merchandise chpter 1(complete)

7/31/2019 Merchandise Chpter 1(Complete)

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TXL 576: TEXTILE & APPARELMERCHANDISING

CHAPTER 1:Nature of Textile &

Apparel Merchandising

Nature of Textile & ApparelMerchandising

Merchandising Division

Organizational Structure

Objectives

Exercises

References

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OBJECTIVES

Upon the completion of this chapter, the studentsshould be able to:

Explain the nature of textile and apparel merchandising in

manufacturing, retailing and international trading.

Discuss each organization structure for merchandising.

State the responsibility of merchandising operations andmerchandising division.

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TEXTILE AND APPAREL PRODUCTSEnd Products

MERCHANDISINGProcess of developing, obtaining, managing and pricing the

merchandise mix to meet the firms marketing and financial objectives

MARKETINGPromotion strategies to attract customers to buy the merchandise

CUSTOMERS/CONSUMERSPeople who bought the product and use them

RETAILING

Business activity of selling goods or services to the final customer

TEXTILE AND APPAREL FLOW CHART OFBUSINESS

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STRATEGY OFMERCHANDISING

Right people- Right customer

targeted

Right merchandise- Trends in fashion

Right time- Forecasting

Right place- Appropriate located

area

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STAGES OF MERCHANDISING

PLANNING

BUYING

ARRANGING AND DISPLAYS

SOURCING

SPACE MANAGEMENT

involves careful consideration of the customers, competitors andtype of business - discount, high price /low price

locating of merchandise to sell in the store

purchasing of merchandise to sell in store

the look of the store

planning for space allocationTXL576: CHAPTER 1


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Merchandise characteristics

Replenishment and stock rotation

Assortment planning and pricingstrategy

Merchandise budgets

Planning and control

PLANNING

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Process

Need for product is clearly defined

Product specifications are agreed Suitable supplier is found

Competitive advantages

Global sourcing Social responsibilities

SOURCING

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Process

Buying cycle

Starts of selling period End of selling period

Number of peak (high sale point)

Weeks that peak occur (of the year)

BUYING

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Effective use of displays Colours

Arrangements Group merchandise

Shelves, fixtures etc

Store design and displays In-stores fixtures

Types of product and their fixtures

ARRANGING AND

DISPLAYS

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Planning the merchandise layout

Consider Historical

Contribution to profit

Gross margin

SPACE MANAGEMENT

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GENERAL MERCHANDISE

MANAGER

FASHION COORDINATOR

COMPARISON SHOPPER

DIVISIONAL MERCHANDISEMANAGER

BUYER

ASSISTANT BUYER

BUYER BUYER

DIVISIONAL MERCHANDISEMANAGER

MERCHANDISING DIVISION

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Roles of each division

Set merchandising policies for the entirestore

Responsible for sales volume

Delegates merchandising responsibilities to

a number of merchandise managers who arein charge of several divisions ; womenswear, swimwear, men's wear etc.

MERCHANDISE MANAGERS

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To guide buyers about trends andappropriateness of merchandise

Helps with displays, prepare and participatein fashion shows, opinion on the mostsuitable merchandise for advertising

Needs to be familiar with the dynamics offashion, its history and always alert withcurrent development

FASHION COORDINATOR

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Reporting competitors activities andmerchandise

Conducting surveys and make comparisonon prices, services, stock assortmentbetween own store and competing stores

Brings in new, different merchandisespotted in other stores

COMPARISON SHOPPERS

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In charge of a group of departments. eg;

Mens wear, ladies wear etc

Supervises the activities of a number ofbuyers who head different merchandise

department. eg; sports wear, underwear etc.

DIVISIONAL MERCHANDISEMANAGERS

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Select proper merchandise for the store

Purchasing merchandise in accordance with

the approved buying plan and building goodrelationship with suppliers

Pricing, promotions and profit

Providing the merchandise information; newstyles, new colours, new materials

BUYER

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Advise and recommend to the buyer thepurchase of merchandise that belongs in the line styles, colours, sizes, price lines, etc

Other responsibilities including:i. Merchandising (stock and inventory control)ii. Sales promotion (display, price signs,

newspaper advertising etc)iii.Operation (matters regarding wrapping/

purchase exchanges, adjustments andreturns)

ASSISTANT BUYER

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PersonalQualifications

&Skills for

Merchandiserand Buyer

Dedication

Education

Analytical ExcellenceAbility to communicate

Good reasoning power

Appearance

Leadership

Flexibility

Enthusiasm

Product knowledge

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Chain Organization

Franchised Operations andLicensed Store

Department Stores

Independent stores

Catalogs, Home ShoppingNetworks and Internet

services

1

3

2

4

5

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A group of retail stores essentially the same type, undercentral management system

Buyers as well as managerial executives function from

central headquarters or offices.

Buying and merchandising practice is referred to ascategory buying or classification buying where buyers

are assigned to buy a specific category of classificationof apparel within a department instead of buying allcategories for a department.

Chain Organization

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Centrally purchased merchandise is distributed to allstores from a headquarter or central office.

Buyers confines his /her activities to only purchasing.Communication with stores achieved by the computerutilization and faxing.

Management of salespeople, scheduling, inventorycontrol and so forth are the responsibilities of thestore managers.

E.g. JUSCO, METROJAYA, ISETAN, Giant, TESCO

Chain Organization

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Large retail stores selling many different kinds ofmerchandise arrange in separate departments.

General line of merchandise in each of 3 categories:i. Home furnishings

ii. Household linen and dry goodsiii. Apparel and accessories

Buyers are practicing departmental buying. They buyall categories of merchandise for a department.

Buyers are also responsible for the management ofdepartments selling floors.

Department Stores

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D t t St


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Buyers have the main store as their base operationand regularly visit the branches.

Buyers are responsible for the sales of theirdepartments and the personnel expenses as well aspurchasing.

Types of department store:

i. upscale department store

ii. mid-range department store

iii. discount department store

E.g. Senyum superstore, Bata, Al- Ikhsan, Canterbury

Department Stores

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Carries a limited line of merchandise (e.g. jewelrystores, shoe stores, boutiques, toy stores)

More specific customer, providing narrow focus ofmerchandise with certain price range.

The buying and merchandising as well as selling,promotional planning and customer servicing aredone by their owner or a store manager and assistedby small staff.

E.g. Prada, Chanel, Browns etc

Independent stores

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A legal agreement to conduct a business inaccordance with prescribed operating methods,financing systems, etc.

Benefiting from the expertise and reputation of anestablished firm.

In return, the franchisee pays the parent company(franchiser) a set sum to purchase the franchise androyalties on goods or services sold.

Franchised Operations and

Licensed Store

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Franchised Operations and Licensed Store


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Buyers have no store responsibility but to providemerchandise for the franchisers.

Difference between franchising and licensing are theinitials. Franchisers require start-up fees for theprivilege of joining company. Licensors do not needany.

Buyers are required to purchase their goods from thelicensor.

The largest fashion licensors BENETTON withmore than 500 licenses in the US and other countries

Franchised Operations and Licensed Store

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Web Fashion-on-line provides visual and written infoon more than 30 runway designer shows.

This type of business serve a much larger geographicmarket as compared to store buyers who has a narrow

audience. Buyer must concentrate on merchandise thathas universal appeal.

Buyers must make sure that suppliers are able to providemerchandise continuously at least for the life of the

catalog.

Buyers must also provide precise size and measuringinformation to facilitate purchasing and minimizeordering problems.

Catalogs, Home Shopping Networksand Internet services

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1. Define the terms below:

(i) Merchandising(ii) Stock Turnover(iii) Market Week(iv) Global Sourcing(v) Franchised Store

2. Explain five (5) stages of merchandising.

3. Describe the differences between chain organization andindependent/specialty stores. Give one example for each organizationalstructure.

4. Merchandising division determines the success or failure in a business.(i) Why do you think that the companys organizational structure is

important in determining the scope of the buyers role?(ii) Explain briefly the personal qualifications needed by store buyers to

perform their duties and responsibilities.

EXERCISES

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1. Brian, T.Arpan. J.S. Barnett, A.H. Ricks, D.A and Shimp, T.A.(1984), The Global Textile Industry, George Allen & Unwin, NewYork.

2. Diamond,J. and Pintel, G. (2001). Retail Buying. 4th.Ed.

Prentice Hall:New Jersey.

3. Dickerson, Kitty.(2003). Inside the Fashion Business. 7th Ed.Pearson Education:New Jersey.

4. Frings, G. ( 2008), Fashion from concept consumer. 9th Ed.Prentice Hall, New Jersey.

5. Jarrow, j & Guerreiro, M. Inside The Fashion Business, (1991),5th. Ed. Macmillan Publishing Co, New York.

REFERENCES

merchandise chpter 1(complete)

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