fashion merchandising final
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149 terms
Terms | Definitions |
|---|---|
 Retail Merchandising | The Planning ,Development and Presentation of a product line created for a Target Customer. Includes all of the activities associated with Buying and Selling merchandise. |
| Vertical Integration | Practice where a single entity controls the entire process of a product, from the raw materials to distribution |
| Buyer | buys and prices merchandise for resale. |
| Planner | projects sales and stocks based on past sales and trends. |
| Distributor | allocates goods to stores, based on plan. |
| Product Developer | specifies products to be developed internally. |
| Designer | creates the design works with the patternmaker and product development team to create a line of merchandise . |
| Sales Executive | shows and sells the line of merchandise to the Retail Buyers |
| Merchandiser | Liaison between the designer and the sales team. |
| Departments | groups of similar merchandising responsibilities, e.g., Diamond buyer. |
| Divisions | made up of related departments, e.g. Fine Jewelry division. A division is headed by a Divisional Merchandise Manager (DMM). |
| Family of Business | made up of Multiple Divisions reporting to a corporate vice president. (GMM) e.g. Jewelry FOB |
| Department manager | responsible for merchandising and operations of a department; reports to a store manager. |
| Store manager/general manager | responsible for the entire store. |
| District manager | responsible for a group of stores in a geographical area, ex., Midwest division. |
| Regional manager | supervises a group of District Managers and reports to a Vice-President. |
| store-level merchandising | Merchandise is shown according to standards; Selling Floors are merchandised neatly and in a manner that is easy for the customer to understand and shop. Inventory levels and assortments meet consumer and sales objectives |
| Visual merchandising | plans store décor, display, fixtures and signs. Develops planograms to guide stores. |
| Fashion coordinator/ director | researches trends, colors and styles, and informs buyers |
| Fashion | A widely popular expression (in apparel, homes, art, music and so on). |
| Style | an item's characteristics: crew or "v" neck sweater; it may be in or out of fashion. |
| Trend | the movement of fashion. Defined by: Acceptance, Direction, Duration, Relationship |
| Fashion Life Cycle | the evolution, culmination, and decline of fashion acceptance. (introduction, growth, peak, decline) |
| Introduction | Fashion leaders pay high prices for new looks. |
| Growth | Many knockoffs; looks adopted by fashion followers. |
| Peak | The look reaches its sales potential, available many places. |
| Decline | Sales diminish; retailers lower prices, replace the look for a newer trend. |
| High fashion | looks are created by designers and exclusive stores, bought by fashion leaders during the introduction and growth stages. The goods are expensive but exclusivity is what fashion leaders crave. |
| Mass fashion | looks made by manufacturers and retailers at many prices, bought by fashion followers (most people interested in fashion) and fashion laggards want good value;they buy late. |
| classic | a fashion look that has been around longer than expected. Retailers sell this look season after season. |
| Fad | has a short life cycle and Savvy retailers capitalize these looks. |
| Trickle down | Fashions move from higher social levels to lower. |
| Trickle across | (horizontal, diffusion). Fashion looks are accepted at all levels of retailers. (similar at Saks and Target.) |
| Trickle up | (upward flow). Fashions originate on the street and move up |
| Influences on fashion | Technology, Economic Conditions, Social Conditions, Celebrities, Hollywood, Globalization |
| Marketing Channel | flow of goods from point of production to point of consumption |
| producer | converts materials and/or component parts into products |
| Wholesaler | facilitates the distribution process by buying large quantities of goods from producers and reselling smaller quantities to other channel members, a process called breaking bulk. |
| retailer | sells products and/or services to final consumers |
| Table of organization | a diagram that depicts a company's corporate structure |
| Basic goods | functional goods that change infrequently and are generally considered necessities. |
| Fashion goods | goods not considered necessities and change frequently |
| Branded Merchandise | Identified by name and/or symbol associated with certain product characteristics. Types: Designer or signature (Donna Karan), National (Northface), Power: big market share (Nike) |
| Brand Positioning | By Price, Product Attributes, End Use, Target Customer, Distribution Channels. (Designer, Bridge, Better, Moderate, Budget) |
| brand manufacturers | help retailers sell their goods: Coop advertising, Sales training, Promotion aids, GWP, Fixtures and signs, Markdown money |
| Brand extension | adding related products to an existing line of products. |
| Licensing | when the owner of a famous name agrees to have goods produced and marketed using that name. In return, the owner of the name receives payment (royalty) from the producer-marketer. |
| Private labels | are developed by and only available through the stores offering them. |
| Exclusive lines | brand name lines created by the producerof a brand for exclusive distribution by a specific retailer. |
| Manufacturer | may make goods themselves, or they may just design or assemble goods, contracting out other tasks. |
| Markets | a place where retailers and suppliers transact business. Suppliers maintain showrooms enabling retailers to see merchandise lines. |
| Trade shows (also "markets") | are temporary exhibits by suppliers in a designated center |
| Resident Buying Offices | marketing and research consulting firms that serve member or client stores. Provide: Market information, Merchandising assists and more |
| Adviser | Market specialists study resources and report on new trends and hot items in a buying office. |
| Salaried or fee office | most common buying office, owned and operated independently in which stores pay a fee, (doneger group) |
| Syndicated office | Conglomerate owns and operates, (Macys Merchandising). |
| Private office | One store owns and operates, (Neiman Marcus). |
| Designer lines | exclusive creations of designer houses |
| Bridge Lines | lower-priced lines with limited distribution through prestigious stores |
| Better Lines and Moderate lines | broadly distributed, appearing at less prestigious department stores |
| Mass Market Lines (budget lines) | carried in value-oriented stores, such as full-time discounters. |
| Direct Sales Force | responsible for meeting with prospective buyers, explaining the features of the organization's product line, and processing orders. (employed by manufacturers. |
| Manufacturer sales representative | an independent sales agent whose income is based on commissions earned by selling manufacturers' products within a defined geographic territory. |
| Wholesaler | buy manufacturers' products and then resell them |
| Retail prices | the chief source of sales revenue and profits for a retail organization. Price times units sold = total sales revenue. |
| Markup % = | [(Retail price - cost price) / Retail price] (x 100 )= |
| Retail price = | (Cost / Cost %) = ? |
| Cost $ = | (Retail x cost %) = ? |
| Initial Markup | the first markup or original price. |
| Cumulative Markup | The sum of all goods at cost and retail divided by the total retail. |
| Markdown % = | ( MD$ / original price) x 100. |
| Markdown $ = | (retail x markdown %) = ? |
| Cost % = | (100 - Markup%) = ? |
| Types of Markdowns | Damages, Employee Discounts Promotional Markdowns (temporary), Clearance Markdowns (permanent) |
| Maintained markup $ = | the difference between the merchandise cost and the actual selling price. (minus the markdowns) Formula: (initial mu$ - net md$) = ? |
| Promotional Pricing | A discounted price offered in hopes of: Generating traffic, Stimulating sales in slow times, Competing with other retailers, Establishing a value-oriented image |
| Classification | a grouping of related items within a given category of merchandise. |
| Collection business | bought by designer or vendor and may be merchandised in multiple classifications. May include tops , bottoms,coats,denim,sweaters and accessories. |
| Key item | A style of merchandise within a classification or collection that is identified to be a big volume producer. |
| forecasting | the attempt to predicts trends or outcomes |
| planning | establishing an organization's goals or objectives and strategies to achieve them |
| long-range plan | covers a 3-5 year period or longer. Includes strategies for expansion, market position, and major capital expidentures |
| short-term plan | covers periods shorter than a year. Includes schedules and budgets. |
| top-down plan | originates at the upper levels of an organization and affects planning of lower levels. |
| bottom-up plan | developed at lower levels of the organization as a building block of an organization-wide plan |
| 4-5-4 calendar | used by retailers in which months are determined by weeks not days. 2 six month seasons: fall= Aug -jan, spring feb-July |
| BOM= | plan monthly sales + (average inventory - average monthly sales) |
| turnover= | sales / average inventory |
| average monthly sales= | annual sales / 12 |
| weeks of supply= | 52 / turnover |
| plan inventory= | plan sales * weeks of supply |
| open to buy | the amount of merchandisers that a buyer needs to order to support plan sales for period |
| open to buy= | plan - on order |
| plan purchases= | plan sales for month + plan markdowns + plan EOM - plan BOM |
| consumer publication | magazines and newspapers available to the public |
| trade publications | editorials targeted to members of a specific industry segment. |
| trade associations | trade shows representing the interests of a particular industry segment |
| forecasting services | study history and prevailing socioeconomic and market conditions to predict trends in advance of a selling season |
| reporting service | surveys and analyzes specific industry segments, reporting their findings to service subscribers |
| purchase order | a contractual sales agreement between a retailer and a vendor in which items of merchandise, prices, delivery dates, and payment terms are specified. |
| cash discounts | a reduction in the amount due on an invoice when payment is made on or before a specified date. |
| proximo | specifies the day of the following month by which the cash discount must taken. |
| anticipation | an additional discount for paying an invoice prior to a cash discount date |
| common carrier | establishes uniform resets and schedules for all shippers |
| contract carrier | negotiates individual agreements with shippers or small groups of shippers |
| private carrier | organizations that ship goods with their own transportation equipment |
| distribution center | performs critical inventory management functions by expediting processing to ensure the timely arrival of goods in stores and by working closely with buyers to resolve issues. |
| vendor partnerships | collaborations between retailers and their vendors |
| floor ready merchandise | a negotiated agreement with vendor in which they agree to package, case, fold, hang, and/or ticket merchandise so that it is ready for the selling floor |
| radio frequency identification (RFID) | tagging system which indicates vendor, style, color, etc. And tracks items |
| electronic data interchange (edi) | a partnership between a retailer and a vendor that involves a backward flow of customer purchase information through the distribution pipeline beginning at the retailer's point of sale |
| vendor matrix | list of preferred vendors selected at conglomerate level |
| floor fixtures | free-standing units for presenting goods on the selling |
| top-of-counter-fixtures | units placed on top of counter-height fixtures |
| display fixtures | used to show goods not available for customer selection |
| storage fixtures | used to store fill-in or backroom inventory |
| vendor fixtures | supplied by the vendor to distinguish its brands from the competition, and to enhance consistent presentation of their product in all stores |
| basic stock method | States that a BOM should equal the plan sales for the month plus a basic inventory. |
| The Percentage Variation Method | States that a BOM should be a percentage of average inventory. BOM = average inventory x ½ (1 + plan sales for the month / average monthly sales) |
| The Stock-to-Sales Ratio Method | Based on a desired ratio of stock to sales for a month; s:s ratio history is needed. BOM = planned sales x desired stock-to-sales ratio. |
| The Periodic Replenishment of Staple Merchandise | This formula is used for the replenishment of high volume goods such as Hershey Bars and other supermarket staples. M = (RP + DP)S + R. M = maximum inventory needed. RP = reorder period; DP = delivery time; LT = lead time (RP + DP). S = rate of sale; R = reserve stock. Formula: Reserve stock = 2.3 (LT)S. |
| assortment planning | Planned purchases must be translated into merchandise assortments, including: Price: budget, moderate, better Brand: MAC, Elizabeth Arden, Lancome Size: S-XL, distribution Color: basic, fashion, neutral Fabrication: silk, linen, blend |
| Seasonal Discounts | a reduction in cost for orders placed in advance of the normal ordering period.The retailer pays less but has made a long-term financial commitment. |
| dating | the period allowed for the payment of the invoice |
| DOI | the date an invoice was issued. |
| ROG (receipt of goods) | delays the dating terms until the goods are received by the retailer. |
| Consignment | goods that are not paid for until they sell |
| FOB (free on board) | is the point to which the supplier pays the transportation charge and where the title of the goods passes from supplier to retailer. |
| Vendor-sponsored promotional support | Many larger vendors offer retailers promotional opportunities to help sell their products. These may include: Cooperative advertising Product demonstrations, samples and premiums (gift with purchase and purchase with purchase) Contests and sweepstakes, vendor reps Displays exhibits, signs, fixtures |
| Control | measuring actual performance against goals or standards, also includes taking action to change those goals if necessary. |
| industry standards | Are a form of external standards, often prepared by a trade association. |
| National Retail Federation (NRF) | publishes annual standards for department and specialty stores. |
| deviation | the difference between actual performance and a standard. |
| Qualitative controls | measure performance subjectively, with opinions. "The supply of knee-highs is low." |
| Quantitative controls | measure objectively, numerically. "We have two days' supply on hand." |
| turnover report | Shows how rapidly goods sell. |
| Stock to sales report | Includes sales and EOM penetrations and stock-to-sales ratio. Inventory and sales penetrations should balance. |
| inventory position and sales | Yields similar but more detailed information plus percentage comparisons to plan and last year. |
| vendor sales report | Permits comparing sales and sales penetration for last year and this year by month, season and year-to-date. |
| sales my category | Contains actual and planned sales and penetration for each classification. |
| style status report | Contains the number of units received and sold in the last weeks, average sales, and units OH and OO. |
| Prototype | a model store that combines décor. lighting,fixtures and signs to attract its target market. |
| store layout | draws customer through the store, maximizing their exposure to goods. It can increase the time and money customers spend. |
| Major (main) aisles | connect the store length. |
| Secondary aisles | narrower, connect with major aisles; often run through departmental selling areas. |
| adjacency | merchandise placed next to other merchandise for customer convenience. |
| Cross | merchandising is placing merchandise in more than one location in a store. |
| Closed-sell fixtures | require sales person assistance; more costly. |
| Open-sell fixtures | let customer try the goods; less costly. |
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