Jain Merchandising

8/8/2019 Jain Merchandising

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A

Presentation

on

MERCHANDISING,BUYING AGENCY &

MANUFACTURERS

Presented By

Nikhil JainKavindra kulkarni

Pradeep Kumar

Priyanka

Rashmi MV



MERCHANDISING

Merchandising is basically Planning, Buying & Selling theMerchandise for a profit.





BUYING

It includes the Search, Evaluation & Selection of the

right manufacturers, those who produce appropriate

merchandise for the store which a buyer represents



BUYER

Those individuals who represents the buying house arecalled buyer , works in the capacity of advisor or assistance tothose stores represented by the office.

Responsible for all phases of Merchandising & Promotion.

Professional purchaser specializing in a specific group of materials, goods, or services, and experienced in market

analysis, purchase negotiations & bulk buying.



INTRODUCTION TO BUYING OFFICE

A consulting firm that provide a steady flow of MarketInformation on a local, as well as on a national andinternational scope.

Buying house work as Intermediateries the Buyer & theVendor

Are organized to save the retail buyer Time & Money and provide professional assistance.



60 -70% world wide buying routes through the buying houses

These are situated predominantly at the sourcing locations

Work on profit percentages / commisions / expense coverages

Large buying houses in India ± Lindmark / Triburg /H & M



THE DEVELOPMENT OF BUYING

HOUSES

Developed during the early days of retailing.

Develop for many reasons:o The small Retailers found it was necessary to be represented in

marketplace.

o The growth of multitudes of new products and the continuouschange in old product.

o To obtain Assistance & Advice in the selection of key resourcesand maintain good working relations with these resources.

o To Strengthen The Trading Position and purchasing power of individual stores



TYPES OF BUYING HOUSES

Independent office

The Store-Owned office



INDEPENDENT BUYING OFFICE

Privately owned and operated and continuously seeks stores

as client

Represent large department store, small apparel shops,

specialty stores, home furnishing stores and other types of

stores that require market representation.

The office serves member stores with similar merchandise

lines.



STORE-OWNED OFFICE

The store-owned office is owned by the Store or the Stores.

Represents very large department and specialty stores .

3 types of store-owned office:



The Private Office:

o A Large Retail Organizations maintains its own private buying office.

o Not very common today due to large investment involved

and lack of information exchange with competing stores.

Associated Buying office (Cooperative Offices):

o Their expenditure are distributed among the member stores.

o Fees are based on the size and the amount of service eachrequires.

o The member stores shares the confidential information &assist one another.



Syndicated or Chain-Owned Office:

o A division of a corporation that owns a chain of

department stores.

o Function in much is same manner as the Associated Office.

o Better able to Maintain a Dominant Position and can force

adoptions of its recommendations on stores because of its

common ownership.



FUNCTIONS

Four functions:

o The Merchandising function: assist the store buyer in

obtaining the merchandise.

o The Promotion function: assist the store buyer in selling

the merchandise.

o The Research function: assist the store buyer inobtaining the up-to-date market information to aid in

decision making.

o The Ancillary function: which offers additional services.



MERCHANDISING FUNCTION

Order placement, adjustments and follow-up

Preparation for the buyers visit

Ordering for stores

Group buying

Central buying

Private branding

Jobbing service

Purchasing service



PROMOTION FUNCTION

Providing buyer information

Promotion of goods

Preparation of advertising

Fashion service



RESEARCH FUNCTION

Research and Analysis

Management information

ANCILLARY FUNCTION Buying clinics

Divisional meetings

Foreign service



MER CHANDISER¶S ROLE IN A

BUYING HOUSE bridges the gap between the buyer and the Vendor.

analysis of market, vendors, processes orders andresponds to the various queries.

group buying.

wholesale activities.

unit control services.

private brand programmes.

foreign buying. sales promotion for buyers and vendors, development

of catalogues.

fashion divisions and offices.



SELECTION OF THE BUYING OFFICE

What will be the cost of using a resident buying office?

What kind of contract arrangements are required?

What is the extent of the office market coverage?

What kind of merchandise lines are represented are by theresident buying office?

Does the office maintain buyers with separate divisions for various types of goods?



Do the retail policies of the resident buying house basically

agree with yours?

Would your type of retail operation be too limited to beserviced properly?

Do the executives and staff of the resident buying office provide an atmosphere of work compatibility?

What other clients are represented by the resident buying

office?

What kind and scope of services are offered by the resident buying house?



THE RESOURCES OF MERCHANDISE

Domestic

Foreign



PROCUREMENT PROCESS

Buying plan

The market agenda



BUYING PLAN

In any case (domestic or foreign) buying requires careful

planning.

Price

Line

Size

Color

before 1 to 2 weeks



MARKET AGENDA

Period of season

No. of days in market

Inform in advance to your resident buying office

Visit stores

Contact other buyer also

Advertising

Contact primary producer

Discuss fashion trend

New product line Participate actively in buying clinic

Inform supplier in advance of your visit



SELECTING MER CHANDISE

RESOUR C

ES Wholesaler: In commerce, a wholesaler buys and stores

goods in large quantities from their manufacturers or

importers, and then sells smaller quantities to retailers, who in

turn sell to the general public. Retailers may also buy directly

from manufacturers.

Manufacturer: that makes the goods through a process

involving raw material, components ,and assemblies usuallyon a large scale with different operations divide among

different workers. commonly used interchangeably with

producer.



MANUFACTURER

Direct buying

Advantages:

o Time saving

o Choice



SELECTION FACTORS

1

Characteristics of

merchandise

assortment

2

competition

3

Method of

procurement

4

Service available

5

Pricing and terms of

sale



BUYING IN FOREIGN MARKET

Reasons for buying:

They afford for large markup

Different product

Add prestige and leadership

They help meet direct competition



PROBLEMS OF BUYING IN

FOREIGN MARKET Delivery

Variation in quality standard

Record lead time Discrepancy of sizes

Money allocation

Landed cost

Early selection decision



THANKING YOU

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Jain Merchandising