Ongoing changes in Buying and Merchandising
The Retail Buying and Merchandising market has reshaped itself in the face of numerous pressures over the past decade. A number of the key changes are detailed below. (View a list of our current Buying and Merchandising jobs)
Centralised buying
Historically buying has taken place in stores. Existing examples of this are Fenwick, where the buyers still work in-store both in their buying capacity and on the shop floor. This works well for Fenwick as all the stock in their store reflects the customer profile.
However retailers in general turned away from this method, as the overheads were high and the buying power weak. By centralising their buying power they were able to negotiate better buying margins based on the quantities placed. They were also able to cut costs and improve efficiency by using centralised storage and processing.
As buying moved overseas in order to gain margin, not only did this pose problems in stock management as the lead times increased but the expertise in terms of quality and design were lost. This then led to the introduction of in-house design and quality teams.
Merchandisers were brought in to manage the stock, sales and intake. This in turn, led to the creation of the WSSI (Weekly Stock, Sales and Intake) report, which is now central to all retail and is used from department level to the board.
Overseas production
Buyers now manage all the different areas to ensure that the concept that they work on with the supplier becomes a reality in store.
Quality teams have to visit overseas manufacturers, to guarantee that both the factories and the product are compliant with company standards as well as British Standards.
Designers have to ensure that they are ‘on trend' for the specific product area. This is done in conjunction with the buyers and other areas to ensure there is no cross over.
Once the product has been signed off, it is then handed over to the Merchandising team. Merchandising has to co-ordinate with the supplier to ensure the stock gets from the factory into the store as quickly as possible - booking production capacity in advance, while balancing company commitment.
One world market
Historically fashion buyers have been obliged to travel overseas (Paris, Milan, New York) to keep abreast of future market trends. However, these days what is in the shops in any of the countries above is also available in the UK because of globalisation and the popularity of branded products.
Internet and television have also had a massive impact on global fashion and public consciousness of ‘newness'. Gone are the days of a top quality coat that will last for years, we prefer the throw away fashion of the 21st century.
Economic changes, consumerism, throwaway fashion.
We as a country have moved away from manufacturing and have moved more towards a consumer society. We want everything and we want it right now. No longer is quality king for those aged 18-30, instead they prefer to look fashionable for a decent price. Herald the entrance into the market of shops such as H&M, New Look and Primark, leading to the problems experienced by Marks & Spencer.
Companies have been forced to think again about how they operate. Taking M&S as an example: it tried to go down the throwaway fashion route and suffered. It has turned the corner by offering excellent quality, in a great environment. The clothes are fashionable yet wearable and, probably most importantly, they have become one of the leading high street stores in terms of customer focus: offering the customer what they want at a great price with excellent customer service.
Increased competition
The number of high street stores has significantly increased over the last 15 years. Competition is intense and finding a point of difference for a buyer is getting harder and harder. The temptation is to buy at a high margin while marking down in season in order to maintain profit. The issue with this is that quality suffers and once you lose a customer it is nigh on impossible to get them back.
This is now starting to turn around, as customers are still buying the throw away fashion, but also buying quality to mix and match with it.
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