Module V 2

Amity School of Fashion

Overview

  • Course: B.Des FD, Semester-III

  • Subject: Fashion Marketing and Merchandising

  • Instructor: Ms. Ruchika

Module 5: Merchandising

Definition of Merchandise

  • Merchandise: Goods bought and sold for profit.

    • Originates from the French word ‘merchant’.

    • Defined as goods and commodities sold at the retail level (Business Dictionary).

Types of Merchandise

1. Staple Merchandise

  • Regular products or basic items consistently carried by retailers.

    • Examples:

      • Grocery Store: Milk, Bread.

      • Book Store: Writing book, Pencil, Pen.

      • Automotive: Oil, Lamp.

2. Assortment Merchandise

  • Variety of products necessary to provide customers with a selection.

    • Examples:

      • Apparel Store: Shirts in various colors.

      • Bicycle Store: Different types of bikes (Kids, BMX, etc.).

      • Shoes Store: Sports, Formal, Canvas shoes.

3. Fashion Merchandise

  • Products with cyclical sales influenced by changing tastes and lifestyles.

4. Seasonal Merchandise

  • Products that sell well during specific non-consecutive seasons.

5. Fads Merchandise

  • Products generated by trends (technology, artists, movies) leading to high sales for a short period.

    • It is difficult to forecast sales and popularity durations for these products.

The 4 R's of Merchandising

  1. The Right Product

  2. The Right Time

  3. The Right Price

  4. The Right Place

  5. The Right Quantity (Additional)

The 5 Rights in Merchandising

  • Right ITEM

  • Right TIME

  • Right PLACE

  • Right QUANTITY

  • Right PRICE

Detailed Explanation of the 5 Rights

1. The Right Product

  • Key for supply chain success. Collaboration and coordination among departments are crucial.

  • Extensive market research needed to ensure product demand before launch.

2. The Right Time

  • Fashion items need early introduction for gauging buyer interest and facilitating orders.

  • Products often showcased ahead of peak demand, especially seasonal items.

3. The Right Price

  • Correct pricing is vital for profitability. Strategies include cost-plus pricing (considering costs and adding profit margins).

  • Must be flexible to adjust according to market demand.

4. The Right Place

  • Effective display opportunities are necessary: store displays, online presence, product placements in media.

    • Example: Product placement in movies (e.g., “I Robot” showcase).

5. The Right Quantity

  • Balance between supply and demand is critical. Storage space, manufacturing speed, and supplier availability affect stock levels.

  • Demand influenced by consumer appeal and price; developing strategies using linear equations can optimize pricing.