similar merchandise is also be taken into account by the buyer while fixing the price of the merchandise. The exporter and the buyer will have a markup and mark down price. The markup price consists of cost price + overhead and the highest percentage of profit +contingency. The markdown is the lowest percentage of profit he can go to cover his cost price + overheads +profits and contingency. A contingency is a percentage added to the cost in case of any emergency e.g. increase in the price of the fabric or increase in the process cost etc.
Consultant and Merchandising Manager