Buying House Merchandising

Posted on October 22, 2010 by vasantkothari

Buying House Merchandising
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Buying house work as intermediateries the buyer & the vendor 60 -70% world wide buying routes through the buying houses These are situated predominantly at the sourcing locations Works on profit percentages / commissions / expense coverage

Role of Merchandiser (Buying House)
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Bridges the gap between buyer & vendor Analysis of market / vendor / order processing / QA Group buying Wholesale activities Unit control services Private brand programmes Foreign buying Sales promotion – buyer / vendor & development of catalogues Fashion divisions /offices

Role of Merchandiser
Posted on October 13, 2010 by vasantkothari

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Merchandising development based on buyer’s objective To interact with the Buyer To interact with the various departments of manufacturing unit To do the costing of Garments To send the samples to buyers Development of lab-dip / desk looms To take the approval from buyers Procurement of Fabrics/Trims To carry out the final Inspection To make sure that shipment goes on time

Quality assurance and control  Delivery procedure. Forecast interpretation and range development  Product development and feasibility  Fabric or leather and other input appreciation  Processing and finishing  Market knowledge. Supply chain and logistics management.  collect specifications from buyers.Traits of Merchandisers Posted on October 17. skills and experience Merchandiser must be part.  even responsible for ensuring that consignments are delivered to the customers in time  Knowledge Base Requirement Posted on October 28. 2010 by vasantkothari Trend and fashion movement.      Designer Engineer Computer Expert Marketer Entrepreneur A merchandiser is involved in every stage of the process from design to sales……… they advise designer on market trends.  Government policy. a merchandiser must posses a rare blend of traits. procedures and operations (for Export and Import)  Buyer coordination.  get the samples approved  and also negotiate the price.. 2010 by vasantkothari In today’s high tech. communication and feedback  . global apparel industry. competitive. Customer profile and behavioral change  Cost and price.

so      . They give us a preview and showcase of the styles fashionistas and consumers’ are sure to love. in locations such as London. designers and suppliers is always necessary. needs and can afford. seeing to the production. They are the final word in putting fashion collections together. By giving consumers a preview of a style or collection. but handle all of the media means for advertising these fashions. and know when the country may have a financial downturn. They watch the financial news. advertising and sales of the fashions. the more the consumer will anticipate the release and launch of the new fashion line. talk to designers. Paris. but may well end up traveling to other countries to see what the people are buying and wearing there. know about fabrics. They need to be business minded as well as an expert on fashion trends. One of the most needed skills to be a Fashion Merchandiser is the ability to stay up with the trends. Fashion merchandising requires an ability to predict or forecast up and coming fashion trends. and they will seek out fashions that are popular. and NYC are so important. They will not only attend fashion shows.  Fashion Merchandising: Do You Have What It Takes? By: James Goldstein A career in fashion merchandising is challenging and rewarding. There are many skills that are needed to be a Fashion Merchandiser. Milan. A Fashion Merchandiser needs to be able to know what is on the horizon for the next fashion trend. It is one reason fashion weeks across the world. They not only look around for the best fashions. LA. know about repeating fashion trends and know what the consumer wants. These are essential skills that can be obtained at a fashion graduate school. A Fashion Merchandiser will also need a sense of style. Communication with buyers. and some return in a little different way. A fashion Merchandiser is the person who makes all the final preparations to get new fashions on the market. Trends seem to come and go. look through all the latest magazines. but within the budgets of the everyday person. or watch all the fashion news.

Attending a fashion design school for your fashion degree is the best way to begin your fashion merchandising career. A fashion merchandiser takes a sketch from the designer. They also need to know about fabrics. merchandising. It takes skills. Sarah has written numerous articles about art and fashion. 2010 by vasantkothari . experience in the fashion world will only help an aspiring fashion merchandiser. A Fashion Merchandiser must also be business savvy. or advertising.good communication skills are needed.  The Fashion world is a very busy place. In addition to an advanced education in fashion retail. energy and ambition to earn a graduate fashion education and make a career in the fashion world. designs. colors and accessories. It takes twice the amount of all of these and a lot of work to become an expert Fashion Merchandiser.  Flow of Orders Posted on October 21. and turns it into an affordable and marketable reality. as they will have business dealing with many different types of businesses and people.

all the Liaison Offices works under the Head Office of the Buyer/Brand  Role of Merchandiser (Buyer) To select the vendor for the garment manufacturing  To work in between the Head Office and Factory  To take the samples on time  To give all the approvals on time  Planning of merchandise  Vendor management  On time shipment  To visit the factory time to time to check all the details regarding product.  Buyer From Wikipedia. the term "buyer" gets new meaning: A "buyer" or merchandiser is a person who purchases finished goods.) . search For a name. see Buyer (fashion). typically for resale. for a firm. quality. Adidas etc are brands as well as buyers  Most of the brands in the world go for the outsourcing of their merchandise  All these buyers work through their local office known as Liaison Office  Further. government. (A person who purchases material used to make goods is sometimes called a purchasing agent.Buyer A Buyer is a Brand  For example: GAP. or organization. For the occupation in the fashion industry. see Bayer or Beyer or Beyers. When someone gets characterized by their role as buyer of certain assets. NIKE. compliances as specified in the Manual. the free encyclopedia Jump to: navigation. A buyer is any person who contracts to acquire an asset in return for some form of consideration.

They may be located in divisional headquarters. They select and order merchandise to be sold. The Buyer Role and Responsibilities in Merchandising by V S Rama Rao on February 4. This usually requires research. Buyers may be responsible for buying for a department. and evaluation information received. If it carries on commercial activity (buy and sell goods). Central Buyers work for chain stores and mail order houses. buyers still have to make key decisions concerning style. In short. by definition. . the parent store of a chain.Chosen by Voters A liaison office (also known as a representative office). Although computers help maintain inventory records and analyze customer purchasing preferences and trends.In product management. It is important that buyers maintain a balanced inventory and a budget agreed upon between themselves and the store or merchandising manager. a liaison office acts as a postbox only. The skill within which they do this directly affects the sales volume of their store and its share of the total retail market. buyer is the entity that decides to obtain the product. taste and customer motivations. an entire store or a chain of stores. or in offices in wholesale market areas. Associate or Junior Buyers usually buy specific items for a department or division of a firm which is too large to be served by one buyer. proposals or quotes. writing requests for bids. and it is not permitted to carry out any commercial activity per se. Resolved Question Show me another » Whats is the meaning of liasoning office. 2010 Buyers play an important role in the retail industry. acts as a representative office/communication channel between the parent company and the suppliers/customers in the country the liaison office is situated in. it is taxable like a company.? Best Answer . The associate or Junior Buyer assumes responsibility for the specified item purchases but coordinates with the Head Buyer. A buyer's primary responsibility is obtaining the highest quality goods at the lowest cost.

fabricated metal products or petroleum products. Negotiations with vendors for favorable terms and services are a delicate issue handled by the buyers. They coordinate stores or departments. In addition. grains. 2) Planning and selecting merchandise assortments. In case there is merchandise which is slow moving then mark downs or moving the merchandise to other locations also needs to be finished. Traveling frequently. cotton. Purchase agents usually track market conditions. An awareness of the general economic conditions is also required. Purchase agents and buyers commonly focus on routine purchasing tasks. This requires a keen understanding of the current market trends and economic developments. 4) Pricing the merchandise to achieve the required targets in terms of gross margins. Marketing skills and the ability to identify products that will sell are also very important. read fashion and trade magazines. The job of buying and merchandising can often call for long hours and tremendous pressure to achieve targets. it requires an understanding of the needs and wants of the target consumers and locating a product to suit these needs. often specializing in a commodity or a group of related commodities such as steel. and check retail competitor’s sales activities. Buyers must be able to make quick decisions and take risks. store or organization that he / she is responsible for. follows ads in newspapers and other media. The structure of the merchandise department largely depends on the organizations structure adopted by that particular retail organization. While job in merchandising or buying is very exciting. which includes not only procurement but also providing the goods as per the needs of the stores. development and management. – . good judgment and self confidence. At the same time. The responsibilities of a buyer are listed below: 1) Developing the merchandising strategies for the product line. which will enable anticipation of consumer buying patterns. 3) Vendor selection. to visit branch stores and domestic and sometimes foreign market areas is often required.Assistant Buyers are responsible for routine aspects of the work. they must keep abreast of style and manufacturing trends. price trends or futures markets. 5) Inventory management – allocation of merchandise to the various retail stores is also an integral part of the functions of the buyer. supervise personnel and maintain sales and inventory records. Hence. Anticipating consumer preferences and ensuring that goods are in stock when they are needed requires resourcefulness. so that under ideal circumstances. a buyer needs to control inventory. Many organizations may also have a position known as a Purchase Agent. the working conditions are often strenuous. there is never a situation when the product is not available in the retail store.

When orders are placed for new merchandise this department needs to know as it is the one that will actually receive the products and do the physical verification of the same. The quantities mentioned in the Purchase Order need to be tallied with the accounts department and the quantities actually received. Warehousing and Logistics: In many retail organizations. etc of products to be sent to various stores.Profit improvement through Merchandise planning by V S Rama Rao on February 11. In case the product is a new product. . In case the store has the authority to make purchases at a local level. colors. Any discrepancies have to be informed to the accounts department and to the merchandiser who has placed the order. the finance department needs to be informed about it as they are finally the ones who will be making the payments. Information on merchandise to be received in the stores also helps in space planning in the retail store. it needs to know the quantities. these functions may be handled by one department. This department also needs to know the dispatch details of various products that are received i. The entire process of merchandise planning helps the buyer arrive at the quantities of the products that need to be bought. Marketing: The marketing department needs to be aware of the products that are being purchased as they may want to create campaigns for advertising the products or for sales promotions. Store Operations: The information on the merchandise being purchased needs to be communicated to the retail stores. it has implications on other areas of the business. As the buyer plans the buying for each department. when the Purchase Order (PO) is raised on a particular supplier. Finance will also look into the evaluation of the profitability off the merchandise purchased by the buyer. a better overview of the profitability is available for the retail organization that it will be able to achieve. 2010 The primary objective of merchandise planning is profit improvement. sizes.e. It therefore has the following implications on other departments: Finance: At the end of the merchandise planning process. As the function of merchandising deals with the actual procurement of products for the retailer. the features also need to be communicated. it would help by ensuring that duplication of products does not happen.

An understanding of the consumer buying process is necessary. External sources of information like surveys conducted. magazines and trade publications and trade associations are other sources of information. Many a times. as they can offer valuable insights into why a particular product is selling or not selling. Planning: Though the merchandisers may not be directly involved in the actual purchase of merchandise. The sales forecasts are then translated into budgets to help the buyers work within the financial guidelines. Similarly the third dimension of planning would be at the merchandise hierarchy level. in a department store. then perhaps at the regional level. Forecasting sales for the forthcoming budget period is required and this involves estimating consumer demand and the impact of changes in the retail environment. Information on this can be obtained from sales records. week and at times. is also necessary. the buyers have to be guided to take additional markdowns for products which may . where the plan would first be created for all existing and new stores. For example. This analysis forms the basis of the sales forecast.The person who is to take the buying decisions for a retail organization must be aware of the consumer needs and wants. children’s wear etc. Apart form this. The information thus gathered needs to be analyzed. clear understanding of what products are actually selling and where. directing. This would be a followed by planning for individual stores. Directing: Guiding and training buyers as and when the need arises is also function of the merchandiser. An interaction with the sales staff is also needed. co-coordinating and controlling. the basic duties of the merchandiser can be divided into four areas: planning. The Merchandiser Role and Responsibilities by V S Rama Rao on February 5. month. even at transactional level. and then it would move towards clustering of similar stores. women’s wear. which is the first stage in merchandise planning. 2010 The merchandiser is responsible for particular lines of merchandise. they formulate the policies for the areas in which they are responsible. This could start with the forecast for the year and then go down to the season. there may be merchandisers for menswear. The first dimension to be considered is the time span or the time hierarchy. The process of Merchandise Planning: Planning can be multi dimensional. quarter. The second level of planning would be at the location level. starting with the overall department level and then finally. coming down to the Stock Keeping Unit Level.

This might involve planning and setting up sales promotions and advertising campaign. order the goods. as the merchandiser would have a team of buyers reporting to him / her.not be doing to well in the stores. the children’s wear DMM supervises those buyers who purchase merchandise such as baby clothes. wherein the person would be responsible for merchandising activities for particular liens of merchandise. Merchandiser may also travel to different stores to actually check the response to various items in the merchandise. clothes for girls and accessories. clothes for new born. Merchandisers work closely with the visual display staff and department managers to decide how goods should be displayed to best attract customers’ attention. Buying performance may be evaluated on the basis of net sales maintained mark up percentages. and keep in touch with suppliers to make sure that the goods arrive on time. would involve the following functions: 1) Forecasting sales for the forthcoming budget period: This involves estimating consumer demand and the impact of changes in the retail environment. the job of the merchandiser also involves visits to suppliers or manufacturers of select goods. immaterial of the size of the retail organization. Inspiring commitment and performance in the part of the buyers is necessary. This is likely to involve working closely with retail buyers. merchandise managers supervise the work of more than one buyer. To enjoy working as a merchandiser. Typically. agree on a delivery date. complete all the necessary paperwork. Controlling: Assessing not only the merchandise performance. it is essential that the individual has a mathematical ability to work out budgets and understand sales figures. Many retail organizations also have a Divisional Merchandise Manager (DMM) or similar position. but also the buyer’s performance is part of the merchandise manager’s job. this is a separate role carried out by a visual merchandiser. 2) Translating the sales forecast into inventory levels in terms of rupees. This is necessary to provide control and maintain high performance results. clothes for boys. the DMM needs to understands and provide for the inventory levels that would be needed to achieve . They negotiate a price. hence they need to coordinate the buying effort in terms of how well it fits in with the store image and with the other products being bought by other buyers. To do this effectively. Coordinating: Usually. He/she should be able to understand what the customer wants and translate that into specific products. the role of a divisional merchandise manager. gross margin percentages and stock turn. The ability to work in a team is also essential. In some organizations. mark down percentages. As a key aspect of merchandising involves selection of merchandise or products to be sold in the retail store. For example.

Merchandising: A lucrative business in textile sector Nazmut Tarek: Merchandising is a lucrative business today. budgeting and controlling of merchandising activities. A merchandiser must be creative to handle any situation. The . Merchandisers are really important in the success of any garment retail business. but at the same time it is exciting and enjoyable. acting dumb. In garment and textile industry it is known as a 'white-collar' job. Besides. considering quality. In the merchandising concept. enabling a company to match with the latest market trends and meet the market demands. seasonal or annual planning. Japan will be a big market for Bangladesh within a few years time. A number of world class buyers are now closing business with China and turning to the buyers in Bangladesh. Merchandising is a mix of everything-fun. "It is a job full of stress and responsibilities. European and American world class brands are now expanding their business in Bangladesh. Due to political violence in Pakistan and Nepal. pride. design and make merchandising process work. cost and time. Garment merchandising concepts complies with all procedures to execute and dispatch the shipment on time.of sales 3) Inspiring commitment and performance on the part of the merchandisers and buyers: Typically. The performance of a garment factory depends on the merchandiser's creativity and efficiency. They provide the right products at the right time. German brand Hugo Boss and Adidas is expected to begin buying from Bangladesh from next year. and stress. as divisional merchandise managers are senior within the organization. They are the one that plan. wage hike of workers in Vietnam and increased production costs in China and Turkey. The field of merchandising is now expanding with the expansion of textile and garment sectors in Bangladesh. the international buyers are losing interest with those countries. World renowned buyers are now more interested in Bangladesh then in any other garment exporting countries. These developments have paved the way for creating scope for merchandisers in Bangladesh. time management is of crucial importance for focusing on value addition actions. challenge. Europe and America. All this good news will create a huge opportunity for the merchandisers. merchandise lines that can be developed and future trends. 4) Assessing not only the merchandise performance but also the buyer’s performance in order to provide control and maintain high performance results. The DMM may not get involved in many day to day merchandise management problems and is more likely to be involved with quarterly. What is merchandising? The term applies to people involved in buying and selling goods in garment trade. it is believed that they can guide the merchandisers in terms of vendor selection.

tasks of a merchandiser starts with order collection and ends after the completion of shipment. first they check the sketch. How much fabric is required to produce garment.Buyer. ML. S. The merchandisers monitor the fabrics and accessories from booking. After receiving the fabrics. Merchandising can be from various positions . After the production starts they go for inspection to ensure quality. vi) probable dates of the arrival of fabrics and accessories in the garment factory. so that the buyers can receive the documents in time and prepare clearing formalities of the goods. They follow up vessel booking. costing is a very important task for a merchandiser. and garment sample from the buyers. After the factories receive the export L/Cs. accessories. Some common tasks of the merchandiser are: i) costing. they transfer it to the related factories. Convincing the buyers of on time production. delivery date and sample if any. After confirmation of price and delivery. Trading House and Factory. quality. v) sourcing of accessories. Garment consumption calculation: The quantity of fabric which is required to produce a garment is called consumption. they discuss their status in the daily meeting with the CEO. the personnel in merchandising section reply by fax/e-mail messages on the same day. accessories. the merchandiser can negotiate with the buyer for the best possible prices. Every morning. Procurement of export orders: The most critical job of a merchandiser is procurement of garment export orders. Quality control and inspection: At first the team leader of a merchandising unit hands over the order to two of their merchandisers and two QC people. Buying House. In this system six pieces of six sizes can be sorted out from size range . export orders are available with garment buyers. ii) determination of fabric requirements. Cost estimation: Before execution of order. expected arrival and departure dates. Marker planning system is mostly used in our country." says a senior merchandiser. After calculating the cost of different cost/material cost and indirect cost/overhead cost: . They take all the necessary approval of fabrics. they request buyers to issue purchase order sheet with full order details. After receiving the inquiry. costing and delivery/shipment on schedule. and after the final inspection they ship the goods. they make pre-production and size set samples for approval to start production. they ask the factories to open back to back L/Cs for fabrics and accessories. and XXL. iv) sourcing of fabrics. Normally. Visiting the buyer's overseas offices with product samples. vii) garment production planning. they request the buyers to open L/Cs. and update the buyer accordingly. After receiving and reviewing the purchase orders. company profiles and inviting buyers to visit production facilities at home can also help raise buyers' confidence in our garment export abilities. This team is responsible for executing the order. Execution of export orders: When an export order come from buyer for certain amount of garment items. After receiving the L/Cs. and viii) inspection schedule.XS. iii) determination of accessories requirements. They follow-up shipping documents from factories submitted to the banks on time. There are two types of costs . production and shipment to the factories. They work out price of these and then offer and confirm the price to the buyers soon. a merchandiser can get export orders. He or she must know the cost of different processes and products. XL. details sheet. can be determined through marker planning and mathematical calculations.

dyeing. offer competitive deals without compromising quality. customs regulations. Inventory report: Merchandiser in store section makes inventory report for a garment factory. Represent a buyer in the factory. knit and dyeing cost). production manager. . The writer can be reached at email: tarek_tex32@yahoo. buying or collecting those raw materials. garment production. CM (cost of making) L/C. if the fabric and accessories are not supplied by the buyer. If it is used. After. duty rates. machine depreciation. approval is given by quality manager/general manager or related buying house. ii) good knowledge of fibre. finishing. The merchandiser make swatch card for sending to the buyer for approval. represent a seller to the buyers. then the merchandiser determines the required quantity of fabrics. Costing or pricing of a sample garment is made by adding. ii) right quality. then the card is known as swatch tags. fabric. inventory report insures quantity of raw materials individually in the store section as per order and received quantity. Then the junior merchandiser supply order slips to individual production units. shipping and banking documentations etc. sewing threads. Scheduling: It is the planning regarding time to fulfil the target as per buyer requirements/deadlines. They monitor production and report to the senior merchandiser. accessories cost. senior merchandiser. interlinings etc. For a merchandiser scheduling is very important for shipping goods within a fixed time. Swatch card is hung in front of the production line during process of production. sample cost and utilities. transportation.Direct cost: Fabric cost (yarn. iv) good knowledge of the usual raw materials inspection systems and garment inspection systems. Then production starts. indirect costs and profit. Swatch card making: When all items are attached to a card for a particular style of garment. iii) right quantities. This cost estimation can be done easily by programming in excel sheet. inspect product quality for the buyers. Quality of a good merchandiser: A merchandiser must possess the following qualities: i) Good command over English and adequate knowledge of technical terms for accurate and efficient communication. colourfastness. When the buyer gives approval to a product. then there is less possibility of making mistakes by workers for selecting inventories. v) knowledge of the quota system used in each of the producing countries. linings. Comparing with the main swatch card or sample. iii) clear conception of the usual potential quality problems in the garment manufacturing. QC manager and junior merchandiser meet to set-up a target. wages. A merchandiser is he/she who builds up relationship with the buyers and acts as a seller. different types of labels. They collect those raw materials from suppliers or importers. printing. buttons. It may contain different colour fabric sample. Indirect cost: Salary. yarn. satisfy the buyers to ensure future business and impress the buyers with i) right products. look into business expansion. etc. zipper etc.) and yarn for production. stickers. rent. dyes. print/embroidery/washing cost. Before production. accessories (button. and iv) time schedule.

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