Merchandise Management

What is Merchandise Management?

It is a process by which a retailer offers the right quantity of the right merchandise in the right place at the right time and meets the company's financial goals. It helps to sense the current market trends and analyze past sales data, which then aid in making the appropriate adjustments. 

Forever21, being a foreign brand of fashion, its apparels will of course not match 100% to the trends in Singapore. For example, it is known that Forever21 launches its apparels season by season. Out of the 4 seasons, Winter is one which is not applicable in Singapore at all. Therefore, for every launch of the Winter season, the stores tend to not have as much winter clothing as they have in the other countries. For it is known that this form of apparels is not required in a country like Singapore. Hence, when it comes to determining the quantity of the apparels, this will be a factor taken into consideration.

Before ordering, Forever21 will also take a look at its past sales data to analyze the sales performance for a certain period of time for comparison. From there, they can predict the quantity demand so as to reduce the number of wastage and to prevent any shortage. 

Category Management

It is the process of managing a retail business with the objective of maximizing the sales and profits of a category.

Forever21 makes use of Category Management to help them further classify the various products together to aid customers in searching for what they want. 

For example, Forever21 categorized their basic apparels at the far back of the store, and they consist of sleeveless tops (tank tops/spaghetti straps), t-shirts, undergarments, as well as shorts. 

This form of categorization helps customers to easily locate what they want, and also aid the staff at Forever21 to show the customers the different categories of products and their locations.

Retail Store Strategy

1. Retail Format
   
   Forever21 operates as a specialty store that specializes in selling their own brand of products with their own labels and related items (clothes, accessories and bags). They carry an extensive width and depth of stocks in the item they specify in, serving the customers with a high level of service.
   
   The store is clustered with trends of clothing and accessories which fill almost every space you can find in the store. The latest fashion trends are usually placed at the front of the store, stirring impulse visits from customers.
   
   
2. Target market
   
   Forever21 target the group of female consumers in their teens to those in their thirties, who go for the latest fashion at affordable prices. Some similar high-end fashion apparels and accessories can be found at Forever21 and this provide an alternative to the consumers who wish to go for cheaper alternative without compromising on looking fashionable.
   
   Recently, Forever21 introduced a new line of plus-sized clothing to cater to a new market of women of a bigger package.
   
   
   
   
   
    
   
   
   
   
3. Sustainable competitive advantage
   
   Forever21 have placed their stores at the hottest malls in Singapore such as VivoCity and Wisma Atria which have a high human traffic. Moreover, with the latest fashion styles similar to their competitors on their racks priced at affordable and cheaper prices, it is no wonder customers opt for this brand compared to their competitors. If you are in need of help, the staff will readily assist you without any hesitation. At payment they are ever polite by never failing to greet you with a smile. These are a few of the many beneficial advantages Forever21 has from its competitors.

The Retailing Environment

Retailer chosen: Forever 21

1. VARIETY & ASSORTMENT

Forever21 is one of the leading fashion retailer in Singapore and they carry a handful of assortment which ranges from apparels to shoes, and lastly, accessories. The target consumers of Forever21 are those who go for the most current fashions at the greatest value. F21 launches new collection every season, and every and then, they do launch certain new design for the ongoing months. Their products are fashionable items that grow with the current trends, examples would be bags, shoes, accessories and apparels. Keeping up with the existing trends, F21's merchandises are also kept at affordable prices for consumers who constantly keeps themselves updated.

2. CHALLENGES FACED

• Competitors
  

There are too many brands and names to be mentioned when it comes to the retail industry. And being one of the leading fashion retailer, F21 has got its competitors to be aware of. As such would be TopShop, Zara, Pull & Bear, etc. These are the few brands which are on par with F21 in the current fashion.

In order to keep leading, F21 has to constantly keep up and work on strategies which keeps their consumers coming over again.

• Visual Merchandise

The way that F21 displays their merchandise are known to those who have visited the physical stores. Their products are mostly clustered together, hence giving consumers the "messy look". Though time and again, there may be consumers who continue to shop, however, visual merchandising is one of the crucial part in the retail industry. The "messy look" does not allow efficiency as when all clothes are clustered together, it is hard for consumers to look for what they want.