FASHION MERCHANDISING- AN INTRODUCTION

WHAT IS FASHION?
-Key elements are- people /place/time and acceptance
Fashion is anything that is accepted by a substantial group of people, at a given time in a given
place
A substantial group of people is the one who have influence on others or who can gain recognition
from others. E.g. - yatch fashion of rich people
Mass fashion blue jeans 1960s students
-Time-associated with particular time/ period
Newold hat
Movie/acting/songs etc get dated
-Place- different people in different places have different levels of aspirations, taste, education, and
experience food/fashion/automobile.
-Acceptance-styles offered by designers are not fashion unless they are accepted / purchased by
people
WHAT IS FASHION MERCHANDISING?
Ability to respond to what/why and when a style becomes a fashion and to determine its suitability for
the particular operation and for what length of time
WHAT IS OBSOLESCENCE FACTOR?
-Market today needs a constant flow of new ideas to produce new styles that can age the products
in hand of the consumers
-people discard serviceable goods in favor of newer ones
REJECTION OF PRESENT OWNERSHIP IN FAVOR OF SOMETHING NEWER EVEN THOUGH
OLDER ONE HAS UTILITY VALUE
Change can be in form of shape/ silhouette/ color/ size/ price and taste
Or new advertising /slogan/catchy and attractive
CHANGE IS THE ONLY THING CONSTANT IN FASHION
WHY DO PEOPLE BUY CLOTHES?
Why did they start wearing clothes?
Protection from climate
Express individuality
Show superiority
Seek betterment I.e. to enhance their looks/ appeal by wearing some particular clothes
Show superiority to animals by wearing second skin
Social position
Authority
Wealth

Dignity
Conformity to peer groups
Rebellion
Religious attitude
Aesthetic values

FASHION IS EVOLUTIONARY
Innovators: group of people who by reason of sophistication initiate new trends / direction of fashion
Early Acceptors: then it moves to greater cross section
Laggards: never follow fashion when its in trend
Trickle down theory
CLASSIFICATION OF FASHION
CLASSIC
Long lasting fashion
E.g. cardigan / little black dress/ blue blazer
FAD
Short term-creates excitement then frizzes off
1950s chemise /sack look.
Should not be basis for the main idea
STYLE- IT IS SPECIFIC CHARACTERISTIC OF FASHION
Ex- pleated skirt may be a fashion-but its style may be knife pleats /box pleats etc
INFLUENCES ON FASHION
Economic:
e.g. recession
Social activities: film festivals, red carpet events
Cultural:
paintings/sculptures/folk dancing
Technological:
different types of finishes/weaving/blends/exposure to TV/internet
Political:
restriction during war...World war two...
CONSUMER IS THE KING
Buyers research for 6months -1 yr, understand what consumer wants and then work on their
collection.
MARKETING
-it is the umbrella under which all the business takes place
Merchandising activities
-product planning and development
-standardization and grading
-buying and assembling
Selling
Physical activities
-distribution
-storage
-transportation
Supporting activities
-financing
-risk bearing (market)
-analyzing, obtaining market info

KEY ACTIVITIES / FUNCTIONS OF MERCHANDISING:

PLANNING / BUYING/ SELLING
IT IS THAT PART OF MARKETING INVOLVED IN PROMOTING SALES OF MERCHANDISE BY
THE MOST EFECTIVE METHOD OF SELECTING/ PRICING/DISPLAYING/ADVERTISING
PROMOTION OF PRODUCTS BY MAKING THEM ATTRACTIVE AND EASIER TO BUY
It is the planning involved in marketing the right merchandise at the right place/ right time in right
quantities and at the right price
RETAILING:
Channel of distribution between producer and ultimate consumer
They buy at wholesale prices and sell at retail prices
So merchandising is the main activity of retailing as it involves planning /buying and selling
WHY IS MERCHANDISING NEEDED?
In retailing, the management decisions are very complex. They depend on the wants of the
consumers
their needs which are influenced are fashion, which in turn is influenced by culture
Culture is defined from time to time so fashion changes and thus needs to costumer change
This is a vicious cycle and someone needs to manage the process well.
Market segmentation needs to be done
-to identify the market that you want to cater to
-to develop communication and services to sell to them
The store name is sometimes identified with the kind of clientele it caters to.
Merchandising results are measurable as
-Sales no of units / comparison with last year /same segment/check with competitors
-Inventory stock management
-Profits markups...
So the efficiency can be clearly established
Steps of effective merchandising
1. PLANNING
2. BUYING
3. SELLING
1/ PLANNING:
Should be flexible
Change is the key
It is based on estimate /forecast
It should have adjustment provisions
Based on:
-how much you want to sell &
-how much inventory will secure the selling
Decisions are based on experience past results; anticipatory factors; new policies
Use tools like time management and monitoring

2/ BUYING procurement
Done by color/ classification / price line / quantity /size the budget is key factor
3/ SELLING:
-sales /promotion
Done by
Communication: promotes image and accelerates sales
Promotional activities ads displays exhibitions.
Fashion selling is different as it is selling of EMOTION
Dynamic strong communication is most effective
CRUX- THAT WHICH IS PURCHASED, MUST BE SOLD
KEY- IS PURCHASE OF RIGHT MERCHANDISE
There should be limited stocks and merchandise should be keeping In mind the taste of key segment
and price level.
UNIQUENESS OF FASHION MERCHANDISING
Obsolescence factor:
Emotional pull important...
Pricing:
Is initially for profit, then product goes on floor and according to
acceptance the selling price may change.
Judgment:
Has to be of good timing
Higher markdowns:
Work on people who understand the original price and value
Faster turnover:
Keep changing styles fast to offer new product
Seasonal factors:
Spring/summer/fall /holiday/winter
Sales Promotions:
Emotions for quick gain
WHERE DOES MERCHANDISING TAKE PLACE?
-wholesale level, retail level:
both invest capital
Wholesalers are producers of the inventory
Retailers are purchasers of the inventory
Publications level:
They do not produce product but indirectly /direct influence the promotion and movement of fashion
merchandise by planning /selling and buying functions
-planning of important themes of the season
-buying specific merchandise
-selling the communication of ideas
Stock has to be well rounded collection- a good range
EFFECTIVE MERCHANDISING = MAXIMISING PROFITS AND MINIMISING INVESTMENTS
MERCHANDISING ACCEPTANCE CURVE
PIONEERING:
initial stage of advantage are- ads, appealing to fashion leaders,
introducing and creating interest
ACCEPTANCE:
ads- reducing price, promotions
DECLINE:
special promotion and discounts
ABANDONMENT:
clearance/ mark downs