A merchandising director sources products for a company’s product lines, requiring product knowledge, negotiation skills, and market assessment. They select appropriate products, choose a viable source, establish a price, and order based on market demand. They arrange for delivery and work with marketing and financial departments.
A merchandising director is a key player in the retail industry. He is responsible for sourcing products from manufacturers that will eventually be sold by his company as part of its product lines. The requirements for being a successful merchandising director often include product knowledge, negotiation skills and the ability to correctly assess current and future market demands.
The initial process for which the merchandising director is responsible involves selecting the most appropriate product line for sale. This can be done by attending trade shows to preview new or improved merchandise on the market, conducting surveys of current customers to determine needs, or evaluating current sales trends to identify items in the current product line with consistently strong results. This is a key step in the merchandising process, mainly because a poorly chosen product can lead to low sales and excess merchandise that cannot be moved while still making a profit.
Once potential products are identified, the merchandising director needs to select a viable source to source the product. The marketing director may choose to purchase merchandise directly from the manufacturer, offering a potential advantage when it comes to reducing costs and allowing for custom product adjustments. He may also work with a middleman who negotiates with manufacturers on behalf of multiple buyers, often offering a larger price discount due to the higher volumes being purchased at one time.
Once the merchandising director selects the best manufacturer or distributor, he must work directly with them to establish an appropriate price. Merchandise prices often vary greatly depending on order size and customization requests, if any. While initial orders tend to be larger than others to build up inventory, subsequent orders are often designed to replenish current inventory and often involve smaller quantities. A director of merchandising usually enters into a contract with the manufacturer or distributor that provides a set price for both the initial larger shipment and subsequent smaller orders.
The merchandising director is responsible for ordering based on his company’s current needs, with projected market demand playing a key factor in the decision-making process. He would also be in charge of setting the appropriate shipping timeframe for the merchandise, ensuring the company had enough time to sell the product based on seasonal trends that might affect it. The typical delay between initial purchase negotiations and final product delivery is what drives the merchandising director to purchase items intended to be worn one or more seasons into the future, rather than relying solely on current market trends. .
When merchandise arrives, the merchandising director is responsible for arranging for the product to be delivered to the store. He often works with the marketing department to create advertising campaigns for significant product launches. He may also sometimes work with the financial aspects of the product, helping to determine the best selling price based on the purchase price and desired profit margin.
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