Merchandising Chapter-01 4 The activity, of trying to, sell, gods on services by advertising them or displaying them attractively. Introduction to Merchandising Ma. AF-Amin Lecturer. TED. ‘SKTEC Merchandising + According to American Marketing Association, erchandising encompasses "planning. involved in Merchandising + The process of identifying and understanding what trnet customers want and providing their desired textile products iarketing the right merchandise or service atthe right Se ae cn ees cel adie by eee tlgces tbe ct ine height cuanies an te ommntnitton ‘bridge Pbetweon. the eamne and the Fight price.” company. + The planning and promotion of sales by presenting a So merchandlsing process involve of atleast three part product to the right market at the proper time, by 1. Company: wo ofing pods t the csionet Carrying "out organized, skillful advertising, using 2 Cunener: vob egeed ty company wit) te Rep of attractive displays, et ‘eevtanduer? + Merchandising is executing an order from receiving. to shipment through proper following-up the in- between process. shove to partion,Departmental structures in merchandising On Basis of Customers Meads can be seated in mamerous wavs Bal more commonly tis structured on the bass f= cae aseing Mecha Mager 3. Geography On Basi of Castomers: Merchandisers ae sunnosed to retain the esters and they are ther repreeniatves so the ivnon based on eusomers ery Pree Werder | | Werder | | wectadir | | Mertandse: + Merchandiser Baking cae of WALMART” sone | | Gatonerd | | ctmere | | catnerd + Mercanier C: Takin eae of “1 AFUNG + Merchandiser D: Taking ae of “TESCO” On the basis of Geography ering Merandig Minas aheting/Merehandng Manage Merhandser werner | [ wewansier | [ weearase | [ wecnsser Merchandiser | [Merhandser (top) (widen) (a vem Fabre Production uwMERCHANDISING FUNCTIONS Study of fashion trend and fashion forecast in association with fashion designer; Studying potential target customer; Sourcing. information about the customer and nis prof Soureing information about the product, its categories, styles, specifications, assortments, size details ete. ; Sourcing foreign buver: Negotiating orders, cost calculation, pricing, securing elon theonigh master TC: Sourcing fabrics, trims and accessories; MERCHANDISING FUNCTIONS, Monitoring production and product q ‘Making regular Faison with the customer and Keeping him update on order & production atu; Follow up of customer instruction i packaging, Arranging product detivery om i Follow up with the cusomee in respect of shipment and informing him shipment dais Coordinate with shipping! export department; Arranging payment aginst export order Quick response follow up in respect of any of the buyer's guess spect of packing and MERCHANDISING FUNCTIONS + Placing order for the fabrics, trims and accessories ‘materials and making regular follow-up; *+ Getting samples made, making costing and pricing of the + Rectifying samples i necessary; + Coanpletingtha wala exmplingyineednrane por enttemnee requirement; + Gating buyer approval ofthe rample: + Estimating lead time; + Production aud shipnrent planning, + Keeping track of raw material arrival, production cycle, and organizing inspections; ROLE AND RESPONSIBILITY OF MERCHANDISER + Securing order, sourcing materials and constant follow-up with the customer; + Coordinate with all the concemed departments of manufacturing factory, supplier organization and the buyer: + Needs to cut a balance between quality, lead time, dolivery schedule and price of the merchandise; + Organize the purchase of materials, follow-up of production, costing, quality & delivery schedule ‘under tight deadlines,LRAD TIME, + The time between the initiation (starting) and ‘completion (ending) of a Process/Production process. + Toad thma ie the amount of thma that olapane betwen ‘when a. process starts and its completion. Lead time is examined closely in manufacturing, supply chain ‘management and project management, as companies ‘want to reduce the amount af time i takes ta daliver ‘products to the market _LESD TIME FORSOLID DYED KNITEABRICS esq ea a LEAD TIME FOR DIFFERENT PROCESSES LEAD TIME FOR JOP KNIT EMBRICS hatecncemaa | 9 SSSA _LESD TIME FORYARN DYED KMIEADRICS tek aetna ui tte Fe te it ek pan ede fh et el im html nd 0 frites a SEN tah bg pe aTIME AND ACTION (TNA) CALENDAR Normally merchandisers prepare a plan of the order in a spreadsheet by listing down the key processes in first column and planned date of action for each process in the next column. This planning sheet is popularly known as time and autivu caleudar (TNA), Ouve TNA caleudan is ‘made, then it can be easy for merchandiser list down their daily to do list’ and taking it one by one, FACTORS TO BE CONSIDERED WHILE. PREPARING TNA, + Production capacity of pint © Sole ype of merchandise 4 Festivals of mnaaturing county Holidvs Shipnent deals 4 Fests of counry fiom where aw material simpoted 3 Loses cties| Leb time cntimated by buyer sie complications + Tabi and tims manuficaringcompiaions + Buller rquie fom each department Political stability of the county @ Flexi of Height france “© Response time fom buyer at different tages “Lod times of vanous acts like LC payment, cst clearance, + Cit of date foe shipments » IMPORTANCE OF (TNA) ‘It hlps to streamline the pre-production activities. 4 Easy understanding of order processing. 4 Clear understanding of timelines given by buyer It givesthe clear idea about the minor or sub activities that need to perform during onter processing at different level. TNA gives tho idoa about the statue of running order and talks about delay or deviation, if any TNA ives the dates at whic raw material need be sourced, in a way it helps to optimize the inventory TNA also reduces the risk of delivery delay. TNA EXAMPLE15032014 15032014 16032014, 18032014 23032014 25032014 25032014 Toreovve frie samples fom splice Torcccved tins & accesories simple Toroovved comments on ft sample To sib ize set sample tw buyer Torecvive commentvaproval of size set sanple Exfactory of fibre ‘Tost PP sanple to buyer ‘A201 To kg ae 1842014 Resi of cates stone 2542014 Sewing Complete 2542014 PreShipmentInpstion complete 2742014. Handing veo shipping ine 2842014 Shippingot goods 29.42014 Tosen shipment confinaton 13) 26asanit sac spe " 3003201) To pt goal of PP spe fom SS Fs Gere ee azo 6 nA Towevetiviet se » amt ety tee gn eS 6 BAD sicatgstat a AeA3014 To nmi pts sa 6 ie FLOW CHART OF MERCHANDISING ACTIVITIES Marketi ae Buyer Request — ih Pricing-ostn o n. Order Recept & confirmation Bh. ‘Order execution tough coordination Totowing steps a8 per TWAFLOW CHART OF MERCHANDISING ACTIVITIES among avn ems + Development + Resivecolor + Soucesupliss sample stand BEER once ‘Staple peptic «Libr Vib boo auedlohoe poy pe tame an ‘ rromsanple Seltobuyer for *sampleprpuaion Sole sethea he Ey et iano hpgin Pham co ‘camplepreomation * fei Ueki wimotobre \patapdaic sProtionamle — Satobaperir feafsckihanee + comimedying peel COLOR STANDARDS Color standard may be received by two ways- 1. Color swatch, 2. Pantone no. (TCX, TPX from color palette) SPs RePs cl alm PSS" FPFe a) am FLOW CHART OF MERCHANDISING ACTIVITIES Start Production u Arrange Inspection after Production Vessel Booking (about 15 days prior to inspection) ua Export documentation & logistics Qualities of a Merchandiser Good knowledge about fiber, yam, fabric, dyeing, . dyes, color fastness, garments production, Clear conception of the usual potential quality lems in the garments manufacturing. Good knowledge of the usual raw materials inspection systems & garments inspection system Knowledge of the quota system used in each of the production countries, duty rates, custom regulation, Shipping and banking “documentation ete Right consumption knowledge of various goods Costing knowledge of raw materials Order getting ability Sincere& responsible Hard worker*+ Communication Skills (Verbal, Witen, Listening) + Managerial Skills (Technical, Human, Conceptual) + WelLGroomed Personality + Accessibility, Available and Mobi + Politeness & Tolerance + Coordination and Followups First and foremost, you'll ned to have & passion for retail Employers will look for commercial awareness, numeracy and the ability to think logically, and you will ned tobe good ft guickly idenuzying problem and recommending solrions. Twill help ifyou have experience of working with customers sand experience working in s retil environment will eet you ahead ofthe competition, Scope of Merchandising (contd...) + Brands: Merchandising doing ll ots of marketing research, ‘romaons sion dessning, selene new fibres garments Eyles and sade forthe upcoming season = Example: Ades, Renton, Calvin Klein, Boss, J Crew, Tat, Levis, Lee sprit, Hage + Manufacturing companies: Merchandisers are usually involved in the completion of sampling price negotiations and then following. up of production. ‘They liaise with brands | rectly or with ther" itson officebuying house in order to pet their Work done. + Buying HouseLiaion offices: Mercanisers play the ole of Nim beeen the ove vo stain ah ea fom mannfactucre ts perth chsoner' eure Scope of Merchandising = OS) Manutaturing | commas Order Negotiation (Orders that have been sent to factories will be negotited for price, dalivery, quota and quality ete. The order negotiation between the buyer and the manufacturer isnot always an easy task. The buyers are always trying to get this garments made at very low prices whist the manufacturers are hoping they wil pt at least 2 percent more than what they got last time fora sul style. ‘The buyer always has a target price forthe merchandise he hopes to buy: He has slready finished his home work and fully ware of the market price forthe particular type of garment. ‘Therefore, he will dois best to buy the garments bellow his target price or for his target price, We should not forget the lobe is full of manufacturers and suppliers. The buyer will ‘certainly move to another manufacturer OF country if he fils ta buy at is price. |Order Negotiation + On the other hand, the manufacturers will promise the best ‘quality and prompt delivry Yo sonsines the buyers fo py ‘tra dolla of two for is merchandise. Is rater dificult to convince ahuver fo av more than his tart rie. bu it may be posible to do so ithe company hts @ good tlationship with the buyer or if the company his avery good reputation for excellem performance. In other words a. good image should do the tek + Buying ottces or ther representatives should not consult companies operating at very high CMT to do very low priced merchandise. Uheretore the buying offices not only should have knowledge on ‘company’s performance but also their average CMI prices Order Negotiation + However the Buyer may not be that dissatisfied ifthe price uote slither than hi expected price. We might ink Sette pe wend able to bring down though negotiations He might offer his help to improve. products Sctarsion eed 12 te percha of an anehal ot Yay ompettive prices + Ifthe quoted price is significantly low. the buyer might think thoy tlt capable of mruteing a goods fr hs ‘satisfaction. Low price. would reflect bad onthe factory rather ‘hat securing e order. I Tooks rather fun because we are in sur pena a oo minimum price which is offer ye. means poor quality merchandise + Therefore itis paramount importance 10 be at least 80 ie the costing ofa garment. It must also be te buyer wil not bu siren at fone prise ftom (wo diferent companies ‘The Success ‘company’ will be offered the contract to manufactre Order Negotiation + Another important aspect in the order negotiation is to know ihe ity sseurate co of making the gurmen, Mos factories {So cin ry salvar wg oi of us cos This sation wil ease frusration to both pares during 8 order negotiation, The buyers ate generally more conversant ‘tithe wowing ana ‘Would be8 able 0" judge almost Tramedately the manulsctzer's operation if the price quted is very much dierent rom his target price, + Te quoted prices hiahe it may be due to |tignerovemeads inne retary 2. Lower productivity in the factory 3 Higher fe amount aed py a eller othe gos of ee irom lb pte seling pee) “Raw marl cot at high prices 5.Wrong consumption et, MERCHANDISING BOOKING FORMATS.