The history of buying and merchandising
Historically, buyers worked in-store, but retailers have moved away from this model because of high overheads and negligible buying power. By centralising their buying power, the retailer is able to negotiate better margins, cut costs and improve efficiency by using centralised storage and processing.
Buyers turned their attention overseas in a bid to gain margin, increased lead times and secure the minimum quantity of stock that could be ordered. This brought a new dimension to retail trading. As a consequence merchandisers were introduced to manage the stock, sales and intake, leading to the creation of the WSSI (weekly stock, sales and intake) report, now central to many retailers and used from department to board level.
With the shift to overseas sourcing and falling retail price points, the selling price of a product became less of a USP to customers. Consequently retailers became more focused on differentiating their product from those of their competitors and aligning it with consumer trends. To achieve this, designers were recruited in-house, working with the trading team to understand the retailers' specific customer profiles and acting as an integral part of the product development process.
To ensure that the shift to overseas sourcing did not affect the quality and integrity of the retailers' products, quality assurance managers were introduced to manage the manufacturers and factories, working with the supplier base and buying team to ensure all products meet company and British Standards.
Consumers are increasingly adopting ‘disposable living' behaviour - acting on their desire to upgrade and improve on possessions rather than purchasing for necessity's sake. Trends and seasonality are speeding up in an effort to capture the attention of spontaneous consumers as well as those keen to be seen forerunners within specific product groups. In turn, effective merchandising skills are essential in keeping product ranges firmly in the mind of the consumer choosing for want rather than need's sake.
Consumer-led buying expertise is also therefore in high demand. The days of simply being a good negotiator are over, and insight into consumer behaviour and the knack of predicting future trends are what makes a good buying professional stand out from the crowd.
Together, the buyer, merchandiser and quality assurance manager comprise the trading team accountable for the entire lifecycle of a product, from concept to shelf.
Get in touch with your local Michael Page Buying & Merchandising team to find out how we can help you with your job search or hiring requirements.
