MERCHANDISING

  MERCHANDISING

 

 

 

GARMENTS  MERCHANDISING

Merchandising is the department which mediates marketing and production departments. It is Space optimization through effective Brand/Package allocation, focusing on gaining first position, providing greatest exposure of brands to all consumers, creating a consistent, orderly and clean appearance for the products, maximizing the use of POS to increase consumer awareness of brand and promotions.

Merchandising is a process through which products are planned, developed, executed and presented to the buyer. It includes directing and overseeing the development of product line from start to finish. Marketing and merchandising department: A team of merchandisers and marketers work together under a profit controls head. Merchandisers handle the foreign buyers. The teams are made according to the buyers being handled.

Merchandising is the department which mediates marketing and production departments. Sometimes, merchandising department will have to do costing and pricing also. In any case, the merchandiser is the person whose responsibility is to execute the orders perfectly as per the costing and pricing. So it is a very valuable department. Following are the main responsibilities of merchandisers.

Two type of merchandising done in garment exports

¥        Marketing merchandising.

¥        Product merchandising.

 

Marketing merchandising

The main function of marketing merchandising is

Product Development

Costing

Ordering Marketing merchandising is to bring orders costly products development and it has direct contact with the buyer.

Product merchandising

Product merchandising is done in the unit. This includes all the responsibilities from sourcing to finishing i.e. first sample onwards, the products merchandising work start and ends till shipment.

Process Sequence of Garments Export Process:

Contact with the buyer
↓
Order collection
↓
Sample development
↓
Sample approval
↓
Costing
↓
Confirmation of order
↓
Consumption
↓
Fabric  & accessories booking
↓
Master L/C
↓
Back to back L/C
↓
Preparing T&A calendar
↓
Fabric & trims in House
↓
Pre-Production meeting
↓
Pattern and marker making for bulk production
↓
Cutting
↓
Numbering, bundling & sorting
↓
Production Line Set-up
↓
Sewing
↓
Finishing
↓
Pre-final inspection
↓
Final inspection
↓
Ready for shipment

All the above processes have discussed in the below table:

SL No.	Process	Procedure
01	Contact with the buyer	It is the first process of a garment export order. At first, garments merchandiser has to contact with the buyer for order collection.
02	Order collection	Here garments merchandiser receives garments order from the buyer. Each order contains garments specification sheet for different items or products.
03	Sample development	After receiving export order, garments merchandiser has to develop the required products by following garments specification sheet.
04	Sample approval	After developing product sample, garments merchandiser sends it to the buyer for approval.
05	Costing	If the product sample is approved then garments merchandiser will make final costing for the product by discussing with the buyer.
06	Confirmation of order	Finally garments merchandiser confirms the order here.
07	Consumption	After confirmation of a garment export order, garments merchandiser has to prepare consumption of required fabrics, trimmings and accessories.
08	Fabric & accessories booking	Here, fabrics and accessories booking have done to in-house the required items for the export order.
09	Master L/C	Meanwhile, master L/C is opened from the buyer side and submitted to the garments merchandiser.
10	Back to back L/C	For importing raw materials for the export order, here manufacturer has to open back to back L/C.
11	Preparing T&A calendar	In the mean time, garments merchandiser has o prepare time and action plan here for the garments production.
12	Fabric & trims in house	All the required fabrics, trimmings and accessories are in-housed here according to the booking chart.
13	Pre-production meeting	It’s an important factor for a garments production. Production team should complete this meeting before staring the production.
14	Pattern and marker making for bulk production	Here, pattern and marker should prepare according to the approve sample.
15	Cutting	Fabrics cutting are done here according to the approved pattern and marker.
16	Numbering, bundling & sorting	Here all the cutting fabrics have to do numbering sorting and bundling to avoid shade variation in the garments.
17	Production line set-up	Here, production team sets a perfect production line for completing smooth garments production.
18	Sewing	All the cutting fabrics are sewn here according to the approved sample.
19	Finishing	All the required finishing procedures are done here by following the buyer’s instruction.
20	Pre-final inspection	Here, pre-final inspection has done to ensure right quality for the export order. Normally it is done by factory inspection team.
21	Final inspection	Final inspection of an order has done here by the buyer’s inspection team. Where, the inspection team is confirmed by the buyer.
22	Ready for shipment	Finally garments sent to the buyer by using sea freight or air freight.

 

 

 

Key Responsibilities of  Merchandisers Product Development

• Market and Product Analysis
• Selling the concept
• Booking orders
• Confirming Deliveries
• Designing and Sampling
• Costing
• Raw Material
• Flow Monitoring
• Production Follow Ups
• Payments Follow
• Internal & external communication,
• Sampling
• Lab dips
• Accessories & Trims
• Preparing internal order sheets
• Preparing purchase orders
• Advising and assisting production,
• Advising quality department about the quality level
• Mediating production and quality departments
• Giving shipping instructions and the following shipping,
• Helping documentation department
• Taking responsibility for inspections and
• Following up the shipment.

 

Internal & external communication

 

Business communication is the sharing of information between people within and outside the organization that is performed for the commercial benefit of the organization. It can also be defined as relaying of information within a business by its people. Effective Communication is very significant for merchandiser in the organizations to perform the basic functions of merchandising, i.e., planning, organizing, leading and controlling. Communication helps merchandiser to perform his/her jobs and responsibilities.  We can say that effective communication is a building block of successful merchandising.

 

Business communication process in merchandising

 

The process of communication in merchandising can be seen in the picture 1. In this flow, the sender sends a message to the receiver and then they share the feedback on the communication process. If the receiver fails to understand the real meaning of the sender’s message then communication goes wrong & feedback does not come correct. So message should be clear & easy to understand considering external & internal noises.

 

 

 

                        Business communication flow chart for a Merchandiser

 

‘Business communication flow charts’ shows the sequence of actions that a merchandiser performs in his profession usually in sequential steps. This will help to understand how communication happens within & outside of the organization.

 

 

 

          

Barriers of communication for a merchandiser

An effective and efficient communication system requires proficiency in delivering and receiving messages. A merchandiser must discover various barriers to communication analyze the reasons for their occurrence and take preventive steps to avoid those barriers. Thus, the primary responsibility of a merchandiser is to develop and maintain an effective communication system in the organization. The below barriers usually occurs misunderstanding & wrong going in production. So merchandiser should understand them properly.

1. Receiver unable to understand language: Some people from production fail to understand English Language so merchandiser has to pick the real meaning of the message & do the correct thing.
2. Time & distance: It can be a barrier if sender or receiver fails to use modern information technology.
3. Poor timing: If message is not shared on time things may not be done effectively.
4. No feedback: When feedback comes then merchandiser can understand his message has gone well. But if feedback is missing from receiver that means either he fails to understand or not willing to work.
5. Technical terms that not used in common: Undefined technical terms may hamper production process.
6. Attitude towards sender: Positive attitude towards sender always helps to understand message effectively.
7. Wrong format: Correct format helps to understand message clearly.
8. Wrong Target: The receiver must be correct person otherwise feedback may not come properly. Suppose – someone is talking about a problem but the person with whom is talking has no authority to give solution. So better to go higher authority.
9. Wrong channel: E-mail may not be all time effective, sometime verbal communication can be good channel to solve problem in production.
10. Poor listening skill: This will lead to misunderstandings, errors, bad decisions, loss of team work strength.
11. Cultural barrier: Cultures provide people with ways of thinking–ways of seeing, hearing, and interpreting. Thus each culture has its own rules about proper behavior which affect verbal and nonverbal communication.
12. Gender barrier: women often has soft communication & male communication is often more direct.
13. Lack of trust: In the RMG sector lack of trust in communication is considered a big barrier. People generally keep in mind that any commitments that given by others may not be fulfill in most cases. So building trust label is really important for better merchandising.

The way of effective business communication for a Merchandiser :

1. Highlighting the areas of attention: A message can be big & so the receiver may not be able to understand what the area needed corrective action. That’s why mailing communication must be highlighted to focus the area need correction.
2. Clear & simple Message: Message should be very simple & clear so that anyone can understand it at any level of downward & upward stream.
3. Descriptive & specific: Message in details by using picture, graphics will help receiver to understand meaning appropriately.
4. Completeness: The message must be complete. It should convey all the facts required by the receiver.
5. Relevancy in the communication: Irrelevant message always create doubt & confusion. So careful discussion & writing should have to be taken in consideration for effective communication.
6. Correctness & accuracy: In order to ensure correctness better to use references & document.
7. Offering feedback: Giving and receiving feedback effectively is an important part of communication whether inside or outside the organization.
8. Confident communication: This will help to build trust level between the parties. So body language, firm hand shake, good eye contact & smiling face will be an added advantage to get good feedback from the others.
9. Face to face communication: Conferences and other face-to-face communication can take merchandising to a new level. This will help to get immediate action & solve the problem.
10. Follow up in writing: Merchandiser While taking notes during phone or in-person meetings, the other party might not be, so need follow up after the meeting with a written message, giving an overview of the discussion to make sure that both are on the same page. Require summarizing what was agreed, repeat questions that were raised and outline the next steps and responsibilities for both parties.
11. Politeness & avoid rude word: No one like a rude person so carefully rude wards should have to be avoided.

In conclusion, business message is complete when it contains all facts the reader or listener need for a proper feedback. So merchandiser has to be aware all time that his message is conveying the meaning what he wanted to say. Because most of the time we fail to complete a task due to ambiguity & complexity of a business message. Sometime reader or listener cannot get the motive of the sender & goes with unnecessary conversation. This is a wasting of time for both of the parties & makes the thing more difficult. So, effective business communication is really important for a Merchandiser.

 

 

 

 

 

 

 

    Production Merchandising Process

Sampling:

It is one of the most important task for all the apparel marchendiser. Here, sample have to develop according to buyer’s instruction. Different types of samples should be developed here such as proto sample, fit sample, fit sample, photo shoot sample, sales man sample, size set sample etc.

 

Preparing internal order sheets:

An apparel merchandiser has to prepare various types of internal order sheets such as costing sheet, booking sheet etc.

 

Accessories & trims in-housing:

After confirmation of a garment export order, a garment merchandiser has to book and in-house all kinds of trimmings and accessories according to buyer’s instruction.

 

Preparing purchase orders:

Different types of purchase orders should be prepared here by the garments merchandiser such as fabric, sewing thread, trimmings and accessories etc.

 

Getting approvals on lab dips:

It is the other important task of an apparel merchandiser. At first, lab dip should be done by maintaining buyer’s recommendation and submitted by the merchandiser to the buyer for its approval. If it’s ok then buyer approved it for running garment production.

 

Advising and assisting production and quality department:

A garment merchandiser must have to make good relationship with the garment production and quality department for smooth and fault free production. This also creates a great impact on shipping the product timely.

 

Taking responsibility for inspections:

Inspection should be done before shipping the product to the buyer. Here, merchandiser plays a significant role to inspect the product by using strong quality department or third party quality inspector.

 

Giving shipping instructions and following shipment:

It is the last and final tasks of an apparel merchandiser. Here, garment merchandiser advises various instructions to the commercial department about shipment of a garment export order. By maintaining those instructions, commercial department will ship the products to the buyer.

 

Pre-Costing

 The merchandiser is also responsible to formulate a pre-costing of approvals. The merchandiser then coordinates with the internal manufacturing functions to ensure buyer’s order demands and requirements are met.

 

Sampling & Inquiry

 The merchandising team here receives the Tech-Pack for the concerned order, consisting of the style details (trims and construction), which it sends to the sampling department for development of sample prototypes for buyer’s comments and approval.

 

Pre-Production Meeting

 

Based on the conclusions drawn in the meeting, a production files is developed and circulated by the merchandiser to all the departments. The merchandiser then follows the ex-factory date, to plan all the stages of the bulk production.

 

 

Raw material sourcing

 

The merchandiser coordinates with the sourcing team, to ensure the timely sourcing of fabric and trims, to ensure on-time order execution.

Fabric in-house & inspection: once the fabric is received in-house, it is inspected for quality and grouping for its following processes.

 

Garment Cutting & Sewing

 

The buyer approved pre-production sample is then followed, in conjunction with other order specification for the bulk production of the style. The merchandiser here coordinates with the various functions, and ensures the order runs smoothly, with the given budget and time frame from these departments.

 

Garment Inspection & Finishing

 

Post cutting and sewing the garment are inspected and finished internally in sync with the buyer specifications for the style

.

The merchandiser coordinates with the inspection and finishing teams to ensure adherence to the required specs for the order.

 

Packing

 

The garments are finally packed based on the packing details for the order, as provided by the merchandising team within the given time frame to ensure on-hand, sufficient time for conducting buyer inspection and timely shipment of the order

 

Final inspection

Once the order is ready and packed, the merchandiser sends the final shipping goods details to the buyer, to obtain an inspection certification. The buyer then inspects the final order and based on the buyer’s assessment the order is accepted or rejected. The merchandiser here coordinates with the manufacturing team and the buyer’s inspection team to ensure the final inspection is conducted smoothly and successfully.

 

Order Shipment 

When the buyer approved the order post final inspection, the merchandiser then ensures the order shipment leaves the manufacturing location on the ex-factory date given by the buyer.

The Merchandiser then makes the Order Completion Report to formally close the order and maintain documentation for future references.

 

    Retail Merchandising  

Retail Merchandising refers to the various activities which contribute to the sale of products to the consumers for their end use. Every retail store has its own line of merchandise to offer to the customers. The display of the merchandise plays an important role in attracting the customers into the store and prompting them to purchase as well.

Merchandising helps in the attractive display of the products at the store in order to increase their sale and generate revenues for the retail store.

Merchandising helps in the sensible presentation of the products available for sale to entice the customers and make them a brand loyalist.

    Promotional Merchandising

The ways the products are displayed and stocked on the shelves play an important role in influencing the buying behavior of the individuals.

A merchandiser maximizes the sale of the products by:

Attractive packaging

The packaging of the merchandise goes a long way in improving the brand value of the product. A product kept in a nice box would definitely catch the attention of the customers.

Impressive presentation of the Product

The display of the products at the retail store must entice the customers. The merchandiser in coordination with the store manager must ensure that the products are according to the season as well as latest trends.

 

The merchandiser must:

 

Source something which is unique and not available at any other retail store.

Never compromise on quality of the merchandise. Compromising on quality costs later.

Source merchandise as per the season and climate.

By mid of August and early September, the summer merchandise is generally on a close out and stores begin stocking merchandise for the winter season. Warm clothing, full sleeves apparels, jackets, pullovers start replacing cut sleeves, capris, ankle length dresses, shorts and so on. Colourful clothes dominate the shelves as compared to the subtle colours in summers.

 

The type of product sourced also depends on the climatic conditions of the place.

 

A Reebok store in Central India or Southern India would stock summer merchandise between April to September whereas a retail store under the same brand somewhere in a cold area would source woollen merchandise along with summer clothing as per the demand of the season.

 

Unique Pricing (Discounts)

Attractive prices, discounts, rebates also bring customers to the store.

Promotional schemes, gifts

Coupons and attractive gifts make shopping a pleasurable experience for the customers.

Merchandising Tips

1.       The merchandiser must source products according to the latest trends and season.

2.      The merchandise should be as per the age, sex and taste of the target market.

3.      Merchandise for children should be in line with cartoon characters (like Barbie, Pokemon etc) to excite them.

4.      Creative Portico Pvt Ltd sources bed sheets, curtains specially inspired from characters (Disney, Harry Porter, Hannah Montana) - a hit amongst kids.

5.      Youngsters prefer funky clothes (colourful T Shirts, faded denims) as compared to professionals who would go for subtle colours.

6.      The target market of Zodiac Clothing Company Limited mainly comprises of office goers and professionals. The merchandise (shirts, trousers, neck ties, belts) is as per the taste of the professionals. Beach house shirts would have no takers in such a store.

7.      The merchandiser ideally works on the “invariant right” principle.Since most of us are right handed, it is a common tendency that customers entering into retail store would first go towards the right side of the store. The merchandiser should display the unique and expensive collections on the right side of the store to entice the customers.

8.     The set up of the store should be such that once a customer enters into a store, he has to walk through each and every department.

9.      The shelves should be stocked with the latest trends. The merchandise should be well organized on the racks according to their size and pattern.

10.  It is the key responsibility of the merchandiser to create an attractive display to pull the customers into the store. Once the customer steps into the store, he would definitely buy something or the other.

 

Merchandiser

A merchandiser is someone who ensures that the correct amount of products are on hand in a store or on a website. They make sure the products arrive on time, and work closely with the purchasing department (and buyers) in order to forecast, plan, and monitor stock levels. Merchandisers also work closely with the display staff in order to decide how goods should be displayed so as to maximize sales. In smaller companies, the same individual may be responsible for both the merchandising and the buying.

Merchandisers have been called "image consultants for the retail world." Merchandising is used to promote specific products and services and to increase sales. It entices customers to enter the store, thus increasing their chances of purchasing something. While the buyer selects the lines, the merchandiser decides how much money should be spent, how many lines should be bought, and in what quantities.

 

Merchandisers play a key role within retail, as the profit a company makes can be affected by how successfully they manage their work. Merchandisers set prices, and plan promotions and markdowns as necessary. They also oversee delivery and distribution of stock and deal with suppliers.

 

Duties of Merchandiser

§  planning product ranges, and preparing sales and stock plans with buyers

§  communicating with buyers, analysts, stores, suppliers, and distributors

§  keeping a library of appropriate data

§  working closely with display staff and managers on how product should be displayed

§  producing 'statements' (layout plans for stores)

§  forecasting profits and sales

§  planning budgets and presenting sales forecasts

§  controlling stock levels based on forecasts

§  analyzing the bestselling price points, colours or styles

§  staying aware of competitors' performance

§  keeping an eye on slow sellers and taking action to reduce prices or set promotions

§  analyzing the previous season's sales

§  making financial presentations to senior managers

§  accompanying buyers on visits to manufacturers

§  meeting with suppliers and managing the distribution of stock

§  negotiating prices, ordering stock, scheduling delivery dates, completing paperwork

§  identifying production and supply difficulties and dealing with any problems

§  managing, training and supervising junior staff

 

Merchandising

Merchandising is everything you do to promote and sell your products once the potential customer is in your store. When we talk about merchandise, we are talking about products available for sale, typically in a retail setting.

Since the sales process often starts with the eyes, merchandising typically involves presenting products in a visually favorable light, to try and encourage purchases.

Merchandising Strategies

Some of the most popular ways to entice buyers to purchase include:

–      Window and in-store displays

–      Grouping related products together

–       Shelf signage

–      In-store ads featuring the merchandise

–      Samples and giveaways

–      In-store demonstrations

–      Well-stocked shelves

–      Spotlighting promotional items

 

Making sure your products look appealing is key to effective merchandising, but how does the rest of the space look?

Do customers see:

 

☆     Clean floors and aisles

☆     Dust-free shelves and products

☆     Products that are neatly stacked or hung

☆     A sense of organization, rather than overwhelming chaos

☆     Vignettes of related products set up together to suggest how they might be used

☆     Enough elbow room to move about comfortably

Benefits of Merchandising

Some small business owners hire professional visual merchandisers to come in and spruce up their displays and selling floor, finding that the cost is well worth it. But merchandising goes beyond just moving inventory around, to space planning and product staging. Effective merchandising yields:

1.       Higher sales

2.      Faster inventory turnover

3.      Buyers who spend more time in the store

4.      More satisfied customers

5.      Increased customer loyalty

Stores that present products that customers are frequently looking for in a pleasing display, or tucked away neatly, will find those same customers returning for more on a regular basis.

 

Key skills for merchandisers

Ø  commercial awareness

Ø  confidence

Ø  able to cope with pressure

Ø  teamworking skills

Ø  communication skills

Ø  interpersonal skills

Ø  leadership skills

Ø  strong numerical and analytical skills

Ø  IT skills

Ø  decision-making skills

Ø  organisational skills

 

   

 

Qualities of a Good Merchandiser

To be a successful merchandiser it is required to have several qualities and this requirement depends on what type of merchandising job a person is involved with. For every type of merchandising job a person should have the following characteristics and qualities:

 

*        Ability to Create a Halo Effect

*        Ability to Calculate Fast and Accurate

*        Decision Making

*        Business Communication Skill

*        Ability to Convince Buyers

*        Ability to Work with Team Members

*        Good Analytical Capability

*        Enough Knowledge of Garments Industry

*        Basic Computer Skills of Office Applications

*        Hard Worker and Self-Motivation

 

Ability to create a halo effect

The Halo effect is the first impression a person creates for the others. A positive impression help to bring the outcome easily, but there is a huge negative effect of the negative impression. As a successful merchandiser, every merchandiser tries to create a good impression to their clients so that future dealings may become easy.

Ability to calculate

As a merchandiser, you need to calculate several measurements and consumption which will help you to find the result easily and make a quick decision. The basic conversion factor must be known by the merchandisers. To improve these skills one can practice more and more with a numerical digit.

Quick Decision making

When dealing with clients sometimes the merchandiser may require taking an important decision, this should be quick enough so that the normal flow of conversion not interrupt. Thinking the power of a person helps to make a quick decision.

Communication Skills

This one is the most important skill of all types of merchandising jobs. Every merchandiser must have this communication skill because most of the time they need to contact the clients or suppliers. Merchandisers make communication directly or over the phone call. Now a day’s communication with clients around the world is easier because of easy access to the internet.

Ability to Convince

Convincing power of a person added value to the personal skills if a merchandiser can convince then it would be possible to get the order from the customers.

Ability to work in a team

Merchandiser work in a large organization may require working in a team and the success of the team is depending on the cooperation and coordination among the group members. Those who can easily adapt to a group easily are getting extra support from the group members. In a merchandiser team, a group o people work for a particular objective that’s why they need to have the ability and intention to work in a team. Remember one thing; a team is more effective than a group.

Analytical Ability

Analysis of the situation helps to identify future demand and supply of goods. If a merchandiser has a good analytical ability of trends then he will get some extra benefit.

Knowledge of the Industry

Every merchandiser must have adequate knowledge about the industry for which he is working. Lack of knowledge may lead to an unsuccessful contract with the buyers. Think about it, if you do not have any idea about your industry and your product then how you will manage your customer. As merchandising is a very challenging job ones must have a clear concept of your own industry product and services.

Computer skills

Now a day’s virtual media is one of the easiest ways to communicate with each other where computers holding an important part of it. Any kind of record keeping or forming database these technologies is used. For dealing with day to day office work computer is used by the merchandisers, this makes their job easier. So to become a qualified merchandiser you must have basic knowledge about how to deals with basic operation with the help of computer technology.

 

Responsibilities of a Merchandiser

Some common works or responsibilities of merchandiser are

–      Contacting buyers (foreign or local buyers).

–      Visiting suppliers and manufacturers place to check the status of the factory.

–      Negotiate with suppliers and buyers about the price of goods.

–      Communicate with another department of the company to ensure the free flow of the activities.

–      Forecasting about the future demand for the product and report to the supervisors.

–      Sometimes they work directly or indirectly to promote the product by developing an advertisement campaign and deliver it to appropriate media.

 

If a person really wants to be a merchandiser then he/she will be required to have all these qualities. All these qualities make their job easier with effectively.

 

List of Trims and Accessories with Price

Trims and Accessories are used to make a complete garment. Other than fabric, different trims and accessories are the main parts of cloth. Sewing thread, price tag, size tag, sticker, label are the main trims and accessories. Although the price of these items depends on the quality of the product and quantity ordered. But we have been sharing here the average price of these items. Hopefully, this list of trims and accessories with price will help you to do the initial costing of garments. Apparel manufacturing company basically source these materials from China.

 

Trims and Accessories Price Chart

Trims and Accessories Price

List of Trims and Accessories with Price 2020

Sl. No. Items                      Average Price (USD)   Unit

1          Alarm Tag                               0.050                       Piece

2          Barcode Sticker          0.011                          Piece

3          Bow                               0.044                       Piece

4          Buckle                          0.038                                    Piece

5          Care Label                    0.034                        Piece

6          Collar Card                  0.034                                     Piece

7          Collar Tag                      0.034                       Piece

8          Convertible Ring         0.090                      Piece

9          Cookie                           0.280                       Piece

10        Drawstring                    0.090                      Piece

11         Elastic                                         0.080                     Meter

12        Extra Label                    0.007                       Piece

13        Fit Sticker                       0.005                     Piece

14        Glue Size Label             0.005                      Piece

15        Hang Tag                         0.046                     Piece

16        Hanger                              0.032                    Piece

17        Hook                                  0.009                  Piece

18        Hook & Eye                       0.140                   Pair

19        Insert Paper                       0.080                 Piece

20       Lace                                      0.515                   Meter

21        Maternity Claps                0.020                  Piece

22        Mesh Fabric                        4.100                  Meter

23        Metal Accessories             0.015                   Piece

24        Metal J-Hook                    0.015                   Piece

25        Metal Ring                          0.011                   Piece

26        Metal Slide                          0.011                   Piece

27        Micro Fabric                        1.820                 Meter

28       Micro-Pak                           0.011                   Piece

29        Ncm Ring                            0.012                 Piece

30       Ncm Slide                           0.010                   Piece

31        Oval Ring                           0.116                  Piece

32        Pendants                            0.077                  Piece

33        Plastic Bone                       0.350                  Piece

34        Plastic Buckle                   0.036                   Piece

35        Plastic Ring                        0.002                 Piece

36        Plastic Slide                       0.002                 Piece

37        Price Sticker                       0.018                  Piece

38       Price Tag                            0.006                   Piece

39        Price Ticket                        0.038                   Piece

40       Rfid Sticker                         0.059                   Piece

41        Rfid Tag                               0.059                   Piece

42        Ring                                       0.012                  Piece

43        Security Tag                          0.010                  Piece

44        Shoulder Strap                    0.290                  Piece

45        Size Sticker                          0.005                   Piece

46        Sizer                                       0.020                 Piece

47        Snap Button                        0.025                    Piece

48       Wire                                        0.113                    Piece

49        Wire Channel                      0.095                    Piece

 

Sampling

Sampling of garments is given great emphasis. It determines the approval of future orders from buyers and fetches business for a garment manufacturing or export company. Sampling is one of key elements of the pre-production processes in a garment industry. Before a manufacturer produces bulk orders, a prior sampling of styles is done to get approvals and jumpstart the fabrication of garments.

Sampling is not just for buyers, but the manufacturers can also derive estimates of yarn consumption for development of fabric, dyeing, printing, and stitching cost for a particular style or pattern given by the buyer. Companies can have a separate sampling department or a merchandiser, who works closely with the sampling section to source raw materials, and processes for developing a quality product for an affordable price.

 

Sampling includes details like a product/style code or a reference number, color specifications, kind of fabric, composition, description, quantity, and details of embroidery, buttons, zippers, or any other sort of accessories used. Hence it can be said that samples of garments work as a bridge between buyers and the producers.

 

There are many people who are involved directly and indirectly in the process of sampling. Designers, buyers, individuals engaged in sourcing and purchasing, production team, quality control personnel, and the costing department at different levels work closely on the sampling of garments.

 

Sampling Department  

Sampling department plays a significant role to achieve a garment export order for the factory. It is the main section for any garment manufacturing factory. As its importance, this article has presented the various important duties and responsibilities of sample department.

 

There are various types of samples that are developed by manufacturers depending on the requirement of their respective buyers. The following is a list of different kinds of samples used in the garment export industry:

Promotional samples or salesmen samples are developed to procure orders from retailers. These are good quality samples, which use actual accessories and fabrics. The buyer has to pay for these kinds of samples.

Proto samples are made after receiving the order sheets, and are the very initial sets of samples sent to the buyer. The design and style of a garment are communicated; the fit and fabric detailing are not given so much attention. Once the proto samples are approved, fit samples are developed.

Fit samples are designed to check the measurements, fit, and the style. Details of construction of the garment and standards needed to be maintained by the manufacturer are maintained in these samples. Certain times these samples are tried on models to check the fitting and the fall of the garment.

Size samples are sent to the buyers once the fitting is approved in small, medium, large and other sizes as per the requirement. Mass cutting of fabrics begins only once a final approval of all the sizes is received.

Pre-production samples are the samples, which are made in the production department once all the above sampling approvals are received. They are made with the actual fabrics, trimmings, and accessories that will be used in the future placed order. After a full and final approval is received from the buyer, the actual production can proceed.

Top of production samples are the samples that are picked up in between, once the manufacturing process has begun. All buyers do not demand for top of production samples, but some do, to make sure that the garments being manufactured are as per the decided specifications.

Shipment samples are sent to the buyer when the completed garments are packed and are ready to be shipped. These samples are sent in cases when the garments are directly delivered at stores or warehouses of the buyers, to view the final product and its packaging.

Sampling plays a vital role in getting orders from the buyer. It is a representation of the manufacturer's or exporter's potential to deliver desired outputs based on the details and information specified by the buyer. Besides this, sampling also gives an idea regarding the time and cost that the manufacturer of the garments will require completing the whole order, and delivering the products in time.

A sample of a garment can either make or break the future of getting orders from buyers. A good quality sample can invite more business and buyers to manufacture garments. It also gives the manufacturer the opportunity to look for options to source fabrics, trims, and other garment accessories necessary for the design at a cheaper price but of better quality, which further helps in costing. It helps in optimizing the process parameter for mass producing and also can aid in eliminating bottlenecks.

On the other hand, buyers can keep a check on the production of garments, the designs, and styles that are required, which are generally outsourced to manufacturers situated at a far distance. Holding a physical sample of a garment helps the buyer check the look, feel, fall, colors and shades, fitting, and the pattern of a certain style.

It can therefore be concluded that sampling in garment exports is of utmost significance not just to the manufacturer but also to the buyer.

Sample department of apparel manufacturing industry has to maintain the below responsibilities:

Getting clarifications about style details from the merchandiser,

Checking pattern’s work-ability,

Preparation of different samples and getting the buyer’s approval,

Informing quality related problems, encountered during preparing samples to QC,

Minimizing operations and consumption.

 

Job responsibilities of a production merchandiser

 

☀  Making production Time and action calendar - based on the process flow of an order merchants prepare time and action calendar and indicates who is responsible for the task. This helps merchant to execute an order whether it is on time or behind schedule. Merchants chase department who are running late.

☀  Preparing Bill of material and handover it to sourcing department - Based on tech pack (technical sheet), merchant prepares material requirement sheet. In some cases, merchants develop and purchase few trim by themselves.

☀  Execution of sourcing trims / accessories - merchants do follow up with supplier for the raw material.

☀  Preparing production file - Prepares production file with details documents, approvals, samples and swatches and comments on sample from buyer.

☀  Conduct PP meeting with quality team and production team - merchants conduct pre-production (PP) meeting with production team and quality team. In this meeting merchants discuss style construction details, production plan, PCD and handover production file to the production team. One copy of production file is also made for quality team.

☀  Giving approval of printing, embroidery production and other subcontracting work.

☀  Execution of orders whether it is running on time.

☀  Coordination with buyer or buying house if any clarification is required during production.

☀  Giving clarification to production and quality teams if required related to style workmanship/trims etc.

☀  Coordinating with buying house QA or 3rd Party QA for initial/mid and final inspection of shipment.

☀  Coordination with shipping and documentation department for forwarding the approved shipment.

☀  Keeping track of style status and updating the same to top management and buyer representatives.

 

 

 

Functions of production merchandiser

1. Product development

Product development is the business policy of the organization which includes the development of the new designs and styles within the organization. This activity brings the more business to organization, by showing pro-activeness in design development buyer also impress. The role of production merchandiser in this activity plays very important role. Production merchandiser must keep update to buyer time to time about the product development done by organization. Motivate the buyer to give the design development to the organization instead of doing themselves. Whenever buyer visits to the organization, presentation of new colour, prints, embroidery patterns and desk loom developments is done by production merchandiser. To present new designs developed by product development department. Try to convince the buyer to select the designs from presentation.  A very good presentation and convincing ability of production merchandiser brings more business to the organization.

2. Sampling

Sampling is one of the main processes in Garment manufacturing and it plays vital role in attracting buyers and confirming the order, as the buyers generally places the order once satisfied with the quality and responsiveness of the sampling. Sampling is the most crucial and most important stage of fashion merchandising. Sampling department makes samples on the basis of the specification and requirement by the buyer. Sampling in merchandising may be defined as “The concept, perception and ideas of fashion designer developed into product samples, in systematic stages of product development, with technical and quality clarity in a development.” The role of merchandiser plays the crucial role as the follow up of the samples is important aspect. Buyer passes some comments to the merchandiser after submitting the sample. These comments are needed to understand and communicate with the sampling department. Get changes from the sampling and resubmit to buyer. Follow up with buyer to get approvals of the sample.

3. Costing

Costing is the very dynamic process, and it is the most important function performed by merchandiser. Merchandiser should have knowledge of costing and it’s calculations. While calculating the cost of the garment merchandiser keeps following things in mind.

Fabric consumption

Trims

CMT

Value added services: printing, embroidery, washing, applique

Testing

Transportation and logistics cost

Profit of the manufacturing organization

Currency exchange rate

The role of merchandiser does not end only after calculating the cost, but after quoting the cost merchandiser need to negotiate with buyer on cost of the garment.

4. Planning (Time and action calendar)

Production merchandising is an interdependent activity. Successful merchandising is outcome of effective preparation and follows up of time and action calendar by all departments. Time and Action Calendar or TNA, a most important jargon used in fashion merchandising, it is an effective way of coordination and following up of important milestones in preproduction processes to ensure timely delivery within stipulated delivery date. Despite claims of being practically in use by most buying and manufacturing organizations, the follow-up of orders/styles during the pre-production processes are not fool proof and there are several myths which need to be redressed claims. Production merchandiser prepares the TNA by keeping things in mind like production capacity, lead time of buyer, holidays etc.

5. Communication

Communication is a most important aspect of any export order process. In production merchandising there are various tools used to communicate with buyers in order to proceed further in export order like quality manual, purchase order, packing list, colour way communication, style no. tech pack. Buyer communicates each and every aspect of on-going and future style with merchandiser only. Merchandiser must be able to communicate with buyer and with internal departments effectively to process the export order effectively. There are several modes of communication like telephone, email, actual meetings, fax etc. merchandiser must aware of etiquettes to use these modes of communication.

6. Coordination

Coordination is the major aspect of fashion merchandising, one need to coordinate with all the departments within the organization and outside the organization in order to run the export order successfully. Coordinating with other department is the one of the major responsibility of a production merchandiser. A production merchandiser has to coordinate with the other departments so as to complete its job and to following the production activities. Factory merchandiser uses different formats and documents to coordinate within the factory like BOM, production file, tech pack. Some of them are need to create by factory merchandiser some of them are provides by buyer. This type of coordination referred to as internal coordination. Production merchandiser needs to coordinate with buyer asbuyer also takes the follow up from merchandiser. Merchandiser provides the formats to the buyer like production status report, packing list, TNA etc.

7. Sourcing

For garment export house fabric and trims are the raw material which needs to be outsourced. Sourcing is basically determining the most cost efficient vendor of materials, production, or finished goods at the specified quality and service level. It is closely associated and an important part of apparel merchandiser’s responsibility. Materials basically include piece goods that will be cut and converted into the garments. Not only does the fabric have to be appropriate and suited to the garment design and end use but it must also be made available at the precise time when it is needed. Thus, lead times play an important role in the sourcing and placing orders for the materials required for the production. Lead times required from a supplier can vary from as little as two weeks to as much as nine months. Trims are all the materials other than the piece goods that are required to make up a garment. Findings require the same careful planning as the piece goods. As soon as the fabric is in the stores, then only the sourcing of the threads start because the colour of the thread must match the buyer’s requirements. The ordering of the threads must be complete by the time fabric is cut ready to be feeded to the sewing lines.Sourcing department along with apparel merchandiser plays the vital role to execute and shipment of export order successfully. Merchandiser must make sure that all approvals related to fabric and trims should be coordinated with the sourcing department in given timeframe.

 

Principles of Merchandising:

Merchandising is delivery of right product at right place and right time to the targeted customer. Successful operation of merchandising is dependent on following principles.

 

1. Offer What Customer Wants:

Retailer must offer in his store what the customer wants or desires. He must select the segment of customer to whom he has to serve (like rich, middle class, Youngsters, kids, ladies) assemble the goods that they expect, assort and Offer them at a price, style and content etc., that is liked by them.

2. Prepare Merchandise Plan:

Merchandiser has to finalise the merchandise plan. Such plan must be based on demands and specialty of each store and department. Micro details like types of products, brands, price category etc., have to be planned.

Such planning must be based on past records, consider the likely changes in fashion, consumption habits. Merchandise has to consult store manager in finalising merchandise plan. He has also to analyse financial implication of investment on merchandise to meet the profit targets.

3. Selection of Sources of Supply:

It is said goods well bought are half sold. Merchandiser has to select vendors or suppliers who meet his requirements in terms price, quality, delivery and reliability. He has to search the list of suppliers available locally or at regional or international level depending on his need and select the supplies who meets his demands. Merchandiser has to negotiate with the vendor the terms of buying price, terms of delivery, payment base.

4. Consistency and Change:

There should be consistency in merchandise assortment. Regular customers are habituated to particular lifestyle, products, price etc. Retailers should be capable of offering regularly as to what his customer’s desire. Along with this he has to introduce an element of novelty, bringing the gradual change in product, style of operation etc. to match the changing trend and demand of his customers.

5. Present Right Assortment:

Retailers has to present right assortments of merchandise, i.e., types of product, brand, price range, and other features that the regular customers expects. Products must be presented category wise offering convenience and comfort to the customer in selection of product.

6. CRM:

Sale to a customer is not a once day affair or a single transaction. A customer who visits a store must repeatedly visit the store. Retailer has to develop relationship with the customers.

This is possible when:

i. Retailer understands need of each particulars customer. Pay personal attention to visiting customer.

ii. Attend any problems faced by customer through after sale service.

iii. Offer courteous service and make shopping a pleasing experience.

This is called CRM that is necessary to attract and retain customers.

 

7. Customer Delight:

A successful retailer not just satisfies visiting customer by offering the product he wants, he surprises him with much more. Retailer should ensure customers delight through new products, offers, discounts, installment, returns and other facility something that is unique, which may please and delight a customer and make him to loyal be organisation.

 

 

Types of Merchandising

#     Visual Merchandising

#     Retail Merchandising

#     Digital Merchandising

#     Product Merchandising

#     Omni channel Merchandising

#     Fashion Merchandiser

#     Production /Export Merchandiser

 

Visual merchandising is used to highlight the products and its features through certain display techniques. It could be proper product placement, lighting, design or spacing between the products.

Visual merchandising entices the customers visually, be it offline or online.

Think of it this way, when you shop online, you see certain videos or images that make you check out the product. At times, the features and benefits of the products are put in an appealing manner. This is visual merchandising done online.

In an offline store, however, various aspects like banners, floor layout, grouping of products, 3D displays and many other ways are used to enhance a customer’s offline buying experience.

Retail merchandising is used to sell products to customers through promotional and marketing activities. The products are sold only in physical stores like malls, events, or brick and mortar stores.

Remember the last time you visited a mall and there was an event happening? The sponsors were openly displaying and promoting the products to the audience. Well, that’s retail merchandising.

Digital merchandising is the online version of retail merchandising, it is used to sell products online. Also known as ecommerce or online merchandising, it is a technique of promoting products online through ads, email marketing, social media marketing, or affiliate marketing.

More and more people are shopping online which makes digital merchandising all the more important in today’s time.

Digital merchandising is not limited to online stores. For a better shopping experience, offline stores are providing digital alternative to the customers. Lenskart is one of the stores that allows customers to try products at the store and place the order online.

Omni channel merchandising is used to create a better experience for the customer throughout their buying journey. All kinds of tactics or activities are covered at all the points.

Whether the customer is buying online or at a retail store, he’s targeted at every stage. For example, if a customer lands on your e-commerce store through a search engine and leaves the page without buying anything. Then he’ll be targeted through email or social media marketing with exclusive offers. It not only increases sales but also satisfies the customer.

Product merchandising is all about promoting the products to generate revenue. The product can be of any type like a digital product or physical product that is available in retail stores

The promotional activities occur online or offline depending upon the kind of product and its availability. Not to mention, the target customer is also a deciding factor for the activities.

For example, if it’s an online course, then the promotions would mainly happen online through email marketing or social media marketing. However, if the same thing was to be promoted offline, then it would be in the form of banners.

Fashion Merchandising all about Fashion , which is  a reflection of culture which is constantly being redefined. Customer’s wants and needs are changing as a reflection of these challenges. The consumer determines the fashion of the times, and the fundamental consideration of merchandising is to create stock and sell what consumers are likely to accept. The fashion merchandisers have also classified two ways.They are

v  Marketing Merchandiser.

v  Planning Merchandiser

Export merchandising is commonly used within the trading industry and denotes all marketing and sales activities around the point of making a profit. Merchandising is a term used to signify articles to sell. Export merchandisers are directly related to retail merchandising and also the commercial department in garments. Export merchandiser is divided by the four ways. They are-

·         Sample Merchandiser.

·         Production Merchandiser

·         Sourcing Merchandiser

·         Product Development Merchandiser

 

Garments Order Execution Process:

During executing of a garment order, the following processes should be maintained by a garments merchandiser:

♣       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 air port),

♣       Goods handed over to the shipping line

1. Order enquiry from buyer to factory:

Here, a merchandiser must make a meeting with production manager for shipping date planning, Enquiry on price (Sometimes target price given by the buyer), enquiry on shipping date (Sometimes target shipping date giving by the buyer).

2. Approval of order from the buyer:

In this process, a merchandiser has to take approval of order as per the costing given by him/her, also make time and action (T/A) plan containing the details of the action be taken according to fixed shipping date, in order to execute the shipping date committed with the buyer.

3. Buyer bank given master L/C to the Buying house:

Master L/C is the contract, given to bank, which covers the total value of an export order. Commercial department of buying house deals with the follow up of L/C matter.

4. Back to back (B/B) L/C is given to the suppliers:

Here, commercial department of buying house deals with the open up of B/B, L/C and merchandiser deals with the follow up of materials on time.

5. Fit sample sent to the buyer for the fit approval:

In this process, merchandiser has to co-ordinate with sample section for making fit sample. After receiving it from the sample section, it should be sent to the buyer for the approval of fit and measurement.

6. Pre-production (P.P) sample submitted to the buyer:

Here, pre-production (P.P) sample should make from production line by using original fabric and accessories and submitted to the buyer for P.P approval.

7. Fabrics and accessories should be in-housed according to T/A plan:

In this process, a merchandiser has to monitor inventory department strongly so that there’s no problem can create during in-housing right quality and right quantity of fabrics and accessories in timely. If there’s any wrong then merchandisers have to take correct decision to solve it.

8. Pilot production should be started according to T/A plan:

Pilot production means initial production, consists of 100 to 200pcs. Here, production manager and quality team should check very carefully the every style garments according to the buyers specification.

9. Online inspection by the buyers Q.C:

Here, buyer’s Q.C team inspect the garments and gives suggestion where the quality defects are and how to improve on that.

10. Bulk production should be start according to T/A plan:

In this process, bulk production should be start and complete it according to time and action plan. Here, buyer’s QC, monitor on the production line. So, production manager should take extra care to make the garments correctly by maintaining buyer’s specification.

11. Commercial department prepares the shipping documents:

In the mean time, commercial department should prepare the necessary shipping documents such as booking vessels by contacting with shipping line (in case of sea shipment).

12. Final inspection according to T/A plan:

In final inspection, buyer’s Q.C has done random inspection before shipping date. If buyer’s Q, C confirmed the right quality certification then only can ship out the goods.

13. Goods sent to port (Sea port or air port):

Goods should send to the sea port or air port according to buyer’s specification.

14. Goods handed over to the shipping line:

Goods handed over to the shipping line (in case of sea freight) is a very important process, if it’s not possible to handed over the goods to the shipping line in right time according to the master L/C then the buyer can cancel the goods or ask for air freight. So, goods should be handed over in timely.

Time and Action Calendar

 

Time and Action Calendar or TNA, a popular tool used in apparel manufacturing industry is a technique for tracking and following up of important milestones in preproduction processes to ensure timely delivery within stipulated delivery date. Garment pre-production and merchandising functions are characterized by people in an organization doing multiple activities. While some of the activities are dependent and follow each other, a few others are independent. Every garment company takes enormous care during the planning of an order. Every little detail is interwoven into the planning system. Making a TNA Calendar is not just entering activity names and duration in tabular forms; it is also about scientifically working-out the activity duration, logically determining the preceding and succeeding activities.Time and action calendar consist of the short term and long term plans so carefully laid out.

‡        Structure of TNA

Normally merchandisers prepare a plan of the order in a spreadsheet by listing down the key processes in first column and planned date of action for each process in the next column. This planning sheet is popularly known as time and action calendar (TNA). Once TNA calendar is made, then it can be easy for merchandiser list down their daily ‘to do list’ and taking it one by one. As per TNA schedule processes can be executed on timely basis to track whether an order is on track or it will get delayed.

In order to make TNA below mentioned information must be available

– Process flow of an order with the list of task which need to be performed

– Production capacity of cutting, sewing, washing and finishing

– For sewing – batch wise and product wise capacity (production per day per batch)

– Lead time of activities, e.g. raw material lead time, sampling lead time, etc.

– Shipment date or planned ex-factory date

Normally TNA does not depend on fabric used in merchandise like woven or knits. TNA is largely depends on the particular process flow of an order, machine requirement and available production capacity. In TNA planned cutting date (PCD) and ex-factory date these are the two most critical dates.

 

‡        Necessity of TNA in Apparel Industry:

It helps a smart merchandiser to make out the critical tasks in an industry.

It is an essential element for a smooth shipment order.

It is essential for timely shipment an export order

It helps proper the execution process of export order.

It provides the idea about the position of running order.

It helps to optimize the factory inventory.

It gives the apparent plan about the Export order.

It is useful to know the status of the order processing at different level in the apparel industry.

It enhances the factory inventory management.

It improves efficiency due to proper time schedule.

It enhances productivity as a result, also improve a company profits.

‡        Importance of TNA

The importance of TNA can be summarized as below.

➵   It helps to streamline the pre-production activities.

➵   Easy understanding of order processing.

➵   Clear understanding of timelines given by buyer.

➵   It gives the clear idea about the minor or sub activities that need to perform during order processing at different level.

➵   TNA gives the idea about the status of running order andtalks about delay or deviation, if any

➵   TNA gives the dates at which raw material need to be sourced, in a way it helps to optimise the inventory.

➵   TNA also reduces the risk of delivery delay.

 

‡        Factors need to be considered while preparing TNA:

Production capacity of plant

Style type of merchandise

Festivals of manufacturing country

Holidays

Shipment details

Festivals of country from where raw material is imported

Logistics facilities

Lead time estimated by buyer

Style complications

Fabric and  trims manufacturing complications

Buffer required from each department

Political stability of the country

Flexibility of freight forwarder

Response time from buyer at different stages

Lead times of various activities like L/C payment, custom clearance, etc

Cut off dates for shipments

Apart from these main activities, following constraints merchandiser should keep in mind while preparing the TNA for production.

 

»   Actual shipment date

»   Efficiency of production line

»   Style complications

»   Operators skills

»   Start-up loss

»   Learning curve of line

»   Finishing and packing capacity

»   Availability of alternate operators for absenteeism.

 

Any delay in production will directly leads to shipment delay hence for actual production proper buffer should be allocated in TNA.

 

Critical Path method for TNA preparation:

Fashion merchandising is a much complicated network of linier and non-linier activities to perform. Activities performed are interdependent and need of synchronization between succeeding and preceding activities to make a non-linear process network. The longest chain of activities considering task dependencies is called critical path. It is a common practice industry to list activities from order receipt to delivery in linear sequence and assigning time duration to each activity by backward planning, which is wrong as the activities are never linear since there are lot of parallel activities. Therefore, the sequence of activities should be drawn either as PERT network or Gantt chart format.

 

Merchandising terminology

Anchor store: is a large retailing establishment that attracts considerable numbers of people to a mall and is usually located at the end of the mall (hence the term "anchor").

Assortment: is the selection of merchandise offered in a store at any given time. Description of assortments is often presented in terms of breadth (i.e. number of styles) and depth (i.e. number of sizes and colors available for each style).

Agile manufacturing: is a new technology that incorporates modular production rather than the traditional piece goods line method and allows for special orders at the last minute without disruption.

Apparel manufacturing: firm It is an association of people whose primary purpose is producing and distributing apparel for profit.

Publicly owned companies have stock traded on a stock exchange and are required by law to several annual reports of business activities.

Privately owned companies may be proprietorships, Corporations, Conglomerate, Cooperatives / but the assets or stock in the company are owned by few individuals who completely control firm.

AQL is related to the quality of products. In textile factory Acceptance Quality Level is shortly denoted by AQL

Air Way Will is an export document .the carrying agreement between exporter /shipper and air carrier which is obtained from the airline used to ship the goods. It’s a receipt of goods received given by airlines.

Basic fabric is grey fabric. Fabric is the main raw material of garments because major parts of garments are fabric. Initially this fabric is get used for sampling.

Book Inventory is related to fashion accounting. Inventory book means the dollar value of inventory, as stated in accounting records

Brand: is a known name associated with a specific product or group of products carrying with it an expectation of such perceived values as style and image, quality, price, fit, reliability, consistency, and confidence that you'll look good.

Breadth: is a term used to refer to the number of different product lines, styles, or brands that are carried in a retailing establishment.

Bridge: is a merchandise level price point between designer or couture and better goods.

Bilateral agreement: Two countries reaching a separate agreement regarding their trade arrangements.

Bill of lading a document which provides the terms of the contract between the exporter/shipper and the transportation/logistic company to move fright between stated points at a specified charge. It’s a receipt of goods received given by logistic company.

Boutique: is a small specialty store, often owned or franchised by designers. Boutiques can offer both accessories and apparel.

Buying Office  is an independent or store owned office which is located at a market center and buys for one chain or for many stores. Buying office is also known as buying house.

Buying Plan  is a document of a general description of the types and quantities of merchandise that a buyer/ importer expect to purchase for delivery within a specific time. It is also known as purchase order(PO)

CAD: computer aided design: used to combine and visualize design ideas and to make patterns and prepare them for cutting.

CAM: computer aided manufacturing: utilizes electronics for the production of apparel in ways such as moving garment parts between work stations.

CIM: Computer connection to integrate computer aided design and manufacturing

Catalog showroom: sells merchandise from a catalog or floor samples in a warehouse style operation.

Category killer: is a specialty discounter that focuses on one product and has the best selection at the best price. This effectively "kills" the competition.

CM is related to the commercial parts of garments merchandising. The full meaning of CM is Cost of Making. That cost may include with trimmings, Cutting, making, trimmings cost, cost of making time etc.

Contractor: is an independent producer who performs specific aspects of manufacturing, such as sewing, cutting, and finishing.

Conglomerate: Defined as a group of non completing firms under common ownership that produces unrelated products.

Corporation: is a firm owned by one or more persons, each of whom has a financial interest. A corporation allows capital to be raised through the sale of company stock and does not allow legal claims against individuals, as in the case with sole proprietorships and partnerships.

Category: is a major grouping of merchandise that includes al types of departments, classifications, and sub-classifications that a particular type of customer would shop, for example, women's or men's apparel.

Counterfeit: is a type of merchandise that violates a company’s intellectual property rights. The law states that a protected trademark or copyright cannot be copied and offered for sale by another company.

CPM stands for Cost per Minute. CPM can help to find out per hour, shift, day and week cost of garments.

Credit: is an alternate to paying cash. It allows the customer to buy merchandise now, and pay for it later. There are many national and regional credit companies that issue credit cards that are widely accepted by retailers. Even though the stores do not benefit financially from the interest charged on these accounts (they do with charge cards), acceptance of those cards is a convenience afford to their customers that can ultimately increase patronage and sales.

Cutting order is a company document to maintain cut and produce a specific quantity of garments.

Cut – to – order is a cutting order based on order received. It relates to sampling department and product development department.

Cut –off-date is a last date till which a shipping line will accept the packed goods for a particular vessel or ship. Usually it is 5-8 days before actual ship moving date.

 

Destination store: is a type of retailer that a customer shops because only it can provide the product or service that the customer wants. Discount Store News defines this as a "magnet" that customers patronize. Customers make special efforts to go to destination stores.

Demographics: are used to identify and count groups of people, including population factors of age, gender, income, education, marital status, religion, family size, life-cycle stage, ethnicity, and mobility, among others. Demographics are used by retailers because they are often linked to marketplace needs and are relatively easy to access.

Designer collection: is the most expensive, high end line produced by a designer.

Desk Loom is a quarter sample(10x20cms)  yarn dyed check or strips swatch to get approval of checks or strip’s repeat and size. Usually this loom is made on a hand loom or baby loom. Desk-loom is a term used only for woven checks and strips and not for hosiery strips.

Down-charge is a less cost because of fewer trimmings into finished product. If buyer says he wants just finished product without any trimmings or embroidery or prints we should down-charge the buyer means we will decrease production cost.

Dummy is an artificial human body like doll which is used to get actual human body shape for measurement garments fittings.

Electronic retailing: Offers products through such electronic media as computers and television. Shopping on the Internet is the newest technological retail format of on-line retailing.

Electric data interchange:A communication system that electronically transfers information from one point to another via computer. An important application is the transfer of purchase orders between manufacturers and retailers. This is one way that vendors and retailers can respond instantaneously to quickly changing consumer demands.

Ex-works means point of origin- a pricing term under which exporter s’ only responsibility is to clear the goods for export and make them available to the buyer at agreed destination.

Fabrication is the process of garments fabric preparation before bulk production that’s why, fabrication is known as a pre-production procedure .The main object of fabrication is selection of appropriate fabric for a garment.

Factory out let store that sells the manufactures overrun directly to consumers.

Fashion forecast: A prediction of fashion trend. Consultants that foresee the colours, textures, and silhouettes to predict coming fashion trend.

Freelancing: Independent work of an individual who does short-term jobs for various firms that end when each assignment is completed.

Grading a procedure of either increasing or decreasing the size of the sample pattern. The process of making a sample size pattern larger or smaller to make up a complete size range.

Gross margin is related to calculation of manufacturing cost. The difference in dollars between net sales and the net costs of merchandise/ product during a given period.

Knit - down is small knitted fabric swatch (which is knitted as per buyers artwork like checks or strips to check the repeat and size) which merchandiser sends to the buyer for approval is known as knit –down.

Lab dip  is 10×10 cm swatch dyed in laboratory of mill for checking color standards given on pantone is known as lab dip. This swatch is dyed to get color approval from buyer. Merchandiser has to prepare 4-5 lab dip option for each color because he has to keep one as counter.

Lead Time  -From the date of placing an order to the delivery date this period is known as lead time. Generally lead time is 90-120 days. Lead time is also called as preparing time for order execution.

Line balancing is a plan of balancing the production schedule as per the time and action calendar. Line balancing is also applied in garments sewing floor for smooth order execution.

Mark down is known as the difference between the original retail price and a reduced price.

Mark- up is The difference between the original retail price and a raised price. It means the difference between manufacturing /cost price and selling price.

Modular  manufacturing method utilizing a small group of people who work together to produce a finished garment. It means sample development.

Offshore assembly -Purchase the fabric and cut it but give it to the other country for sewing is known as offshore assembly. For the example we can say that, fabric purchase and cut in the United Kingdom, but sent to the India or Bangladesh for sewing.

Partial Shipment- If the production is only half done and buyer gave us a permission to ship the first half goods we can ship the first half goods and then remaining this shipment is known as partial shipment. It is also known as prance shipment.

Pantone is a universal shade color shade card. It gets used in all industries for DTM (dye to match). There are 6 digit numbers for each color. Pantone depends upon TP (take-pad) and TC (take-card).

Pattern is a hard thick paper which is used to get the actual shape of different component of a garment. Pattern is also use as guide of a marker paper.

Style number a series of style which is easy to get the style references.

SMV stands for the Standard Minute Value. SMV is important topic in garments sewing floor. Standard Minute Value is related with garments time study.

Strike –off - This sample is get done by buyers artwork section to get an approval for print or embroidery and repeat and size for the same. This trail samples made by printer or computerized embroidery, which merchandiser sends to buyer for approval is known as strike –off.

Time and action calendar is stands for time and action calendar or Time and action plan. It is also known as issuing plan or production schedule or time and action plan. In order execution process, it’s also denoted as a short form TNA.

Thread run is an important terms in sewing section. The stitching thread and color for the same is known as thread run.

Up-charge is an additional cost which will get added into cost of production as per the buyer’s instructions. It will increase the manufacturing cost. Up charge will get added into these things like embroidery, labels, packing method etc.

Vendor is very common word in Ready Made Garments (RMG). In a normal word we know that vendor is a seller, resource, manufacturer or supplier.

Vessel sailing time -The time which will get taken by ship or transportation to ship the products is called as vessel-sailing time.

Yarn Dip is a same procedure as lab dip. If a fabric is a yarn dyed checks or strips then yarns will get dyed into laboratory and those yarns merchandiser has to send to the buyer for color approval is known as yarn dips.

 

Pre-Shipment Inspection

A pre-shipment inspection is a step taken by trade operators (buyers, suppliers, agencies) to inspect newly manufactured products before they are shipped for export/import.

The purposes of a pre-shipment inspection are to:

Check the quantity and quality of the merchandise

Check products for any defects

Ensure products meet the safety requirements of the destination market

Issue report for import and billing

Pre-shipment inspections were officially introduced in 1994 as an agreement to improve international trade standards under the General Agreement on Tariffs and Trade (GATT), which was later replaced by the World Trade Organisation (WTO).

A number of obligations were included in the “Agreement on Pre-Shipment Inspection,” stating that pre-shipment investigations should be applied according to the following principles:

1.       Non-discrimination

2.      Transparency

3.      Protection of confidential business information

4.      Avoidance of delays

Price verification based on the price of identical or similar goods in the country of exportation, in which the exporter has the opportunity to explain the price charged

Inspection agencies establish appeals procedures, the findings of which are made available to other exporters

Accredited inspection agencies perform pre-shipment inspections when production is at least 80% complete. This is your final opportunity to take corrective action before your production is shipped, making it an effective tool to safeguard your product against costly import risks.

The pre-shipment inspection typically covers: functionality, performance, durability, overall appearance, and dimensions.

Following a successful pre-shipment inspection, the agency issues an inspection report document which accompanies the consignment to its destination.

7 Important Steps in a Pre-Shipment Inspection Procedure

Step 1. Inspection Visit

Pre-shipment inspections are carried out on-site at the factory or production house. If the inspectors suspect that the products could contain restricted chemicals, they may advise further off-site lab testing of those products. An example would be products suspected of containing toxic chemicals such as lead and toxins derived from azo dyes, which are tightly regulated by Europe’s REACH directives and the Federal Trade Commission in the US.

Step 2. Quantity Verification

The inspectors count the shipping cartons to verify the correct quantity. In addition, this step ensures that the correct number of products and boxes will be sent to the correct destination; therefore, the pre-shipment inspection can be agreed upon between a buyer, a supplier, and a bank to initiate payment for a letter of credit.

The packaging is also checked to verify that the correct packing materials are being used to ensure safe transportation, and that correct packaging labels are applied.

Step 3. Random Selection

Professional pre-shipment inspection services use the internationally recognized statistical sampling procedure ANSI/ASQC Z1.4 (ISO 2859-1).

The acceptable number of defects in a batch before it’s rejected is defined with an Acceptance Quality Limit (AQL). The AQL varies depending on the type of product being evaluated, but the objective is to provide a balanced, unbiased view.

Step 4. Cosmetic and Workmanship Check

The first thing an inspector looks at from the random selection is the overall workmanship of the finished products, to check for any immediately visible defects.

Defects are typically classified as minor, major, or critical based on predetermined acceptable tolerance levels, which are usually agreed upon between the manufacturer and supplier during product development.

Step 5. Conformity Verification

Quality control inspectors check product dimensions, material and construction, weight, color, marking, and labeling. If the pre-shipment inspection is for garments, the inspector checks whether correct sizes have been assigned to the shipment and that the sizes correspond with production dimensions and the labels.

For other products, dimensions may be much more important, so this is when the dimensions of the finished product can be measured and compared with your original specifications.

Step 6. Function and Safety Test

Function Testing for Garments

For garment, apparel and footwear inspections, the inspectors perform physical tests on the products to determine the strength of buttons, zippers, and other accessories with pull tests, fatigue tests, and stretch tests.

Fabric density and composition tests determine the density or thickness of fabrics used in garment production. Special tools are used to measure fabric density. The quality control inspectors can also physically count the number of stitches per inch.

A fabric that’s too thin or not dense enough could mean your manufacturer has used an inferior fabric or textile that won’t stand up to normal wearing and washing.

Mechanical Safety Tests

Mechanical safety tests are required for products with moving parts such as bicycles and pushchairs that could potentially cause injuries if they are defective.

The inspection involves testing the product’s shape and design to see whether there are any sharp edges or parts that could pinch or entrap fingers, toes, and other appendages.

Mechanical safety testing includes checking the safety of critical components such as screws and hinges used in a completed product.

Electrical Safety Testing

Electrical and electronic products must be tested to ensure they comply with a wide range of safety regulations before they can be certified and labeled. Evaluating a product for electrical safety is often performed under laboratory conditions rather than on-site at the factory. It includes the following tests:

High voltage test (dielectric withstand test) - Measures the ability of an electrical product to withstand a high voltage applied between a product’s electrical circuit and the ground.

Leakage current test - Evaluates whether current that flows between an AC source and the ground exceeds a specified limit.

Insulation resistance test - Calibrates the quality of the electrical insulation used.

Ground continuity test - Ensures that a clear path is available between all exposed metal surfaces and the power system ground.

Country-Specific Labels & Markings for Electrical Products

What are the country-specific labels and markings for electronic products? The type of electrical safety testing required depends on the type of product as well as the destination market.

UL Certification Mark - Underwriters' Electrical Bureau for the U.S. federal agency Occupational Safety and Health Administration (OSHA).

CE Marking - The CE mark is recognized worldwide and indicates conformity with health, safety, and environmental protection standards for products sold within the European Economic Area (EEA).

VDE e.V. (Germany) - The VDE Association for Electrical, Electronic & Information Technologies (Verband der Elektrotechnik, Elektronik und Informationstechnik) is a standard widely recognized in Germany and internationally for electrical engineering, developing recognized technical regulations as national and international standards as well as testing and certifying electrical and electronic devices and systems.

CSA (Canada) - The Canadian Standards Association (CSA) registered mark shows that a product has been independently tested and certified to meet recognized standards for safety or performance required for Canada.

BSI (UK) - The British Standards Institution (BSI) is the national standards body of the United Kingdom. BSI produces technical standards on a wide range of products and services, and also supplies certification and standards-related services to businesses.

CCC Mark (China) - The China Compulsory Certificate mark (CCC) is a compulsory safety mark for many products imported, sold, or used in the Chinese market.

Step 7. Inspection Report

Once the pre-shipment inspection is completed, a report is compiled with a pass/fail result, an overview of key findings, and a detailed account of the inspection results. Some pre-shipment reports include clear images showing all inspection points, so you can see exactly what was discovered.

Pre-shipment Procedure

Pre-shipment stage consists of the following steps:

(a) Approaching Foreign Buyers: In order to secure an export order, a new exporter can make use of one or more of the techniques, such as, advertising in international media, sales promotion, public relation, personal selling, publicity and participation in trade fairs and exhibitions.

(b) Inquiry and Offer: An inquiry is a request from a prospective importer about description of goods, their standard or grade, size, weight or quantity, terms of payments, etc. On getting an inquiry, the exporter must process it App immediately by making an offer in the form of a proforma invoice.

(c) Confirmation of Order: Once the negotiations are completed and the terms and conditions are finalised, the exporter sends three copies of proforma pre invoice to the importer for the confirmation of order. The importer signs these copies and sends back two copies to the exporter.

(d) Opening Letter of Credit: The documentary credit or letter of credit is the most appropriate and secured method of payment adopted to settle international transactions. On finalization of the export contract, the importer opens a letter of credit in favor of the exporter, if agreed upon in the contract.

(e) Arrangement of Pre-shipment Finance: On securing the letter of credit, the exporter' Procures a pro-shipment finance from his bank for procuring raw materials and other components, processing and packing of goods an transfer of goods to the port of shipment

(f) Production or Procurement of Goods: On securing the pre-shipment finance from the bank, the exporter either arranges for the production of the required goods or procures thorn from the domestic market as per the specifications of the importer.

(g) Packing and Marking: Then the goods should be properly packed and marked with necessary details such as port of shipment and destination, country of origin, gross and net weight, etc. If required, assistance can be taken from the Indian Institute of Packing (IIP).

(h) Pre-shipment Inspection: If the goods to be exported are subject to compulsory quality control and pre-shipment inspection then the exporter should contact the concerned Export Inspection Agency (EIA) for obtaining an inspection certificate.

(i) Central Excise Clearance: Exportable goods are completely exempted from the central excise duty. Such exemption can be sought in one of the following ways:

Export under Rebate.

Export under Bond.

(j) Obtaining Insurance Cover: The exporter must take appropriate policies in order to insure risks:

ECGE policy in order to cover credit risks.

Marine policy, if the price quotation agreed upon is CIF.

(k) Appointment of C&F Agent: Since exporting is a complex and time-Consuming process, the exporter should appoint a Clearing and Forwarding (C&F) agent for the smooth clearance of goods from the customs and preparation and submission of various export documents.

 

Shipment Terms           

Shipping terms are also called INCOTERMS. Incoterm is the elided word that shortens International Commercial Terms. They are 3 letter abbreviations recognized throughout the world. They tell each party concisely what is expected of them in selling and in contract negotiations. In all international transactions, shipping can be paid for and done by either the shipper or the consignee. For example, the shipper can pay for everything: from their dock to the consignee’s dock with customs clearance and duties paid on their behalf. This is called Delivered, Duty Paid (DDP). Or the shipper can do none of the shipping. Instead the buyer picks up the freight from the shipper’s factory dock. This is called ex-works (EXW). In between these two extremes, there are a number of places where the shipping can pass from one party to another. The scope can end once loaded on the carrier (FOB) or at a named place (DAT) or at a port or terminal (CFR and CPT). There are about a dozen of these shipping terms.

Basically, Incoterms indicate three things. (1) Who arranges for transport and the carrier. (2) Who pays for transport. (3) Where/when does title (ownership) of goods transfer from seller to buyer. Consequently, shipping terms tell where costs are transferred and where the risk is transferred from the shipper to the consignee. Therefore, shipping terms are NOT optional. Even when they are not stipulated or mentioned, both parties have expectations about the shipping. Ignoring the shipping terms only invites confusion at best and legal trouble at worst. Every sale, every quote, and every international contract here goods are exchanged must have Incoterms.

Ex Works (EXW). The Seller agrees to have the goods at an agreed point (usually the seller’s facility) and provides the Buyer notice to allow the Buyer to take delivery of the goods. The Seller’s only responsibility is to prepare the goods for pick up by the Buyer’s carrier; Buyer assumes the risk of loss of the goods, freight charges, export and import responsibilities and delivery to buyer’s facility. EXW is typically not an ideal option for most importers unless you have a freight forwarder and broker in place and have negotiated preferential shipping rates.

Free Carrier (FCA). The buyer and seller can name a location on the seller’s side (for example, “FCA Seller’s Facility at [address]”). If the parties name the seller’s facility, the seller is responsible for loading the goods onto the initial carrier and the buyer is responsible for transport, freight charges and risk of loss thereafter as well as export and import responsibilities.

Free Alongside Ship (FAS). This term is followed by a named port of shipment and is only applicable for water transport (”FAS Boston.”). The seller is responsible for the cost of transporting and delivering goods to the export point, but the responsibility shifts to the buyer once the goods are unloaded at the export point..

Free on Board (FOB). This term is followed by the named port of shipment, for example FOB New York, and applicable only for waterway transport The goods are place on board the vessel by the seller at a port of shipment at seller’s expense. Seller has responsibility until the goods are loaded on the transport vessel, then all responsibility shifts to the buyer.

Cost and Freight (CFR). This term is followed by the name of the port of destination and applies only to waterway transport. CFR requires the seller to pay the costs and freight necessary to bring the goods to the named destination. Buyer assumes responsibility for loading the goods on the truck at the place of import, transport to the destination and import responsibility.

Cost, Insurance, and Freight (CIF). CIF is similar to CFR (applicable only to waterway transport) with the additional requirement that the seller purchases insurance against the risk of loss or damage to goods.

Carriage Paid To (CPT). The buyer and seller name a location on the buyer’s side to which the freight is prepaid by seller. The wording would be something like “CPT Buyer’s Facility at [address].” The import responsibility is buyer’s only obligation, while the seller is responsible for transport, freight charges, risk of loss and exporting obligations.

Carriage and Insurance Paid (CIP). The parties name the place on the buyer’s side to which the freight is prepaid by seller (“CIP Buyer’s Facility at [address]”).. Seller carries all of the responsibility, including providing insurance against loss of damage, and import responsibility and unloading from the final carrier are buyer’s only obligation.

Delivered at Terminal (DAT). The buyer and seller identify a terminal, or a named point within the terminal, where appropriate, on the buyer’s side to which the goods are delivered. Seller carries all of the responsibility, except import responsibility falls on the buyer as well as obligations to unload at the terminal.

Delivered At Place (DAP). The parties name a stipulated destination on the buyer’s side where the goods are to be delivered. Seller carries all of the responsibility, except import responsibility falls on the buyer as well as the obligation to unload once it reaches the designated destination

Delivered Duty Paid (DDP). The parties name a Buyer’s location to which the goods are delivered (e.g. “DDP Buyer’s Facility at [address]”). All responsibility falls on the seller, except for obligations of unloading once the goods reach the Buyer’s location.