Seasonal merchandising refers to the process of merchandising that is the management of products and stocks according to the seasonal trends or fashions prevailing in the market. Seasonal merchandising is fast becoming the mantra in the Indian retail scenario.
Seasonal merchandising has its own benefits as well as limitations. The following points analyze the concept as a whole:
Accurate forecasting
In order to generate more sales through seasonal forecasting, it is necessary to be able to forecast the market trends accurately. You should have a fair idea of what is in demand in the international market and in other markets in your country. A trend might be very popular in one country, but it might not have the potential to dominate the national market. You should have the ability to determine which trend is just a passing fad and which one is likely to become popular and manage your stocks accordingly. A wrong forecast can lead your firm to great troubles.
Timeliness
Timeliness is the key to successful seasonal merchandising. While deciding to stock a particular product, you should ensure that you are not bringing in a trend earlier than its time. At the same time, you also need to ensure that you are not stocking an outdated item. You have an added advantage over other retailers if you are able to spot a trend and be the first to stock it in your store.
Customer base
While undertaking seasonal merchandising, you should have a fair idea of what customers each type of seasonal product would attract. Sometimes, products that are in fashion may attract only a specific class of customers, while some other products might attract a large number of customers. This gives an idea of how much of the product should be stocked and situations like overstocking and understocking can be avoided.
Managing risks
You should have well-planned strategies for risk management in order to make seasonal merchandising successful. In case overstocking happens, you should take into account ways for stock clearance, discounts and exploring other potential markets. Some retailers have well-defined sections such as core products and seasonal products. Core products are the basic or classic products offered by the retailer, while seasonal products are those that are currently in fashion.
Variety
Seasonal merchandising brings in variety and freshness in the store. It can be used as a tool to excite and attract customers.
Communication
Effective communication is required to ensure the success of seasonal merchandising. Seasonal products generally have a limited time span. Hence you should communicate effectively with your customers to make sure that your stock is sold out before it becomes outdated.
