MERCHANDISE MANAGEMENT

OF
LATEST FADS IN INDIA
 Merchandising
• Merchandising- the planning involved in
marketing the right
merchandise at the right place at the right
time in the right quantities and at the right
price´

• ‡Merchandise management -the analysis,

planning, acquisition, handling and control of the
merchandise investments of a retail operation.
 Types of Merchandise
• Staple merchandise
• Assortment merchandise
• Fashion merchandise
• Seasonal merchandise
• Fad merchandise
FADS MERCHANDISE:
• Products which are generated by trend of technology, artist, movie,icon, event,
etc..
• Fad merchandise generates very high sales for a short time period. Often, toys and
games, certain clothing accessories, or certain music.
 Basic functions of fad merchandising

Planning
Buying
Selling
The fundamental consideration of fad merchandising is to stock what consumers
are likely to accept.
Right with respect to styles,colours,price,place,time,etc.
 Steps in fad merchandising
1. Planning
fads is subject to change and the planning must have flexibility
planning based on how much we expect to sell and how much
inventory it will take to secure that selling
planning the assotment
Customer orientation : knowing what people want , when they want
and how much they would pay for it
Preparation of six months buying plans which requred the
knowledge of fads and market conditions and economic factors
2.Buying :Buying is done by classification

Price lines
Sizes
Quantities
Buying is dependent on consumer demand estimated by study of customer wants
and needs.
The successful buyer knows what customer wants , when they want it and how
Much they want to pay for the goods
 Buying involves the following functions

1. Choosing the resource

2. Selecting the merchandise
3. Securing the best terms
4. Actual placing the orders
the buyer is responsible for not only what to buy and when to buy , but also
Where to buy and how much to spend
Buying responsibilities includes :
Establishing and maintaining effective buying relationship with vendors.
Adequately stocking the depatments pricelines and securing the best possible mark up
on all purchases.
Supervising the physical inventory or stock counts to verify the accuracy of the stock records
 Selling
Buying is dependent on customer demand .
Demand determined best by the actual cutomer response to the goods
Made available by the buying function.so buying function cannot exist without
Involvement in selling function . This function includes communication and promotional
activity
 FAD merchandising

Factors that make fad merchandising unique

1. Obsolescence factors (no longer in use )
2. Higher markdown
3. Faster turnover
4. Seasonal factors
5. Sales promotion
The product life cycle of fad products