Fashion Marketing III
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Fashion Industry – levels of
merchandising
Retail organization merchandising
Buying agency merchandising
Export house merchandising
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What is merchansing?
In retail organization:
Specialized management function within the
fashion industry
Business that moves the world fashion from
designers showroom to retails sales floor and
into the hands of the customers
Internal planning that takes place within the
retail organization in order to ensure
adequate amount of merchandise are on hand
to be sold at prices that the consumers are
willing to pay to ensure a profitable operation
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Marketing vs Merchandising
Marketing function :
Focuses on defining company’s market and characteristics
pinpoints new opportunities for growth thru self analysis
ands market research and promotes company’s image and
products
Merchandising function
More specific concerning itself with the development,
execution and delivery of the product line with its close
ties with the market it serves
Merchandising is not only able to adjust to market
variation rapidly but is capable of actually anticipating
and helping to create market changes
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Merchandiser
Person who gets converted inspiration into
design, use technology to conceptualize and
address the planning, production ,
promotion and distribution of products in
the fashion industry to meet the consumer
needs and wants
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Merchandising involves 6 rights
Right merchandise
At right price
At right time
At right place
In right quantity
With right promotion
Also to right customer
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Right merchandise
Retailers must fill the shelves with the
merchandise that customer wants
Right place
Location of merchandise is the prime
importance since it decides the accessibility
Right time
Much merchandise is seasonal in nature and
must be on hand when it is most needed
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Right quantity
A profitable balance between the volume of
sales and amount inventory is the desired goal
Right price
Merchandiser should arrive a price that is high
enough to give the store profit and yet low
enough to meet the competition and customers
expectations
Right promotion
Right balance between the investment and the
appeal created for the customers
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The cardinal son of fashion merchandising is
TO BE OUT TREND
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Main principles and dynamics of fashion
The constant in fashion is change
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Changes in fashion are gradual and evolutionary rather
than revolutionary
Fashion is cyclical
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Customers make fashion
Acceptance level in fashion vary
Fashion depends on place and reflects
lifestyle
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Interpreting consumer DEMAND
Elements of consumer demand
Target market
Buying motivations
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Identifying Target Market
Demographic
MARKET
psychographi
Behavioral SEGMENTATIO c
N
Geographic
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Demographic segmentation
Mainly grouped on the
basis of
Population
Age
Income
Sex
Occupation
education
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Geographic Segmentation
Mainly grouped on the
basis of
Cities
States
Regions
Climate plays an
important role
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Psychographic Segmentation
Grouped on the basis of People having similar
the lifestyles can make up a
lifestyle target market group
Social activities
Interests
Leisure pursuits
Needs and wants
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Behavioral Segmentation
Grouped on the basis of Help in improving the
opinion on specific service/ product and
grouped or services make it different from
Rating of usage of others
products & services
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Determining why customers buy
Buying Motivations
Emotional
Rational Motivations
Motivations
•Durability • Imitation
•Dependability •Emulation
•Comfort •Prestige
•Economy of operation •Pride of appearance
•Price •Distinctiveness
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Fashion Purchases
Specific Selection Factors
Silhouette
Degree to which an item is considered moderate or extreme in form
of relation to the currently popular shape or form of such products
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Decoration or trim
Presence or absence of all types of ornamentation
Material Fabric
Quality of fabric
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Surface Interest
Texture, hand feel
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Color –
Actual hues used
Workmanship
Construction, stitching, finishing
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Size
Preciseness of fit
Sensory factors
Touch, taste, smell etc..
Ease and cost of care
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Brand
Identity of manufacturer or distributor of an item
Utility
Extent of usefulness and service
Appropriateness
Degree if suitability and sustainability
Price
Value place by individual customers
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Fashion Retail Organizations
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Organizational Structure & Responsibility
Organizational structure includes the clear
understanding of the authority & responsibility
for each job to be done
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Organizational system differs with the
difference in type of Merchandise, size in the
retail firm and target customer
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Various Fashion Retail Businesses
Three basic formats
The small single unit store
The departmental store
The chain store
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Other formats
Supermarket
Hypermarket/ superstore
Mall
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Major divisions and responsibilities
Retail outlet
Merchandisin Operation
g division Sales and division
Finance and
promotion control division
division
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Merchandising division
Buying , merchandising, planning, control, selling,
fashion communication
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Sales and promotion division
Advertising, visual communication, special events,
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publicity and public relations
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Finance and control division
Credit
Accounts payable
Inventory control
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Operation division
Maintenance of facilities
Stores
Merchandise protection
Personnel
Customers service
Receiving and marking
of merchandise
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Stock shortages
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The buying cycle
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