The difference between fashion buying and merchandising

The merchandiser and the buyer are key roles that influence business growth, however the lines are often blurred.

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At what point does the merchandiser step up to make decisions about the new collection?

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How much say does a buyer have in what styles are delivered and when?

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Whether it's due to the level of experience, size of the fashion business, and type of business model, many businesses miss essential functions by not separating the two. 

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Here, we discuss the key differences between the roles and the overlaps, as well as the importance of each role in driving profit in any fashion retail business. We also explore why it’s important to consider separating the two functions.

What’s the difference between a fashion merchandiser and buyer? 

The buyer and merchandiser work closely together to buy and sell products to drive profit for the business, focusing on getting the right product to the right place in the right quantity, at the price, at the right time.

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Consider the buyer as the shopper — spending the budget and deciding what products and brands will drive the best return on investment. The buyer has a great understanding of the customer, and will be the best person to decide whether a new trend will work for the brand or retailer. 

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The merchandiser acts as the gatekeeper of the funds and is more hands-on with data intricacies, finance, and inventory management. They provide the buyer with the shopping list and funds to buy the products. The merchandiser will set the budgets and develop the assortment plans, to guide the buyer on what they need to purchase to meet sales targets.

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The merchandising department is sometimes referred to as the engine of a retail business — and without a great engine things can go south, quickly. 

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The two departments must have a close working relationship, often challenging each other and striving for the best business outcomes.  

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Both roles should not be confused with a visual merchandiser whose responsibility is to make the store look wonderfully appealing to the consumer once the products arrive. 

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What is the role of the fashion merchandiser? 

The fashion merchandiser is the highly analytical logical thinker who relies heavily on data to manage your number one asset, inventory.

They are about providing the facts.

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They work closely with the finance department of large businesses to ensure profit and cash flow requirements are met through effectively managing stock. Many have a background in business, finance, or supply chain management. 

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A merchandiser can implement structure where there is often chaos for growing brands by setting frameworks relating to budgets, assortments, and clearance strategies. 

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Merchandisers have the ability to add perspective and context to data allowing them to optimize business outcomes by mitigating uncertainties and optimizing opportunities.

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They are able to influence business decisions through storytelling by offering a wider business narrative and understanding of current business trade. 

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"Back in my buying days, I loved the way my merchandiser would act as the scaffolding to my buys, providing safety and structure. I knew the parameters I needed to work within, but I wasn’t afraid to test the boundaries if I truly believed we needed more investment for a particular brand or product."

"We would constantly challenge one another and by doing so we were able to accelerate the category forward and achieve great growth. That’s where the magic happens, when the buyer and merchandiser have trust and confidence in one another and can openly debate the pros and cons to make the best product decisions for the business."

What are the responsibilities of the fashion merchandiser?

The role of a merchandiser encompasses several key responsibilities. 

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They manage budget planning and open-to-buy (OTB) management, using sales, inventory, and profit metrics to allocate budgets effectively. 

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During the season, they analyze department or category performance data, collaborate with buyers, and conduct post-season analysis to inform future planning. 

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They oversee inventory management, including replenishment and allocation decisions, ensuring optimal stock levels across store networks and online channels. 

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Additionally, they create assortment plans, determine pricing strategies, and monitor stock performance for effective markdown decisions, all aimed at maximizing profitability and driving results.

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What is the role of the buyer? 

You mean buying trips and international travel, luxury hotels, and visiting fashion weeks all over the globe? It’s just selecting a bunch of products, right? 

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Unfortunately, it’s not that glamorous, and what many buyers won't tell you is they spend the majority of their time living in Excel spreadsheets (unless they have Style Arcade of course).

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The main role of the buyer is to deliver products aligned to the brand or retailer while having a handle on emerging trends that keep the customer coming back for more season after season; all while delivering healthy sales and margin. 

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Here’s what they might not tell you on the JD:

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• A buyer must be a true mix of creative and analytical. The most successful buyers will make decisions regarding their merchandise assortment using a mix of historical retail data and their intuition.

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• They must have great interpersonal skills to manage both internal and external relationships as they are representing the brand or retailer they work for. 

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• To be a very successful buyer in the fashion industry they must have a great understanding of how merchandise planning works, it’s not enough to rely solely on your gut feel.

What are the responsibilities of the buyer? 

The buyers role entails various essential responsibilities.

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Purchasing involves the selection and ordering of products, typically done six months to a year ahead of launch, depending on the industry.

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Buyers visit suppliers or brands, and purchase products adhering to assortment plans provided by the merchandiser.
The products are then arranged into seasonal or monthly drops and displayed as a range plan.

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The buyer must ensure the right depth (order quantity) and number of options (styles) at the correct retail price to meet sales and profit targets while managing budget allocation. They are also responsible for ensuring the stock is ordered in the correct size ratios.

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Analysis of previous collections guides ordering quantities and grading items based on expected performance. 

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Buyers monitor spending, ensure timely stock intake, and adjust sales targets accordingly in collaboration with the merchandiser. 

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They conduct weekly performance analysis, leveraging trend forecasting and understanding customer demographics to inform purchasing decisions. They will perform post-season analysis along side the merchandise planner and together create the pre-season buying strategies to present to the wider business.

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Relationship management skills are vital for negotiating contracts and securing quality products at favourable terms; and ensure timely delivery of stock inline with collection launch dates.

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Coming together for business success

Pending the size, structure, and business model of a brand or retailer, it's not unusual for these roles to be merged, encompassing responsibilities from both the buying and merchandising functions.

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Separating the roles of merchandiser and buyer proves vital for enhancing business success and long term growth. While both contribute significantly to driving profit, their distinct responsibilities warrant individual focus once a business hits a certain size.

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Merchandisers excel in financial and data management, steering inventory decisions, budget planning, and assortment strategies to optimize profitability. 

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Buyers, on the other hand, leverage their understanding of customer preferences and emerging trends to curate product selections aligned with the brand's identity, ensuring healthy sales and margins, while building solid relationships with the supplier and brands they work with. 

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By delineating these roles, businesses can capitalize on the expertise of each function, fostering collaboration while maximizing business outcomes.

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Find out more or chat to the Style Arcade team to see if merchandise planning consulting could be your next best move.

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Image: Phil Oh