MERCHANDISING Apparel Manufacturing: Sewn Product Analysis, 4/E By Ruth E., Glock Grace I Kunz
Mechandising • Introduction. • Dimensions of product change. • Nature and timing of merchandising responsibilities – • Line planning • Line development • Product development • Line presentation
INTRODUCTION Merchandising and Marketing
• Often both terms are used interchangably
Apparel Merchandising • The performance of all activities to supply the apparel needs and wants of potential customers at time and place needed, in right qualities and quantities and a • Fashion merchandising refers to the planning required to have the right fashion oriented merchandise at the right time in the right quantities and at the right prices for the target groups of customers prices that are satisfactory to them.
Terms in Merchandising • Product Line • Manufacturer Merchandiser
• Merchandise Mix
• Retail Merchandiser
• Assortment
• Merchandising Cycle
• Design
• Merchandising Calendar
• Style
• Selling Period
• Lead Time • Merchandisable group – Separates, coordinates, multispecie style
Dimensions of product change Perceptual Map of product Change
• Fashion/Seasonal Continuum • Basic / Seasonal Continuum • Fashion/ Basic Continuum • Basic / Basic Continuum • Uses of perceptual map
Perceptual Map
Nature and timing of merchandising responsibilities – Merchandising Taxonomy • Line planning –defines and limits a line • Line development – identify merchandise that implements a line plan • Line presentation – This results in evaluation and sale of the product offering
Line Planning • Evaluate Merchandise Mix • Forecast Merchandise offerings • Plan Merchandise budgets • Analyze and Update Merchandise Plans
Line Planning • Evaluate Merchandise Mix – Past sales analysis –category wise, class, subclass wise – Brainstorming sessions • Planning Merchandise budgets
Planning Merchandise Budget Sunder Textiles, an apparel manufacturer produces teenager’s garments at good value. Size ranges offered includes school students, boys and girls. Their last year annual sale was Rs.2,50,00,000. This year they expect a 10% increase in sales. The major categories offered and their merchandise mix is as follows: Women’s dressy tops (60% of sales), T-shirts (30% of sales) and embroidered kurtha (10% of sales). Girl’s tops are 55% of tops sales. The merchandising cycle is divided into four selling periods for girl’s tops. The selling periods are approximately equal in length, about 10 weeks each in the 52-week merchandising cycle. The distribution of sales for girl's tops for the last was as follows: spring (15 %), summer (10 %) winter (60%) and autumn (15 %). The average list price for tops is Rs.200 and a wholesale price of Rs.100. Sunder textiles plans a 25% gross margin on wholesale. Plan the merchandise budget for Sunder Textiles for girls tops for summer season this year along with calculation for each component
Calculate • Total Planned Sales next year • Women’s dressy tops sales, • T-shirts sales • embroidered kurtha sales • Discounts and reductions • Gross margin • No of units • Season wise sales
Line Planning • Planning Merchandise Assortment • Analuse and update merchnadise plan • Using Assortment plans
Line Development • Line Concept • Creative Design • Line Adoption • Technical Design
Line Development • Line Concept – Synthesize current trends and issues
• Line Adoption – Determine styles in line
– Describe fasion trends
– Assign style/size/colour
– Establish line direction
– Balance Assortments
– Descibe materials
– Produce photo/sales/catalog samples
– Identify group concepts – Analyse current line
• Creative Design
• Technical Design – Perfect styling and fit
– Develop Designs
– Test materials
– Create design prototypes
– Develop style sample
– Review prototypes
– Detailed costing
– Review prototypes
– Grade samples
– Revise patters until perfect
Line Presentation Internal
Retail
• Review for Adoption
• Types of outlet- speciality, department, discount, off price, manufacturer outlet, television, internet
• Line concept • Image strategy • Groups and designs • Pricing strategy • Visual merchandising
• Power of appeal – display space, fiztures, lighting, signage, label, ticket, pricing strategy, customer service, inventory mngt
Line Presentation - wholesale Line Preview
Line/Style release
• Line concept
• Fashion shows
• Image strategy
• Wholesale markets
• Assortment strategy
• Sales reps
• Style appeal
• Trunk shows
• Marketing strategy • Pricing strategy • Visual merchandising
Customer service
