Introduction:

Merchandising is the methods, practices and operations used to promote and sustain certain
categories of commercial activity. This is the art or buying or selling the products or
merchandise.
In Bangladesh, the concept of merchandising mostly refers the apparel clothing merchandising.
Here the merchandise is the finished packed garment which could be tops or bottoms in formal
wear, casual wear or intimate wear, also keep in consideration for home textiles, terry towels etc.
In merchandising, your role could be buying the merchandise or selling it to your buyer to keep
live the supply chain.

Merchandisers are serious in the success of any garment retail business.

They provide the right products at the right time, enabling a company to match with latest
market trends and meet the market demand. In the merchandising concept, time
management is a gig to manage ones time properly, so s/he can focus on value adding
actions.

The Merchandiser
An individual, who acts as a coordinator, follows-up and takes total responsibility of an order
form booking to shipment and beyond, for the customer who placed it and for his companys
management.
Duties & Responsibilities of Marketing Officer:
Dealing with the buyer & convincing the buyer is the main duty of marketing officer. A
marketing officer also has some other duties.
The main duties & responsibilities of a marketing officer are given bellow

To prepare cost sheet by dealing with the buyer.

To take different steps by discussing with the high officials & merchandisers.
To maintain a regular & good relationship between commercial officers &
merchandisers.
To maintain communication with the buyers and buying houses.
Communicate with better knowledge of the products.

Actually the responsibilities & duties of marketing officer begin from getting order of buyer &
ends after receiving payment by the buyer. So, he should be always smart, energetic & sincere.
Merchandising Management system:
Buyer sends an order copy by e-mail or sometimes swatch also.

E-mail is taken hand from (Order copy)

The measurement of various parameters are inserted by coding number in the order copy like

Quantity of garments,
Yarn type,
Count,
Fabric type,
Color,
Body measurement,
Shipment date etc.

Before ultimate order a development sample is sent to buyer.

Then OK the sample then price is executed.
After getting the order then a color lab-dip is done
Lab-dip is approved
Sampling is carried out.
The sample is sent to buying house to check.
After approved the sample then accessories
and fabrics are booked.

Finally shipment is done after all clearance.

The merchandiser basically follows up with all concern production departments for their
ordered products.
The major functions/steps of a merchandiser:
1.
2.
3.
4.
5.

Procuring the garments order.

Procuring the raw materials.
Production of garments.
Shipments of garments.
Receiving of payment for garments.

The steps are shown as diagramacally:

Buyer Confirms an order to a Factory

Production planning and pre production meeting:

Initial planning is prepared by the merchandising department when the order confirmed.
Based on the sample approval and shipment date, the production department makes the
planning of the production only.
The planning is done following the styling of the product and the machine lay out to
calculate the number of pieces production per hour.
Before production commence, pre production meeting is necessary with all concerned
departments to get the correct productions.

Production: sample development, planning, quality control and inspection (AQL)

Quality Control and Inspection [AQL]:

Customer wise the quality requirement will get vary and merchandisers are responsible to
communicate with customers to get the correct quality requirements and need to coordinate with factory quality control department so that they will well understand the
requirement and can take care of the bulk productions.

Inspections are done during production which is called in line inspection. Later the final
inspection done by the factory QC as well as buying office QC to make sure that the final
products is shipping with right quality.
Mentioned that, the right quality not good quality as the quality refers to
customers requirement.

Costing/Pricing

Costing is the principal task of any merchandisers.

Methods of Pricing:
Calculate the fixed and variable costs associated with the product.
Also below cost elements need to consider during costing.
~ Pricing for Fibers & Yarns
~ Pricing for fabric manufacturing
~ Pricing for garment manufacturing
~ Cost of accessories
~ Commercial cost
~ Break even point
~ Consumption of fabric and accessories with wastage percentage.
~ Total cost analysis [how much does it cost to provide merchandise to end

customer

Standard, Measurement spec sheet/Product pack

Standards are provided by the customer and it could get vary from customer to customer.
Merchandisers need to study the standard very carefully.
If any issues with any part of customers standard, this need to be share with customer before
order confirmation
Each style will be briefed with a product pack and all necessary information will be mentioned
there along with measurement sheet.
Example: If the tolerance limit in measurement specs is too low compare to production
feasibility, merchandisers need to inform this to buyer before order confirmation and need to
settle down the acceptable tolerance limit by both parties.
Commercial

LC: Letter of Credit- Once the order is confirmed, buyers bank issues a Letter of Credit
(LC) to the manufactures Bank.n With this LC, manufactures can start procurement of
yarn, fabric, accessories etc necessary for particular order execution.
If the LC delayed from buyers end, it will impact on the delivery date and
merchandisers need to follow this up with buyer to get the LC for on time delivery.

Back to Back L/C: To procure the yarn, fabric and accessories, suppliers need to open
another LC for secondary suppliers bank based on the master LC. This secondary
suppliers LC is called back to back LC.

UD [Utilization declaration]

UD-[Utilization declaration] suppliers need to submit master LC, back to back LC, bank
certificate, BTMA certificate of yarn, Invoice of the yarn to get the UD from
BGMEA/BKMEA. And to get the GSP form A, suppliers need to submit the UD and
other necessary documents to EPB.
This UD is mainly for the yarn procurement to show that the suppliers have procured
the yarn for those particular orders.

Remarks:
The Rupashi Knit wear Industries Ltd. has an energetic and motivated marketing &
merchandising team. There are five strong merchandising units are working. The particular unit
works for particular buyer. They are always in communication with the buyers. The marketing
section also looks after the quality & quantity requirement of the buyers.

3.1 CONCEPT OF MERCHANDISING:

The term merchandising is well known to the person specially involved in garments trade. The
term merchandising has been derived from the term merchandise. Merchandise means goods
that are bought and sold. The term merchandiser may be defined as the person who merchandises
the goods especially for export purposes. Garments merchandising means buying raw materials
and accessories, producing required garments, maintaining required quality level and exporting
the garments within schedule time frame.
3.2 MAJOR RESPONSIBILITIES OF A MERCHANDISER ARE GIVEN BELOW:
1.
Order
2.
3.
4.
Calculating
5.
Calculating
costing
6.
Monitoring
7.
Product
8.
Liaison
with
Buyers
9. Factory Scheduling
3.3 QUALITY OF A MERCHANDISER:

Yarn/Fabric
of
Quality
Customers

sourcing/supplies
Negotiation
Production
consumption
the
product
aspect
development
&
Factory

From the above definitions we can assume that a person involved in garments merchandising needs
a wide range of knowledge and skill.
a). Good command of English and adequate knowledge of technical terms for accurate and
efficient communication.
b) Good knowledge of yarn , fabric , dyeing, printing, finishing , dyeing color fastness, garments
production etc.
c) Clear conception of the usual potential quality problems in the garments
manufacturing.
d) Good knowledge of the usual raw materials inspection systems and garments inspection
systems.
e) Knowledge of the quota system used in each of the producing countries , duty rate , custom
regulation, shipping and banking documentation etc.
3.4 FUNCTION OF A MERCHANDISER :
When an export order is placed to a merchandiser, he has to schedule the following main function
to
execute
the
export
order
perfectly
in
time
1.
Fabric
requirement
calculations.
2.
Accessories
requirements
calculation
3.
Sources
of
fabrics
4. Possible date of arrival of fabrics And accessories in the garments factory
5. Costing
6. Garments production planning
7. Pre shipment inspection schedule
8. Shipment document
All the main functions, mentioned above are important but the procurement of fabric and
accessories are most important as because there are many technical parameters involved,
specially in this area, in most cases collection of fabric for the garments is a major problem. To
procure a fabric, we should clearly specify the technical specification of the
fabric during placing a fabric supply order.
3.5 WHAT BUYERS LIKE OR DISLIKE IN A MERCHANDISER?
**
1.

What
Good

buyers
presentation:

like
Calculator,

in
Paper,

a
and

merchandiser?
Scale
etc.

2.
Manner:
Manner
should
be
polite,
good
Behavior,
3.
Time
Awareness:
You
should
be
punctual
4.
Knowledge:
About
product,
your
company
&
5.
Sensibility
To
the
needs:
Lessening,
6. Appearance: Smart Dress, Formal dress, and casual dress

Smart
talking
&
sincere
about
buyers
understanding

** What buyers dislike?

1. Poor sales presentation
2.
3.
4.
5. Poor knowledge

Unacceptable
Time
Un-smart

manner
wasting
appearance

3.6 PURPOSE OF MERCHANDISING:

1.
To
collect
order
from
2.
To
shipment
the
order
3.
To
follow
up
the
working
4.
To
determine
the
actual
price
of
5.
To
improve
the
quality
of
6.
To
increase
the
goodwill
of
7. To seek new buyers.

the
in
of
the
the
the

buyer.
time.
worker.
product.
product.
textile.

3.7 MERCHANDISING MANAGEMENT:

Merchandising management constitutes the most significant part of textile companies. A company
starts their activities by starting the activities of a merchandiser. When a company receives an
email from buyer, then the activities of a merchandiser start and a merchandiser always look after
all activities from production to shipment.
1.
Receive
email
of
the
buyer
or
buying
2.
Determine
the
actual
price
of
the
3.
Send
sample
of
the
4.
Ensure
a
good
quality
of
5.
Follow
up
the
production
6. Monitoring the payment.

house
product
product
product
process.

3.8 OBJECTIVES OF MERCHANDISING:

Efficient Management of merchandising should ultimately result in the maximization of sales of
products. In order to minimize cost
Stated differently that the objectives of merchandising management consist of two counterbalancing parts:

To maintain merchandising system for efficient and smooth production and sales
operations.
To maintain a minimum cost to maximize profitability.

These two conflicting objectives of merchandising management can also be expressed in terms of
cost and benefits associated with inventory. That the industry should minimize cost of product for
increasing more sales and more profit.
4.1 FORECASTING:
It is an important term for merchandising. At first a merchandiser has to decide in what type
product he will produce. There are various products in textile sector. After deciding the product
then he will start for order sourcing.
4.2 SOURCING OF BUYERS & ORDERS:
One of the prime jobs of merchandisers is sourcing international buyers and orders from them.
Sourcing buyers and orders is not an easy job. It requires skill, experience, acquaintance &
intelligence. There are hundreds and thousands of buyers sourcing fashion products from
throughout the globe. So sourcing takes place in two ways.
1. Buyers sourcing fashion products for their clients and markets.
2. On the other hand factories endeavor to source right buyers and right products for their
organization.
This match making is not so easy and comfortable matter. A factory has must adequate working
experience, good management system, safety and security system, workers welfare system and
compliance to get orders from foreign buyers. So prior to providing orders, buyers check the
vendor factory whether the concerned factory is right one to deliver them the goods they require.
The general rules that are followed by Bengal Leisure Wear Ltd. are as given below:
1.
2.
3.
4.

Compliance test
Streamlining all sorts of management systems in the factory.
Safety & security of the facilities and personnel.
Working sub-contracts for the buyers.

These checks and test gradually move from company to buyers and merchandisers of the Bengal
Leisure Wear Ltd. Submit catalogs, brochures, samples to the buyer due to grow the confidence of
concerned buyer about quality of the factory. Once the buyer is satisfied with the different aspects
of the factory, it may start providing orders to the factory.
In order to be successful in sourcing buyers, the following attributes are very important:
1.High quality product.
2.Shipment on time.

3.Short lead time.

4.Full buyers satisfaction.
5.Employee empowerment.
6.orporate social responsibility
7.All this attributes may lead to sourcing reputed buyers
8.A list of famous buyers operating in Bangladesh is given below_

4.3 Negotiations to the Buyers:

One of the most important competencies of a merchandiser is his ability to successfully negotiate
with a buyer or a supplier. With these skills he generally secures a successful order from a buyer
at right price and other terms and conditions on one hand. On the other hand he is able to place
order to a right supplier At a right cost and delivery schedule. The most important topics of
negotiations are generally fixing the price of the product. But the other issues include order
volume, lead time, delivery and payment terms.
4.3.1 Definition of negotiation:
The negotiation, also called bargaining, is a process of communication and trading of ideas
between two parties by which they make a series of demands and compromises so as to come to a
desired point of mutual acceptance so that both parties benefit from the transaction of business. It
is a series of communication and discussion, which may go very hard but running in a friendly
environment so as to come to a mutually beneficial position. The function of negotiation is not to
push the other party to defeat rather to work out a win-win solution so that both parties can transect
business with profit.
4.3.2 Why do we negotiate? :
We negotiate with a buyer or supplier for the following reasons

We want to secure an order from the buyer or place an order to a supplier.

We need to fix a cost/price of the product for mutual benefit

We require lowering the cost or increase price of the product.

We need to fix production and shipment plan.

We must determine payment terms and conditions mutually profitable or acceptable.

4.3.3 The negotiation process:

Of late, negotiation has become a science business open become successful or a failure due to the
success or failure of the negotiation technique. So a buyer or merchandiser or supplier must be
aware of the steps necessary for a successful negotiation.
1. We must adequately know the requirements of both the parties: A merchandiser must
well understand the requirements of the buyer, his organization & supplier. The buyer has
intended retail selling price in his mind. So merchandiser must have sufficient knowledge
of garments construction & standard time of product. He may put forward suggestions so
as to bridge up cost price and buyers target price, lead time, delivery schedules etc. are
issues which a merchandiser can use for fruitful negotiation. The status negotiation often
shows up in facial expressions, body languages and verbal reactions, which a merchandiser
must well observe for successful outcome of discussion. Merchandisers must listen to and
observe the negotiating parties so as to trade benefits own favor.
2.
Merchandisers must adequately prepare for the negotiation: Merchandiser must
properly prepare for meeting & trading the negotiation. There should be an agenda & time frame
for the meeting. Merchandiser must be fully aware of garment item to be negotiated, product price,
order quantity, leading time, freight, garments construction, fabric consumption, cutting, making,
charges for printing, embroidery, standard time for the garment etc. so that he is fluent about all
aspects of negotiation. Full preparations from the side of the merchandisers about al aspects help
come to a successful outcome very quickly. Merchandiser as a negotiator must have maximum &
minimum position in respect of the order, its price, delivery schedule, order volume etc.
3.
Discuss the offer: During discussion merchandiser must identify the position of the buyer
in respect of the offer and if necessary sets his boundary for farther negotiation. It is very mush
expected that different aspects of the offer may change during the course of the negotiation.
4.
Further discussion: at the stage each party weight proposals of the other party.
Merchandiser must care fully observe the tone and wording of the buyer, his facial expression and
body language interest or disinterest and where the final boundary of the buyer lies.
5.
Final or revised offer: this is the final stage of negotiation when details of the offer are
worked out. The details may include construction and specifications of the garment, order, size,
order quantity, leading time, freight, garments construction, fabric consumption, cutting, making,
charges for printing, embroidery, standard time, payment terms etc. the buyer makes final offer
and the merchandiser as a negotiator must ensure that the offer is profitable for his company.
6.
Making an agreement: Merchandise must make their best efforts so that negotiations
culminate into real agreements financially beneficial to his company. As soon as negotiation
succeeds the buyer communicates details to the manufacturing company represented by the
merchandiser. This detail takes the form of a master L/C, P.O shit or work sheet.

4.4 RECIVING ORDERS FROM BUYER:

Companies normally receive order from buyer through worksheet. A worksheet is a document
where every details of the specific garment product are included. As soon as the worksheet at hand
the manufacturing company may go for booking order for fabrics, trims, accessories as well as
making production and shipment plants.
4.5 SAMPLING PROCEDURE:
4.5.1 Definition of Sample:
A few items or goods taken from a large number of similar goods are called samples of that large
number of goods. If there is a stick of same types & origin of apples, we may call that stick as
population or lot size.
In the garments trade the following samples find to be used:
Proto Samples: These are sample developed during the preliminary stages of product
development. They are made by similar but not always exact fabrics & trims.
Salesman Sample: These are the samples used by the buyer for promotion or sales of their
product. Salesman sample are generated from approved proto sample. Salesman samples may be
produced from fabric & trims of only one style & color. Proto & salesman samples may or may
not be produced by the vendor factory. Buyers get them generated by their own product
development cell or by any of their vendor factory.
Pre-production samples: Preproduction samples are produced by the vendor factory as per
instruction of the buyer. They are produced prior to the commencement of production.
Approved or approval sample: Upon approval of the pre production samples by the buyer, they
will be sealed and tagged with comments if necessary. One set is kept under buyers disposal and
two sets are sent to the vendor. The approved pre production samples are called approved samples.
They are made by the vendor factory.
Production sample: Representative samples taken from a production line on random basis by
buyers representative is called production sample. Production sample speak out the quality level
of the product to the buyer.
Shipment sample: A shipment sample is sent to the buyer at the time of buyer at the time of
shipment.
Photo samples: There is another category of samples called photo samples. This samples are
photograph for making brochures, catalogs, etc. for distribution to stores and for end-users

Counter sample: Some times we require approved samples in different departments but we have
only one approved sample. We may reproduce a number of samples against the available the
approved sample. A sample reproduced from a sample is called counter sample.
Sampling flowchart

4.6 QUICK RESPONSE MATERIAL SOURCING:

4.6.1 Source Fabric:
After receiving the enquiry a merchandiser have to find from where fabric can be found as per
buyers requirement. There are two sources of fabric.
1. Local source
2. Foreign source.

Both local and foreign it needs to open a L/C. In textile sector generally back-to- back L/C is used
to collect Fabrics.
4.6.2 Prepare Lab Dip:
It is an important part of sampling. If buyer wants color size product then he need to send them to
textile mills for proper coloring. Lotus Kamal knitwear ltd prepares lab-dip sample for Apparels
Ltd due to supply that fabric.
After that lab test is send to the buyer for approve. For an example Letter that is send to lab is
given below4.6.3 Gets approval of Lab dip:
Lab Dip confirmation & may be fitting & workmanship changes:
1)

Start with dyeing the fabric (if necessary start tests bulk)

2)
Sending preproduction samples or size set in original fabric with all already Confirmed
details.
4.6. 4 Trims & Accessories Sourcing:
For preparing a product a company needs various types of trims and accessories. These are very
much important for garments product, Such as tag, pin, scope tape etc. so it is the duty of a
merchandiser to sourcing accessories before start production.
4.7 PLACING ORDER TO SUPPLIER:
4.7.1 Ordering for fabrics and other materials:
In the fashion industry it is of utmost importance that material for the garments must be arranged
on the floor of the factory in right quality, right quantity and right time so that
Production may commence on designated schedule. In Bangladeshi apparel industries arranging
inputs in right time is probably the most serious challenge that most of the factories are unable to
do. All other problems as such as disruption of production, failure of production, and shipment
schedule, escalation of lead time emanate from the problem of failure in securing materials on
time.
4.7.2 How to place for fabrics:
Order for materials is placed to supplier through a negotiated instrument or through a back to back
L/C. This instrument must comprise comprehensive specification of fabrics and other materials.
Besides, approved material samples, if possible, should also be supplied to the supplier for

accuracy and right follow up. The instrument/contract should also include a clause on in-process
and pre-shipment inspection of goods so that no faulty goods can be shipped.
Specification to be provided to the supplier regarding woven fabric:
1.
2.
3.
4.
5.
6.
7.
8.
9.

Sample approved by the buyer(if possible);

Fabric construction,
Fiber content and yarn count,
Type of yarn (ring spun, open end, combed, carded etc.);
Fabric width,
Type of looms (shuttle loom, shuttle less looms) in which fabric should be produced;
Type of dye to be used,
Standard of color fastness,
Piece length size: Piece length with no seam (such as 80% of rolls should be more than50
meters long with no seam),
10. Fabric finish: type and level of fabric finish as specified by buyer;
11. Packing: Type of fabric packing should be specific such as, rolled on tube and each roll in
an untearable poly & poly bags to be packed in 3-ply cartons.
12. Labeling & Marketing: sometimes suppliers are instructed to stamp or mark both ends of
fabric with company stamp, yardage of the fabric rolls on outside paper labels. Beside they
are instructed to affix a paper label to one end of fabric roll to show the following: style,
color name or color code, roll and yardage, etc
4.8 SWATCH MAKING & APPROVAL:
Swatch is a presentation of all the materials is (Fabric & Accessories) used for any specific
style/order. Usually small piece of fabric and each piece of accessories are attached in board paper
in a systematic manner. Swatch is very important for production line to make the correct
construction of a garment and QC department ensures it. Swatch is also being called trim card
4.9 CONSUMPTION
4.9.1 Fabric Consumption:
The quality of fabric required to produce a garment is known as fabric consumption. In the
garments industries, fabric consumption often refers to fabric requirement per dozen of garments
rather than a unit garment. Knowledge of fabric consumption is very important at the time of
securing order from the buyer otherwise quoting price for the order will be an impossible task.
4.9.2 THREAD CONSUMPTION FOR PRODUCTION OF GARMENTS:
Garments production requires different types of stitches and seams. They influence thread
consumption to a large extend. A table is shown below giving thread consumption per centimeter
of seam for different stitch types.
4.9.3 MAKING MATERISL CONSUMPTION:

During the meaningful order negotiation process, concerned merchandiser must make an
approximate material bill and costing. This should be updated as soon as order has been
successfully negotiated and secured. Making material bill is an important function of merchandiser
working with a garment factory.
Material bill is the detailed list of raw materials required to produce and ship a full consignment
of buyers order for garments. Material consumption is required for detailed costing as well as for
negotiating a placing order to supplier for purchase of raw material
4.10 COSTING:
Costing means resources expended in production of product or garment. It is urgent to make a
detailed costing of garments, because this is to be quoted to be buyer. A sample of costing sheet is
given below: