In the retail industry, a merchandising director is an important figure. He is in charge of acquiring products from manufacturers that will be sold as part of his company’s product lines. Product knowledge, negotiating skills, and the ability to correctly gauge current and future market demands are all common requirements for a successful merchandising director.
The merchandising director’s first task is to choose the most appropriate product line to sell. Attending trade shows to see new or improved merchandise on the market, conducting surveys with current customers to determine needs, or analyzing current sales trends to identify items in the current product lineup with consistently strong results are all examples of how to do this. This is an important step in the merchandising process because a poorly chosen product can result in low sales and excess inventory that can’t be sold while still making a profit.
Following the identification of potential products, the merchandising director must choose a viable source from which to obtain the product. The marketing director may opt to purchase the merchandise directly from the manufacturer, which could save money and allow for custom product adjustments. He may also work through a middleman who negotiates with manufacturers on behalf of a group of buyers, often resulting in a larger price discount due to the larger quantities being purchased at once.
After deciding on the best manufacturer or distributor, the merchandising director must negotiate directly with them to arrive at an acceptable price. The cost of the item will vary greatly depending on the size of the order and any customizations that are requested, if any. Initial orders are typically larger than subsequent orders in order to build up stock, whereas subsequent orders are typically smaller in order to replenish current stock. A merchandising director will frequently negotiate a contract with the manufacturer or distributor that specifies a fixed price for both the initial shipment and subsequent smaller orders.
The merchandising director is then in charge of placing the order based on his company’s current needs, with projected market demand being a key factor in the decision. He’d also be in charge of determining the merchandise’s shipping deadline, ensuring that the company has enough time to sell the item based on any seasonal trends that may affect it. The typical time between initial purchase negotiations and final product delivery is what motivates the merchandising director to buy items for use one or more seasons in the future rather than relying solely on current market trends.
The merchandising director is in charge of arranging delivery of the merchandise to the retail storefront once it arrives. He frequently collaborates with the marketing department to develop advertising campaigns for major product launches. He may also assist with the product’s financial aspects, such as determining the best-selling price based on the purchase price and desired profit margin.