Post on 21-Nov-2014
Glossary of Terms in Merchandising
Glossary of Terms
Accessories
A range of products that are designed to accompany items of
clothing to complete an overall look. Usually intended to be
decorative. Common examples include ties, belts, bags, scarves,
hats and jewellery.
Base fabric
All fabric, woven and knitted, needs to be approved for quality
before it is used in garment construction. Fashion buyers give
approval at two different stages referred to as ‘base’ and ‘bulk’
fabric approval. Base fabric is approved for stability and
suitability for end used before the fabric is committed for further
development.
Glossary of Terms
Bulk fabric
Refers to the completed fabric that is used in the make-up of
garments. The fabric is dyed to a specific colour, will often
contain printed designs and possess certain ‘finishes’ which
provide it with specific benefits. As such, the approval tests are
more focused on colour fastness and the specific benefits
provided by the finishing process – e.g. wrinkle free
Glossary of Terms
Bar Codes (bar coding)
Bar codes or bar coding is a unique way to give each fashion
product an individual identity that can be read by laser
scanner at the point of sale.
This ensures that the retailer is then aware of what
line/size/color of garment has been sold.
They are found on most consumer products.
On fashion products they are printed onto a cardboard swing
tag attached to the garment.
They are internationally recognizable and have been
developed to ensure that retailers are able to monitor sales
quickly and control their stock levels accurately
Glossary of Terms
Buyer
The job of a fashion buyer varies according to the nature and
size of a business. A boutique buyer will often also be its owner
and will buy branded or designer-label stock to sell to customers.
A buyer for a fashion retail brand will be involved in a more
complex buying process involving design, sourcing and
production.
Buying Ethics
A self-imposed code that ensures that fashion buying is carried
out in a decent, moral and honorable manner. It covers such
issues as buying bribes, environmental issues and poorly paid or
child workers. Many fashion retailers will give buyers clear
written guidelines on these issues.
Glossary of Terms
Buying Team
The team of individuals that is responsible for planning and
buying a specific range of merchandise within a fashion
company. Usually it consists of a buyer and merchandiser,
together with their individual support staff. Normally a buying
team is product- or garment-specific, although sometimes a
team may be responsible for a range for products.
Category
Sometimes called a ‘product group’, it is used to group together
garments or similar lines into one group. It ensures that a
fashion retailer is able to quickly see how one type of group of
lines is performing as whole. It helps in the monitoring of sales
performance and overall stock control.
Glossary of Terms
CIF – Carriage, Insurance and Freight
The term refers to the agreement on the delivery of foreign
goods that is included within the cost price. The cost price paid
by the buyer includes transport of merchandise by vessel to a
country specified by the buyer. It is up to the seller to arrange
insurance and delivery of the merchandise within the price they
agree.
CMT
‘Cut, Make and Trim’. Generally used in the production of more
complex or tailored garments, where a clothing manufacturer
receives fabric owned by the retailer or another party to make
up into a finished garment. The price paid for the process is only
for the cutting, making up and provision of items used to trim
the garment.
Glossary of Terms
Color Way
A colour option of a product style
COO – Country of Origin
Most products have the country in which they were
manufactured recorded on a label attached to the garment. This
is not however a legal requirement in the United Kingdom and
most European countries.
Cost price
The price paid for a product before a mark-up is added to
achieve a selling price. Generally the cost price of a fashion
product bought for resale by a retailer includes all tickets,
hangers, protective covers and packaging. Transport to the
retailer will be included according to different cost terms.
Glossary of Terms
Couture
Derived from the French word for ‘dressmaking’, it generally
refers to extremely individual and unique hand-made garments
made in the studios and workrooms of international haute
couture designers.
Delivery schedule
A timetable scheduling deliveries of products from suppliers. The
deliveries into the business occur every week and are updated
accordingly, providing a record of outstanding stock.
Department store
Large-space retailer, usually with several floors selling a wide
variety of goods including clothing and household goods in
dedicated areas or departments. Originally a French invention,
they are found in most developed countries and normally deliver
high levels of customer service.
Glossary of Terms
Designer
A person who is involved in a creative process turning customer
needs into value outcomes. Outcomes may range widely
according to the specific role of the designer, but could include
manufactured products, corporate logos or packaging.
Distribution centre (DC)
A facility which redistributes products to retail outlets having
received them as deliveries from suppliers.
Factory outlet
A distribution channel located at manufacturing facilities and
used by brands to sell off end-of-line products. The products are
usually sold at a significant discount to normally distributed
retail goods.
Glossary of Terms
Fashion
Traditionally defined as the current style of dressing or
appearance that is adopted by the majority of people. Although
more commonly expressed through clothing, hairstyles and
other aspects of individuals’ appearance, fashion is increasingly
concerned with other ‘visible’ aspects of peoples’ life-styles.
Home interiors, gardens, plants, cars, mobile telephones and
club memberships are all influenced by fashion trends.
Fashionability
An industry term to refer to the way in which a particular
season’s fashion is expressed in products. In garments, the
fashion trends may be reflected through the manipulation of
silhouette, fabric, colour, print, patterns and trimmings.
Glossary of Terms
Fashion merchandising
In buying and merchandising terms it refers to the analytical
stock control and distribution role accompanying buying in
fashion retailing. Other definitions can refer to the presentation
of stock in stores.
Fit
Refers to the suitability of the shape and size of a garment to a
person. Principally concerned with comfort and appearance,
although the latter can be very influenced by styling trends.
Fit model
A model, usually a size 12 in women's wear, who tries on fit
samples in order that garment technologists and buyers can
make appropriate adjustments to prototype garments as part of
the quality control process.
Glossary of Terms
Fit sample
A prototype of the garment style booked for production.
Accurate in fabric and to the design specification dimensions of
the garment, fit samples are not accurate for colour, print,
pattern and trimmings. Any adjustments made are
communicated to the supplier who sends an amended version,
which is sealed once considered to be satisfactory.
FOB – Free on Board
This is a cost-price term which does not include complete
delivery to the buyer in the cost price. The cost price includes
delivery onto a vessel at a port in the country of manufacture.
Subsequent insurance and transportation of the merchandise
from the port to the final destination is the buyer’s responsibility.
Many fashion retailers prefer to buy FOB as they can control the
cost and lead-times associated with shipping to their country.
Glossary of Terms
Forecast
A view of where the business will be in the future based on the
best known historic and current information. It can be applied to
subjective issues such as fashion trends, but is more usually
applied to the forward view of likely sales or stock levels.
Forecasting is a regular merchandising task that helps to ensure
that the business has the right balance and level of stock
delivered in readiness for anticipated sales.
Forward buying
Relates to the process of buying ahead to meet anticipated
future sales and stock levels. The degree to which a buyer
forward buys depends very much upon the length of the
manufacturing process from conception to delivery.
Glossary of Terms
Hanging stock
Most garments delivered to a fashion business arrive from the manufacturer on hangers. This enables them to be immediately put out on the sales floor. This eases handling when delivering into the DC and then on to the shop. It has the advantage of reducing garment creasing prevalent with boxed deliveries.
High street
An industry term to refer to the middle-market fashion retail sector typically represented in main urban shopping areas. Traditionally the centre of a town was referred to as the ‘high street’ and this was the location for the major retailers.
Information jockey
An American term increasingly being used to describe that person responsible for the dissemination of all types of information throughout the company.
Glossary of Terms
Inventory
A detailed list of stock or goods held. Inventory is sometimes used instead of the word ‘stock’.
Jobber
An individual who buys faulty stock at a greatly reduced price for resale. Stock which is ‘jobbed off’ by fashion retailers generally falls into two categories: that stock which is rejected owing to quality control faults and that which is returned by customers to the stores. The stock can be sold in the domestic country or internationally, but will have identifying labels, tickets and hangers removed.
Lab-dip
A piece of fabric dyed to a particular colour specification and submitted to buyers for bulk fabric approval.
Glossary of Terms
Lead-time
The period of time from design conception to delivery into retail stores. The definition of a lead-time may vary according to the particular stage in the supply chain which is being considered. For example, some buyers may refer to a manufacturing to store delivery lead-time, while another may refer to the shipping lead-time.
Mark-down/Mark-up
Indicates a price movement either downwards or upwards. Prices are reduced to make slow-welling merchandise sell more quickly, while price increases tend to reduce the rate of sale. Fashion businesses alter prices regularly to ensure that stock sells out at the planned rate. Fashion businesses keep an on-going record of all mark-downs/make-ups taken throughout the course of the season/year. It is normally expressed as a percentage.
Glossary of Terms
Sample
Usually a prototype of a product or key product component such as fabric or trim, which is submitted for approval by the buying team. Also a finished product which is used in promoting the range.
Sealing sample
A sample which has been approved by the buying team. It will be used as a standard reference to compare that future deliveries have achieved the required standard.
Silhouette
The outline shape of a garment.
Trade show
A generic term to refer to a meeting place for buyers and sellers, usually manufacturers, wholesalers and retailers.
Glossary of Terms
Visual merchandising
The creative display of goods in-store and in windows. Historically, the term was specifically associated with window display. Atmospherics and visual marketing using sound and interactive technology have increased the overall sophistication of visual merchandising.
Wholesaler
An individual or business that buys merchandise in bulk for resale to smaller retailers. Usually these are smaller retailers who are able to benefit from the economies of scale enjoyed by the wholesaler. It is becoming less used as a result of the increasing dominance of larger fashion chains.