WHAT IS MERCHANDISING?

Merchandising is the methods, practices, and operations used to promote and sustain certain
categories of commercial activity. In the broadest sense, merchandising is any practice which
contributes to the sale of products to a retail consumer. At a retail in-store level, merchandising
refers to the variety of products available for sale and the display of those products in such a way
that it stimulates interest and entices customers to make a purchase.

In retail commerce, visual display merchandising means maximizing

merchandise sales using product design, selection, packaging, pricing, and display that stimulates
consumers to spend more. This includes disciplines in pricing and discounting, physical
presentation of products and displays, and the decisions about which products should be
presented to which customers at what time. This annual cycle of merchandising differs between
countries and even within them, particularly relating to cultural customs like holidays, and
seasonal issues like climate and local sporting and recreation.
Chermas is a major value for money apparel retail store located in Hyderabad, India.

It was started with their brand of shirts and jeans called Chermas, which became hugely popular
because of the affordable prices.

Chermas has its apparel manufacturing unit located in Apparel Export Park
at Gundlapochampally, near Hyderabad.

Chermas has all the leading brands, nicely divided into sections based on price. It is considered a
budget hunters paradise and does huge business during the major festivals like
Dussehra, Ramzan, Diwali, Christmas etc.
 ABOUT CHERMAS

Captain (Retd) K. F. Pestonji , President of Cherma's Group

Started on 1st August 1980 as a small clothing retail outlet of just 350 sq. ft.
area, CHERMA'S has now become synonymous to ready-made garments in India. At present
there are three showrooms spread over an area exceeding 90,000 sq. ft. with an employee
strength of over 700, catering to the ready-made garment needs of Andhra Pradesh from the twin
cities of Hyderabad and Secunderabad, in India. These showrooms offer fashion, style and
quality attire to consumers from 9 minutes old to 90 years young, at most affordable prices.

Quality has always been the backbone of CHERMA'S and the concepts of value for money, and
garments for any shape or size, are undoubtedly instrumental for its success. With over 22 years
of experience in the retail business, the CHERMA'S group with an annual turnover of 20
million US dollars has set up a garment manufacturing unit at Apparel Export Park, about 18
Kms from the city, where international standards are ensured in production, for both export as
well as domestic demands.

The products manufactured by CHERMA'S Exquisite Ltd can compete with any reputed brand
available in the country or abroad and at the same time cost less than half the prices of those
brands. We are currently exporting to the U.K, France, Italy, Germany, U.S, and Canada. The
factory has been evaluated and has scored exceptionally well based on international standards set
by the buying companies. In spite of efforts to keep the consumer retail price within the
affordable range for most consumers, there is never a compromise on the quality, the result of
which is that many renowned brands' products in the market are traded through our showrooms.
Utmost care is taken for selection of products, keeping in view the value for money.

STORES

HYDERABAD

• Ameerpet

• Abids

• Secunderabad

• Malakpet

• Kukattapally

VIJAYWADA

VISAKHAPATNAM

MANUFACTURE

FACILITY

Production unit at Hyderabad. The manufacturing unit at the Apparel Export Park, is located an
hour from the Hyderabad International Airport. The Unit is built on a 27,900 Sq. meter plot with
a built-up area of over 154,000 Sq. Feet. Presently, over 1000 important Power operated sewing
machines (including specialized machinery) are installed in the unit. It has a total manufacturing
capacity of 3 million garments per year.
DEPARTMENTS

SAMPLING:

The Sampling Department functions as an independent unit. A chief Co-ordinator and quality
supervisor monitor the Sampling Division. The department also has a Sample Patren-making
division. The number of sewing machine operators is 12 to 15.

CUTTING:

The spreading, and cutting are done manually. The marking is done on Auto Cad. The Cutting
Room has six cutting tables. Each table is fitted with ply-end cutting machines. Each panel is
sorted and marked with identification stickers. The Blue streak cutting machines are suitable for
both medium to heavy weight fabrics. A Quality Controller monitors the quality of spreading and
cutting.

List of machines:

• Straight knife cutting machines: 6" x 4 + 8" x 7 Eastman

• End cutting machines: 10 Eastman EC3
• Band knife cutting machine: 4 Eastman EC 700
• Cloth drills: 1 Eastman

The Cutting Room also houses the Fusing

equipment.MACPI 333 - 2 No's, HASHIMA 30 PS -
1, HASHIMA 450 - 1, Auto-fusing machine is in use
along with a pocket fusing and creasing machine.
The temperature of the fusing equipment is checked
daily and all maintenance is recorded.

SEWING:

The Production Floor at the Hyderabad factory is divided into 14 lines or sections with an
average of 28 Operators in each line. The area is well lit and well ventilated. A Line Supervisor,
Line Quality Controller, In-line Quality Auditors, and Checkers, monitor each line. An AQL
level of 2.5 is maintained at the factory. The unit has a capacity to manufacture 1.8 Million
woven garments per year.

FINISHING:
The Finishing Department houses the Buttoning, Thread Trimming, and Final Checking
Sections. The garments pass through an initial as well as a final checking stage in the Finishing
Department. Each Final Checker has a number identification in the form of a sticker, which is
hidden in the garment. A Finishing Department Quality Auditor maintains the performance of
the Final Checkers and the AQL 2.5 system.

BROKEN NEEDLE:

Each garment is checked for broken needles or pins, which, may be left behind during
production. At present, 2 Hashima HN 25 needle detectors are in operation.

A record is maintained of all broken needles in the sewing department and no replacements are
issued before all broken parts are returned. Only the technicians issue needles.

PRESSING AND PACKING:

Close attention is paid to the final presentation of the garments. The garments are first passed
through a vacuum suction machine to rid them of any foreign material. For special fabric such as
Melton wool, the garments are only steamed. The department has 24 Naomoto vacuum table sets
with 24 heater less irons and 12 irons with electric heating for heavy pressing. The Packing
Department is equipped with a special shirt-folding table, which packs and sets stand up pack
shirts.

PRODUCT RANGE:
INFANTS:

Plastic Sheets, Diapers (Regular & Disposable), Carry Bags, Sleeping Bags, Cradle Bags,
Mother Care Bags, Utility Items, Bibs, Baby Bed Sheets, Hooded Towels, Baby Head Pillow,
Baby Blankets, Jablis, Bootys, Plastic Panties, Bonnet, Nappies, Feeding Bottle Cover, Baba
Suits, Rompers, Dungarees, T-Shirts, Night Suits, Sweaters, Complete range of Infant and Baby
Care Sets
BOYS & GIRLS:

Boys:
Jodhpuri Suits, Full Coat Suits, Full Pant Suits, Blazer Coats, Baba Suits, Rompers, Dungarees,
Cargo Pants and Half Pants, Cargo Shirts, Jeans, Trousers, Baggies, Chinos, Boot-cut, Anti Fit,
Casual/Formal Shirts, T-Shirts, Night Suits, Dhoti Suits, Sweaters, Swim-suits, Sportswear,
School Uniforms, Kurta Suits and undergarments.

Girls:
Frocks, Midis, Tops, Blouses, Nighties, Night Suits, Lingerie, Salwar-Kameez, Three-piece
Suits, Lacha Suits, Ghagra Cholis, Skirts, Capris, Parallel Sets, Tights, Stretch Jeans, Cycling
Shorts, Pants, Hipsters, Kaftans, Swim Suits, Sportswear, School Uniforms, Dress Material

LADIES:

Midis, Tops, Blouses, Nighties, Night Suits, Lingerie, Salwar-Kameez, Three-piece Suits, Lacha
Suits, Ghagra Cholis, Skirts, Capris, Parallel Sets, Tights, Stretch Jeans, Cycling Shorts, Blazer
Jackets, pants, Hipsters, Kaftans, Swim Suits, Sportswear, School Uniforms, Sarees & Dress
Material

MEN:

Jeans, Trousers, Baggies, Jackets, Blazers, Cargos, Anti Fits, Boot cut, Gabardines, Chinos,
Wrinkle Free, Casual/ Formal Shirts, T-Shirts, Sweaters, Vest, Briefs, Socks, Sportswear, Ties,
Night Suits, Kurta Suits apart from range of textile suiting and shirtings and belts.

PRICING

The prices of products offered at CHERMA'S range from Rs. 18/- to Rs. 4,500/-. The company
aims to give better quality at lower price. The products are quite affordable and cater the middle
class family. Their price is as low as half of the price which is available in the market.
BRANDS AT CHERMAS

• Action • Mini Kids

• Arrow • Napoleon
• Babloo • National
• Best Connection • Newport
• Body Language • Ocean
• Brax • Oxemberg
• Buffalo • Peter England
• Classic Cotton • Poison
• Clipper • Pragati
• C-Mark • Proline
• Confidence • Puppet
• Crocodile • Romano
• Defyknits • Rothmans
• Duke • Ruggers
• Ethnic • Satellite
• Excalibur • Street Times
• Flag • Syclone
• Flying Machine • Tiny
• Funtones • Today's
• Giffini • Tough
• Jasikaz • Trigger
• Kaizjas • UFO
• Kevin Ninan • Van Huesen
• Killer Jeans • Westline
• Lata • Woodoo
• Lawman • Zero Shirts
• Lee • Zodiac

• Leeman

FASHION LEADERSHIP
The products manufactured by CHERMA'S Exquisite Ltd can compete with any reputed brand
available in the country or abroad and at the same time cost less than half the prices of those
brands. They are currently exporting to the U.K, France, Italy, Germany, U.S, and Canada. The
factory has been evaluated and has scored exceptionally well based on international standards set
by the buying companies. In spite of efforts to keep the consumer retail price within the
affordable range for most consumers, there is never a compromise on the quality, the result of
which is that many renowned brands' products in the market are traded through their showrooms.
Much emphasis is laid on manufacturing rather than product designing. Utmost care is taken for
selection of products, keeping in view the value for money. Cherma’s have their own in house
brands manufactured in their own units. These brands are essentially the early adopters of any
new fashion.

Apart from that Cherma’s in houses brand Action, Arrow, Duke, Peter England, Zodiac etc.
These brands are known for bringing about revolutionary changes in fashion and style. These
brands are fashion leaders or trends setters.

This means that they are not innovators or trend setters when it comes to fashion but they are the
ones to adopt it as soon as any new fashion is introduced.

STOCK MAINTAINANCE
Chermas is a brand known for Good Quality at lower price, which has its own production unit in
Hyderabad. Because of its own production unit and good logistic service, Chermas ensures the
maintenance of optimum level of stock at each store all the time. For its own merchandise, stores
use to get stock on weekly basis or as per the requirement. For private label like Arrow, Lee, Van
Heusen etc, the maintenance of stock is in the hand of the particular brand. The brand keeps on
sending the stock on regular basis or when the requirement sent by their staff.

During festive season, Company increases its assortment by upto 25%, with more SKU’s in
every product category.

QUALITY STANDARDS
Brand never compromise with the quality of their products. Company gives the quality of
International standard, result in exporting to major fashion Capitals like U.K., France, Italy etc.
EXCLUSIVITY
1. Better quality at lower price.

2. Their specialty is ELDP- Everyday low price.

3. Catering to Mass Market including lower and middle income group of Andhra
Pradesh.

4. Exporting to various Fashion Capital like France, Italy, UK etc

5. Own manufacturing unit situated locally.

ANNEXURES

Garments co Cherma's enters footwear

Our Bureau

Hyderabad, July 30

Readymade garments maker Cherma's is planning to diversify its business.

“We have recently added footwear in our retail stores which is being well-received by our
customers.

The younger generation of our family is now taking part in business. There could be more
diversification and innovation soon,'' Mr K. F. Pestonji, Chairman of Cherma's group, told
newspersons here on Friday.

Started with a ‘few lakhs' in August 1980, Cherma's has grown into a Rs 185-crore entity now,
he said.

Cherma's now exports garments worth Rs 35 crore every year, 85 per cent of which goes to the
US.

“Our first store in Abids here was started with 350 sq. ft. Now, Cherma's retail has over 1.80
lakh sq. ft. showroom space,'' he said.

At present, the group has five retail stores in Hyderabad and one each in Visakhapatnam and
Vijayawada.

The company would focus more on optimising existing stores rather than add new stores, Mr
Pestonji said.

PROMOTION SALE

As part of its 30 {+t} {+h} Pearl Anniversary Celebrations, Cherma's would be offering many
gifts and rewards to its customers.

The offers included instant cash offers ranging from Rs 50 to Rs 90,000, weekly draws to give
vouchers to the winners and bumper draws, he added
REFERENCES:

http://www.chermas-india.com/

http://en.wikipedia.org/wiki/Merchandising

http://www.thehindubusinessline.com/2010/07/31/stories/2010073151952300.htm

Santosh Kumar, Departmental Manager, Chermas, Ameerpet, Hyderabad.