Introduction 02/02/2007 01:19:00

• Right product, right time, right place, right for that customer.
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• Price is right for your customer – you need to get a good deal.
• Get the goods at the right time, right goods for that season.
• Customers want things immediately so if you don’t have the right
timing you will lose customers.
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• Right place-right store. Make sure they aren’t short of stock –
merchandise planning.
• Merchandiser and buyer work closely together. Not glamorous. A lot of
travel though.
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• Problems? Quality, short delivery, trying to sort things out.
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• Can you live with uncertainty? No two days are the same.
• Hard to get a job – must be 100% focused.
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• Drapers record – weekly fashion magazine. Can buy it in a shop
opposite liberty or Franks bookshop at Marketplace. They do purely
fashion publications.
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• Fashion forecasting books.
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• Textbook tip: Fashion Buying & Merchandising Management by Tim
Jackson.
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• Must keep yourself up to date.
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Industry Structure 02/02/2007 01:19:00
• UK is dominated by large industries like Archadia and Next.
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• Independent Retailers
• Own and run own company
• For example: small boutique or small group of shops e.g. Browns,
Matches, Koh Samui.
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• Working for them:
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• Pro’s:
 Good place to start and gain experience because you often get thrown
in the deep end.
 Opportunity to experience different parts of the business e.g.
selling/marketing/buying/training.

Con’s:
 Doing so many different things often means that there is no time to
build expertise in one area.
 Unlikely to be able to pay you as much

Chainstores / High Street

Over 44% of market share
Vary in size
M&S – Variety chains, food, houshold & clothing.
Centrally bought – central buying office, control large part of business.
 Develop own products i.e. Private Label
May have own design teams / freelance designers
Have strict quality control procedures – thick manuals!
Garment technologists work with buyer
A lot of poaching in this industry (headhunting)

Pro’s:
 Get opportunity to specialise in one area – which makes you desirable
in the industry.
 More structured
 Good training – there is more financial backing

Con’s:
 Can be too regimented
 Miss seing shop floor – miss action that is happening so miss sure that
you do not loose sight of your target customers
 Extremely profit-orientated – if you don’t make money then you are
out the door.

Department Stores
History of shopping – started vibrant then became dull & boring, now
going up again.
Branded & Private labels
Good training schemes although not easy to get on
John Lewis, Debenhams, Harrods, Harvey Nics, Selfridges
Centrally bought-own design team or freelancers
Well paid usually

Mail Order & Internet

Next’s mailorder is growing
Low quality has become higher
Convenience factor
Boden Cotton Traders, Toast, ASOS

Value Retailers
Primark, New Look
High Volumes – low prices
Lots of importing
Centrally bought
Some have own design team or designers attached to their suppliers
Are Expanding
Primark are in top 5 retailers

Supermarkets
Tesco, Sainsbury’s, ASDA - £1.75 billion. Turnovers are huge!
Market Research 02/02/2007 01:19:00
The purpose of market research is to reduce risk in decision making.
Market research will not make the decisions but it will provide the best
possible chance of the correct action being taken.

Major Areas of Market Research

 State of the market – gaps, opportunities
 Competition – Who are they? Performance, marketing mix, future
plans
 Customers – target group
 Needs / wants of customers

Types of research
 Primary / field – unique research being carried out to a specific brief.
Can give competitive advantage. Expensive and time consuming.
• Interviews – One to one in store or in mall
• Questionnaires
• Discussion / focus groups
• Observation – in-store observing people, their clothes and
behaviour
• Retail audits – Go to your store. What do staff and customers
think? Also competitive stores.

• Secondary / desk – uses information that is already available.

• Company reports
• Marketing reports e.g. Mintel (specialise in retail), Verdict
(specially for publications), Keynote
• Government statistics – population profiles, social changes,
economic issues.
• Specialist journals / publications
• Embassys can be useful

Secondary information could be bias, competitors read this too,

historical.
Key Success Factors 02/02/2007 01:19:00
• 1. Differentiation
• The retailer aims to be different / better than the competition.
Differentiation can include any part of the marketing mix.
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• Product
• Innovative design e.g. Alexander McQueen, Galliano
• Designer Collections at Debenhams
• Quality e.g. Jill Sander
• Promotional Activity
• Advertising e.g. French Connection (white space), Benetton. (For
example; latest celebrity, support various charities to publish
brands or themes / theatre at beginning of season.)
• Service e.g. Nordstrom
• Price / value
• Store Design
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• Differentiation is difficult to sustain due to “competitive swiping” but it
is also a good opportunity to build up customer loyalty.
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• 2. Quick response
• Ability to get the right goods on sale quickly. “Fast fashion” – driven by
younger market, prevalent by older market.
• Aim is to shorten the lead time from concept to delivery – the
importance of responding to and anticipating trends, of planning and of
building an effective / flexible supply chain. (Quick response to both
new products and repeat orders.)
• Quick response stores include Zara (part of inditext group, have fabric
– therefore quick response), New Look and Topshop.
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• 3. Cost control
• Good cost control has a positive impact on profit levels.
• Cost of goods, importance of effective supply base, product
knowledge, excellent negotiating skills.
• Cost of running business – budgets, staffing, travel etc.
Merchandise planning, stock management. Tight stock control
and as many sales for full price.
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• All of the above can give a company competitive advantage.
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• Extra notes:

• Segmentation
• Identify 1 segment – serve well and profitably.
Segment must be large enough to support profitable sales
Smaller segments can be useful for smaller retailers
Must be able to access segment – is it worthwhile if there is too much
competition?
Must be able to identify customers and chart their behaviour
Target Customers 02/02/2007 01:19:00
• WHO
Demographic
1. Always start with age (although there is variation within age groups)
2. Life stage – spending behaviour & needs change in different life
stages.
• Teenagers – clothing, music, candy.
• Single people w/ career & partner= Dinky’s (Double income – no
kids) They have a double income but no different clothing needs.
• Young Family
• Empty Nesters
3. Socio Economics – classified by letters
• A = Professionals & Senior Mgmt
• B = Intermediate, Middle Mgmt
• C1 = Clerical, Supervisory, Students, Junior Mgmt
• C2 = Skilled Manual Workers (earn a lot of money!)
• D = unskilled workers
• E = Unemployed, State Pensioners, Casual Workers
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• Helps to show spending power
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• C group spend more on children’s clothing and toys than other groups
(Harrods main customers!)
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• Psychographics – very interesting.
Customers lifestyles, attitudes & social activities.
Trends e.g. cocooning
What is important to them? Environmentally & Ethically aware?
What magazines do they read?

Who is your customer? They must be your best friend!

What are they buying?
What does the customer want?

WHAT
Business, casual, sportswear?
What does the customer want in terms of benefits and which is most
important to customers ? Design, quality, price?
Recent market research shows:
Fitting – different lengths and sizes, ready to wear with no alterations
needed.
Availability – must be in stock
Convenience – must be able to pay quickly

WHERE
City, suburbs or malls – social shopping or convenience? Consider the
impact of the retailers choice of location and visual merchandising.
Where do they shop besides in your place? Will tell you who your
competition is both direct & indirect.
 WHEN – timing, frequency.
Does the customer shop several times a week, monthly or once or
twice each season? Shopping behaviour will impact on the introduction
of new lines and promotional activity. For example; introducing new
lines at regular intervals is necessary to tempt regular customers.

• WHY – does the customer prefer certain brands / products?

• Functional – tangible elements of the product, warmth, coolness,
comfort, fit etc.
• Psychological – non tangible, image, aspirations, exclusivity, prestige,
status etc. The importance of these elements may vary depending on
the customer. Younger image conscious customers may be more
influenced by peer group acceptance than older customers.
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• HOW much – value and volume
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• ROGERS – FASHION ADOPTION THEORY
• Innovators Early Adopters Early Majority Late Majority
Laggards
• 2.5% 13.5% 34% 34% 16%
• (Fashion leaders)
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As a buyer you get your ideas from the early adopters.
You can also look at what the late majority are wearing and mark
down some of those items.
Knowing when to bring in new merchandise and when to mark it down.
We want to satisfy our customer better than the competition.

POSITIONING GRIDS
What is important to our customer? Location, range, quality, price?
Grids are done at the beginning of the season
Put yourself in there with your competition. Then ask customers the
same questions and see if your view of yourself if the same as theirs.
Positioning drift? Competitors have moved on and are doing a better
job than you.
Buying Policy 02/02/2007 01:19:00
How many lines to run per season?
Stock in depth or breadth?
Trend is new lines at regular intervals

Jan Feb Mar April May June

Coll1
Coll2
Coll3
Coll4
Coll5

CORE – Big money & high volume.

Smaller lines at regular intervals means that if you get 1 collection

wrong you haven’t blown it and it’s smaller investments.

• Stock in depth
• Limited no of styles but lots of different colours & sizes.
• Good for core or key fashion item
• Higher quantities – Enough to support sales but also larger risk
• Not enough choice
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• Stock in Breadth/Width
• Fewer quantities, more styles.
• Can quickly sell out of styles
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Example of an organisational structure 02/02/2007
01:19:00

Large Company

Buying &
Merchandising
Director

Quality Control Design Buying Merchandising

Garment Technologist

Buyer Planning Trading

Assistant Merchandise Trading

Buyer Planner Merchandiser

Admin Assistant Distribution

Assistant Merchandiser Assistant

Trainee Allocator
Merchandiser – Job Description 02/02/2007
01:19:00
Job Purpose
To develop and monitor range plans that will achieve sales, profit and
stock turn targets. To monitor and respond to trading performances –
sales, stock levels, mark downs and purchasing budgets in order to
maximise sales and profits whilst minimising costs.

1. Principal Tasks and Accountabilities

• Achievement of sales, profit and stockturn targets
• Development / detailed analysis of product ranges by branch, category
and line
• Preparation of merchandise plans and forecast
• Stock management. Plan and monitor intake phasing to achieve target
stock levels. Monitor and update sales / stock information. Identify
best and worst sellers, monitor mark downs.
• Working closely with the buying team, respond to trading performance
• Manage the supply chain. Develop critical paths, evaluate supplier
performance
• Preparation of Merchandise plans and other information required for
range presentations and reviews

2. Job Activities
• Analysis of trading performance – past performance, which products
sold, sales trends.
• In conjunction with the buyer, develop sales plans by range and
category
• In conjunction with the buyer develop range plans
• Plan intake phasing by range, category and line
• In conjunction with the buying team, monitor stock and sales
performance. Update sales, mark downs, open to buy, margin and
stock holding forecasts.
• Prepare period end reports, including margin reports
• Raise contracts, place production with suppliers
• Monitor supplier performance, valuate and correct under performance
to ensure all agreed criteria is adhered to
• Manage the allocation of merchandise to the stores. Control stock
levels and replenishments to branches in order to maximise availability
while minimising stock holdings and supply chain costs
• Provide a service to branches and distribution centre for stock and
supply chain related queries / information needs
• Establish good working relationships within buying and merchandising
department, branches, distribution centres, other divisions of the
company and external contacts
• Develop pro-active relationships with store personnel with regard to
sales and stock levels
• Liaise with area managers and carry out store visits
 02/02/2007 01:19:00
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Terminology 02/02/2007 01:19:00
Shopping Democracy – Shopping from cheap to expensive products

Marketing Mix – Product, Price, Place, Promotion, (Processing

customers)

Segment = customers with same needs, can be satisfied with the same
marketing mix.

Cocooning – Spending more time at homes

Direct competition – Like for likes e.g. Harrods, Selfridges, Harvey

Nicholls

Indirect competition – E.g. Harrods & H&M, Selfridges & Zara

• Stock in depth – Limited no of styles but lots of different colours &
sizes.
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Stock in Breadth/Width – Fewer quantities, more styles.

Sell through rate – No of items we sell at full price

Option – styles and colour

Sales – Value
No of units – Volume

Mark down – reduction in price

Stock turn rate – measures sales and stock levels, no of times your
average stock is bought

B.O.M – Beginning of Month stock

E.O.M – End of Month stock

Weeks cover – Used in planning & trading. Company decides how

many weeks stock they are going to keep. Example; 8 weeks cover
means must have enough stock for the coming 8 weeks of sale.

Profits

Margin

Mark up