SHANTO-MARIAM UNIVERSITY OF CREATIVE

TECHNOLOGY

Module Name: APPAREL MERCHANDISING

MANAGMENT
Module Code: AMM 4117
Topic: Analysis the Merchandising Management on the
perspective of multinational and national buying house

Submitted to:
Engr. Md Lablu Miah
Assistant Professor
Dept. Of AMMT

Submitted by:
Zubair islam
ID: 173051006
Group: A
Semester: 10th
Batch: 31 st
Merchandising Management
Merchandise management is the process through which each retailer decides what items to carry,
how much to have on hand to meet the needs of customers, where they should be displayed in
the store to maximize sales, and how they should be priced to sell the best and maximize profits.

Merchandise Management involves understanding and evaluating the consumer's buying habits
to effectively source, plan, display, and stock merchandise. It is a process from beginning which
involves a strategy where you work towards to an end with a performance evaluation.

Multinational buying house

 Kaybee Bangladesh
 TMS Fashion
 Asmara International Ltd
 Linmark International (Bangladesh) Ltd
 TGT Sourcing Asia Ltd
 ZXY International
 Li & Fung,
 Old Navy,
 Academy,
 US Polo,
 American Eagle,
 Banana,
 Peri Ellis.
 Zara,
 Sains Burry,
 C&A,
 Hugo Boss,
 Esprit, Mango,
 Puma,
 European Eagle,

Local buying house

 TEXACO BD
 FashionBD
 AHL Export International
 Innotex
 Stitches Town Ltd
 Texland fashion
  Casual Wear Sourcing Ltd
 Team Sourcing Company LTD
 Glister Tex Sourcing
 Viyellatex
 Oriental Fashion BD Ltd
 RBS Fashion
 One Tex BD Limited
 Fashion Makers Ltd

Management of multinational buying house

Multinational Buying House Management System helps in managing more business – with same
resources or infrastructure without increasing management bandwidth, yielding in increased
revenues and reducing cost.

Cost saving:

Production cost reduction is one of the prime objectives of a retailer. If a buyer gets the product
with competitive price and best quality, it’ll help to catch the mass level consumer market.
Bangladesh is 100% export-oriented manufacturing country. Hundreds of buyers and retailers are
producing their brands from Bangladesh but the maximum company has no any liaison or own
operational office here. So, for the appropriate execution of an order there has no alternative to
depend on a good reliable buying partner except build up an own functioning office. Setting up
own office is costly and time-consuming factor.

Intensive care:

A new product like a new born baby, without proper care it’ll bring thousands dollar losses on
both sides. A big lose for a buyer is reputation as well as money. The Merchandiser, leader of the
products always busy to take care of the product’s quality as per buyer requirement. He is the
doctor of any types of intensive situation in the development to shipment stage. And that is not
possible for buyers from the far away. Buying houses are performing this kind of services with
full buyer and supplier satisfaction.

Intend support:

The supplier normally achieved 90 days for a single order execution lead time. In the recent year,
it’s reducing significantly, but not more than 60 days that mean within this anything can happen.
A continues third eye support is needed in this complex supply chain process; it is badly needed
in the supplier side especially in the production time. In the production time merchandiser need
to take some important decision for smooth production, so that before take the decision he has to
observe the real scenario, what happened the production floor after wide-ranging observation, he
can make a decision save quality and production both in stipulated time. And it’s not possible for
a foreign buyer without a buying house support.

Maintain strong communication:

The proper communication never happened without appropriate knowledge about the subject and
complete technical know-how. Buying house receives proper information from the buyer and
makes it understandable for the supplier who directly executes the order. Most of the time people
in this process use their mother language for making actual meaning.  Buying house works not
only with the reputed buyers, it also helps to small buyers. At present, many new potential
brands are growing; whose have no specified supplier. Buying house provides them sound
opportunity by providing garments suppliers.

Quality assurance:

Actual quality assurance is one of the key tasks of a buying house because garment industry
maintains a complex supply chain where vendor sources different materials from different
places, stitch garments through to different skilled workers and sell goods to retailers. Buying
house always hired very expensive quality expert to ensure the product quality. No end consumer
will buy a garment with poor quality and visible defects. So, buyers and retailers knowingly do
not purchase a product that does not meet the international quality standard.

Quick development support:

New design development is very important for every retailer. Every year buyer develops number
of new products, which is full of trial and error. Speed to market is critical to retail business that
requires quick support from the supplier. But the supplier always in a rash that’s why many
buying house created their own sample development facilities to give quick development support
to the buyer.

Minimize the local export law complicacy:

For doing business the foreigners have to know details about business laws, rules- regulations
and most basic licenses information required to do business in Bangladesh. Important Laws-
Tax, Customs & Revenue Laws, Investment Related Laws, Investment Related Policies and
BIDA Act, 2016 are important to know. If the buyer makes a partnership with a buying house the
buyer will be relaxed from the above issues easily.

Risk minimization:

Buying house responsibly manages the environmental, social and governance performance. BH
works with their customers, suppliers and industry partners to further the sustainability of supply
chains and communities across the network. Well established BH has assessed the progress
against sustainability goals, set aspirational targets against best practice benchmarks and take
action to meet those targets. Due tothe close observation, BH can give instant information to the
buyer where buyers can take preventive measure as soon as possible.

Market analysis:

The production country’s market updates are one of the major concerns of a fast- growing buyer.
They always want to know about production country’s political situation, labor law, review of
the worker salaries, yarn price, accessories price, fabric price, lead-time, the future of the
business, FDI (foreign direct investment) and many other issues related to production. But all
time it’s not covered by the international media, international media always cover the most
significant issues. But buyer needs a regular update about the production country because it is
fully related with their next budget planning so the local buying house is main player who play a
vital role in the Bangladesh RMG sector for the foreign buyers.

Order collection from the buyer,

Finding good suppliers (local factory) to complete the order,

Order processing from local factories,

Making product development samples for buyers,

Contacting buyers for necessary approvals,

Forwarding all the comments and approvals to the factories,

Follow-up order processing according to buyers demand,

Maintain desired product quality from sample to production,

Should follow inspection terms and conditions according to buyers demand,

Shipping the goods.

Difference between Multinational buying house and Local buying house

Multinational buying houase

 Cross culture
 Fomal communication
 They provide Worker compension
 Motivation increase
 Analysis organizing
 Quality Assurance
Local buying house

 Local culture
 Local communication
 They don’t provide worker compension
 Motivation not increasing
 No Analysis
 Quality control

Conclusion : RMG sector of Bangladesh has a new slogan: “$50 billion by 2021.” It’s not a
dream vision for the country. The country has enough ability to achieve this goal. We are hoping
to reach $50bn in exports by 2021, the 50th anniversary of the Republic of Bangladesh. To
achieve this milestone-buying house will play a significant role by collecting many orders from
the world’s top garments buyers. Finally, we can say manufacturers and buying house bonding is
more important to enhance garment business in any country. Buyers and manufacturers distance
can minimize through buying house performance. One is appropriate for others to alive in the
adverse fashion world.