The word came from the work “Merchandise” meaning selling and buying product. Merchandising involved with trade (buy & sale). The term merchandising may be defined as the person who merchandise goods especially for export purpose. Garment merchandising means buying raw materials and accessories, producing garments, maintaining required quality level and exporting the garments within schedule time. Garment merchandising involved in garments trade. In the other way Merchandising may be defined as- Person who merchandises the goods, specifically for export purposes.
Flow sequence of merchandising section:
Received PDF sheet (order details)
Consumption
Costing
Negotiation with buyer
Order received
L/C received
Back to back L/C opening
Purchase fabric & accessories
Time and action setting
Approved sample for bulk production
Related work to production planning
Start bulk production
Inspection
Handover to buyer nominated agents
Current Buyer:
1. S.oliver Overseas Ltd.
2. H & M (Hennes & Mauritz)
3. Fruit Of The LOOM(RUSSEL EUROPE)
4. NEXT SOURCING LTD
5. OTTO
6. KappAhl
7. Carrefour
8. Kappa
9. Speedo
10.ZXY
11.Texebo
12.Zara
Terms of Garment Merchandising:
v Order confirmation by negotiation
v Buying raw materials and accessories
v Producing garments
v Maintaining required quality level
v Export the garments within schedule time.
Garment merchandiser must have a wide knowledge and skills to perform his/ her job successfully. The job itself is Technical and general as well.
Qualities of Merchandiser:
Ø Good command and communication skill in English.
Ø Good knowledge about Yarn, Fabric, Dyeing, Printing, Finishing, Dyes, Color, Fastness, Garments production, etc.
Ø Clear concept at usual potential quality problems and garments manufacturing.
Ø Good knowledge about usual raw materials inspection system and garments inspection system.
Ø Good knowledge about compliance, buyer’s code of conduct, Warp, International human rights, Core ILO conventions and various standards.
Ø Good knowledge about quota system and category countries, duty rate, custom regulations, shipping and banking documentations.
Roles and responsibilities of a Merchandiser:
When an export order is placed to a merchandiser, he has to schedule the following main functions to execute the export order perfectly in time (schedule)…
1.Fabric requirement calculation (consumption).
2.Accessories requirement, calculation (Example, Thread, button, interlining, label, poly bag and cartoon etc).
3.Sourcing of fabrics.
4.Sourcing of accessories.
5.Production follow-up with fabric and accessories, be possible date of arrival of fabric and accessories in garment factory.
6.Costing of garments.
7.Garment analysis and production planning.
8.Performa making, swatch making and distribution to the production unit and quality concern people.
9.Pre-shipment inspection schedule.
10.Shipment documents
11.Have to prepare proper time and action plan
12.Arranging shipping documents and final inspection.
Execution process for garment export:
Ø Order inquiry from buyer to factory.
Ø Approval of order from Buyer, as per the costing given by the Merchandiser.
Ø Buyer Bank gives master L/C to the factory. Commercial dept deals with the follow up of L/C matters.
Ø B/B. L/C is given to the suppliers of accessories and fabric, etc.
Ø Fit sample sent to the Buyer for fit approval.
Ø Pre-Production sample submitted to Buyer with original accessories and fabric.
Ø Fabric and trims to be in housed on due time as per time and action plan.
Ø Pilot production to be started as per time and action plan. (Pilot production or initial production can consist of 100 to 200 Pcs.
Ø Online inspection by buyers Q.C certifies the quality of the garments.
Ø Bulk production to be started, as per the time and action plan.
Ø In the main time commercial section, prepare the shipping documents
Ø Final inspection as per time and action plan (after final inspection ok).
Ø Goods are made ex factory.
Ø Goods handed over to the shipping line (Sea shipment)
Ø Goods will reach to buyer port.
Ø Cost of fabric is to USA $.
Merchandising chronological processes:
Ø 1st pattern (first sample)
Ø 2nd pattern (second sample)
Ø Approved sample and counter sample (three place)
Ø Sales man sample (for sale every chain store can take 20)
Ø Photo / proto type sample (original fabric & accessories are made)
Ø Size set sample
Ø Pre-production sample (production running in that time merchandiser take)
Ø Production sample
Ø Shipping sample (before shipping merchandiser takes some sample)
Fabric Consumption
The quality of fabric which is required to produce a garment is called consumption.
Cost calculation
Cost is divided in to…
Pre- cost ------- merchandiser
Final costing -------- merchandiser + import section
Cost = Manufacturing cost
Costing = Cost + Profit
Costing of Garments in FOB
Costing of a garment for example in a shirt:
1. Fabric costing
2. Garment accessories
3. Button
4. Interlining
5. Label
6. Thread
7. Collar bone
8.Hang tag / price tag
9. Finishing accessories
10. Poly bag
11. Plastic clip
12. Gum Tape
13. Neck board
14. Tag pin
15. Sticker
16. Butterfly
17. Collar insert
18. Back board
19. Neck insert
20. Scotch Tape
21. PP belt
22. Carton
23. Worker charge
24. Washing charge (if garment wash needed)
25. Commercial and transportation cost
26. Cost of Making (profit margin is the distortion of the exporter) + 10% profit margin.
Price quotation for Buyer
There are following process for fixation price…
a. Exporter does not bear the cost of freight of ship
b. It is buyer who bear the freight
a. Exporter does not bear the cost of freight of air
b. It is buyer who bear the freight
C & F (Cost & Freight)
Free on board + freight = C & F
In this case ship or air freight is carried by the exporter while quoting price
This price higher than FOB
CIF (Cost, Insurance & Freight)
C & F + Insurance = CIF
In this case in addition to the bearing of freight, the cost of insurance is also borne by the exporter
a. Manufacturer will get only making charge of those garments
b. Manufacturer doesn't get the trimming cost and fabric cost
Types of papers required for making document in export process
Commercial invoice
Packing list
Weight list
Bill of loading.
Flow sequence of merchandising section:
Received PDF sheet (order details)
Consumption
Costing
Negotiation with buyer
Order received
L/C received
Back to back L/C opening
Purchase fabric & accessories
Time and action setting
Approved sample for bulk production
Related work to production planning
Start bulk production
Inspection
Handover to buyer nominated agents
Current Buyer:
1. S.oliver Overseas Ltd.
2. H & M (Hennes & Mauritz)
3. Fruit Of The LOOM(RUSSEL EUROPE)
4. NEXT SOURCING LTD
5. OTTO
6. KappAhl
7. Carrefour
8. Kappa
9. Speedo
10.ZXY
11.Texebo
12.Zara
Terms of Garment Merchandising:
v Order confirmation by negotiation
v Buying raw materials and accessories
v Producing garments
v Maintaining required quality level
v Export the garments within schedule time.
Garment merchandiser must have a wide knowledge and skills to perform his/ her job successfully. The job itself is Technical and general as well.
Qualities of Merchandiser:
Ø Good command and communication skill in English.
Ø Good knowledge about Yarn, Fabric, Dyeing, Printing, Finishing, Dyes, Color, Fastness, Garments production, etc.
Ø Clear concept at usual potential quality problems and garments manufacturing.
Ø Good knowledge about usual raw materials inspection system and garments inspection system.
Ø Good knowledge about compliance, buyer’s code of conduct, Warp, International human rights, Core ILO conventions and various standards.
Ø Good knowledge about quota system and category countries, duty rate, custom regulations, shipping and banking documentations.
Roles and responsibilities of a Merchandiser:
When an export order is placed to a merchandiser, he has to schedule the following main functions to execute the export order perfectly in time (schedule)…
1.Fabric requirement calculation (consumption).
2.Accessories requirement, calculation (Example, Thread, button, interlining, label, poly bag and cartoon etc).
3.Sourcing of fabrics.
4.Sourcing of accessories.
5.Production follow-up with fabric and accessories, be possible date of arrival of fabric and accessories in garment factory.
6.Costing of garments.
7.Garment analysis and production planning.
8.Performa making, swatch making and distribution to the production unit and quality concern people.
9.Pre-shipment inspection schedule.
10.Shipment documents
11.Have to prepare proper time and action plan
12.Arranging shipping documents and final inspection.
Execution process for garment export:
Ø Order inquiry from buyer to factory.
Ø Approval of order from Buyer, as per the costing given by the Merchandiser.
Ø Buyer Bank gives master L/C to the factory. Commercial dept deals with the follow up of L/C matters.
Ø B/B. L/C is given to the suppliers of accessories and fabric, etc.
Ø Fit sample sent to the Buyer for fit approval.
Ø Pre-Production sample submitted to Buyer with original accessories and fabric.
Ø Fabric and trims to be in housed on due time as per time and action plan.
Ø Pilot production to be started as per time and action plan. (Pilot production or initial production can consist of 100 to 200 Pcs.
Ø Online inspection by buyers Q.C certifies the quality of the garments.
Ø Bulk production to be started, as per the time and action plan.
Ø In the main time commercial section, prepare the shipping documents
Ø Final inspection as per time and action plan (after final inspection ok).
Ø Goods are made ex factory.
Ø Goods handed over to the shipping line (Sea shipment)
Ø Goods will reach to buyer port.
Ø Cost of fabric is to USA $.
Merchandising chronological processes:
Ø 1st pattern (first sample)
Ø 2nd pattern (second sample)
Ø Approved sample and counter sample (three place)
Ø Sales man sample (for sale every chain store can take 20)
Ø Photo / proto type sample (original fabric & accessories are made)
Ø Size set sample
Ø Pre-production sample (production running in that time merchandiser take)
Ø Production sample
Ø Shipping sample (before shipping merchandiser takes some sample)
Fabric Consumption
The quality of fabric which is required to produce a garment is called consumption.
Cost calculation
Cost is divided in to…
Pre- cost ------- merchandiser
Final costing -------- merchandiser + import section
Cost = Manufacturing cost
Costing = Cost + Profit
Costing of Garments in FOB
Costing of a garment for example in a shirt:
1. Fabric costing
2. Garment accessories
3. Button
4. Interlining
5. Label
6. Thread
7. Collar bone
8.Hang tag / price tag
9. Finishing accessories
10. Poly bag
11. Plastic clip
12. Gum Tape
13. Neck board
14. Tag pin
15. Sticker
16. Butterfly
17. Collar insert
18. Back board
19. Neck insert
20. Scotch Tape
21. PP belt
22. Carton
23. Worker charge
24. Washing charge (if garment wash needed)
25. Commercial and transportation cost
26. Cost of Making (profit margin is the distortion of the exporter) + 10% profit margin.
Price quotation for Buyer
There are following process for fixation price…
- FOB (Free on Boat)
a. Exporter does not bear the cost of freight of ship
b. It is buyer who bear the freight
- FOA (Free on Air)
a. Exporter does not bear the cost of freight of air
b. It is buyer who bear the freight
C & F (Cost & Freight)
Free on board + freight = C & F
In this case ship or air freight is carried by the exporter while quoting price
This price higher than FOB
CIF (Cost, Insurance & Freight)
C & F + Insurance = CIF
In this case in addition to the bearing of freight, the cost of insurance is also borne by the exporter
- CM (Cost of Making)
a. Manufacturer will get only making charge of those garments
b. Manufacturer doesn't get the trimming cost and fabric cost
Types of papers required for making document in export process
Commercial invoice
Packing list
Weight list
Bill of loading.
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