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Retail Merchandising
 

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Retail Merchandising

Retail merchandising is more complex than, let's say, tour merchandising.  There are several ways to negotiate a retail merchandising deal.

bulletManufacturing the clothes yourself and have a retail merchandiser distribute it for you.  This is the toughest route to take because you are assuming all the financial risks of clothing design, fabric costs, manufacturing, freight distribution, warehousing, and returns of unsold merchandise from the retailer.  Sometimes the retailer will use unsold merchandise as payment for merchandise sold.  Besides, it is almost impossible to get a clothing distribution deal of this kind with a retailer regardless of who you are.  It is strongly advised to refrain from doing these kinds of deals, even if you have the money to do so.
bulletA good alternative to manufacturing the clothes yourself is to enter into a deal with a merchandiser who, in turn, will sublicense it out to a retailer.  The merchandiser will negotiate a deal on your behalf with your final approval and then monitor and manage the process to ensure quality assurance, accurate accounting, and timely royalty payments.  In return for their services, the merchandiser will take a percentage and remit the remainder to you.  Most celebrities who have their own clothing imprint have this deal.
bulletIf you have the connections and the confidence of your fan base, a merchandising deal direct with the retail chain itself would prove to be quite a coup.  The deal works like this.  The retail chain develops a clothing line for you using your name, image, and likeness in order to provide unmistaken identification of your fans.  The retail chain then manufactures the clothing line for you and sells it in the retail outlet stores.  You are paid a royalty rate based upon the retail price.  Since there is little or no financial input made by you, you are not at a financial risk.

You have been given the basics and a starting point, go from there!

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