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Merchandising
Merchandising is the practice which contributes to the sale of any products to retail customers.
173 Questions
What are two categories of expenses in merchandising companies?
C.O.G.S. (Costs of Goods Sold) and Operating Expenses.
In merchandising, key challenges often include fluctuating consumer preferences, inventory management issues, and competition from online retailers. Achievements may involve successfully optimizing product assortments, enhancing customer engagement through targeted promotions, and improving supply chain efficiency. Overall performance can be assessed by analyzing sales growth, market share, and customer satisfaction metrics, which reflect the effectiveness of strategies implemented to meet objectives. Balancing these challenges and achievements is crucial for sustained success in the dynamic retail environment.
What does POD in retail merchandising mean?
- Point of delivery
- Proof of delivery
- Port of dischange
- Port of delivery
- Print on demand
How is merchandising relevant to an entrepreneur?
How is merchandising relevant to an entrepreneur?
In order to answer this I need to first define what is an entrepreneur. By definition an entrepreneur is someone who solves a problem or provide a solution for a profit. The key word here is profit.
Based on numerous research for an entrepreneur there are only 3 ways that you can increase your profit. You can argue all you want but there are only 3 ways you can do it. The 3 ways are:
1. Increase the number of clients that the entrepreneur has.
2. Increase the frequency that the clients spend with the entrepreneur.
3. Increase the amount that the clients spend with the entrepreneur.
If you look at the 3 ways listed above hence merchandising is definitely relevant to an entrepreneur. Through the proper and right merchandising campaign, an entrepreneur can effectively promote it's brand and increase it's number of clients resulting in more profit.
A wide range of merchandise can be used to encourage higher frequency of purchase from the same clients resulting also in more profits. And finally merchandise is a fantastic way for you to do up selling, cross selling and back end selling so that the entrepreneur can increase the amount a client will spend. This will definitely help to boost profit.
One of the best example would have to be McDonalds with their Happy Meals. They really milk is such that they produce merchandise with every possible hit movies or cartoons.
In short, YES! Merchandising is very much relevant to an entrepreneur.
In Retail and Merchandising should POP go left to right?
In retail and merchandising, the placement of Point of Purchase (POP) displays typically depends on the store layout and customer flow. However, a left-to-right orientation often aligns with natural reading patterns for many shoppers, potentially increasing visibility and engagement. This approach can enhance the shopping experience by guiding customers through the store in a logical sequence. Ultimately, the effectiveness of POP displays should be tested and adjusted based on specific store dynamics and customer behavior.
What is the income measurement process of a merchandising company?
The income measurement process of a merchandising company involves several key steps. First, the company records its sales revenue from merchandise sold during a specific period. Next, it subtracts the cost of goods sold (COGS), which includes the purchase cost of the inventory sold. The resulting figure, gross profit, is then adjusted for operating expenses, taxes, and any other income or expenses to determine the net income for the period. This process helps the company assess its profitability and operational efficiency.
Standard operating procedures for garment merchandising?
The chronological process of Merchandising is the following:
Step 1: Marketing:
Marketing personnel has to market his company in order to increase his customers and generate more and more revenue. : It acts as a bridge between buyer and the company for communication. The Marketing personnel here enclose a brochure and product picture with the mail and forward it to the prospective buyer for their convenience. The interested buyers reply to the enquiry letter submitting a sample product or sketch with measurement sheet to the merchandiser to follow the sample to go for production.
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Step 2 Costing and Negotiations:
Costing:
Merchandise makes a cost sheet to see if the product is feasible or not in terms of cost and revenue. Merchandiser has to calculate the cost of products including all wastes and accessories to tell the final cost of the product to his customers.
Negotiation:
Merchandiser must have a negotiating power on the price to convince his buyers on specific price to lessen the chances of loss. If price is negotiated then its time to sample approval from buyer.
The aim of negotiation/approach
"Win Win solution" Both parties are benefited.
The skill for negotiation:
1. Discovering common interest and removal of personal issues.
2. Questioning skill
3. Listening effectively
4. Understanding body language.
5. Observation and judgment.
6. Influencing skills
Step 3: Source Fabric
After negotiation the merchandiser have to find from where fabric can be found as per buyers requirement. There are two sources of fabric. 1. Local source 2. Foreign Source. Both local and foreign it needs to open a L/C. In textile sector generally back-to- back L/C is used to collect Fabrics.
Step 4: Prepare Lab Dipping, Dyeing and Fabric printing
It is an important part of sampling. If buyer wants color size product then he need to send them for proper coloring. After that lab test is send to the buyer for approve. For an example Letter that is send to lab is given below:
Date:
To
Mr. Babul
Knit Concern Ltd.
Sub: Lab Dip Programmed
Buyer Name: Info-united
Art:-Zob-3
Fabrics- 65%Cotton, 35%Polyester, S/J 180 GSM
SL #
Color Name
Pantone/Shade
Fabrics
Remarks
01
Orange
158 C
Gets approval Lab Dipping?
Lab Dip confirmation & may be fitting & workmanship changes:
- Start with dyeing the fabric (if necessary start tests bulk)
2. Sending preproduction samples or size set in original fabric with all already Confirmed
details.
:
Dyeing: After the buyer approves lab test, and then sample is sent for dyeing.
Fabric Printing:Fabric printing is the process that applies a single or multi Colored/design on a white of dyed background fabric, using textile dyes. If there is any need have print, and then it is sent for printing.
Step 5: Source Prepare Trims & Accessories:
For preparing a product a company needs various types of trims and accessories. These are very much important for textile product. Such as tag, pin, scope tape etc. so it is the duty of a merchandiser to sourcing accessories before start production.
Step 6: Develop a Sample:
Sample is the physical form of buyer's specification or style/design.
After draw a cache a sample is prepared for the buyers and sends to the buyers. Sampling may be in two ways. 1. Sampling after confirmation price. 2. Sampling before confirmation price. For sampling a merchandiser need Fabrics, yarn, level, etc.
Types of sample/Stages of sample:
1. Proto Type Sample: This is the first sample given to the buyer. The sample is prepared according to requirement of buyer and this is the rough sample. The range of sample is about 1-2 to vary according to the requirement of buyer.
Comments on Proto Type:
Buyer gives his comments on sample and also recommends the changes in sample.
2. Counter Proto Sample:
This sample is based on the comments received from the buyer. For this sample, 2-3 pieces are required.
3. Salesman Sample:
Buyer sends the samples in market by salesman to get market feedback from customers it is done on 250-500 pieces or may exceed depending on season and customer. Buyer has to sell these garments to check and view.
Samples
Market
Feedback
Buyer's Design
Buyer's Merchandisers
Manufacturer's Merchandiser
Comments on Salesman Sample:
Feedback on sample from customer is send to merchandiser/ manufacturer.
4. Pre-Production Sample (PPS):
Manufacturer prepares it. All changes are confirmed on it. 2-3 pieces are required in pre-production sample.
Approval of PPS:
It is the stage where a sample may be approved or rejected.
If accepted go ahead to next step and if rejected then there will be the process of revision of previous steps. PPC department is also involved at this stage. Once PPC is involved, no change in styling is acceptable.
5. Size Set Sample:
2-3 sets of different size are sending to PPC (planning production and control). Manufacturer keeps one sample himself and one sends to buyer for cutting approval. Its purpose is that buyer will make no change in cutting details. If he makes some changes, he himself will be responsible for any loss/ damage.
6. Fit Sample:
No change in stitching is acceptable at this stage. 2-3 garments are used in fit sampling.
7. Photo Shoot Sample:
Now the sample is ready fort shipment. Buyer picks some pieces randomly to test its gauge, GSM, shrinkage. If all these are according to the requirement of buyer then shipment is said to be ok. 15-20 pieces are picked up as a sample to test.
8. Shipment Sample:
This stage is the completion of total order. And the garments are sending to shipment.
Step: 4 Production execution and tracking
A. Cutting the Fabrics: After confirmation of production and approve of the cutting the fabrics from the buyer, the cutting master started to cut the fabrics.
B.Sewing: In swing section the finish fabrics are sewing. There are various types of sewing machine that are given in the list of machineries.
C. Washing: It is most important factor in textile sector. In different stages of production, various spot we found in products that are needed to wash. Various spot we found in products that are given below:
1. Oil spot
2. Dirt spot
3. Print spot
4. Fabrics spot
D. Ironing: In iron section products are ironed for better finishing. Ironing product looks nice and shines. For iron generally steam boiler is used. Steam boiler is so much useful for iron. Sometimes iron shoes are used in iron for better ironing.
E. Packaging:Packaging may be defined as the activities of designing and producing the container or the wrapper for the product. Generally the packaging could be considered as the silent sells man of the product. When the garments are exported to the prospective buyer different type of instruction should have to be followed by manufacturers. Basically the clothing manufacturer is using three kinds of packages.
1. Primary Packages: Insertion a garment into a poly bag is considered as the primary package of garments. Full visibility makes the customer to identify the color, size and style etc.
2. Secondary package: Secondary package of a garment could be another poly bag or inner carton. Inner carton or master poly bag containing a number of garments, provide traditional quotation and make opportunities for sales promotion. This container facility of pack number of garment pertains to packing instruction given by the buyer. There are four packing strategies:
1. Solid Color Solid Size: all garments are of same size and color. e.g
Garments = 42
Color = Red, Size = Small
2. Solid Color Assorted Size: According to this strategy color of all pieces is same while there is variation in size e.g.
Garments = 42
Color = red
Size = Small, Medium, and long with ratio 1:2:1.
3. Assorted Color Solid Size: In this strategy color of garments is different while size is same.
Garments = 42
Color = Red & Blue
Size = Medium
4. Assorted Color Assorted Size: Garments are of different colors and sizes.
Garments = 42
Color = Red & Blue
Size = small & Medium
3. Shipping Package: this refers to packaging for necessary for storage identification or Transportation. Cartons are used as shipping package.
The Side Mark of cartons is: Carton no., Carton Measurement, Quantity (in pcs), Net weight (Single product). Net weight. (Six pcs product), Gross weight (Full carton).
Main Mark: Buyer Name. Consignees add. Order no. Style no. Color/size/Breakdown. Destination. Etc.
Carton Measurement: 3 ply (inner). 5ply (how much pcs), 7ply
Ensure Quality: Quality is the most important factor in textile sector. Buyers always emphasis on quality. So it is needed to care always on quality. A quality product always turns more buyers.
F Arrange Shipping Sample: Shipping sample is very important for shipment. Shipping sample means the representative of the product that we produced for the buyer. Sample must be repetitive according to color, size.
Follow- up Export Procedures: A merchandiser must follow the export procedures by himself.
Step 5 Export procedure
Cargo lifting advice is fixed to custom clearing agent/ Forwarder/ Transportation. Forwarder / clearing agent make arrangements for the custom clearance and booking of the space at earliest vessel. Following documents are required for the custom clearance. Detail is given following;
1. INVOICE: In Invoice following criteria is required.
1. Consignee and Applicant Addresses
2. Garment Description
3. Garment Price and Total Invoice value
4. Net and Gross Weight of Garments
5. PO (purchase order) no.
6. Freight Terms.
7. from # & Date
8. L/C. # (letter of credit)
2. PACKING LIST
There are following details in the packing list required as per buyer's instruction or mentioned in L/C.
1. Consignee and applicant addresses
2. Product description
3. Garment Style and color
4. Net and Gross weight of Garments
5. No. Of Pieces in the Carton and Carton Dimension also other necessary information, which gives help for the custom clearance.
3. Export-FORM:
E-FORM is issued and attested by the concerned bank (Islami bank Bangladesh ltd.)
4. BILL OF ENTRY
Applicable only in case of the imported material used in the manufacturing of the garments for the export purposes.
5. SHIPPING BILL
The forwarder prepares shipping bill. After the sub Management Information Systems ion of the custom docs, by the forwarder, custom authorities check the docs. And examine the shipment accordingly. They write the report on the backside of the shipping bill and allow the shipment for the export from Bangladesh. All these docs are then returned to the export department.
6. VISA PROCESS
After receiving the Docs from the forwarder, Export Department prepares the Visa docs, which are required for the export of garment to the following countries; USA, CANADA, EUROPEAN countries.
7. NEGOTIATION / COLLECTION
After the completion of the Visa process, we submit the docs in the Bank for the negotiation/ collection. The docs are prepared according to the L/C. or the buyer requirement.
8. DOCUMENTS FOR THE BUYER
Export department also prepare documents for the buyer for the custom clearance of the shipment at the destination.
9. PAYMENT PROCEDURE
After the negotiation/ collection procedure of the docs, bank dispatches the same to L/C opening bank, to realize the payment. Foreign bank is bound to realize the same within the 10 to 15 days. REBATE CLAIM
10. COMMERCIAL INVOIVCE
In the commercial invoice all the details are mentioned required under conditions of L/C for the custom clearance and other necessary purposes.
11. PACKING LIST
It consists of color, weight, product code/other, coding numbers, no. of cartons, carton dimension, and carton packing.
12. BILL OF LADING/ AIRWAY
This is according to the L/C terms and conditions.
What is a merchandising execution associate and what do they do?
Merchandise Execution Associate:
Merchandise and maintain various product sets in a company retail environment to enhance the customer experience, increase sales, and maximize inventory turns. MEAs execute merchandising strategies and ensure product is displayed correctly. They also provide product knowledge to store associates. MEAs work individually with moderate supervision but must be capable of executing directives from Merchandising Execution Managers MEMs, maintaining strong relationships with Store personnel, assisting customers, and working as a team. MEAs service a multi-store territory which will require daily travel to different store locations.
Read more: http://jobssearchengine.net/Discussion/Marketing-Sales/Question-What-does-a-merchandise-execution-associate-do-105585.html#ixzz2Mh3GUUlX
Jess M. Brallier-an award-winning book publisher, best-selling author, and web publisher-is currently Publisher and General Manager of Family Education Network (a Pearson company), a leading online publisher for:
Parents www.FamilyEducation.com
Teachers www.TeacherVision.com
Reference readers www.Infoplease.com
Kids/Students www.Funbrain.com www.FactMonster.com www.Poptropica.com. During his diverse twenty-five-year book-publishing career, Brallier has held various positions at Little Brown, Harcourt Brace Jovanovich, Addison Wesley, and Penguin. He has worked with such talents as Bailey White, William Shirer, Ansel Adams, Tracy Kidder, William Least Heat Moon, Berkley Breathed, William Manchester, Norman Mailer, Jeff Kinney, and T. Berry Brazelton. Brallier founded the children's publishing imprint, Planet Dexter (Penguin), which published best-selling books and secured scores of book club, electronic, foreign, TV/video, exhibit, serial, and merchandising licenses. Its content was praised by kids, parents, and teachers and recognized with numerous awards from the American Library Association, Learning Magazine, and Parents' Choice. Of the more than thirty published books that Brallier authored, half are adult titles and half children's books. He often speaks and lectures on the subject of publishing and writing, has served on the faculty of both The Howard University Book Publishing Institute and Emerson College; and as an evaluator for The Radcliffe (Columbia) Publishing Course. Brallier won book publishing's LMP Individual Achievement Award in recognition of his marketing campaign for three New York Times best sellers: Reinventing Government by David Osborne, Mama Makes Up Her Mindby Bailey White, and Touchpointsby T. Berry Brazelton. He has served on P.E.N. panels, lectured at Harvard, and spoken at numerous writers conferences. Brallier is a graduate of the University of Pittsburgh (B.A.) and Boston University (M.S.). He resides in Massachusetts, with his wife and children. Books by Jess Brallier:
Presidential Wit and Wisdom: Maxims, Mottoes, Sound Bites, Speeches, Asides, and) Memorable Quotes from America's Presidents with Sally Chabert (Viking)
Celebrate America with Sally Chabert (Penguin Group)
Y2Kids: Your Guide to the Millennium (Penguin Group)
Who Was Albert Einstein? (Penguin Young Readers Group)
Going, Going, Gone: This Book Disappears! (Penguin Group)
FROM: http://www.ourwhitehouse.org/contribbios/brailler.html
What is a planogram in merchandising?
If you walk into your local Tesco or Wal-Mart store to shop for "Detergents" or "Breakfast Cereals" or other similar products, you will see dozens or even hundreds of such products on the shelves. Which product is placed where and how many units of the same product are placed next to each other is in most cases not a coincidence: a lot of analysis and planning goes into designing what products to place where and how. The "output" of these planning are the so-called "planograms", which are essentially pictures showing which product should go where on the shelves. Specialists working at the head office of retailers use special planogram software (such as Quant, Apollo, Spaceman, Planograms for Mac or Intactix) to create these planograms and send them to the stores where they serve as "instructions" for the people who are responsible for filling the shelves.
Merchandising problems faced by garment manufacturers?
Garment manufacturers often face merchandising problems such as overproduction, which leads to excess inventory and markdowns, negatively impacting profit margins. Additionally, misalignment between market trends and production schedules can result in unsold items that do not meet consumer demand. Inefficient supply chain management and poor forecasting can further complicate inventory control, leading to delays and increased costs. Finally, maintaining consistent quality while managing diverse product lines can pose significant challenges in meeting customer expectations.
There are 2 types of merchandisers in export houses - buyer and production merchandisers. Buyer merchandisers act as a link between the buyer and the manufacturer. They have the responsibility of ensuring that the product is developed as per the requirements of the buyer so in between they have the resposibilty of sourcing, sampling and communication with the buyer. The production merchants on the other hand are a link between production and buyer merchants. They have the responsibility of ensuring that the production goes as per the schedule and as per the requirements.
