Merchandising

Introduction In this, our annual special report on merchandising, you’ll learn strategies on generating new product concepts from scratch. It’s a process that is part art, part science: from knowing when to listen to your hunches to understanding how to test products on the page. You’ll also learn six steps to successfully taking a plunge into a new merchandise category. And we’ve uncovered some best practices you can use to get your product vendors to deliver merchandise on time and on spec, and ultimately how to improve your day-to-day relations with product vendors. Lastly, you’ll meet one of your colleagues, Doreen Carstens, vice

The Cataloger’s Story Can an established retail and Internet merchant profitably start a catalog in this era of rising postal and production costs? Some catalog industry experts say the risks are too great and the ideal time to launch a new print catalog has passed. But is that really true? John Hambleton aims to find out. Hambleton sells surf-related apparel and accessories via two beach shops in Florida — Islanders in Fort Walton Beach and Pensacola Beach — and the Web at IslandSurf.com. His Internet sales have convinced him that selling remotely is a viable option for his merchandise offering. And so,

Catalogers should consider using the Web for price testing, said Daniel Dorzback, chief merchandising officer at Petals, a silk flower and decorative accessories catalog, when he spoke at the Hudson Valley Direct Marketing Association’s”Meet the Catalogers” luncheon held in Greenwich, Conn., in early April. “In our paper catalogs, we may run a promotional price test, but not a test across our entire mailing segment,” he said. “We use our Web site as a testing ground -- like a lab to look at different Web exclusives to see how customers will buy into new product categories.” The beauty of online product testing is that the Web provides”a

Successful outsourcing arrangements require a smooth, risk-free transition, because even the best intentions can be erased by a rocky start that threatens your business. Carefully researched and implemented outsourcing ventures for your distribution center, contact center or other operational function can be profitable for those who efficiently leverage a service provider’s capabilities. How do you ensure that your chosen provider doesn’t damage your business through a clumsy implementation? Conduct an effective selection process, and plan a controlled, realistic transition. Here are 23 strategies to employ. Do the Research 1. Nothing is more important than carefully checking a service provider’s references, talking to both

When catalog order management systems were first developed in the 1970s, they were designed to manage all aspects of catalog operations: from order entry, customer service and customer database management to response analysis, inventory management, purchasing, fulfillment, and returns. Thirty years later, they still are, which is why so many direct merchants can run their businesses on these applications without a need to add specialized solutions for things like warehouse management. Some companies, however, find their catalog management systems don’t provide the flexibility or sophistication they need to address their inventory or fulfillment challenges. For them, a warehouse management system (WMS) is a necessary

Catalogers possessing high-performing operational units concentrate on the following five fundamentals. 1. Optimum Location Superior merchandise fulfillment begins with facility location, which should provide average or better solutions to the following criteria: - An adequate labor supply of both full-time and seasonal workers, as measured in terms of costs, availability, stability and productivity. Note: This is the single most important location-related criteria. - Proximity of suppliers and customers to the facility, as measured in both inbound and outbound transportation costs and delivery time. - Local economics includes reasonable construction or building rental costs; availability of government incentives; and reasonable taxes (e.g., income, personal

From scrapbooking supplies to Coach bags, and catalog consolidation to television advertising, 2005 is ushering in some interesting trends for catalogers. Ben Perez, president of list brokerage and management firm Millard Group, and programming chairperson of The Direct Marketing Association’s Catalog Council, sees the following merchandise and industry trends that catalogers should be watching. 1. Luxury items are still hot, and mass marketers are doing well. “It’s the middle slice of the market that will continue to have trouble,” said Perez during his presentation at the Catalog-on-the-Road conference, held in Cambridge, Mass., in February. 2. Scrapbooking is hot. “Collecting is becoming a popular activity,” he observed.

Merchandise forecasting systems exist in a world unto themselves. And yet they’re basic tools that any mid-to-large-sized cataloger needs to compete successfully. Still, few catalog executives choose to make the investment in such solutions. In most cases, this reluctance is caused by two factors. On the one hand, no one in the company may “own” the issue of making strategic inventory decisions. Merchants may make product selections, buyers decide whom to purchase from, marketers determine price points, and inventory managers must find a place to store the items or arrange for drop shipment. Yet no one takes full responsibility for determining exactly how

A walk through Acorn Direct’s administrative headquarters in Silver Spring, Md., does little to persuade you that within its walls, a catalog powerhouse is emerging. To be sure, a glance at the posters of British film and TV shows that adorn this smallish seventh floor suite will help you understand how this direct marketer got its start. But you’ll need more information to understand how this nearly 4-year-old catalog used those film titles, along with the rest of its merchandise lineup, to grow its 12-month housefile a remarkable 200 percent from 2002 to 2004. Acorn Founder Pete Edwards, President Miguel Penella

Top-down merchandise planning entails a process in which centralized decisions about product assortments are made by corporate-level executives. Meanwhile, bottom-up assortment planning is done by managers of individual channels projecting sales within their respective channels. You’ll find advantages and disadvantages to each methodology, noted Joel Jackson, a senior consultant at Martec International, an Atlanta-based retail consulting firm. Understanding the pros and cons of each variation can help you decide which plan is best for your multichannel business, he said during the session”Best Practices in Merchandise and Assortment Planning” at the National Retail Federation Annual Conference, being held this week in New York City. Top-down