Business

Saturday April 11, 2009

How to be a successful merchandiser

Review by YEOW POOI LING


The Art of Retail Buying
Author: Marie-Lousie Jacobsen
Publisher: John Wiley & Sons (RM220 at MPH)

IF you’re aspiring to become a buyer or merchandiser for the retail sector, pick up the book “The Art of Retail Buying” by Marie-Louise Jacobsen.

The book spells out the A-to-Z of retail; starting from the types of retail stores, the qualifications of a merchandiser, how to be a buyer as well as the pitfalls, and the success stories.

Jacobsen has some 30 years of experience in the retail business, 15 of which as the general manager merchandising with one of Singapore’s leading retail group.

Her extensive track record gives us a glimpse of what makes the sector tick and how to thrive in the business.

According to her, the qualifications of a buyer are not only on paper.

While having a basic degree in retail management, marketing or business administration is a start, it is important to have aptitudes like dedication, integrity and enthusiasm.

A buyer should be comfortable interacting with people on a regular basis and able to communicate well.

Buyers have a wide job scope and definitely not for the faint-hearted.

She needs to develop and execute seasonal merchandise plans and pricing strategies, complete accurate forecasts, develop strategies to support department goals, profile target customer, manage vendor performance, set marketing plans and calendar of events, develop visual presentation guidelines, and maintain collaborative partnerships with vendors and internal colleagues.

Jacobsen is very precise in her description. She even set aside a chapter dedicated to forecasting and how buyers can determine pricing that would achieve targeted sales and profit margins.

She said buyers should be flexible with changes as the job entailed uncertainty most of the time.

For example, a new shipment of items that was planned for a seasonal promotion was late by a week in delivery.

In such circumstances, a buyer would need to consider the alternatives to fill the floor space while waiting for the goods to arrive.

The ability to understand customer’s needs is vital. While no two customers would have the exact same likes, dislikes, requirements, demands, lifestyles or buying power, retailers should aim to please groups of customers with similar taste.

As such, buyers need to constantly update themselves with their customers’ profiles and take note of any significant changes in trends. What are relevant today might not be tomorrow.

Relationship with suppliers is also important for the merchandiser. A strong rapport will ensure that the buyer gets the best deals and be updated with the latest items available.

In addition, a well performing supplier will help the retailer to be more efficient, reduce cost and increase profits.

Jacobsen also walks us through the steps of choosing a product to sell in the store. There is a wide range of variables to consider such as materials used, colours, sizes, styles and how the goods can complement each other to achieve better sales.

For example, a customer looking to buy a striped long-sleeve shirt may pick up a matching tie and pants as well if these are available. Buyers who can provide such mix-and-match combination in the store will have a greater chance of selling more goods.

The author’s simple language and use of examples and illustrations provide readers a clear idea of the retail business and what it takes to become a successful buyer.

As Jacobsen says in her concluding remarks, the principles involved remain the same and applicable across the retail industry. Trust her, she’s the insider.

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