Types of Merchandising

Basic functions of retail merchandising

 INTRODUCTION
• Merchandiser is the BRIDGE between the industry and the
buyer. He have to look after every job like buying the raw
material which is required to finish the product, making the
garment, finishing the garment, documentation, finally
shipping. He is the responsible person to make the product. A
garment export unit generally has many department like
stores, cutting, production, packing, checking etc. in which 
Merchandising department a linking device of all. The job of a
merchandiser is to co ordinate with the entire department in
the office as well as the customers. The merchandiser is the
one who creates a good relationship in between exporter &
buyer. 
INTRODUCTION
 INTRODUCTION
• Merchandising is a specialized management
functions within the fashion industry. It is the
business that moves the world fashion from
designers showroom to retail sales floor and in to
the hands of consumers. It is the internal planning
that takes place within a retail organization in order
ensures adequate amount of merchandise are on
hand to be sold at prices that the consumers are
willing to pay to ensure a profitable operation.
 Following are the responsibilities of
merchandisers which gives importance to them
• Internal & external communication,
• Sampling,
• Lab dips,
• Accessories & trims,
• Preparing internal order sheets,
• Preparing purchase orders,
• Advising and assisting production,
• Advising quality department about quality level,
 Following are the responsibilities of
merchandisers which gives importance to them
• Mediating production and quality
departments,
• Giving shipping instructions and following
shipping,
• Helping documentation department,
• Taking responsibility for inspections and
• Following shipment.
The necessity of merchandising lies essential
due to the following factors: 
• Dramatic growth,
• Complicated raw material & process,
• Complex network,
• Advent of new styles,
The necessity of merchandising lies essential
due to the following factors: 
• Reduced Product Life Cycle,
• Textile innovations,
• Computer applications,
• Global transition
TYPES OF MERCHANDISERS:

Types of Merchandiser
  FASHION MERCHANDISER
• Fashion merchandising refers to all the
planning and activities involved in bringing the
right fashion merchandising at the right place
at the right time with right quantity at the
right price and with right sales promotion. The
fashion apparel world exists between the
designer and the retail customer. The field of
fashion merchandising exists to service the
designer –customer relationship. 
Process flow of fashion merchandiser

Fig 2: Process flow of fashion merchandiser

 Steps are elaborated as fallows
• Fashion Forecasting: It shows or direct the company new fashion
presentation for the upcoming season, so that it can understand the new
fashion concept, the store‘s Merchandising approach and better help to their
customer. Generally fashion prediction is done by the fashion direction in
case of big organizations and by owner himself in case of small organizations. 

Design development: The design is developed based on themes using the

element s of design such as color, texture, line, shape and fabrication and
adopting the principle of fashion such as proportion, balance, rhythm,
emphasis and harmony. The design development should be practical which
suits the current trends & also feasible to convert into the finished product.
Design development is mainly done on the requirement of number of lines
and groups that are going to be offered by the company for the particular
season. 
 Steps are elaborated as fallows
• Sample development: The collection of design created by
the designers, the design which are having good potential
are selected and taken for sample development. 

Product specification: this information of will be useful in

setting the product specification for the particular garment.
A product specification will guide the production
department to develop and plan their merchandising and
production planning and organize the thing for effective
and efficient production of the merchandise. 
 Steps are elaborated as fallows
• Merchandising plan or policy: a fashion merchandising
 plan or policy is a long –range standard for fashion buying
and selling as well as for related activities like sales
promotion. Merchandising plans are planned several
months before the selling season. 

Assortment planning: A merchandise assortment is a

collection of various types, quantities and price of related
merchandise usually grouped under one classification
within a department. A good assortment keeping will
appeal a particular group of customers. 
 Steps are elaborated as fallows
• Buying: It is a very crucial activity of the
fashion merchandising because this is the
actual process of manufacturing the good and
bringing them for the sales at retail stores. A
buyer’s responsibilities include both the
buying and selling aspects of retailing. 
 APPAREL EXPORT MERCHANDISING
• Apparel export merchandising may be defined as ‘all the planning
& activities involved right from the buyer  communication & order
receiving till the execution or shipment of the order by fulfilling
the following factors (Six Rights): 

Right Merchandise: Retailers must fill their shelves with the

merchandise that customer wants. 

Right Place: The location of the merchandise is of prime

importance since it decides the accessibility. Much merchandise is
seasonal in nature and must be on hand when it is most needed. 
 APPAREL EXPORT MERCHANDISING
• Right Time: Much merchandise is seasonal in nature and must
be on hand when it is most needed. 

Right Quantity: A profitable balance between volume of sales

and amount of inventory is the desired goal. 

Right Price: Merchandiser must arrive at a price that is high

enough to give the store profit and yet low enough to meet
the competition and customers expectations. 

Right Promotion: Right balance between the investment and

the appeal created for the customers.
Process flow in Apparel industries
Process flow in Apparel industries

Process flow in Apparel industries

 APPAREL EXPORT MERCHANDISING
• The successful execution of any garment export order
 depends on the work performance of a
merchandiser. Apparel merchandiser is the person
who plans and coordinates all the activities right from
the order procuring and till the shipment order. A
merchandiser should have the comprehensive
knowledge of his work procedures and responsibilities
so that he could perform his job efficiently and
effectively. In the apparel export industry, a
merchandiser has to perform the following functions; 
 Merchandiser’s functions
• Communication: It is one of the foremost functions of
merchandiser because the merchandiser has to communicate
with different levels of people in his day to day activities. 

Planning & Programming: A merchandiser has to check the

order requirement, planning for the given order, programming
for various activities, proper allocation of work to the
assistants. 

Follow ups: It includes sending of samples at various stages of

order, buyer and buyer house for sample and other approvals.
 Merchandiser’s functions
• Decision making: A merchandiser has to make several decisions
during the order processing like giving approvals like fabrics, color,
design, accessories, and packing, selection of suppliers and vendors,
selection of buyers, sometimes time extensions for order shipment. 

Sourcing & Purchasing: A merchandiser may have to do sourcing

and purchasing for raw materials and accessories, suppliers and
vendors, new designs, new buyers. 

Controlling: This is the crucial activities for any merchandiser. A

merchandiser has to make sure that all the activities are carried out
as per the planning and even if there is any deviation, he/she should
make the alternatives measures.
 Merchandiser’s functions
• Coordination: Merchandiser has to coordinate in such
way to reduce the uncertainties and difficulties and if
there is a problem arises, the merchandiser has to
support and lend helping hand in order to complete the
task successfully in the given period. Both the controlling
and coordinating activities complement each other and a
merchandiser has to adopt the both accordingly, 

Negotiation: It is the activity of convincing, compromising

and cooperation which would benefit the both parties
involved in the negotiation.
 Merchandiser’s functions
• Costing: It is the process of estimating the expenditure of a given
product and the subsequent price. It is another crucial function
because mostly order conformation depends on the price offered to
the buyers. The merchandiser should know the current prices and
rates of various products and processes to do the accurate costing. 

Meeting: There are two types of meeting a merchandiser has to be

involved. First type, a merchandiser has to conduct the meeting with
the concern department in charges to discuss about the proceedings
and the status of the running order. In second type, a merchandiser
has to attend the meeting with the superiors or buyers or business
people in giving reporting or participation or discussion. 
 Merchandiser’s functions
• Forecasting: Forecasting is the activity of
predicting the future happenings or problems.
A merchandiser has to predict the future
uncertainties in the current order or industry
so that alternative actions or corrective
measures can be taken in advance this also
includes giving suggestion or ideas about new
technologies or new products or latest
industry trends. 
 APPAREL RETAIL MERCHANDISER
• The word ‘Retailer’ is originated from the French word ‘retailen’
which means ‘to cut again’. Retail business involves cutting off a
smaller part from a big or large good or product and selling it to
the end users. Retail merchandising involves all the activities
related to direct selling of products or services to the ultimate
consumers or users of the product for personal, non-business
purpose. Retail merchandiser sells products in less quantities
and they act as an inter mediator between the ultimate
consumers and wholesalers. A retailer is both a marketer and a
customer and he creates place, time and facilities to sell the
goods. It is difficult, time consuming and expensive, hence the
retailer takes risks through ownership. 
Functions of a retail merchandiser
• They provide personal services to all
consumers.
• They give two way information; from producer
to consumer and vice versa.
• They facilitate standardization and grading of
goods.
• They undertake physical movement and
storage of goods.
Functions of a retail merchandiser
• They assemble goods from different suppliers
and wholesalers.
• They keep ready stock of goods to supply to
consumers.
• They extend credit facilities to the consumers.
Functions of a retail merchandiser
• They create demand by presenting window display, events
etc.
• They also undertake sales promotional activities.
• They assume risk by stocking and providing goods to the
consumers.

Modern day retail formats can be classified in to

hypermarkets, supermarkets, discount stores convenience
stores, department stores, specialty stores, e-tailing and
malls.
ORGANISATION STRUCTURE OF A
RETAIL ORGANIZATION
Apparel Retail Merchandising Process
Apparel Retail Merchandising Process

Apparel Retail Merchandising Process

 TASKS OF A RETAIL MERCHANDISER
• 1. Analyzing the local customers: Sales in a
particular store will be determined by several
factors. A retailer must consider these factors, 
The geographical location of the store,
• The population content of the area,
• The social activities that the area offers,
• The economical conditions and level of the local
population,
• The fashion influences of the particular population.
 TASKS OF A RETAIL MERCHANDISER
2. Selecting a fashion image: Every retail store has a retail image
in the mind of customer irrelevant of the store want to have it or
not. A retail merchandiser should make use of this fact by
creating his own store’s image which would attract the
customers. The type of fashion image they want to have depends
on the type of target customer the store want to attract. 

3. Buying the merchandise: Buying fashion merchandise for a

retail store is not an easy job. It requires a lot of planning for
budget, selection of merchandise, selection of supplier’s. Also it is
important to decide on the quality of the goods to be ordered. 
TASKS OF A RETAIL MERCHANDISER

4. Receiving and stocking the

merchandise: When the ordered goods arrive at
the stores, it should be checked carefully for the
quantities against the shipping invoice or
packing list sent by the supplier. The quantity of
the goods received should be checked before
they are sent for display or for selling. After the
goods are received and checked, then it should
be marked or tagged and kept in stock for sales. 
 TASKS OF A RETAIL MERCHANDISER
5. Display: The way in the merchandise is displayed is very
important for sales. Good display always enhances the sales
of the store and a poor display may slow the sale of good
merchandise. The store’s image is based on the principle of
use of space for display. 

6. Sales promotion: Sales promotion is very much important

to the successful sale of merchandise. Sales promotion refers
to promotion of sale of merchandise, services or ideas. It
includes activities like advertising, publicity, visual displays,
fashion shows, special events, personal selling etc. 
TASKS OF A RETAIL MERCHANDISER

7. Sales evaluation: Once the selling season is

over, the next thing a store has to do is
evaluate the sales of the season. This include
analyzing the sales by product wise, style wise,
size and color wise, unsold items, fast sold
goods, price line wise etc. 
 VISUAL MERCHANDISER
• Every customer wants to see the product before
they do purchase. A store has to display the
products what it has for sales. And the display
should be done in away so that it should attract the
customer.Visual merchandising is an art of
displaying the things in an attractive way so that it
could attract the attention of the customer and
persuade them to buy the product. Visual
statements made in the store windows are the
customer’s first view with the store. 
 Function of a Visual merchandiser as follows:

• Planning a merchandise themes,

• Making the seasonal calendar of VM display,
• Selection of merchandise for display,
• Decisions on where to display and number of
VM displays,
 Function of a Visual merchandiser as
follows:
• Arranging the VM display in concept with the
supplier concepts,
• Procuring and arranging of VM elements,
• Evaluation of the VM effects foe future
planning,
• Comparison study of VM display of
competitors, Forecasting.