GARMENTS MERCHANDISING

Prepared By :

Prepared By : Mazadul Hasan sheshir

ID: 2010000400008
13th Batch (session 2009-2013)
Department : Wet Processing Technology
Email: [email protected]
Blog : www. Textilelab.blogspot.com (visit)

Southeast University
Department Of Textile Engineering
I/A 251,252 Tejgaon Dhaka Bangladesh
Total Textile Process at a Glance
Introduction
The “Merchandising” is known to the persons specially involved in
garments trade. The term merchandising has been derived from the
merchandise. Merchandise means goods that are bought & sold.
The term “Merchandiser” may be defined as Person who merchandises
the goods, specifically for export purposes. Garments merchandising
means buying raw materials & accessories, producing garments,
maintaining required quality level and exporting the garments within
schedule time.

Merchandising is the business art of matching goods to the needs and

preferences of customers to ensure shelf off take. How a product is
presented, how much is displayed, and in what form, size shape, color,
etc. can determine the rate of speed at which a product is bought.
In other words merchandising is the marketing activity responsible for
ensuring a product’s “desirability”, both qualitatively and
quantitatively. This means that at the store end, your product has to be
perceived as “just right” by your market. It is a whole lot of psyche
satisfaction. The personnel who acts the merchandising activities is
called “Merchandiser”.
Objectives of Garments Merchandising

1. To try to get garments order inquiry from buyer

through various sources.
2. To find out the consumptions of fabrics &
accessories.
3. To make costing on the garments inquiry.
4. Procurement of raw materials.
5. Follow up.
6. Regular correspondence with buyer, suppliers and
related personnel.
7. Help and follow up in commercial activities.
8. Arrange tests & inspections.
9. To do shipment.
 Work flow of Garments
Merchandising
 To collect buyers addresses.
 To establish contact with the buyers sending formal letters/profile.
 Receiving buyer’s response and providing price quotation along with making of sample as
counter/approval.
 Receiving samples comments from the buyer.
 Receiving Purchase Order from buyer.
 To furnish the pro-forma invoice and sending the buyer.
 Receiving the master L/C & verify clauses of the L/C both in technical and commercial point of view.
 To estimate time schedule for the exports of those garments as per L/C.
 To confirm floor booking of the order with factory.
 Taking necessary steps to develop lab-dips of the materials (FAB & ACC)
 To confirm transfer authentication of the L/C in favor of fact.
 Pushing the factory taking initial procurement to open the back-to-back L/C by bank.
 Searching reliable fabric and accessories sources and finalize supplying of the required materials
relevant to the order.
 To monitor the shipment of raw materials and arrival in the factory.
 To monitor of the supplying materials while receiving factory.
 To order the test cutting with quality.
 To check/inspect/advise for the bulk production.
 To monitor production, quality and delivery.
 To advise factory if buyer change any instruction both in technical/commercial point of view to the
order.
 To maintain continuous liaison with his or her controlling authorities.
 Arrange inspections.
 Sea vessel / air ship booking & insurance
 Shipment
Some Influential Buyer’s Name
 Lee Cooper
 Calvin Klein  Police Brand
 Tommy Hilfiger  U. S. Polo
 Armani Exchange  Massimodutti
 Dolce and Gabbana  Bershka
 Mark and Spencer  Pullandbear
 Zara  River Island
 Nike  Diesel
 Matalan  Austin Reed
 Primark  Blue Inc
 Ted Barker  ASOS
 PUMA  Ann Harvey
 Diesel  Jack Willis
 Levis  Topshop
 Boden
 Vera Wang  Debenhams
 Valentino  New Look
 Ralph Lauren  Lagos
 Max Mara  Trussardi
 Hugo Boss  Explosion
 Next  Ed Hardy
 H&M  Dsquared
 Lacoste  Sisley
 Gap  Aftershock
 Forever 21  Promod
 Forever New  Mango
 FCUK  La Senza
 Laura Ashley  Karen Miller
 House of Fraser  Esprit
 Tesco
Different Types of order placed
by buyers

 FOB(free on board) Order

 FOA(Free on Air) Order
 C& F(Cost & Freight) Order
 CIF(Cost Insurance & Freight) Order
 CIFC(Cost Insurance & Freight &
Commission) Order
 FOB: This is the export term of delivery and price quotation. The sellers
send the goods for export and deliver them on ship. The risk is passed from
seller to buyer when the goods are loaded in the ship at the port of
departure. The buyer paid the freight charges. The seller doesn’t include the
freight charge with his costing.

 FOA: The supplier delivers the goods to the air Carrier at the air port of
departure, the buyer bear the risk from that moment and pays the air
transport cost. The seller bears the cost of materials and making, doesn’t
include air freight.

 C&F: The sellers send the goods for export & pay the freight charge and
deliver them on ship. The risk is passes to the buyer when the goods are left
the port of departure as buyer recommends the shipping line.

 CIF (Cost Insurance & Freight): The seller ensures the goods against
loss and damage at his own cost.

 CIFC(Cost Insurance & Freight & Commission) : The seller includes the
cost of insurance, freight and commission for local buying house.
TIME AND ACTION CALENDAR

Normally merchandisers prepare a plan in a

spreadsheet listing down key processes in
one column and planned date of action for
each process is noted in another. This
planning sheet is called time and action
calendar. Once TNA calendar is made,
merchandiser can easily list down her daily
'to do list' for the day and start doing work
one by one. According to TNA schedule
processes are executed on daily basis to
track whether an order is on track or
getting delayed.
T&A Calendar
SAMPLE
The samples decide the ability of an exporter.
The buyer will access the exporter and his
organization only by the samples. If the samples
are of good quality and with reasonable price
naturally the buyers will be forced to place the
order. So it is essential that the samples should
be innovative and with optimum quality. The
purpose of sampling is not only to get bulk orders
and also give some additional benefits to the
exporters. By doing sampling the exporter can
estimate the yarn consumption for developing
the fabric, a clear idea on costing more ever the
manufacturing difficulties.
Types of Sample
 Salesmen samples or promotional
samples
 Proto samples
 fit samples
 Pre-production samples
 Size-set sample
 Production samples
 Shipment samples
 Proto Sample: This samples are proto type of new design created by
designers. This is the first sample in product development stage. Proto
sample is made to communicate the design of a style or a line or to present
garment structure. In proto samples fit and fabric detailing is not been
considered.

 FIT Sample: Once proto sample is approved, FIT is being made with actual
measurement. Modification on the pattern is done to get desired fit of the
garment. FIT is one of the most important factor to be considered during
sample development. FIT sample is being tested on live model or Dress form
for to verify garment fit and fall.

 Salesman Sample: Salesman samples are made to put on display in the

retail showroom. Salesman sample (SMS) are displayed for assessing
customer's feedback and according to customers response buyers forecast
demand of an particular style. Sales samples are made with actual fabric and
trims and accessories. Buyer pays for salesman samples to the developer.
 Size set Sample: The purpose of the size set is to check fit of the garment
in different sizes. In this stage factory develops samples in multiple sizes.
Generally, buyers ask size set sample in jump sizes, like S, L, XXL. Buyer
check size set sample and give feedback to factory if anything need to be
corrected.

 Pre-production Sample: All the above samples are made in sampling

department. Buyer wants pre-production sample (PP sample) to be made in
actual production line, so that operators know what are they going to make.
This sample is made with actual fabric, trims and accessories and made by
sewing line tailors. PP sample must be approved by buyer or buying house
merchants (technical persons) prior to proceeding actual production.

 Shipment Sample: When style is being finished and packed for shipment,
2-3 finished and packed pieces with all packing details are kept for future
reference. Shipment sample is kept by factory merchants and buyer's
merchant. The approved shipment is sent directly to warehouse and
merchants at the buyer do not get garment out of the shipment. That is why
they keep shipment sample for future reference.
Consumption & Costing

Knit garments consumption:

Fabric Consumption:

Before calculate the fabric consumption, we must

need the followings information as mentioned below:

1) Measurement chart with technical spec.

2) Style Description.
3) Fabric Description.
4) Fabrics width/weight.
5) Washing shrinkage if any.
Calculation:

{(Body length + Sleeve length +

Sewing Allowance) X (1/2 Chest
+ Sewing Allowance)}X 2 X GSM X 12
/ 10000000 + Wastage (For 12 pcs of
garments)
Woven Garments Consumption:

Fabric Consumption:

Formula = Length X Width / Fabric width X Fabric

Unit
Cost of Manufacturing (CM) Calculation:

COST OF MAKING (CM) ={(Monthly total expenditure

of the following factory / 26) / (Qty of running Machine
of your factory of the following month) X (Number of
machine to complete the layout)} / [{(Production
capacity per hr from the existing layout, excluding
alter & reject) X 8}] X 12 / (Dollar conversion rate)
CBM calculation:

The cubic volume occupied by a shipment in Cubic

Meters is referred to as the shipments CBM. To
calculate CBM we first need to know the length, width
and height of the carton in cm. If carton measurement
is in inch, we have to convert measurement in inch.
Simply multiply length, width and height to find cubic
centimeter and divide by 1000000 to find cubic meter
(CBM). formula as follows:

CBM= (LENGTH in cm X WIDTH in cm X HEIGHT

IN cm/1000000)
BOOKING
Booking is the order sheet given from
the manufacturer to the suppliers.
After getting the master LC from the
buyer the manufacturer,
Merchandisers are supposed to make
the booking and send the suppliers.
By booking merchandisers procure
the raw materials e.g. fabric,
accessories and trims.
Fabric booking:

Knit fabric booking is done mentioning the

following criteria:

Composition: 100% cotton, 95% cotton

5% spandex etc
Construction: S/J, 1x1 rib etc
GSM: 140 gsm, 180 gsm etc
Quantity in Weight: e.g. 5000 kg
Color: Red, White, Blue etc
Fabric Booking
Woven fabric booking is done mentioning
the following criteria:

Composition: 100% cotton, 95% cotton

5% spandex etc
Construction: e.g. 40 X40 /120 X 60
Width: e.g. 44”, 46”
Quantity in length: e.g. 10000 yards
Color: Red, White, Blue etc
Accessories Booking
Follow up and updates
Regular and timely follow ups are important
to ensure that everybody involves in the
execution of the style is updated and is
performing his / her activities on time.

A merchandiser should plan his / her day

based on the time and action activities that
are due for the day. Ideally the
merchandiser should look at the activities
the are due for the coming 2-3 days and
should start his follow up accordingly.
Merchandiser’s follow up tasks:

1. Product Package Analysis for Merchandising Follow up and

Procurement Planning.
2. Preparation of Time and Action Calendar for Merchandising Follow
up.
3. Follow up of all BB L/C on receipt of Master L/C in respect of Yarn,
Knitting, Dyeing, Printing, Embroidery, Value-addition works and
Accessories.
6. Follow up of Procurement of Yarn. Fabric and accessories.

8. Follow up of Lab-dip Preparation, Submission and Approval.

10. Follow up of Dyeing, Finishing.
11. Follow up Cutting in respect of Production and Finishing
requirement.
12. Follow up of Accessories Development, Submission, Approval,
Procurement and Inventory.
13. Follow up of all Samples, Pattern Correction, Graded Nest, Size Set
and arrangement of Pre-production Meeting.
14. Follow up and Arrangement of all Inspection as per Buyer’s
requirement.
15. Follow up of all Lab-Test of Garments and Accessories.
16. Monitor Final Inspection and Transportation of Cargo to Port with
proper Load Calculation on time.
17. Monitor submission of Documents and Realization of Payment as
per shipped qty and approved price.
INSPECTION
After making of the garments,
merchandisers are supposed to
arrange pre-final and final inspection.

Inspection can be carried out in several

ways:
 Inspection by buyer
 Inspection by buying house
 Inspection by third party
Third party inspection companies:

 ITS
 SGS
 Bureau Veritas
 TUV SUD
 CTL etc.
AQL:

AQL is Acceptable quality limit. A statistical

measurement of the maximum number of defective
goods considered acceptable in a particular sample
size. If the acceptable quality level (AQL) is not
reached for a particular sampling of goods,
manufacturers will review the various parameters in
the production process to determine the areas
causing the defects. AQL chart is used to inspect
garments.
Commercial documents
 Proforma invoice (PI)
 Purchase order (PO)
 Bill of lading
 Insurance document
 Certificate of origin
 Packing list
 Air way bill
 Commercial invoice etc
Payment
Methods of Payment:
 Cash-in-Advance
 T/T
 Letter of Credit
 Open Account
Cash-in-Advance

With this payment method, the exporter can avoid credit risk, since
payment is received prior to the transfer of ownership of the goods. There
are three types of cash- in advance- payment method: wire transfer, credit
card, and payment by check.

Letters of Credit

Letters of credit (LCs) are among the most secure instruments available to
international traders. An LC is a commitment by a bank on behalf of the
buyer that payment will be made to the exporter provided that the terms
and conditions have been met, as verified through the presentation of all
required documents. The buyer pays its bank to render this service. An LC is
useful when reliable credit information about a foreign buyer is difficult to
obtain, but you are satisfied with the creditworthiness of your buyer’s
foreign bank. An LC also protects the buyer since no payment obligation
arises until the goods have been shipped or delivered as promised. The
letters of credit can take many forms: irrevocable or revocable,
confirmed, or special (transferable, revolving or standby).
Documentary Collections

A documentary collection is a transaction whereby the

exporter entrusts the collection of a payment to the
remitting bank (exporter’s bank), which sends documents to
a collecting bank (importer’s bank), along with instructions
for payment. Funds are received from the importer and
remitted to the exporter through the banks involved in the
collection in exchange for those documents. Documentary
collections involve the use of a draft that requires the
importer to pay the face amount either on sight (document
against payment—D/P) or on a specified date in the
future (document against acceptance—D/A).
Open Account

An open account transaction means that the goods

are shipped and delivered before payment is due,
usually in 30 to 90 days. Obviously, this is the most
advantageous option to the importer in cash flow and
cost terms, but it is consequently the highest risk
option for an exporter. Due to the intense competition
for export markets, foreign buyers often press
exporters for open account terms since the extension
of credit by the seller to the buyer is more common
abroad. Therefore, exporters who are reluctant to
extend credit may face the possibility of the loss of
the sale to their competitors.
Conclusion
Merchandising is undoubtly the most
impostant section of a garments
industry. Merchandisers coordinates
between all the sections. So a good
garments merchandiser should have
concepts about every section of the
textile.
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