Key Factors of Garments Merchandising

By | September 3, 2015

What is Garments Merchandising or Retail Merchandising and Key Factors for It?Sangita Rawal

Sangita Rawal
Consultant and Merchandising Manager
Mumbai, India
Email: [email protected]



Garments Merchandising or Retail Merchandising is one of the renowned profession in the current time. But there’s so many who still don’t know the correct meaning of merchandising. Garments merchandising or retail merchandising contains some key factors which have discussed in this article.

Definition of Merchandising:

According to American Marketing Association Merchandising encompasses “Planning involved in marketing their right merchandise or service at the right place, at the right time, in the right quantities and at the right price.”

Let’s analyze this statement:

Right Merchandise:

Keeping in mind the parameters of the latest style, colour, appeal, size, length of the garment, fabric , accessories print, embroideries etc the merchandiser along with the design team and research and development team create the right merchandise as per the requirement of the buyer . In export the designs are generally given by the buyer but at times exporters have their own design and research and development team. When e a sample range is created it is presented to the buyer. The Buyer then selects out of that range and price is negotiated and order is confirmed. The buyer might add or delete certain elements according to their taste.

Right Service:

At the point of sale [buyers stores] the ambiance, lighting, space utilization and the product knowledge and attitude of the staff should be consumer friendly. Since the Garment merchandiser is a vital link between the company and the buyer. The garment merchandiser maintains good relation with the buyer by keeping him abreast of the order right from order confirmation to shipment. A part of the garment merchandiser’s job is also to convince the buyer to accept certain variances that feasible to his company.

Right Place:

The aspect is looked after by the buyer’s merchandiser in his country while retailing his goods is that the merchandise should be available and sold where there is market for those types of merchandise. The point of sale [stores] should also be close to the consumer. There are styles that sell well in certain locations and do not sell in certain location in such cases those styles must be made available in those locations where there is sale. The buyer’s merchandiser has to watch alertly and shift the merchandise to the location where it sells. The exporters Garment merchandiser sees to it that all the elements like pattern, accessories, fabric with all the details pertaining to the order reach the factory where the order is executed. The factory should have storage space to store the order till it is checked and shipped. Warehousing facilities should be made available if needed.

Right Time:

The merchandising planning of the development, sourcing, purchasing, manufacturing and distribution products should be such that the merchandise is available at the buyers store in time i.e. when the consumer wants to buy it. The merchandising planning should be such that the products are available as per the season e.g. winter wear should be ready to be marketed in winter, summer wear should be ready in summer.

Right Quantities:

The product should available in the quantities required by the consumer i.e. the quantity per style and the size ratio should be as per the requirement of the customer in the buyers country. Overstocking means increase of inventory, Under stocking means loss of a sale both not acceptable The buyer pre-sell goods floating the sales samples in the market, on the basis of this sale data received, buyers merchandiser comes to a conclusion of what merchandise quantity is already pre-sold. The buyer sale analysis data based the sale of similar styles in the past, presold and planned expected sale helps the buyer’s merchandiser to conclude the quantities and ratio of different merchandise for sale .

Right Price:

The price of merchandise is what value the consumer perceives he will derive from a merchandise. Competitors price for similar merchandise is also be taken in to account by the buyer while fixing the price of merchandise. The exporter and the buyer will have a mark up and mark down price. The mark up price consists of cost price + overhead and the highest percentage of profit +contingency. The mark down is the lowest percentage of profit he can go to cover his cost price + overheads +profits and contingency. Contingency is a percentage added to the cost in case of any emergency e.g. increase of price of the fabric or increase in the process cost etc.

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5 thoughts on “Key Factors of Garments Merchandising

  1. Harendra Puranik

    I had been fabric retail marketing but thnx for the letting know the facts.
    Puranik V Harendra.


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