CHAPTER 2: Merchandising Organizational Structure

Sub-chapter: Resident Buying Offices

Assalamualaikum and Salam Sejahtera.

Before we continue to the next sub-chapter, let’s look back our last lesson. In previous chapter
(Chapter 1), we did learn Merchandising Organizational Chart which include General Merchandising
Manager, Fashion Coordinator, Comparison Shopper, Divisional Merchandising Manager, Buyer and
Assistant Buyer. We have also discussed the responsibilities of each of the position.

Apart from that, we have also learnt about different Merchandising Organizational Structures that
consist of Chain Organization, Departmental stores, Franchised stores, Home Shopping Network and
Independent stores (specialty store or boutique). We have also covered the responsibilities of buyers
in different Merchandising Organizational Structures.

Slide 12

For today’s lesson, we will learn all about Resident Buying Offices. So, what is Resident Buying Office?

Slide 13

Resident Buying Office or also known as RBO is generally a Market Consultant that can provide
buying information to buyer.

As what we have learnt in last lesson, buyer is responsible to purchase merchandise. However, where
can buyer get information on where to buy, what to buy, how much to buy, what is the latest trend
of the merchandise etc? To get all these information, buyer needs to find Resident Buying Office
(RBO).

Slide 14

This slide here shows you several services offered by the Resident Buying Office (RBO).

-First service: RBO can help buyer in preparing promotion activities

-Second service: RBO can help buyer to follow up order

-Third service: RBO able to help buyer in handling complaints from retail stores if they get wrong
merchandise

-Forth service: RBO can recommend hot items to buyer

-Fifth service: RBO can assist buyer what to buy during market week

-Sixth service: RBO can advise buyer for group buying. Group buying means buying merchandise in
bulk

-Seventh service: RBO can help buyer in buying merchandise

-Eighth service: RBO can help buyer in finding new resources such as buying merchandise from
manufacturer or wholesalers etc.
Slide 15

This slide here shows you an example of Market week. Market week is a time of selling clothing,
footwear or accessories where buyers need to travel to a particular location in order to plan their
purchases for the season.

From this slide, you can see that market week is similar to exhibition centre where all companies will
promote their products. From the market week, buyer will have opportunities to get varieties of
merchandise from different manufacturers or suppliers.

Slide 16

Now, let’s look at types of RBO. RBO can be divided into 3 types,

1. Salaried Buying Office

2. Syndicated Buying Office
3. Private Buying Office

Slide 17

I will start with Salaried Buying Office. Salaried Buying Office is the most common type of buying
office.

If buyers want to use a Salaried Buying Office as their market consultant, there will be annual fee for
all the services.

Slide 18

Next is Syndicated Buying Office. Syndicated Buying Office is a buying office owned by a retail group
(such as Chain Organization which has been discussed in previous subchapter).

For example: Marcy retail stores have their own buying office.

Slide 19

Next type of RBO is Private Buying Office. Unlike Syndicated Buying Office, the Private Buying Office is
owned by a single retail store.

Slide 20

Ok students, what are the benefits of using RBO in retail industry?

The benefits are,

- Able to exchange information or ideas between RBO and buyer

- Buyer able to get advice and consultation regarding sales, promotion, etc
- Buyer able to get information on latest trend, colour and styles
- With the help of RBO, buyer able to place small orders from manufacturer or vendors
 - Buyer also able to purchase private label. Details on the private label will be discussed in next
chapter.

Slide 21

If buyer is unable to find RBO in his/her countries, what are the sources that can help buyer in buying
merchandise?

Buyer can get information on buying using different sources such as,

-fashion reporting services

-retails reporting services

-fashion forecasters

-trade publications including magazines, internet sources

-non- profit public relation organizations

That’s the end of Chapter 2. If you have any further questions, please feel free to whatsapp me.

Good luck everybody!!!