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Basic knowledge for Merchandising

©right



Name : MAZADUL HASAN SHESHIR

ID: 2010000400008

Batch: 13th Batch (Session 2009-2013)

Department: Wet Processing Technology

Email: [email protected]

Blog: www. Textilelab.blogspot.comSoutheast University

Department of Textile Engineering

PREPARED BY ©right



MERCHANDISING DEPARTMENT OF KNIT CONCERN GROUP



Total Textile Process at a Glance



Merchandiser

↓

Negotiation with buyer & collect order

↓

Costing

↓

Sample making (according to buyer requirement)

↓

Get approval &Placement of order

↓

Getting started (In-house preparation of

accessories)↓

Line balancing

↓

Commencing production

↓

Production Monitoring

↓

Inspection

↓

Buyer’s Inspection (After Finishing)

↓

Preparation of banking & documentation

↓ Shipment/delivery

Process Flow-Chart of Merchandising



Definition of merchandiser

The main role of a garments merchandiser is to collect garments export order (export

L/C), produce the garments, export the garments and earn profit, to perform those

functions successfully needs lot of knowledge, experience & tremendous effort for a

merchandiser. The term merchandising is defined as follows:

Definition of merchandising

•The term merchandising related with trade

•Trade means buying & selling

•The person who is involved with trade, he/she is a merchandiser

•And the activities of a merchandiser is known as a merchandising

Definition of merchandiser



Responsibilities of Senior Merchandiser

1. Sample development2. Price negotiation

3. Order confirmation

4. L/C opening

5. Opening summery6. Sourcing

7. Material collection

8. Production planning

9. Production monitoring

10. Quality assurance

11. Arrange final inspection

12. Arrange shipment

Responsibilities of Senior Merchandiser



Qualities of a merchandiser

1. Language skill

2. Computer skill

3. Marketing skill

4. Right consumption knowledge of various goods

5. Costing knowledge of raw materials

6. Order getting ability (That is if the merchandiser is known by actual rate of raw

materials, so that he can negotiate perfectly with buyer. In this way, the possibility of

getting order is hundred percent.)

7. Sincere & responsible

8. Hard worker

Qualities of a merchandiser



Garment finishing process flow chart



Garment process flow chart



Production planning process flow chart



Garment Size



Basic Component of a pant



Basic Component of a shirt



S F R l d B i Sid



Some Factors Related to Buying Side:

Customer: Those who buy the ultimate product are called customers. Customerof a product may be the consumer of this product or not.

Consumer: Those who use the ultimate product are called consumers. Consumer

of a product may be the consumer of this product or not.

Buyer: Those who buy the product from other in large quantity are called buyers.

Whole Seller: Those who sell the product to the retailer are called whole-sellers.

Retailer: Those who sell the product directly to the customer are called retailers.

Importers: Those who buy or import the product from foreign or overseas

country in large quantity are called importers.

Some Factors Related to Buying Side:

S F R l d S lli Sid



Some Factors Related to Selling Side:

Seller: Those who sell the product to the others are called seller.

Manufacturer: Those who manufacturer the product are called manufacturers.

Exporter: Those who sell or export the product to the buyer of foreign country

are called exporters.

Trader: Those who establish liaison between buyer and manufacturer are called

traders.

Some Factors Related to Selling Side:

Li t f T d



Multinational:

1.Li& Fung

2. Synergies

3Linmark

4. Complex tile

5. ZXY Apparel Buying Solution

6. Asmara

7. Texbo.

Buying House:

Buying house means Buyer’s liaison office or trader office. Traders are of two

types-

1. Foreign Trader

2. Local Trader

Local:

1. Team Sourcing

2. Centro tex.

List of Traders:

N f S I t t B f B l d h



Name of Some Important Buyer of Bangladesh:

Generally buyers of USA, Europe, Canada, Australia, Japan, India are the main

buyers of Garments and Textile product of Bangladesh.Name of some important buyers of these countries are described below-


N f S I t t B f B l d h



Name of Some USA Buyers:

GAP

Adidas

Walmart

Levi’s (Brand: Dockler, Denizer, Levi’strauss)

VF Asia (Brand: Lee, Wrangler )

PVH -Phillips Von Heuson (Brand: CK)

Peri Ellis

Academy

Banana

Old Navy

US Polo

Nike American Eagle


Name of Some Important B er of Ban ladesh



Name of Some European Buyers:

H & M

Hugo Boss Zara

Mango (Turnkey)

Puma

European Eagle

C & A

M &S

Esprit

Terco

Decathlon

Sains Burry

Carretow

NKD

Tema

Lindex





Name of Australian Buyers:

K-mark

Name of Some Japanese Buyers:

Uniquelo

Huloson Bay

Name of Some Indian Buyers:

Black Berry

Mahendra ( Brand: Peter England )

ITC

Ramond






Seasons of Export:



Seasons of Export in USA:

1. Spring

2. Summer

3. Fall

Seasons of Export in Europe:

Seasons of Export:

Major Garments Manufacturer Countries:



Specialty :

Turkey: This country is suitable for highly de corative and fancy garments.

China: Buyers select China for decorative garments and short time shipment.

India: Buyers select India for decorative garments.

Vietnuma: Buyers select Vietnum for plain printed T-Shiort.

Combodia: Buyers select Vietnum for plain printed T-Shiort.

Bangladesh: Bangladesh is a Lower Developing Country with GSP facilitiy. Buyers

import various types of garments from Bangladesh.

Major Garments Manufacturer Countries:

1. Bangladesh

2. China

3. Vietnam4. Combodia

5. Pakistan

6. Thailand

7. Indonesia

8. Turkey9. India

10.Shrilanka

GSP



The Generalized System of Preferences (known as GSP for short) is a scheme whereby

a wide range of industrial and agricultural products originating in certain developing

countries are given preferential access to the markets of the European Union.

Preferential treatment is given in the form of reduced or zero rates of customs duties.

The GSP scheme is specifically designed to benefit certain developing countries and

integrate them into the world economy.

Since 1971, the EU has had rules ensuring that exporters from developing countries

pay lower duties on some or all of what they sell to the EU. This gives them vital access

to EU markets contributing to the growth of their economies. This scheme is known asthe "Generalized System of Preferences".

Today Bangladesh offers a very flexible and feasible production base for its customers

in EU, America and Australia. The EU market is quota free for apparels and goods are

eligible for the GSP facilities. As an LDC member Bangladesh also obtain special Tariff

benefit from Canada (18% import Tax free).

FOB:

FOB means Free on Board. It is the value of the product which is fixed without cost of

transportation of this product.

CIF:

FOB means Free on Board. It is the value of the product which is fixed including the

cost of transportation and insurance of this product.

GSP

GARMENTS EXPORT PROCEDURE



1.Space Availability:

Space availability or time agreement is the availability of availability of

production floor for the production of garments.

2.Costing:

Costing means the way of calculating the cost of production of garments.

Costing is done considering-

Fabric price Accessories price &

C&M Cost

Way of Costing:

Costing can be done by-

Original Sample

Specification





Specification contains the following factors:-

Design or Sketch of garments

Fabric Type- Composition

Color

Construction

GSM or Ozs. Per Square Yards.

Any other instruction

Accessories Detail

Any Kind of Instruction

Garments Size ( called “Measurement Chart” or “Size Chart” )

Specification File:

The file which contain the specification of product is called the “Specification File” or“Technical Package” or Tech-pack” or “PDM” (Product Development Manual) or

“Order Sheet” or “Product Package”. Specification File is issued by the buyer and

collected by the manufacturer.





BOM Sheet:

The pages of specification file contain fabric and accessories detail is called BOM ( Bill

of Material ) Sheet.


3.Order Confirmation:

Order confirmation is issued by the buyer to the manufacturer which contains Tech-

pack.

4.Purchase Order:

PO or purchase order is issued by the buyer to the manufacturer.

5.Master L/C:

L/C or Letter of Credit is a confirmation which is prepared by the buyer ( bank of

buyer ) and issued to the manufacturer. It has financial value. L/C is of two types- Master L/C &

Back to Back L/C

When a L/C is opened to import goods directly from the exporter is called master

L/C. It is issued by the buyer (bank of buyer) to the manufacturer.




6.T & A Calendar Making:

T & A or “ Time and Action” calendar is made by the manufacturer to complete the

production within a specific period of time.

7.Fabric & Accessories Booking:

After making of T & A calendar, fabric & accessories booking is necessary.

Without fabric, all materials used in garments is called “Accessories” or “Trimmings”.

Accessories includes-

Sewing Thread

Button

Interlining

Zipper

Label

Tissue Paper

Ball head pin Hager

Carton

Rib and

Silica Gee Bag

Plastic Clip so on.





Master L/C Back to Back L/C

Master L/C is prepared by the buyer to

import goods from the manufacturer.

Back to Back L/C is prepared by the

manufacturer to collect raw materials for

the production.

This L/C is issued by the buyer to the

manufacturer.

This L/C is issued by the manufacturer to

the raw material suppliers.

It is the basic L/C. It depends on master L/C

Prepared for the import of goods from the

exporter.

Prepared to collect raw material from the

supplier.

It has higher financial value than the Back

to Back L/C.

It has lower financial value than the Master

L/C ( 70-80% of Master L/C ).

8.Back to Back L/C:

Back to Back L/ C is prepared by the manufacturer to collect raw materials from the

suppliers. It has 70-80% financial value of Master L/C.


Difference Between Master L/C and Back to Back L/C:




9.Sampling:

Sample is the small quantity which represents the bulk. The process of collecting or

making sample is called “Sampling”. Types of Garments Sample

Proto Sample:

Features:

•This type of sample is made by the manufacturer by available fabric and accessories.

•This sample is made before or after order confirmation.Purpose:

Here buyer checks whether the factory can make the garments.

Fit Sample:

Features:

•This type of sample is made by the manufacturer by available fabric and accessories.

•This sample is made after order confirmation.

Purpose:

Here buyer checks the fitness or measurement of the garments.





PP Sample:

Features:

•This type of sample is made by the manufacturer by actual fabric and accessories.

•This sample is made after order confirmation.•This sample must be approved by the buyer before production.

Purpose:

Bulk production is done following PP sample.

Size Set Sample:

Features:

•This type of sample is made in all sizes.•These samples are sent to the buyer.

•These samples are made in all sizes.

Purpose:

This sample is used for PP meeting.

Production Sample:

Features:

•These samples are collected from the production floor while bulk production is

running.

•These are sent to the buyer.

Purpose:

Here buyer compares Production Sample with the PP Sample.





Garments Test Sample:

Features:

These samples are collected from the production floor while bulk production is

running. These are sent to the testing house.

Purpose:

Here Testing House tests different aspects of the garments and sends “test report” to

the buyer.

Common Tests of Garments: Common tests of garments are as follows.

• Dimensional Stability Tests

• Sewing Strength Tests

• Button Attaching Tests

• Spirality Tests

• Color Fastness Tests

• Abrasion Tests• Radiation of Materials Tests

Testing Houses may be local or international. They test the garments and send the test

report to the buyer to inform the quality of product producing by the manufacturer.





Shipment Samples:

Features:

•These samples are not so mandatory.

•These are sent to the buyer after the shipment of the products.Purpose:

Here buyer compares the Production Sample with the Shipment Sample.

Salesman Samples:

If buyer collect sample garments of specific design for specific season which are

displayed in the retail shop to justify the demand of these samples, then these are

called Salesman Sample.





Name of Some Currier:

Samples or any other important documents necessary for export are sent by the

currier.

Name of Some Currier:

1. DHL

2. Aramex

3. TNT

4. Fedex

5. UPS6. Sky net

7. DPEX





10. Fabric & Trims in House:

Here confirms all fabrics and accessories in their hand.

11. Innovatory Checking & Report Making:

The term innovatory checking is applied for checking the quality & quantity of

fabrics and accessories in house. After checking a report is made with the test data.

12. PP Meeting:

This meeting is held just before going to the bulk production. This meeting isconducted by following persons-

Buying House QC

Factory QC

Buying House Merchandiser

Factory Merchandiser

Cutting Master

Pattern Master

Production Manager

Sample man

G S O OC U




13. Pattern and Marker Making of Bulk Production:

Pattern is a hard paper which is made by following each individual components for a

style of garments.

Marker is a thin paper which contains all components of different sizes for a particular

style of garments.

14. Trial Cutting:

Little amount ( for 200-300 pieces of garments ) of fabrics are cut for checking the

efficiency and production cost of the garments.

15.Bulk Cutting:

Here total fabrics required for bulk production are cut.

16. Numbering –Bundling & Sorting:

After cutting of fabrics numbering, Bundling and sorting process are done. Then cutpieces are sent to the sewing section.




17. Production Line Set-up:

Production line set-up is the arrangement of sewing machines where the input of thefirst machine is cutting part of the fabrics and the output of the last machine is

complete garments. Production line may be straight or V-shaped or face to face or any

other suitable type.

18. Sewing:

Cutting pieces are attached by sewing to make the complete garments. Different types

of sewing machines are used in production line.

19. Finishing:

Finishing includes- ironing, accessories attaching, label attaching, ironing etc.

20. Pre-Final Inspection:

This type of inspection is done by factory QC. It may be at the end of the production

line or in the lab.




21. Final Inspection:

Final inspection is conducted by the –

Self Inspection: Conducted by the factory QC.

Third Party Inspection: Conducted by the testing houses.

Name of Some Testing Houses:

Functions of Testing Houses:

•Testing of Fabric•Testing of Garments

•Testing of Trims

•Garments factory Auditing for Compliance

Compliance:



Compliance:

Any type of rules and regulations that must be followed by an ideal factory. Theseinclude-

Time of Work

Environment of Work Place

Salary & Wages

Facilities ( Dining, Child care, Toilet )

Treatment of Liquid Waste

Factories may be classified as-

Compliant

Semi Compliant &

Non Compliant

p




In-line Inspection:

During production, buyer QC will come and check the product quality and suggestto over-come any type of problem. This type of inspection is called In-line

Inspection.

On-line Inspection:

Inspection at the end of the production line during production is called On-line

Inspection.

This inspection is conducted by the factory QC

Logistic Firms:



Logistic Firms:

The firms or agents which take the responsibility to receive the goods from the

manufacturer company at the port and send to the buyer or buyer agent are called

Logistic Agent.

They also called Freight Forwarding Agent or Forwarder.

Buyer pays to the Logistic Agent.

Names of Some Logistic Firms:1. Maersk

2. APL

3. MGH

4. Damco

5. Expolonca

6. Crown Logistic

7. NMC Corporation

g

C & F Agent:



C & F Agent:

The firms or agents which handle all kinds of customs related formalities arecalled C & F Agent.

Factory pays to the C & F Agents.

1. Unit Price

2. Total Price

Document For Payment



1.Commercial Invoice:

A sheet contains-

1. Buyer Details

2. Manufacturer Details

3. Item Details

4. Unit Price

5. Total Price

2.Packing List:

It is the list of packed products according to the size, color and content in eachpackage.

3.Bill of Lading:

The document witch is issued by the Freight Forwarding Agent to the manufacturer

containing detail about product sent and transportation company.

e.g. AW/B- Air Way Bill.

ICD:

ICD means Inland Container Depot. The goods which are not suitable to transport in

carton because of introducing crease marks are transported hanging in ICD.




Costing and Negotiations:



Costing:

Merchandise makes a cost sheet to see if the product is feasible or not in terms of cost and

revenue. Merchandiser has to calculate the cost of products including all wastes and

accessories to tell the final cost of the product to his customers.

Negotiation:

Merchandiser must have a negotiating power on the price to convince his buyers on

specific price to lessen the chances of loss. If price is negotiated then its time to sample

approval from buyer.The aim of negotiation/approach

"Win Win solution" Both parties are benefited.

The skill for negotiation:

1. Discovering common interest and removal of personal issues.

2. Questioning skill

3. Listening effectively

4. Understanding body language.

5. Observation and judgment.

6. Influencing skills

Export Procedure



1. INVOICE: In Invoice following criteria is required.

1. Consignee and Applicant Addresses

2. Garment Description

3. Garment Price and Total Invoice value

4. Net and Gross Weight of Garments

5. PO (purchase order) no.

6. Freight Terms.

7. from # & Date

8. L/C. # (letter of credit)2. PACKING LIST

There are following details in the packing list required as per buyer's instruction or

mentioned in L/C.

1. Consignee and applicant addresses

2. Product description

3. Garment Style and color4. Net and Gross weight of Garments

5. No. Of Pieces in the Carton and Carton Dimension also other necessary information,

which gives help for the custom clearance.

Export Procedure



3. Export-FORM:

E-FORM is issued and attested by the concerned bank (Islami bank Bangladesh ltd.)

4. BILL OF ENTRY Applicable only in case of the imported material used in the manufacturing of the garments

for the export purposes.

5. SHIPPING BILL

The forwarder prepares shipping bill. After the sub Management Information Systems ion of

the custom docs, by the forwarder, custom authorities check the docs. And examine the

shipment accordingly. They write the report on the backside of the shipping bill and allow

the shipment for the export from Bangladesh. All these docs are then returned to the export

department.

6. VISA PROCESS

After receiving the Docs from the forwarder, Export Department prepares the Visa docs,

which are required for the export of garment to the following countries; USA, CANADA,

EUROPEAN countries.

7. NEGOTIATION / COLLECTION

After the completion of the Visa process, we submit the docs in the Bank for the

negotiation/ collection. The docs are prepared according to the L/C. or the buyer

requirement.

Export Procedure



8. DOCUMENTS FOR THE BUYER

Export department also prepare documents for the buyer for the custom clearance

of the shipment at the destination.

9. PAYMENT PROCEDURE

After the negotiation/ collection procedure of the docs, bank dispatches the same to

L/C opening bank, to realize the payment. Foreign bank is bound to realize the same

within the 10 to 15 days. REBATE CLAIM

10. COMMERCIAL INVOIVCE

In the commercial invoice all the details are mentioned required under conditions of

L/C for the custom clearance and other necessary purposes.

11. PACKING LIST

It consists of color, weight, product code/other, coding numbers, no. of cartons,

carton dimension, and carton packing.

12. BILL OF LADING/ AIRWAY

This is according to the L/C terms and conditions.

Types of sample/Stages of sample:



1. Proto Type Sample: This is the first sample given to the buyer. The sample is

prepared according to requirement of buyer and this is the rough sample. The range of

sample is about 1-2 to vary according to the requirement of buyer.

Comments on Proto Type:Buyer gives his comments on sample and also recommends the changes in sample.

2. Counter Proto Sample:

This sample is based on the comments received from the buyer. For this sample, 2-3

pieces are required.

3. Salesman Sample:

Buyer sends the samples in market by salesman to get market feedback from

customers it is done on 250-500 pieces or may exceed depending on season and

customer. Buyer has to sell these garments to check and view.

Samples

Market

FeedbackBuyer's Design

Buyer's Merchandisers

Manufacturer's Merchandiser

Comments on Salesman Sample:

Feedback on sample from customer is send to merchandiser/ manufacturer.




4. Pre-Production Sample (PPS):

Manufacturer prepares it. All changes are confirmed on it. 2-3 pieces are required in

pre-production sample.

Approval of PPS:It is the stage where a sample may be approved or rejected.

If accepted go ahead to next step and if rejected then there will be the process of

revision of previous steps. PPC department is also involved at this stage. Once PPC is

involved, no change in styling is acceptable.

5. Size Set Sample:

2-3 sets of different size are sending to PPC (planning production and control).

Manufacturer keeps one sample himself and one sends to buyer for cutting approval.

Its purpose is that buyer will make no change in cutting details. If he makes some

changes, he himself will be responsible for any loss/ damage.




6. Fit Sample: No change in stitching is acceptable at this stage. 2-3 garments are used in fit

sampling.

7. Photo Shoot Sample:

Now the sample is ready fort shipment. Buyer picks some pieces randomly to test its

gauge, GSM, shrinkage. If all these are according to the requirement of buyer thenshipment is said to be ok. 15-20 pieces are picked up as a sample to test.

8. Shipment Sample:

This stage is the completion of total order. And the garments are sending to shipment.

COMMON ITEMS OF GARMENTS WE EXPORT



There are three categories of garments that we export-

1. Woven Garments

2. Knit Garments &

3. Heavy Knit Garments



Woven Garments:



7. Capri’s:

Ladies short pants above the ankle but not ¾ of pants.

8. Skirt:

Ladies garments.9. Jacket/Blazer/Coat:

Men top garments containing “Lapel” and Taffeta.

10. Padded Jacket:

Jacket that contains “Quilting”.

11. Trench Coat:

Long coat with waist belt.

12. Gilet:

Sleeveless thick jacket.

13. Pazamas:

Night dress- both top & bottom.

14. Coverall:

15. Overall:

16. Shortall:

‘Work wears’ which provide protection from

uncomfortable working environment.

Woven Garments:



17. Vest/Over coat/Waist coat:

Sleeveless coat with button at front.

18. Head Wear:Different types of cap, hat etc.

Knit or Light Knit Garments:



1. T-Shirt:

Top garments that must not contain placket. It may contain half collar or not. Collar

of T-Shirt is made by circular rib machine. Generally single jersey fabric of GSM 120-

220 is used to make T-Shirt.2. Polo Shirt:

Top garments that must have placket and collar. The collar of Polo Shirt is made by

flat bed knitting machine. Double jersey fabrics are used to make Polo Shirt.

3. Knit Trouser:

Bottom garments made of knit fabric.4. Tank Top:

Sleeveless top garments for men containing strap.

5. Briefs:

Men underwear (short ).

6. Lingerie:

Ladies underwear ( short ).7. Boxer Shorts:

Long size men underwear above the knee.

8. Sweat Shirt:

Long sleeve T-Shirt made of fleece fabric.

9. Socks




10. Tights/Hose/Leggings:

Ladies skin trouser.

11. Singlet:

Ladies top garments with strap.12. Hoody:

Long sleeve top garments with hood. Generally made of fleece fabric.

13. Gloves:

Hand wear for long time use on hand when use of finger is necessary.

14. Mitten:

Hand wear for short time use when use of finger is not necessary.15. Sports Wear:

Garments used in any type of sports.

16.Swim Shirt:

Garments used as swimming dress. These garments are skin tight, made of

hydrophobic fibre and water proof.17. Pazamas:

Night dress- both top & bottom.




Heavy Knit or Sweater:



1. Pullover:

Long sleeve sweater without button at front.

2. Slipover:

Sleeveless sweater without button at front.

3. Vest/Waist Coat/Over Coat:

Sleeveless sweater with button at front.

4. Cardigan:

Long sleeve sweater with button at front.

5. Zip-up:

Long sleeve sweater with zipper at front.

6. Half-zip:

Long sleeve sweater with half-zipper at front.

Type s of Fleece:



Type s of Fleece:

Generally there are two types of fleece.

1. Terri Fleece:

One side of this fabric is like single jersey and other side is brushed.

2. Polar Fleece:Both sides of this fleece are brushed.

Type s of Stripe:

Generally there are two types of Stripe.

1.Feeder Stripe:When the repeat size of strip in the fabric is less or equal 4 cm. then it is called

Feeder Stripe.

2.Engineering Stripe:

When the repeat size of strip in the fabric is grater than 4 cm. then it is called

Feeder Stripe.

Outer Wear:

Garments that protect from bad weather are called Outer Wear.

e.g. Rain Coat, Trench Coat, Wind Breaker.

Do not forget-



CVC- Chief Value of Cotton (cotton > polyester)

PC- Polyester Cotton Blend (Polyester > Cotton)

TC- Tetron Cotton (polyester & rayon >cotton)

GSP- Generalized System of Performance.

LDC- Least Development Country

C&F Agents- Clearing & Forwarding Agents

T&A calendar- Time & Action Calendar

CIF- Cost of Insurance & Freight

BTB- Back to Back L/C

ITS- Inter-tech Testing Service

FOB- Free o Boat (up to port)

L/C- Letter of Credits

TT- Telegraphic Transfer

PO - Purchase Order

PP- Pre-Production

IDC- Inland Commercial Depo

AWB- Air Way Bill

PO- Purchase Order

PDM- Product Document Manu

BOM- Bill Of Materials

Production overview yarn to garment



Garment Factory Overview ( Machine Requirement )



Knitting machine for fabrics



How to recognize sewing Machine to see the shape



MACHINES USED IN WASHING PLANT



85

Knit Dyeing machine



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