Apparel Merchandising: Strategies, Challenges & Tips

Have you ever wondered what motivates a shopper to pick up a garment, try it on, and ultimately buy it? 

This seamless experience doesn’t happen by chance. It’s the result of meticulous apparel merchandising and design—a blend of art and science, aimed at presenting the right product to the right customer at just the right time.

McKinsey reports that a personalized approach to merchandising can increase customer satisfaction by 20% and sales conversions by 15%. This highlights the importance of getting merchandising right, especially in the cutthroat world of fashion.

For you, this means staying up to date on trends, seasonal shifts, and fashion cycles. It also involves optimizing your inventory and creating a memorable shopping experience for your customers.

This guide looks at how to merchandise apparel smartly. It also shares insights and examples to help you better connect with your target market and boost sales.

What is apparel merchandising?

Apparel merchandising involves planning, buying, and selling clothing and fashion accessories to meet your target market’s needs. It’s the entire process of understanding market trends, selecting or developing products, managing inventory, and creating appealing displays—all aimed at boosting sales and profitability.

Apparel merchandising vs. fashion merchandising

While apparel merchandising focuses exclusively on clothing, fashion merchandising covers a broader range of items, including apparel, accessories, footwear, cosmetics, and more.

Fashion merchandising requires a sharp eye for industry trends and a deep understanding of various product categories. It involves curating collections, marketing fashion items to consumers, and creating a cohesive brand image. Fashion merchandisers work closely with designers and marketers to ensure products align with current trends and brand identity.

The apparel merchandising team targets specific clothing items like athletic wear, leggings, and sports bras. They manage inventory to avoid stockouts or overstock, and implement strategies to attract customers and drive sales. For example, they might highlight a new line of performance leggings on the companywebsite and ensure sufficient stock to meet demand.

In contrast, the fashion merchandising team curates entire collections, including clothing and accessories like gym bags, water bottles, and headbands, to create a cohesive brand image. They coordinate marketing campaigns and other programs to promote collections through social media and influencer partnerships.

Benefits of apparel merchandising

• Optimized inventory management for greater customer satisfaction
• Data-driven personalization and decision-making
• Improved supplier relationships and negotiation power
• Enhanced marketing and brand positioning

Optimized inventory management for greater customer satisfaction

Balancing the supply chain and demand keeps customers happy, and effective apparel merchandising helps you achieve this balance.

With careful planning and data-driven forecasting, you maintain perfect inventory levels, avoiding excess stock and shortages. This cuts costs and ensures you always have the right products.

Consequently, your customers find what they want, when they want it, making them feel valued and understood. What’s more, by anticipating preferences and staying ahead of trends, you stock popular sizes and styles, thereby reducing frustration and encouraging repeat business.

Data-driven personalization and decision-making

Leveraging data in merchandising equips you with knowledge and valuable insights for your retail business.

For example, retailers like Stitch Fix use extensive data science and algorithms to personalize recommendations for each customer. The team looks at sales trends, customer preferences, purchase history, and feedback. This helps the brand tailor product offerings to individual tastes and make smarter decisions about product selection, pricing, and marketing strategies.

This personalization has a twofold effect: (1) it enhances the shopping experience, and (2) it increases the likelihood of repeat purchases. Additionally, analyzing sales data helps identify high-performing products, allowing you to focus your efforts on the most profitable items.

Improved supplier relationships and negotiation power

Merchandising apparel emphasizes understanding market trends and customer preferences, which is also your ticket to scoring sweet deals from suppliers.

How? When you forecast demand accurately and place regular orders, you can negotiate perks like bulk discounts and exclusive items. This means lower costs and a steady flow of hot-selling products.

Building strong supplier relationships also opens the door to exclusive or limited-edition items, helping you stay ahead of the competition.

Enhanced marketing and brand positioning

Merchandising also helps shape your brand’s identity and market position. By choosing and showcasing products that reflect your brand’s values, you create a strong and appealing brand story.

Take sustainability, for example. If this is your focus, you can feature eco-friendly products front and center, and tell their environmental stories. Displays that highlight your commitment to sustainability attract like-minded customers and establish your brand as a leader in sustainable fashion.

How does apparel merchandising work?

1. Market research and trend analysis
2. Order inquiry and tech pack creation
3. Product development and sample approval
4. Costing and order placement
5. Fabric and trims procurement
6. Fit sample and pre-production sample approval
7. Production planning and execution
8. Production line and quality control
9. Final preparation and dispatch
10. Retail and customer engagement
11. Continuous feedback and improvement

1. Market research and trend analysis

This step is crucial for understanding what’s currently popular and what’s on the horizon. 

By anticipating customer needs, you can avoid overstocking and invest in better-selling items. For instance, if you see a growing demand for sustainable fashion, you can focus on eco-friendly materials and highlight ethical manufacturing in your marketing.

Some action items to take include: 

1. Attend fashion shows, subscribe to trend forecasting services, and monitor social media influencers to identify emerging styles.
2. Conduct surveys and focus groups, and analyze customer feedback to understand their preferences and pain points.
3. Regularly review your competitors’ offerings, pricing strategies, and marketing campaigns.

2. Order enquiry and tech pack creation

Once you’ve spotted a trend and picked a new product, it’s time to talk to your merchandisers. 

Make sure they know exactly what you want so production goes smoothly. Think of this as setting up a solid foundation—every detail matters, from design to materials to construction.

For example, if you’re creating a new athletic wear line, your tech pack should include moisture-wicking fabrics, precise measurements, and design details like zippers and pockets for comfort and functionality.

This clear communication prevents misunderstandings and ensures the final product meets your (and your buyers’) expectations.

3. Product development and sample approval

Product development is where your ideas start to take physical form. You can also make necessary adjustments to the initial samples before mass production.

You can also:

1. Collaborate with designers to brainstorm product ideas based on trend analysis.
2. Develop samples using actual materials to test the fit, fabric, and design execution.
3. Send samples to buyers for feedback and make necessary adjustments.

4. Costing and order placement

This step helps you set a price that keeps your product profitable and competitively priced. 

Here’s how to go about this:

1. Calculate your total production cost. Include fabric, trims, CMT (cut-make-trim), finishing, bank charges, buffer values, and any miscellaneous costs like wastage.
2. Determine profitability. Make sure the final price covers all costs and achieves your desired profit margins.
3. Place the order. Once costing is approved, place the order with the necessary quantity and details. 

With a set budget, you can then focus on procuring materials.

5. Fabric and trims procurement

Securing materials early prevents delays and ensures quality. It also helps maintain production schedules and follow design specifications. Order the fabrics and trims, considering parameters like color, GSM, and weave structure. Then, send lab dips (fabric samples) to the buyer to approve color accuracy before moving forward.

6. Fit sample and pre-production sample approval

Fit samples ensure your new garments fit right and match design specs, while pre-production samples keep bulk production consistent. 

Think of them as a final check before mass production, minimizing the risk of costly errors. Action steps include:

1. Make fit samples with the original fabric to check fit, comfort, and overall look.
2. Adjust the samples based on buyer feedback until they’re happy.
3. Create pre-production samples that meet final production specs.

7. Production planning and execution

Planning makes production smooth and efficient. So make sure all necessary preps are done before you begin production. Compile all production-related information into a comprehensive document. Include all key details, like measurements, order sheets, color details, and style descriptions.

Check all materials are ready for production. Then, create and cut patterns accurately for different sizes to ensure consistency.

8. Production line and quality control

Shift the bundles to the sewing department, where they will be put together according to the production plan. Implement regular quality control checks throughout the process to ensure your final products meet the required standards.

💡Top Tip: Organize a pre-production meeting with the production manager and department heads to plan the complete production process. Determine timelines and quality control measures, and assign responsibilities so everyone is on the same page.

9. Final preparation and dispatch

Next is the final inspection. Make sure each garment meets quality standards, then trim, iron, and pack them for shipping. This way, your products arrive at your stores or warehouses in perfect condition, ready for sale.

Once your products reach retail stores or warehouses, focus on enhancing your customers’ shopping experiences. Effective product merchandising, where you deliver a great store experience leading to repeat visits and word-of-mouth referrals, is key to achieving this.

10. Continuous feedback and improvement

This last (and ongoing) step helps you stay attuned to market demands and improve future collections. For example, if a particular style or size sells out quickly, you can produce more of those items in future collections to meet customer demand.

You can also use tools like Stocky to strike a balance between meeting customer demand and minimizing excess stock. Instead of spending time worrying about inventory, you can focus on maximizing profits with the best product mix for your business.

Examples of apparel merchandising

Outdoor Voices

Outdoor Voices caters to the active crowd who love to look good while they move. The brand uses technical fabrics that perform well and look great during workouts or hikes, and captures it products in action with stunning photos and videos.

This strategy not only highlights the workout gear but also inspires viewers to go outdoors and embrace an active lifestyle. 

Outdoor Voices’ website is also a good example of effective ecommerce merchandising. 

The design is clean, with plenty of white space that makes the products stand out. Navigation and search bars are easily accessible, and each product has clear photos showing how the fabric falls and fits on the body. You’ll also find a name, a brief description, and the different colorways for each item.

To encourage cross-sales, Outdoor Voices also features complementary products with an Add to Your Order button on the cart page. This lets shoppers buy more items with just a click, increasing their average order value.

Chubbies

Chubbies uses advanced analytics to understand customer preferences and shopping habits. This data-driven approach allows it to fine-tune product offerings and deliver an exceptional shopping experience.

Take Cyber Monday, for example. Chubbies uses real-time data to identify which product categories are performing best. If sportswear is flying off the shelves, the brand management team quickly pivots to highlight these items, ensuring they meet customer demands immediately.

But it’s not just about data. Chubbies continuously updates its website’s content and layout based on customer preferences. 

It closely monitors which features and products are most popular and makes quick adjustments to boost conversion rates and encourage repeat purchases. This ongoing refinement makes shopping with the brand smooth and enjoyable.

Chubbies’ marketing further enhances its apparel merchandising efforts.

The brand’s storytelling, filled with humor and a strong brand personality, is designed to attract men looking for comfortable and stylish casual wear. Campaigns like “Sky’s Out, Thighs Out” use catchy, relatable slogans that reinforce its bold, vibrant brand identity.

📚Read more: How Chubbies grew 50% YoY and built a supply chain to scale its vintage shorts brand

Aviator Nation

Inspired by 1970s California surf culture, Aviator Nation offers high-quality, handmade garments that appeal to those seeking unique, casual wear.

Blending vintage design with meticulous craftsmanship is a key part of the brand’s charm. Each piece is handmade in California, giving it a unique, worn-in feel that sets Aviator Nation products apart while maintaining its “perfect imperfection” aesthetic. 

This commitment to quality and US-made production helps justify its premium pricing.

In-store, Aviator Nation enhances the brand experience with visual merchandising. Vintage décor and vibrant colors create an immersive atmosphere reflecting the laid-back California lifestyle. This thoughtful store design draws customers into the brand’s world, making shopping a unique experience.

Seamless omnichannel shopping experiences have also contributed to Aviator Nation’s retail success.

Using Shopify POS, the brand unified its sales channels and customer data. This allowed the team to fulfill more than 2,000 online orders per month directly from retail stores. Customers could get what they wanted, whether they shopped online or in-store. Plus, in-store returns could be processed online, and same-day shipping for in-stock items became a reality, making customers even happier.

📚Learn: How Aviator Nation unified its channels and saw conversions take flight

How to become an apparel merchandiser

1. Get a related bachelor’s degree
2. Study the principles of fashion design
3. Gain practical experience
4. Develop key skills
5. Build a network
6. Stay updated with industry trends
7. Seek advanced opportunities
8. Consider further education

1. Get a related bachelor’s degree

The first step in becoming an apparel merchandiser is to obtain an associate's or bachelor’s degree in fashion design and merchandising. These programs should cover crucial topics like textiles, consumer behavior, retail merchandising, and fashion marketing. Adding a degree in a related field, such as business, finance, or marketing, can make you stand out even more.

2. Study the principles of fashion design

While formal education will cover a lot, you should study the principles of fashion design on your own. Read fashion theory books and follow influential fashion designers to deepen your understanding of fashion history and current trends. 

For instance, you may learn how colors, textures, and shapes combine to create appealing garments or how to pick products that better resonate with your target shoppers.

3. Gain practical experience

Gaining hands-on experience is also key. Even working in sales or customer service counts—you’ll become more familiar with the retail environment and consumer behavior.

4. Develop key skills

To become a successful apparel merchandiser, focus on building these key skills:

• Analytical skills: Dive into market trends, sales data, and consumer preferences. This will help you make smart decisions about product assortments and inventory management and keep your selections spot-on.
• Creative skills: Your fashion sense and design intuition are your superpowers, so nurture them. You should be able to predict trends and understand what will delight your target market.
• Communication skills: Effective communication is your bridge to successful collaborations with designers, suppliers, and retailers—which makes it a crucial aspect of apparel merchandising. Work on articulating your vision and negotiating skillfully to bring your ideas to life and build strong partnerships.

5. Build a network

Networking is vital for finding job opportunities and gaining insights. School and internships are both good opportunities for networking. You can also join groups related to fashion merchandising, both in and out of school, to make valuable connections.

6. Stay updated with industry trends

Fashion is a dynamic industry. Keep up with the latest trends and innovations by attending events like fashion shows, reading apparel industry publications, and following influential fashion bloggers and designers.

7. Seek advanced opportunities

As you gain experience, aim for advanced roles like a senior merchandiser, overseeing larger teams and projects, or a product manager focusing on specific product lines. You may specialize in areas like luxury fashion, sustainable fashion, or digital merchandising. 

8. Consider further education

Pursuing further academic education, such as a master’s degree in fashion merchandising or an MBA with a focus on fashion, is a good way to improve your career opportunities. You can also consider certifications in fashion buying and merchandising from recognized institutions to become a more competitive candidate for high-level positions.

Make apparel merchandising a part of your retail strategy

Prioritizing apparel merchandising in your retail strategy ensures your brand not only stays relevant but also thrives in this competitive fashion industry.

Understand your target market, identify trends, and curate a product assortment that resonates with your audience. You should also leverage technology to streamline inventory management and enhance the shopping experience, ensuring smooth transactions and happy customers. Lastly, embrace creativity in your merchandising efforts. Use eye-catching displays and engaging online content to captivate shoppers and boost sales.