What is Merchandising?
As a continuation of the previous post, today we have discussed in detail what skills are required to be successful in home buying and merchandising. “Apparel Merchandising” was discussed in detail in the previous article on Merchandising.
Buying A House:
Buying house is one type of export oriented garment industry in our country. The business that we call 100% Export Oriented Business. Here the word buying a house means "to buy" and the word "home" is used in the sense of business. In other words, home buying is a business organization that basically functions as a business.
The main function of the buyer house is to communicate with the buyer and negotiate the order. And when the order is confirmed, it is the buyer's chore to arrange the shipment by executing it through the factory. And when the order comes from the hands of the purchasing house to the factory, the purchasing house supervises, leads, supervises all the work from the beginning to the end of that order.
The buyer is a foreigner, so it is not possible for him to communicate with or take care of the foreigner all the time. Therefore, the purchasing house acts as the representative or agent of many foreign buyers. The main responsibility of the buyer house is to ensure the quality of the product that the buyer wants or the quality of the product which he wants.
How Buying Home Works:-
Buying a home usually works in two ways. eg.
1. Trading Company.
2. Buying Agent.
How it works as a trading company?
An example can be better understood. Suppose a buy house negotiates an order with a foreign buyer and the order is confirmed at 3.5. The buyer will then transfer the order to a factory and while moving his target will be how much he can execute orders for less than 3.5.
The less you can execute, the more profit you can make. Let's say the buyer executes an order for 3, then each garment would make a profit of 50 cents. If the purchasing house functions in this way, it will function as a trading company.
How to act as a buying agent?
The policy or system followed to act as a buying agent is to link the buyer with the manufacturer i.e. the garment factory. In that case a commission is left for the purchase house, which can be 5 to 10% or more or less depending on the region. This 5 to 10% commission is collected from the buying house clothing after the product is shipped.
What is Merchandising in Garment Industry?
Merchandising is always a promising profession. Gaining experience in this field adds certainty to career life. Moreover, the major part of our foreign income comes from the textile industry, looking at the job market and career, many people are taking interest in this profession. Every garment or shopping house in the garment industry needs a merchandiser.
However, Garments Merchandising is all about producing quality garments from raw material to as per the demand of the buyers and delivering them to the buyers on time. Simply put, the trader is the one who oversees the entire process from apparel production to marketing. The profit and loss of the organization depends on a trader.
In this case, the amount of profit is the same as the amount of loss not less. A small mistake can cause a lot of damage to the organization so today we have arranged our blog with some essential qualities of a trader which means it is very important for a trader to know the job professionally. So let's know about the issues.
Firstly-
Firstly, the technical sheet and order sheet sent by the buyer should be well understood and should not contain any ambiguity. This means that the quality of clothes, accessories, product quality, order quantity, etc. which the buyer has mentioned should be met properly.
Another: -
Textiles and thread are well known. Also learn and understand in the light of reality about the quality, price, supplier, sourcing and production of the textile industry. Knowing and understanding each of these issues such as Yarn, Fabric, Textile from its production stage to its consumption and cost.
Above all, to be able to do the above things correctly. Then get a good idea about the production capacity, production strategy, planning of clothing and textile products. If necessary, see these with your own eyes and understand decisions and actions. In special cases the buyer provides the clothing design to the merchant.
Third :-
You need to have a good idea about various components especially garment samples, fabric samples, lab dips, trim cards, swatch cards, development and approval preparation, revision, time management and follow up.
And buyer should have very good idea about order sheet, payment term and shipment and should know the issues in light of reality.
Fourth:
Understand the problems of a variety of issues, including fabric production, garment production, washing and testing the "raw" material of clothing, and learn how to solve them. It is also important to know about ancillary development, production value and supply behavior, finishing allowance, waste percentage, booking and supplier selection.
Fifth:
Good knowledge about Export, Import Documents, Proforma Invoice (PI), Commercial Invoice (CI), Packing List, Shipment, Booking, Final Inspection, Factory Profile, HR Department and Fire Protection.
In the end, yarn booking, fabric booking, sample booking, accessories booking, you have to be able to deliver this alone. Also you cannot be a good trader.
Furthermore, to achieve 100% success in merchandising, a trader needs to acquire the following personal skills.
Firstly-
The company can suffer huge losses due to the mistake of the trader. Therefore, the cost areas should be considered and the product price should be determined by computing the profit margin.
Another-
The needs of the buyer should be given priority. The quality of the clothes that the buyer wants should be maintained. Loss of buyer in this sector means loss of lakhs of rupees.
Third-
One of the qualities of a skilled trader is timely delivery. Failure to ship on time may result in loss of LC i.e. letter of credit. In such a situation, there is a possibility of heavy loss.
Fourth:
You need to be proficient in English. Because the main buyer of 100% export oriented business is overseas. Consequently, in order to maintain a relationship with them, it is necessary to have knowledge of English to understand the quality of the product.
Fifth:
Must be computer literate. Because in most of the cases the buyer has to be contacted via email. This is not possible without computer skills. Apart from having internet access, you need to know MS Word, MS Excel.
Overall, becoming a skilled trader requires hard work, professional skills and some remarkable personal skills. And if you can master the skills described above, you can be a first-class trader.
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