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FASHION DESIGN & TECHNOLOGY - CITS

LESSON 32 : Introduction to Merchandising

Objectives

At the end of this lesson you shall be able to
• about importance of Merchandising
• merchandise Management and Key Roles of a Merchandiser
• types of Buyers.

Introduction

Merchandising management is a business process where retailers examine consumers’ preferences to determine
what products to stock in the store and how to arrange the products. When retailers manage a business’s
merchandise effectively, they can attract customers and increase sales. With merchandise management, you can
also determine the best price to fix for products to maximize profits. It can help retail stores discover marketing
strategies to meet their sales targets.
Merchandising presents the products in retail environment to influence the customer’s buying decision
Importance of Merchandising
Merchandising, or how products are displayed in the store, plays a critical role in the overall success of a business.
After all, when customers come into your store, you want them to buy. Effective merchandising is a tool that gets
them closer to that purchase decision. But having effective merchandising demands discipline and planning. It’s
hard work. You must pay attention to detail on a daily basis. You also must realize that many of your competitors
have effective merchandising. That means your customers are used to seeing it, so they expect it from you, too.
Merchandising makes several important contributions to your store. It increases sales by making a store appealing
to your customers. It improves profitability by generating more margin dollars. It controls costs by improving the
productivity of the sales floor as well as each employee.

Types of Merchandising
Export merchandising

• Export merchandising is a method of offering retail goods for sale in a foreign consumer market.
• Many large companies across the country maintain entire divisions devoted to finding ways to better enter
foreign retail markets though export merchandising to increase profit and sustain growth.
• The globalization of business due to an increase in digital technology fueled by the internet has made expand
merchandising a necessity for companies looking to expand and keep up with competitors.

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