‘Good merchandise, even hidden, soon finds buyers.’
It is an awkward position to be in when a competitor offers the exact same product as us and still manages to sell more. It makes us ask questions. Why? What are they doing that I’m not? The answer may be that they spend more time with their clients or that they simply invest more in resources, including merchandising.
Basically, Merchandising is any technique that boosts the sale of a product. Most of the time it consists in a series of actions that take place at the point of purchase (POP) to increase profitability by placing the product on the right place, in the most convenient way and at the best possible price.
Its main objectives are to:
- Draw attention
- Direct the customer towards the product
- Facilitate the purchase
The three types of Merchandising
There are three types of merchandising which all share the same basic principles: Cost-effectiveness, location, impact, availability, prince and exhibition.
According to nature:
According to the type of customer:
According to the stage in the life cycle of the product:
Merchandising as we know it today, started being developed when international trade became the free trade. The counter disappeared to give room to the product so it could be more accessible to the customer. This method creates a stronger bond with the customer but it also means that the role of the merchant is reduced.
In consequence, this one evolves from a seller to a consultant. Without someone to ‘pitch’ for their products, companies were forced to improve their visual and presentation structure. Some of which have evolved by leaps and bounds.
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Next, the 10 giants of global merchandising:
The Walt Disney Company: With brands like Lucasfilm, Marvel, ABC, ESPN, Disney Pixar and Walt Disney Studios made $ 56.6 billion in licensed merchandise sold in 2016.
Meredith Corporation: The global publisher Meredith made $ 22.8 billion in retail sales of licensed products for brands such as Better Homes and Gardens, Shape, Allrecipes, EatingWell and many more.
PVH Corp: Owner of the fashion brands Calvin Klein and Tommy Hilfiger made $ 18 billion in 2016.
Iconix Brand Group: It’s a great brand management firm with a diverse list that includes Mossimo, Umbro and Peanuts. Made $ 12 billion in 2016.
Warner Bros. Consumer Products: It had a great success with its DC Universe and Harry Potter franchises in 2016, as well as TV properties like The Big Bang Theory managing to raise $ 6.5 billion, reaching number five on the list.
Hasbro Inc: The company of favourite toys like My Little Pony and Transformers. Based in Pawtucket in the state of Rhode Island, US, it raised $ 6.2 million.
Universal Brand Development: It is a company that believes in the infinite imagination of its fans, partners and incredible creators of content. Money made by the end of 2016, $ 6.1 million.
Nickelodeon: The American TV channel for teens and children raised a not too shabby $ 5.5 million in 2016.
Major League Baseball: The highest level of professional baseball leagues in the US raised a total of $ 5.5 million.
IMG College Licensing: IMG is a world leader in media, sports, fashion and events which made a small sum of $ 4.5 million.
T-shirt Printing for Businesses
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Why worry about inventory or logistics when we can take care of that? We deal with the boring stuff so you have more time to do what matters. To find out more, simply visit our website.