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Merchandising processes

Merchandising is:

Planning,

Developing, and
Presenting product lines for a target market involving pricing, assortment, styling, and timing.

Merchandising Versus Store Management

Merchandising calendar:
> The timing required to develop, plan, and present for each selling period.

> Based on 52 week merchandising cycle


> Selling periods (3~52 wk) defined as weeks of sale for products.

Merchandising calendar- quick response


> Lead time: The time between placing an order and delivering merchandise. > Customer-driven. > The importance of level of inventory > Enough inventory to minimize lost sales but not so much as to have lots of excess at the end of the selling period.

Concepts of apparel product lines


Product line: The total merchandise mix presented for sale. Within each line/category/classification, the merchandiser builds an assortment (e.g. style). Merchandisers and designers when planning and developing product lines think in groups rather than individual styles.

Categories for merchandisable groups:


Separate: Tops/ bottoms or both items Coordinates: Groups of different products with common characteristics such as style, trim, colors, etc. Multi-piece style (Example: Suits) Related separates: Displayed and sold like a separates line but has even more coordinating potential because of common colors and materials. Example: 2 styles of shirts + 2 styles of sweaters

separates

coordinates

Related separates

Merchandising responsibilities
Line planning
Line development Line presentation

Merchandising Responsibilities
Line planning: Guides, defines, and limits the line by evaluating merchandise mix and forecasting. Look at last seasons sales at same selling period. Review current market information Brainstorm for new ideas World market shopping.

Merchandising Responsibilities
Planning merchandise budgets by: Looking at last years sales and plan for sales increase/decreases. Take into consideration new accounts and current retail relationships. Talk with buyers on their projected buying % for the upcoming selling period.

Line planning
Planning merchandise assortments based on budgets: A balanced assortment matches the assortment plan to customer demand. Assortment balance is based on the development of model stock plans that identify SKU (number of Stock Keeping Units).

SKU = Number of Styles x Number of Sizes x Number of Colors

Line planning
Assortment: Range of choices offered, usually defined by: Style + Size + Color Assortment variety: Total number of unique items that must be produced to satisfy the design plan

Line planning
Assortment volume: Number of units that must be sold to achieve planned sales Assortment distribution: Allocation of volume broken down by style, size, and color. Analyze and update merchandise plans when conditions change in the market, merchandising plans must be adjusted.

Line development
Includes all processes required to translate a line plan into real merchandise. Line concept: First phase, determining the look and appeal that establishes identity and salability. Current issues, fashion trends Inspiration/Concept board.

Product development
The design and engineering required to make products salable and producible. Apparel product development (2 phases) 1) Creative design- focus on creativity and formation of merchandisable groups 2) Technical design- perfecting the style, fit, patterns, also including specs and costing.

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