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.