FASHION MERCHANDISING

It refers to the planning required to have the right fashion oriented merchandise
At right time,
In right place,
In right quantity,
At right prices and
With the right sales promotion
For the target customers.
WHO IS A FASHION MERCHANDISER?
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 and also negotiate the price.
They are even responsible for ensuring that consignments are delivered to the customers in
time.
Fashion merchandisers usually have bottom-line responsibility for projects or departments at
all levels of their careers.
An export house
An export house is a firm that provides a world wide service whose main activity is to export a product
line from one place to another.
A merchandiser in an export house
A merchandiser in an export house is a manager who has overall responsibility for the selection,
sales and profitability of the product range within a particular category (garment type) ,e.g.
shirts,jackets.
Roles and responsibilities of a merchandiser in an export house
1. Production activities.
Responsible for the development of the sample referring to the desired material which may be
in the form of swatches, sketches or prototypes provided by the buying house.
Need to update the changes that the buying houses require. if the changes are possible than
they are immediately undertaken, and cost sheets are worked on.
All supervisors report to the merchandiser for the respective development in the production
activities of their consecutive department.
2. He co-ordinates the sampling of the product type ordered; later producing 15-25 pieces i.e.;
samples which are made to be sent to the importers and other related firms.
Costing is done after sample approval. It is done on one garment basis and later quantity is
multiplied with it, respectively. Now exporters give order through merchandiser.
3. Quality check is another responsibility of the merchandiser.
Bulk order given, enclosed with:
LC sheet (letter of credit) which includes terms & conditions, delivery, & its via
buyers bank/ advisory bank/ parent bank
B.L. sheet
Also sees appropriate business terms, financial aspects like setting up of plants/machineries.
4. Approves salesmens shipments including bill of lading, quality check

Modus Operandi including steps of the procedure followed during the

production.
He/she acts as an interface of the company and the production unit for the right
time delivery of the goods.
5. Inspection is done by a merchandiser at different levels
Initial inspection: - inspecting the quality, seams, and material used, stitching, stain-free tests, i.e. all
the initial steps taken before the completion of the garment.
Midline inspection: - done when 50% of the garment is complete, & then the inspection report is
mailed to the buyer. Final inspection:- done after finishing.
6. Maintaining the records
Has to have a record of every swatch
Maintains a T.N.A ( Time & Action Calendar ) which is weekly sent to the buyer which includes
the entire planning of the production:
Date of order
Approval of the samples
Time of delivery, etc
A buying house
A buying house act as intermediaries between the retail house and the export house who are
possibly unknown to each other
A merchandiser in a buying house
A buying merchandiser is a manager who has overall responsibility for the selection, sales and
profitability of the product range within a particular category (garment type) ,e.g. shirts.
Roles and responsibilities of a merchandiser in a buying house
The overall responsibility is to select the merchandise that maximizes the sales and profitability of a
product range through meeting the target customer exact product needs.
1. To develop and buy a range of merchandise that achieves the profit margin and is consistent
with the retailers buying strategy:
The buyers task therefore is to maximize full price sales of stock bought and minimize the quantity of
unsold stock at the end of the season.
2. To source and develop products from an effective supplier base:
The task is to with the right export house and to get the right balance between the cost and quantity
on the products they buy.
3. To research and evaluate all relevant products and market trends:
Task is to evaluate all the information surrounding the development of a range. The
information is diverse but falls into two main categories related to current and past sales and future
fashion trends.
4. To be responsible for the negotiation of the product prices including delivery and the payment
terms:
When the buyer has decided on the final product designs after inputs from merchandising
design and garment technology, he will begin the process of meeting suppliers and discussing cost
prices.
5. To communicate effectively with suppliers (export houses), product terms and senior
management within the company.
6. To work within the constraint of merchandise planning

Task is to operate within control parameters that include financial budgets, and specific
commercial considerations such as historical sales performance and key fashion trends like color.
A retail house
A retail house sells the product or services to final customers who actually use the products or derive
personal benefits from the service
A merchandiser of a retail house
The merchandiser of a retail house is responsible for stock planning, management and control.
The retail merchandiser maximizes the profitability of the department , working within the
normally accepted conventions of the business.
But the level of such intervention depends on the size of the respective firm .
Roles and responsibilities of a merchandiser in a retail house
Merchandiser is responsible for the moving of stock both in & around the business. They may vary
from the organization to organization. The role of merchandiser is a senior role usually of the same
status as that of the buyer.
1. To provide regular analysis and progress reports referring to stock levels, sales performance
and stock purchases to senior management:
Evaluating sales performances in relation to sales targets and planned stock levels.
Produce weekly reports indicating their product areas performance compared with the target
set. React effectively to the information as it arrives.
Fast sellers will need to be repurchased quickly; poor sellers may need to be marked down to
lower the price and increase consumer demand to clear them before the end of the season.
Analyze the information received, together with the proposed plan of action for senior
managements review and approval.
2. To work with buyer on range planning to maximize commercial opportunities for products.
Balancing the range commercially, ensuring that there is the correct mix of styles, colors, sizes
and price points in the range both nationally and regionally
Provide the fundamental foundation for the future of the organization ,and its importance must
not be underestimated. Experienced merchandisers are able to add a great deal to the process
through their highly developed intuition into what figures are relevant or not.
3. To manage intake and commitment to accommodate the stock requirements of the business at
any given time and the open to buy requirement of the garment type:
Intake refers to new stock delivered into the business for distribution to stores.
Commitment refers to stock on order and open to buy as we know is the amount of money
available to spend on new stock.
The merchandiser will keep a keen eye on daily and weekly deliveries, to ensure that the
shops are adequately stocked with right goods at the right time.
Take daily decisions to either try and bring forward or delay future deliveries to ensure that
current stock provides a balanced offered to customers.
Henceforth merchandisers aim is to control stock flow into and through the business.
4. To manage stock distribution to store optimizing customer demand, available selling space and
seasonal selling opportunities:

 To make the best use of the stock available by trying to meet as much of the demand in
branches as possible and by maximizing the profitability of the sales.
It is an incredibly difficult balance to get right and a problem which can be made worse by
timing, as the opportunity to sell products at full price lasts only a season.
Undertake as much detailed sales and stock analysis at individual shop level as they can.
Understand each shops micro market or local trading environment.
Traits and Skills required for a successful merchandiser
Dedication
Enthusiasm
Honesty
Awareness
Stamina
Decision making
Mathematical skills
Communication skills
Negotiation skills
Managerial skills
Computer knowledge
Analysis skill
Time management skills
Leadership
Multitasking flexibility
Self motivated
Positive approach to problem
Retentive memory
Consistent temperament
Tough but fair
Planning skills
Commercial awareness
Can accurately judge cost and selling prices on seeing garments.
Can predict sales potential of a product.
Actively seeks and develops new suppliers
Co-ordinates buying with other garment types where appropriate.
Understands target customers buying behavior.
Understands and evaluates data in broad market context.
Commercial awareness
Can accurately judge cost and selling prices on seeing garments.
Can predict sales potential of a product.
Actively seeks and develops new suppliers
Co-ordinates buying with other garment types where appropriate.
Understands target customers buying behavior.
Understands and evaluates data in broad market context.
Action
Accepts responsibility for own and teams decision and actions.
Picks up bargain buying potential for out of season products.
Stay calm and provides direction to others in crisis

Negotiation
Negotiation is a process of communication and exchange through which the interested parties make
a series of demands and compromises: it involves the trading of benefits between parties.
Differences in the merchandisers of retail house a buying house and an export house
A Retail House
Intermediate between
outlet and the buyer.

A Buying House
retail Intermediate between
house and export house

An Export House
retail Intermediate between a buyer
and the garment technicians.

Responsible for the moving of Responsible for developing and

stock both into and around the buying a range of merchandise
business.
that achieves a profit margin
and is consistent with the
retailer buying strategy

Responsible for manufacturing

the order by following the given
specification with accuracy,
within the time constrains and
making a profit too.

Plans the range by collecting Plans the track and knows the Plans time of self and team
the relevant information and status of all orders for a season through effective sharing and
develop commercially balanced through a critical path
prioritizing work
range plan with the buyer
Makes
commercial Actively seeks and develops May invite the buyer if it has its
recommendations
about new suppliers
own design section to display its
supplier performance to buyer
products.
Responsibility is to manufacture
goods with high accuracy in
given time

SKILLS REQUIRED FOR A MERCHANDISER

BRAND KNOWLEDGE
While deciding the merchandise, the merchandiser should keep in mind the vision , the mission,
brand image , goal and theme of the company.
SOURCING
The merchandiser should have a deep knowledge about sourcing of products of different categories.
The merchandiser should be capable of sourcing the best products at best prices. Ex: If merchandiser
A wants to buy a cheap and good quality silk he should know the appropriate market and the place
for sourcing silk i.e. Benaras.
COMPETING WITH THE COMPETITORS
The merchandiser should have a fair knowledge of the past, present and future products of the
competitor so that their product can sell better in the market. They should also keep in mind that the
products should not be over innovative so that they become a slow mover or become a dead stock.
UNDERSTANDING CUSTOMERS
The merchandiser should keep the products according to its target market and not what he likes.
RELATIONSHIP WITH VENDORS
The merchandiser should be capable of maintaining good relationships with vendors and should have
contacts because the merchandiser gets trade discounts on the basis of their relationships according
to their buying capacity.
PRESENT AND FUTURE TRENDS
The best advice for an independent merchandiser is to be on the alert for new ideas . Innovations
come in all sizes and shapes .The independent retailer must be on the alert to come up with new idea
Forecasting Ability - While more methodical than fortune telling, fashion merchandising does require
forecasting ability. A thorough knowledge of past fashion trends and an awareness of current industry
developments will serve you well in a fashion merchandising career.
GOOD MATHEMATICAL and ANALYTICAL SKILLS
The merchandiser should be good with numbers because its the merchandisers job to decide
inventory (opening stock, closing stock, new purchases), decide pricing( incl. markups , allowances ,
discounts etc. )
Good communication and negotiation skills-expression
Quick decision making ability
Ability to work in a team-getting along
Ability to work under pressure and deadlines
Have a creative flair
Good computer skills-spreadsheets, internet..
Excellent organising & planning skills
Good business sense
Ability to work long hours and travel-dedication and stamina
Enthusiasm, curiosity
Honesty- quality, price, relations, trust
Alertness, Awareness and good memory
Managerial skills delegate authority, follow up

-budget time & plan time well

-be flexible
-fair, tactful, impartial
-act on ones own initiative
Have correct educational requirements
Formal/ on the job training, job rotation
Advantages of a career in fashion buying & merchandising
Remuneration
Advancement
Opportunity for economic growth
Opportunity for personal growth
Transferability
Travel
Self expression
Equal opportunity
Lifetime career opportunity
CONSTRAINTS
LACK OF RESOURCES
Lack of resources can block a merchandisers activity to achieve the final result / goal.
LACK OF EXPOSURE
The merchandiser if not exposed to the external working environment and the
surrounding environment, he may not be capable of sourcing products appropriately
due to lack of knowledge and exposure.
POOR COMMUNICATION SKILLS
If the merchandiser is only a good buyer or decision maker and cannot communicate
properly his ideas he cannot make the work
WORKING ENVIRONMENT
The merchandiser should be ready to work in any kind of environment hes provided
with.
Even though the merchandiser has his own ideas or decisions , he should be ready to
accept the guidelines positively and obey the Head Merchandisers orders if required.
Disadvantages of career in fashion buying & merchandising
Hard work & long hours
Competition
Pressure
Accountability
Travel