A group of students from the Chinese-language stream of IFTM’s Tourism Retail and Marketing Management Bachelor’s Degree Programme recently took part in a field trip to The Parisian Macao and The Londoner Macao integrated resorts, to advance their knowledge of merchandising.
The visit was conducted by 2 representatives from the retail operations unit of Sands China Ltd., the operator of The Parisian Macao and The Londoner Macao. They were Ms. Mandy Leong, Merchandising Manager; and Ms. Vivian Chong, Assistant Merchandising Manager. Ms. Chong is an IFTM alumna, having graduated in 2013 with a Bachelor of Science in Tourism Retail and Marketing Management.
The visit took place on 18 May. It was for Year 3 students enrolled in the Merchandise Management course and was arranged by Lecturer Ms. Belina Lei. The IFTM group was led by the Coordinator for the Tourism Retail and Marketing Management Programme, Ms. Catherine Li Zhuo.
Ms. Leong and Ms. Chong divided the field trip into several parts. Topics included brand positioning, and differentiating the merchandising strategies for the respective target markets of The Londoner Macao and The Parisian Macao.
The Sands China representatives highlighted to the IFTM group 2 of The Londoner Macao’s iconic attractions: the interactive installation Double Decker Adventures and the virtual ride Black Cab Escape. They explained how the 2 were based on famous London themes, and how Sands China applied those themes in the design of The Londoner Macao-themed souvenirs.
The next part of the visit involved discussion of definitions related to merchandising. It covered topics such as merchandise development; the role of merchandise assortment planning; the corporate-level buying process for sourcing merchandise; the levels of production and distribution required for merchandise used within the hospitality industry; various buying strategies, namely via either wholesale or via consignment; pricing and promotion strategies; display strategies; and the role of gift shops.
The Sands China retail operations team emphasised the importance of merchandising in resort retailing, pointing out it played an essential role in different corporations. The firm’s representatives highlighted that merchanding-related work needed strong communication skills, as it required liaison across multiple teams within an organisation, including management, marketing, operations, finance, design, and supply chain.
Ms. Leong and Ms. Chong also talked about merchandising procedure fundamentals. The concepts included minimum order quantities; the function of merchandise; intellectual property; regular merchandise replenishment; stock turnover rates; and sales forecasting. The representatives from Sands China also reviewed private local brands in Macao, and stressed the importance of having a sustainable merchandise cycle that balanced new designs with core items.
Fruitful experience
Student Samu Chou was one of the IFTM undergraduates attending the field trip. He says the activity allowed him to understand how a business conceives and develops new merchandise; and how it might select finished products from other brands to make them available to its customers. Samu says the field trip gave him fresh knowledge about how cross-brand cooperation works. “In addition to theme, story, creative design and trend, cross-brand cooperation also involves other factors, such as whether the product has the required functionality, copyright concerns, minimum order quantity, inventory cost, etc.”
Fellow IFTM student Lucia Ao says the field trip allowed her to understand in detail the importance of corporate buyers, that source new merchandise. “I found the buyers have a role in reducing operating costs,” she says. “I feel that the scope of work of a buyer is large and diverse”.
Lucia states: “First of all, you need to understand the market conditions, know how to coordinate with suppliers, and maintain a good long-term relationship with them. Then, you need to plan carefully and understand the overall cost considerations of your plan. At the same time, you must be an expert in logistics and transportation… This shows how buyers/merchandisers add value to a company.”
Another IFTM student attending the field trip was Alan Chan. “I learned that setting up a retail store with an area of only a few hundred square feet involves great consideration and thought,” he says. “For example, the cashier area should display cheap and attractive products, which are more likely to lead to ‘impulsive consumption.’”
For Ivy Lei, also a Year 3 student on the Tourism Retail and Marketing Management programme, the field trip was “really rewarding”. She says the activity gave undergraduates a clear understanding of how content included in the curriculum of the Merchandise Management course could be applied in real-life situations. “The entire course knowledge was truly on display in front of us during the field trip,” she states.
