Presentation Garments Merchandising

University of South Asia
Koushik Kumar Dash
ID: 161-0202-020
34th Batch (Eve)

1. Faculty of Science & Engineering
Department of Textile Engineering
B.Sc. in Textile Engineering Examination-2018
Project Title:
Study on Garments Merchandising
Prepaid by:
Koushik Kumar Dash
161-0202-020
Batch: 34 (Eve)

2. “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”.

3. “Merchandising”
Merchandising is a business on
marketing activities responsible for
ensuring a products description
both quality and quantity.
Merchandising means total
responsibility of a Merchandiser.

4. “Merchandiser”
A man who collects order from customer sourcing raw
materials production on time with quality and maintains lead
time.
“Hidden meaning of a merchandiser”
M-Should have good Managerial capacity.
E-Efficient in both English written and spoken.
R-Having high sense of Responsibility.
C-Always keep commitment.
H-Leads Honest life.
A-Attitude should always be positive in resolving any problem.
N-Never does any argue with buyers and seniors.
D-Fully Devoted to his service.
I-Always well Informed about his all orders.
S-Sincere in office and daily works.
E-Enthusiastic in nature.
R-Regular in e-mail correspondence.

5. “Types of merchandising”
Two kinds of merchandising are practiced in the
export of garment units.
Marketing merchandising
Product merchandising
The main purpose of marketing merchandising is
product development and costing of the same.
Product merchandising comprises all the
responsibilities from sourcing of materials to
dispatching of finished goods and is done in the
garment unit itself.

6. “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.

7. “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

8. “Qualities of merchandiser”
Planning capability: Merchandiser must be competent enough to plan theactivities
based on the order that is to be followed. Otherwise, it will directly affect the delivery
time of the order.
Decision making: It is a very important quality required for themerchandiser to
deliver the product on time to buyers.
Communication skills: Oral as well as written communication areimportant to
endorse the business activity as well as to have a good relationship with the buyers.
Loyalty: It is a crucial character of human beings, particularly for businesspersons.
Technical knowledge about the field: The merchandiser must haveample
knowledge about the garment production activities, and technical knowledge to
communicate with different levels of persons in the apparel industry.
Coordinate and cooperate: The merchandiser is the person whocoordinates with
the various departments in an apparel industry to get the job done.
Monitoring ability: He or she must supervise the various activities indifferent
departments to speed up the orders to dispatch it on time to the buyers.

9. “Responsibilities of The Merchandisers”
Costing
P.I. Issue
L/C Open Follow Up
Daily Correspondence Check
File up date
Lab Dip Approval
Fit Sample Follow Up
P.P sample Follow up
Attend to PP meeting
Test Sample Follow Up
Production Sample Follow Up
Fabric & Trims Booking
Fabric & Trims L/C Follow Up.
Trims Approval
Packing Approval
Bulk Fabrics Approval
Fabric Shade Approval
Print Approval
Embroidery Approval
Wash Approval follow up
All Approval Check
Fabric & Trims in House Follow Up
Fabric & Trims Inventory Report
Production File Follow Up
Production Follow Up
Final Inspection
Shipment Model Follow Up.
Ship Document/ Booking Follow Up
Payment Follow Up 30. Cost Analysis

10. “ORGANOGRAM OF MERCHANDING DEPARTMENT”
Merchandiser General Manager
Merchandiser Manager
Senior Merchandiser
Merchandiser
Assistant Merchandiser
Junior Merchandiser
Trainee Merchandiser

11. 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

12. ❖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.

13. “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.

14. “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.

15. “Types of Sample”
➢Salesmen samples or promotional
samples
➢Proto samples
➢Fit samples
➢Pre-production samples
➢Size-set sample
➢Production samples
➢Shipment samples.

16. ➢Salesman Sample: Salesman samples are made to put on display in theretail
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.
➢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.
➢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.

17. ➢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.
➢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.

18. “Order Execution Process”
❑Order enquiry from buyer to factory,
❑Approval of order from the buyer,
❑Buyer bank given master L/C to the buying house,
❑Back to back (B/B) L/C is given to the suppliers,
❑Fit sample sent to the buyer for the fit approval,
❑Pre-production (P.P) sample submitted to the buyer,
❑Fabrics and accessories should be in-housed according to
T/A plan,
❑Pilot production should be started according to T/A plan,
❑Online inspection by the buyers Q.C,
❑Bulk production should be started according to T/A plan,
❑Commercial department prepares the shipping documents,
❑Final inspection according to T/A plan,
❑Goods sent to port (Sea port or airport),
❑Goods handed over to the shipping line.

19. “Consumption & Costing”
•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.

20. “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.

21. “Fabric booking”
•Knit fabric booking is done
mentioning the following criteria:
Composition: 100% cotton, 95% cotton
5% spandex etc Construction: S/J, 1x1 rib
etcGSM: 140 gsm, 180 gsm etc Quantity
in Weight: e.g. 5000 kg Color: Red,
White, Blue etc

22. “Basic Test requirements on garments”
Measurementtest
Fabricconstructiontest
Dimensionalstabilitytest
Fibercontenttest
YarnCounttest
Tearstrengthtest
Weightofmaterial
GSMtestofthefabric
Shrinkagetest
Colorfastnesstest
Rubbingfastness(dryandwet)
Colorbleedingtest
Pillingtest
Azotest
Nickeltest
Leadtest
Magnettest
PHTest
Testsforcare&washinstruction

23. “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

24. Third party inspection companies:
ITS
SGS
Bureau Veritas
TUV SUD
CTL etc.

25. 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.

26. “Commercial documents”
➢Proformainvoice (PI)
➢Purchase order (PO)
➢Bill of lading
➢Insurance document
➢Certificate of origin
➢Packing list
➢Air way bill
➢Commercial invoice etc

27. “Payment”
Methods of Payment:
❖Cash-in-Advance
❖T/T
❖Letter of Credit
❖Open Account

28. “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.

29. “Conclusion”
Merchandising is undoubtly the most
impostantsection of a garments
industry. Merchandisers coordinates
between all the sections. So a good
garments merchandiser should have
concepts about every section of the
textile.

30. THE END