Retail Buying and Selling Chain

Under Guidance of - Dr. Sougata Banerjee

Submitted by- Aman, Mansi, Praveen, Shivani

 RETAIL BUYING AND SELLING CHAIN

AGENDA

● To understand the meaning .

● To identify the elements .

● To understand the features .

● To identify the factors that influence retail buying and selling chain.
 MEANING

Retail

● Sales of goods and services to

customers

● Contrast to wholesale

● Final link to supply chain

 MEANING

Retail buying and selling chain

● The method by which goods reach the

customers .

● The entire set of organisations / people

that produces and delivers product &
services to the ultimate customers.

● Making goods and services available to

customers in response to their needs-
conveniently & efficiently.
The customer originates the demand for various products.
 COMPONENTS OF A RETAIL BUYING & SELLING / SUPPLY CHAIN .

📌 MANUFACTURER'S - Produces the product

📌 WHOLESALER - Store the products in large

quantities to serve the needs of the retailers in the
region.

📌 RETAILER - The final point of stocking and

delivering the products to the customer. Takes care of
the shopping environment.

📌 CUSTOMERS - Buying the products from the

retailer and is the end user of the product .
FEATURES OF RETAIL BUYING
&SELLING CHAIN

● Many components, all very important

.

● Many products, one supply chain .

● Cross functional, coordination .

FACTORS INFLUENCING RETAIL BUYING AND SELLING CHAIN

Transportation and logistics

Pickup from wharf

⬇
Unload containers
⬇
Computerised inventory
⬇
Storage
⬇
Order processing
⬇
Pick & pack
⬇
Distribution
⬇
Delivery
FACTORS INFLUENCING RETAIL BUYING AND SELLING CHAIN

Technology

● Internet

● Easy Connectivity

● Fast process
 FACTORS INFLUENCING RETAIL BUYING AND SELLING CHAIN

Modes of communication

● Helps to be in touch.

● No communication gap.
FACTORS INFLUENCING RETAIL BUYING AND SELLING CHAIN

Store staff - Last & vital link

● Last vital link in the retail buying &

selling chain.

● They arrange the product to induce

desire to buy in the mind of the
customers .

● To replenish & replace the products

according to the planogram for easy
access to customers

● They guide customers through the

floor.
 BENEFITS OF EFFICIENT RETAIL BUYING AND SELLING CHAIN

● Improve net sales

● Net profit margin can be increased

● Lower operating cost

● Effective distribution center reduce

expenses

● Carry less inventory without stock out

Market Trend & Forecasting
● Market Trend & Forecasting is the process of
researching and formulating predictions on
consumers future buying habits. By identifying the
source, tracing the evolution, and recognising
patterns of trends, forecasters are able to provide
designers and brands with a ‘vision’ of the future.

● Trend Forecasting is a type of Fashion Research

that analyzes market trends and buying habits to
make educated decisions on how to move forward
on designing a new collection.
Objectives
● Predicting those trends early
enough to allow time for
production to meet the consumer
demand.

● Focuses on upcoming trends

Importance of forecasting:
1: Understanding the seasons
2: Studying trends as per the selected season
and a closer look on the markets that are being
catered
3: Understanding the demography
4:Deciding on the product category.
Steps for Forecasting

1. Identify the Problem

2. Collect Information
3. Perform a Early Analysis
4. Choose the Forecasting Model
Qualitative Forecasting
Quantitative Forecasting
5. Data analysis
6. Verify Model Performance
Range Development

Range development is the process of market and trend research,

merchandising design, and development of the final product.
Range Development must achieve the following:
● Understanding
● Conceptualization
● Creation
Range Plan

● A range plan is an overview of your collection

with all of the design and financial
parameters set out.
● Specifics of your collection.
● It is used before you dive into large scale
production.
Range Plan Usually Include:

● Total number of garments

● Illustration or flat drawings of every garment
● Proportion of different garment types
● Specific garment styles
● Different fabric and colourways for each
garment
● Cost price per garment
● Selling price per garment
● Order quantities per style
● Sizes
● Manufacturer Detail
 Core VS Fashion merchandise
❏ The first products
❏ Like the leather and textile shoes
for bata
❏ Shaving soap for Nivea
❏ Wool socks for Jockey
❏ Profitability of core products while
working on other products hoping
that they will become a
competency for the company.
❏ Burberry sells many categories
such as Fragrances, Makeup,
Bags, Shoes etc on their online
store.
❏ But it was born from a coat
❏ Central to the
company’s
❏ Confident that no
performance and one else is better
make the most than you in making
money that
sustains the
❏ Presenting these
business. products.
❏ Most profit ❏ Deserve to win the
❏ Other products
biggest pie
that are not
considered core ❏ Don’t focus on too
products are called many categories
side projects, side because it lose
products, and
experimental focus of your
products. fashion core.
Benefits of staying focussed on your fashion Core Product Category:

● Your fashion core product category works as the doorway of fashion brand for new
customers.
● It helps penetrate and build market share.
● It will help to be profitable even when other non-core categories don’t perform so well.
● It keeps fashion brand relevant to customers now and forever because great products
never go out of fashion – they evolve.
● staying focused to your fashion brand’s core isn’t as sexy as fashion brand stretching
(selling lots of categories on your online store). However, having a fashion core product
ensures that all your business decisions are for the long term health of your fashion
brand.
 Fashion Merchandise

Fashion merchandising can be defined

as the planning and promotion of sales
by presenting a product to the right
market at the proper time, by carrying
out organized, skillful advertising, using
attractive displays, etc.
 Types of Merchandise

• Staple

• Assortment

• Fashion

• Seasonal

• Fad
Functions performed

❏ Merchandising view

❏ Buying view
What Is a Road-Show ?
Road Shows are formal Buyer-Vendor meets
•Vendors display their products and merchandise range
•Buyers evaluate the range
•Buyers give confirmed orders and feedback on the gaps in the range

Why Road-Show ?
•Efficient Buyers know the pulse of the Consumers
•They are aware of the current /forecasted trends
•Buyers add the business perspective to the merchandise offering of the brand
Characteristic of Road Show’s

Road shows act as a medium through which the manufacturing company tries to gauge
the success and failure of its season’s offering before the merchandise hits the shelf.

● Direct Interaction with customer.

● Point of purchase & display and promotion.
PRE - ROAD SHOW During ROAD SHOW Post ROAD SHOW

Design Compilation Bulk Booking Fabric Order

Design Development Order Compilation Road Show Analysis

Sampling
Product Selection :
Product is a Bundle of Satisfaction
Product is conceptual creation of a producer approved by consumer
Product selection is a decision making process

According to PHILIP KOTLER “ Product is anything that can be offered to a

market for attention, acquisition, use or consumption
THANK YOU