How Do You Overcome Challenges in Merchandising?
In the dynamic world of fashion merchandising, a Brand Strategist & Retail Buyer discusses an innovative solution for a client struggling to pay vendors. Along with expert insights, we've gathered additional answers that highlight strategies ranging from implementing data-driven forecasting tools to seeking out collaboration for sustainability. Discover how the experts are overcoming merchandising challenges and reshaping the industry.
- Strengthen Partnerships with Community Platforms
- Implement Data-Driven Forecasting Tools
- Stay Informed on Consumer Purchasing Habits
- Cultivate Responsive Supply Chain Relationships
- Embrace New Retail Technologies
- Seek Out Collaboration for Sustainability
Strengthen Partnerships with Community Platforms
Besides the obvious of choosing and curating items for your market, demographic, and budget, my client was having an issue with staying on top of net-30 and net-60 payments to vendors. Since their retail/boutique space was very quaint, not visible to the public, and definitely not marketed properly to sustain consistent sales of that magnitude that quickly, they faced several challenges.
Having upset vendors, out-of-season items, and overpriced finds from random places, I am currently helping them curate a community platform for local designers and artists that is a seamless win. Coming from a place of partnership, I am encouraging the vendors to create a 'shop now' QR code for customers to shop and pay online, with the samples on display in-store. Once the consumer shows the merchant proof of purchase, the front desk person will go in the back and hand the shopper the item they purchased.
The vendor will share a monthly report with store management and pay out a monthly commission split. This allows the consignment/boutique/designer to get paid right away—with immediate access to cash flow; for the store to now receive profit, instead of dealing with POs, invoices, and invoice loss; plus, it repairs any impression of not being able to pay on time, PLUS gain a name in the community for supporting local artists/designers.
A healthy, win-win solution for today's type of shopper! If you want to be even more EXTRA (in a good way), add a small display with designer info, vision, social media info to tag them, and watch the collaborations and brand awareness help everyone. You'll even start to receive inquiries from other similar wholesalers and designers who want to submit their items to your store.
Implement Data-Driven Forecasting Tools
One of the primary challenges in merchandising is managing inventory levels while optimizing turnover. Excess inventory can become a costly liability, and poorly managed turnover can lead to missed opportunities and lost sales. Merchants must accurately forecast demand and align their stock levels accordingly.
This balancing act requires a strategic approach and constant monitoring to ensure that products move off the shelves at an ideal pace. To improve inventory management in your business, consider implementing data-driven forecasting tools.
Stay Informed on Consumer Purchasing Habits
Anticipating the purchasing habits of consumers poses a significant challenge in the field of merchandising. Trends can shift rapidly, and what is in demand today might not be tomorrow. Merchandisers must analyze market data, review sales history, and stay alert to cultural and social changes that influence buying behavior.
Navigating this complex terrain requires agility and insight. For those in the business, it's imperative to stay informed and adaptable to changing consumer patterns.
Cultivate Responsive Supply Chain Relationships
Achieving a balance between the stock on hand and the demand for products is a delicate and challenging aspect of merchandising. Holding too much stock can lead to increased costs and wasted space, while too little can result in lost sales and disappointed customers. Maintaining this equilibrium requires a thorough understanding of market dynamics and customer preferences.
It is vital to regularly review sales data to align with consumer demand. Retailers should strive to cultivate responsive supply chain relationships to promptly adjust stock levels.
Embrace New Retail Technologies
Integrating the latest retail technologies can be a daunting task for merchandisers. As the retail landscape evolves, staying up-to-date with new software and hardware can make a significant difference in efficiency and customer engagement.
Challenges include training staff, budgeting for new technology, and ensuring compatibility with existing systems. In this digital age, those in the field of merchandising need to prioritize staying technologically literate to maintain competitive advantage.
Seek Out Collaboration for Sustainability
In today's environment, the implementation of sustainable practices is increasingly becoming a challenge for merchandisers. Consumers are more conscious of the environmental impact of their purchases, prompting retailers to source and promote eco-friendly product lines. This shift often necessitates changes in supply chains, materials used, and even packaging designs.
To meet these evolving expectations, merchandise planners must seek out and collaborate with green suppliers and innovators in sustainability. Take the leap towards a more sustainable future by evaluating eco-friendly options for your merchandise today.