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Merchandising is not Sourcing in Fashion Brand

Merchandising and sourcing are two crucial functions in a fashion brand that work together to ensure the success of the brand's operations. Here are the key functions of each:

Merchandising: Merchandising involves managing the product assortment and inventory levels in order to maximize sales and profitability. Key functions of merchandising in a fashion brand include:

  • Planning product assortments: This involves selecting the right products to offer to customers, based on trends, customer preferences, and sales data.

  • Forecasting demand: Merchandising teams use sales data and trend analysis to predict customer demand and plan inventory levels accordingly.

  • Managing inventory: The merchandising team is responsible for ensuring that inventory levels are optimized to meet customer demand while minimizing excess inventory that can lead to markdowns and losses.

  • Pricing and promotions: The merchandising team sets prices for products and creates promotions to drive sales and increase profitability.

Sourcing: Sourcing involves identifying and selecting suppliers to manufacture products that meet the brand's quality and cost requirements. Key functions of sourcing in a fashion brand include:

  • Finding suppliers: The sourcing team identifies potential suppliers and evaluates their capabilities and quality standards.

  • Negotiating contracts: The sourcing team negotiates contracts with suppliers, including pricing, delivery schedules, and quality standards.

  • Managing production: The sourcing team monitors production schedules and quality to ensure that products are manufactured to the brand's standards.

  • Cost management: The sourcing team works to reduce costs by negotiating lower prices with suppliers, identifying more efficient production processes, and reducing waste.

Overall, effective merchandising and sourcing are critical for a fashion brand to achieve its sales and profitability goals while maintaining high-quality standards for its products.

About The author

Gaurav Mandal is a fashion educator and leader, dedicated to inspiring the next generation of design professionals. He is recipient of two national awards from the Indian Government for his contributions to the fashion industry. A NIFT Delhi Gold Medalist fashion designer , he completed his Fashion Marketing master’s degree from Nottingham Trent University, UK. He teaches millions of students through his YouTube Channel and works with several NGO’s for imparting creative education.

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