Merchandising: What Is It, Really? Experts Weigh In.

French version

For anyone working in commerce, retail, or fashion, Merchandising is part of everyday vocabulary. Yet, it holds multiple meanings, and when you dig a little deeper, you realize that few people can truly define it!

Here’s a breakdown… with insights from industry experts at Prada, Acne, Maison Margiela, and more.

Two faces OF MERCHANDISING

Merchandising can have two meanings. First, it refers to all branded merchandise designed for a sports club or an event. A recent example would be the vast array of merchandise created for the Paris 2024 Olympic Games, or, on a more permanent basis, the products commercialized by football clubs, such as jerseys, mugs, keychains, and other items.

Alongside this definition, merchandising also encompasses another dimension. It refers to all marketing techniques implemented at the point of sale to drive purchases. In the context of retail and fashion, it’s this second meaning that is of most interest to us!

THE EVOLUTION OF MERCHANDISING

Despite being a buzzword today, the concept is far from new… As early as the 1950s, American economist Charles H. Kepner established what he considered to be the five key elements of merchandising, known as the ‘5 Rights’ (or sometimes, the '5Bs') rule. According to him, merchandising required having the right product, in the right place, at the right time, in the right quantity, and at the right price. While this definition remains relevant, it no longer fully captures the complexity of modern business.

THE MODERN LANDSCAPE

Today, merchandising encompasses the following aspects:

• Product assortment optimization (also known as retail merchandising)
• Space and traffic flow optimization (including zoning and customer journey design)
• Product presentation (visual merchandising and the furniture used to enhance display)
• In-store communication (screens, signage, and other visual aids)
• Sensory factors

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2. With this in mind, several key questions arise when considering a store’s merchandising strategy:

• First, do I feel drawn to enter the store? (This is influenced by the window displays.)
• Next, do I want to stay inside and make a purchase? (What kind of experience and customer journey is offered? This is crucial since the longer a customer stays, the more likely they are to buy.)
• What about the products? (Are they well-stocked and aligned with the brand’s image and expected price range?)
• Additionally, how accessible and visible are the products? (Their organization, zoning, and display…?)
• Finally, what services and assistance are provided to customers? (In terms of signage, digital tools, etc.)

Clearly, merchandising is a truly holistic, 360-degree approach to the point of sale. So much so that the field has evolved into specialized branches…

Retail Merchandising: The Art of Assortment

First, there is Retail Merchandising. This discipline involves defining the product assortment (both selection and quantity) for each store. It requires a high level of precision and takes into account commercial considerations, brand image, and business strategy. This function is particularly prominent in fashion and is perhaps the most analytical, business-oriented, and management-focused branch of merchandising. It sits at the intersection of data analysis, product strategy, and in-store operations.

“Today, we no longer just place a product in a store; we imagine it within a broader context. We ask ourselves how it will be highlighted, what communication tools we have at our disposal, and how we animate it with sales teams and customers. The role has evolved into a truly 360-degree approach rather than that of a simple buyer.”

STEFAN SEILER, HEAD OF RETAIL MERCHANDISING EMEA AT MAISON MARGIELA

“For any retail merchandiser, regardless of their sector, it is crucial to have both a macro and micro understanding of their market and customers. This knowledge is key to developing a relevant and adapted buying strategy. It involves not only mastering trends and analysis but also maintaining a strong presence in the field to gain deep insight into consumer needs and behaviors.”

CHLOÉ QUESNE, HEAD OF RETAIL EUROPE AT ACNE

AND FORMER RETAIL MERCHANDISER AT PRADA

The Retail Merchandiser defines the product assortment for each store under their supervision (such as a Ba&sh boutique).

E-Merchandising: the digital storefront

This specialty focuses on product selection for a brand’s e-commerce platform. A website is considered a distinct distribution entity, much like a standalone boutique, with its own curated product offering.

Of course, a brand’s bestsellers will always be available both in physical stores and online, but a specific strategy dictates the digital channel’s product assortment. For instance, luxury brands often exclude limited editions or exceptional products from their e-commerce sites, reserving them instead for their flagship stores.

VISUAL MERCHANDISING: CREATING THE EXPERIENCE

Parallel to these fields is Visual Merchandising. This discipline revolves around the staging and presentation of products within a store.

“It is essential to craft a visual story that instantly captures attention and naturally guides the customer toward a purchase. A compelling, well-balanced display aligned with a brand’s DNA and consumer expectations can transform a simple space into a true experience.”

STÉPHANE MATHIEU, CONSULTANT AND TRAINER IN MERCHANDISING

While undeniably creative, this role must also serve a commercial purpose. Aesthetics alone are not enough—the setup must drive sales.

The Visual Merchandiser’s role is to create an environment that is both aesthetically appealing and commercially effective. (Example: Concept store at Le Bon Marché.)

This aspect of merchandising is the most image-driven and creative, making it especially significant in the fashion and luxury industries, where expert product presentation is essential.

“The uniqueness of visual merchandising in luxury lies in the meticulous attention to detail and the constant pursuit of excellence while translating the designer's vision into something tangible and understandable for the customer base.

In recent years, luxury houses have diversified channels in terms of experiences, creating ever-new and unprecedented events, such as pre-orders, exclusive sales events with special capsules in different types of spaces (not just physical stores), and it is clear that this is a strong and stimulating challenge for us.”

MASSIMO CANNAVACCIULO, HEAD OF MERCHANDISING AT PRADA

Merchandising in luxury includes a more significant ‘image’ dimension than in other sectors.

Collection Merchandising: Building the Line

The last variant of Merchandising: Collection Merchandising.

This activity is somewhat the ‘new name’ given to the profession of ‘Product Manager.’ Collection Merchandisers have the role of defining which pieces will make up a collection, and they make their daily life the link between the Retail Merchandising teams who communicate the analytical feedback from the markets and the house's style office, which will drive the artistic line for the season.

This branch of Merchandising is the most focused on the product itself. It should not be confused with the job of "Category Manager", who works in the mass consumption and supermarket sector. The latter is responsible for optimizing sales and the presentation of products on shelves, but in a B2B context and for several brands. His role is purely commercial, without the "image" dimension that is found in luxury or fashion.

The Rise of Merchandising and the Future with AI

You will therefore understand that merchandising (and its many subdivisions) have for the past fifteen years or so, been the ‘star’ functions that have been on the rise in the retail sector, overshadowing the very commonly used product managers of the 2000s.

This is why these professions are so attractive. However, as in many functions, Artificial Intelligence will certainly disrupt these professions in the coming years.

For the better, with the automation of certain tasks and the better reliability of analyzes and needs. Or for the worse? With an overly general approach to each point of sale, not enough ‘fine-tuned’… A reasoned and human use of AI could be the solution… To be continued!