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7/31/2019 Merchandise Chpter 1(Complete)
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TXL 576: TEXTILE & APPARELMERCHANDISING
CHAPTER 1:Nature of Textile &
Apparel Merchandising
Nature of Textile & ApparelMerchandising
Merchandising Division
Organizational Structure
Objectives
Exercises
References
Najua binti Tulos
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OBJECTIVES
Upon the completion of this chapter, the studentsshould be able to:
Explain the nature of textile and apparel merchandising in
manufacturing, retailing and international trading.
Discuss each organization structure for merchandising.
State the responsibility of merchandising operations andmerchandising division.
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TEXTILE AND APPAREL PRODUCTSEnd Products
MERCHANDISINGProcess of developing, obtaining, managing and pricing the
merchandise mix to meet the firms marketing and financial objectives
MARKETINGPromotion strategies to attract customers to buy the merchandise
CUSTOMERS/CONSUMERSPeople who bought the product and use them
RETAILING
Business activity of selling goods or services to the final customer
TEXTILE AND APPAREL FLOW CHART OFBUSINESS
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STRATEGY OFMERCHANDISING
Right people- Right customer
targeted
Right merchandise- Trends in fashion
Right time- Forecasting
Right place- Appropriate located
area
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STAGES OF MERCHANDISING
PLANNING
BUYING
ARRANGING AND DISPLAYS
SOURCING
SPACE MANAGEMENT
involves careful consideration of the customers, competitors andtype of business - discount, high price /low price
locating of merchandise to sell in the store
purchasing of merchandise to sell in store
the look of the store
planning for space allocationTXL576: CHAPTER 1
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Merchandise characteristics
Replenishment and stock rotation
Assortment planning and pricingstrategy
Merchandise budgets
Planning and control
PLANNING
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Process
Need for product is clearly defined
Product specifications are agreed Suitable supplier is found
Competitive advantages
Global sourcing Social responsibilities
SOURCING
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Process
Buying cycle
Starts of selling period End of selling period
Number of peak (high sale point)
Weeks that peak occur (of the year)
BUYING
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Effective use of displays Colours
Arrangements Group merchandise
Shelves, fixtures etc
Store design and displays In-stores fixtures
Types of product and their fixtures
ARRANGING AND
DISPLAYS
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Planning the merchandise layout
Consider Historical
Contribution to profit
Gross margin
SPACE MANAGEMENT
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GENERAL MERCHANDISE
MANAGER
FASHION COORDINATOR
COMPARISON SHOPPER
DIVISIONAL MERCHANDISEMANAGER
BUYER
ASSISTANT BUYER
BUYER BUYER
DIVISIONAL MERCHANDISEMANAGER
MERCHANDISING DIVISION
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Roles of each division
Set merchandising policies for the entirestore
Responsible for sales volume
Delegates merchandising responsibilities to
a number of merchandise managers who arein charge of several divisions ; womenswear, swimwear, men's wear etc.
MERCHANDISE MANAGERS
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Roles of each division
To guide buyers about trends andappropriateness of merchandise
Helps with displays, prepare and participatein fashion shows, opinion on the mostsuitable merchandise for advertising
Needs to be familiar with the dynamics offashion, its history and always alert withcurrent development
FASHION COORDINATOR
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Roles of each division
Reporting competitors activities andmerchandise
Conducting surveys and make comparisonon prices, services, stock assortmentbetween own store and competing stores
Brings in new, different merchandisespotted in other stores
COMPARISON SHOPPERS
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Roles of each division
In charge of a group of departments. eg;
Mens wear, ladies wear etc
Supervises the activities of a number ofbuyers who head different merchandise
department. eg; sports wear, underwear etc.
DIVISIONAL MERCHANDISEMANAGERS
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Roles of each division
Select proper merchandise for the store
Purchasing merchandise in accordance with
the approved buying plan and building goodrelationship with suppliers
Pricing, promotions and profit
Providing the merchandise information; newstyles, new colours, new materials
BUYER
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Roles of each division
Advise and recommend to the buyer thepurchase of merchandise that belongs in the line styles, colours, sizes, price lines, etc
Other responsibilities including:i. Merchandising (stock and inventory control)ii. Sales promotion (display, price signs,
newspaper advertising etc)iii.Operation (matters regarding wrapping/
purchase exchanges, adjustments andreturns)
ASSISTANT BUYER
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PersonalQualifications
&Skills for
Merchandiserand Buyer
Dedication
Education
Analytical ExcellenceAbility to communicate
Good reasoning power
Appearance
Leadership
Flexibility
Enthusiasm
Product knowledge
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Chain Organization
Franchised Operations andLicensed Store
Department Stores
Independent stores
Catalogs, Home ShoppingNetworks and Internet
services
1
3
2
4
5
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A group of retail stores essentially the same type, undercentral management system
Buyers as well as managerial executives function from
central headquarters or offices.
Buying and merchandising practice is referred to ascategory buying or classification buying where buyers
are assigned to buy a specific category of classificationof apparel within a department instead of buying allcategories for a department.
Chain Organization
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Centrally purchased merchandise is distributed to allstores from a headquarter or central office.
Buyers confines his /her activities to only purchasing.Communication with stores achieved by the computerutilization and faxing.
Management of salespeople, scheduling, inventorycontrol and so forth are the responsibilities of thestore managers.
E.g. JUSCO, METROJAYA, ISETAN, Giant, TESCO
Chain Organization
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Large retail stores selling many different kinds ofmerchandise arrange in separate departments.
General line of merchandise in each of 3 categories:i. Home furnishings
ii. Household linen and dry goodsiii. Apparel and accessories
Buyers are practicing departmental buying. They buyall categories of merchandise for a department.
Buyers are also responsible for the management ofdepartments selling floors.
Department Stores
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D t t St
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Buyers have the main store as their base operationand regularly visit the branches.
Buyers are responsible for the sales of theirdepartments and the personnel expenses as well aspurchasing.
Types of department store:
i. upscale department store
ii. mid-range department store
iii. discount department store
E.g. Senyum superstore, Bata, Al- Ikhsan, Canterbury
Department Stores
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Carries a limited line of merchandise (e.g. jewelrystores, shoe stores, boutiques, toy stores)
More specific customer, providing narrow focus ofmerchandise with certain price range.
The buying and merchandising as well as selling,promotional planning and customer servicing aredone by their owner or a store manager and assistedby small staff.
E.g. Prada, Chanel, Browns etc
Independent stores
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A legal agreement to conduct a business inaccordance with prescribed operating methods,financing systems, etc.
Benefiting from the expertise and reputation of anestablished firm.
In return, the franchisee pays the parent company(franchiser) a set sum to purchase the franchise androyalties on goods or services sold.
Franchised Operations and
Licensed Store
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Franchised Operations and Licensed Store
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Buyers have no store responsibility but to providemerchandise for the franchisers.
Difference between franchising and licensing are theinitials. Franchisers require start-up fees for theprivilege of joining company. Licensors do not needany.
Buyers are required to purchase their goods from thelicensor.
The largest fashion licensors BENETTON withmore than 500 licenses in the US and other countries
Franchised Operations and Licensed Store
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Web Fashion-on-line provides visual and written infoon more than 30 runway designer shows.
This type of business serve a much larger geographicmarket as compared to store buyers who has a narrow
audience. Buyer must concentrate on merchandise thathas universal appeal.
Buyers must make sure that suppliers are able to providemerchandise continuously at least for the life of the
catalog.
Buyers must also provide precise size and measuringinformation to facilitate purchasing and minimizeordering problems.
Catalogs, Home Shopping Networksand Internet services
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1. Define the terms below:
(i) Merchandising(ii) Stock Turnover(iii) Market Week(iv) Global Sourcing(v) Franchised Store
2. Explain five (5) stages of merchandising.
3. Describe the differences between chain organization andindependent/specialty stores. Give one example for each organizationalstructure.
4. Merchandising division determines the success or failure in a business.(i) Why do you think that the companys organizational structure is
important in determining the scope of the buyers role?(ii) Explain briefly the personal qualifications needed by store buyers to
perform their duties and responsibilities.
EXERCISES
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1. Brian, T.Arpan. J.S. Barnett, A.H. Ricks, D.A and Shimp, T.A.(1984), The Global Textile Industry, George Allen & Unwin, NewYork.
2. Diamond,J. and Pintel, G. (2001). Retail Buying. 4th.Ed.
Prentice Hall:New Jersey.
3. Dickerson, Kitty.(2003). Inside the Fashion Business. 7th Ed.Pearson Education:New Jersey.
4. Frings, G. ( 2008), Fashion from concept consumer. 9th Ed.Prentice Hall, New Jersey.
5. Jarrow, j & Guerreiro, M. Inside The Fashion Business, (1991),5th. Ed. Macmillan Publishing Co, New York.
REFERENCES