2.11. Levels of Merchandising

Fashion merchandising refers to the planning required to have the right merchandise, at the right time, at the right place, at the right price and with the right sales promotion. If all these conditions are planned, one can achieve maximum profits.

Fashion merchandising is about strategic planning in the fashion industry. It involves ensuring that products—like clothes, accessories, or footwear—are available when and where customers want them. This means understanding consumer demand and coordinating aspects like pricing and promotions effectively. When all these factors align, a business can maximize its profits because it meets customer needs while also managing costs efficiently.

Think of fashion merchandising like preparing a meal for a dinner party. You need to plan the menu (merchandise), get the ingredients (supply), cook at the right time (timing), serve it at the right place (delivery), price it right (cost management), and ensure the presentation (promotion) is appealing to your guests. If one part is off, the dinner could be a disaster, just like a poorly planned merchandising strategy.

Fashion Merchandiser is a person who facilitates conversion of inspiration into design, uses technology to conceptualise and address the planning, production, promotion and distribution of products in the fashion industry, to meet the needs and demands of a consumer.

A fashion merchandiser plays a crucial role in transforming creative fashion ideas into reality. They use technology and market insights to plan how fashion items will be produced, promoted, and sold. This involves working closely with designers to ensure that their creative visions can be effectively manufactured and marketed to appeal to the right audience.

Imagine a bridge-builder who takes a design from an architect and makes it feasible. A fashion merchandiser does something similar; they bridge the gap between design and the market by ensuring that products can be successfully created and sold based on current trends and consumer desires.

In the fashion industry there are three Levels of Merchandising:

1. Retail Organisation Merchandising — It is a specialised management function within the fashion industry. It is the business that moves the fashion world from designers’ showroom to retail sales floor and into the hands of consumers.

2. Buying Agency Merchandising — Provides services for goods buying consultancy and acts as a procurement office for the buyers.

3. Export House Merchandising — Two types of merchandisers: buyer merchandisers and production merchandisers, acting as links between buyers and manufacturers.

Fashion merchandising operates at three levels:

1. Retail Organisation Merchandising: This involves managing the process that gets fashion items from the designers to stores. Retail merchandisers ensure that products meet consumer demand and that stores have the right stock.

2. Buying Agency Merchandising: Here, agencies help retailers buy goods at competitive prices. They liaise with manufacturers to negotiate costs, ensuring quality and timely delivery, saving retailers time and money.

3. Export House Merchandising: Merchandisers here ensure that goods produced meet buyer specifications. Buyer merchandisers communicate with buyers to understand their needs, while production merchandisers ensure manufacturing aligns with these needs.

Consider a movie production:

• Retail Organisation is like the director ensuring that the actors and crew are ready and that the film can reach theaters.
• Buying Agency is like the casting department auditioning actors who fit the roles perfectly at the right cost.
• Export House is like the stage manager coordinating between the performers (production) and the director (buyers) to maintain the flow of the production.

Target Market: It is defined as category of consumers one is targeting at for selling the product. It is essential to understand the target market as this will allow the sales department to focus on that category of consumers who are ‘most likely’ to purchase the offering.

Identifying the target market is crucial for fashion merchandising. It involves analyzing consumer demographics—like age, gender, location—and behaviors to tailor products effectively. By understanding who the likely buyers are, merchandisers can mean less wasted effort and resources on marketing to those not interested in the product, enhancing sales outcomes.

It’s like throwing a party: if you know your guests enjoy classical music, you’ll choose the right playlist to set the mood. In merchandising, knowing your target market helps you select the styles, price points, and promotional strategies that will resonate with your ideal customers.

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