A SUMMER INTERNSHIP REPORT

ON

A STUDY ON WORKING PROCESS OF MERCHANDISER IN BUYING

HOUSE OF JYOTI APPARELS PVT LIMITED

Report Submitted in Partial Fulfilment of the Requirements

For

The degree of

Masters of Business Administration

Submitted By:

Raghav Bansal

H50222010

MBA (GENERAL)

Internal Supervisior Company Supervisior

Ms. Sikha Gupta Mr. Dinesh kumar

Assistant Professor Sr. Merchandiser

FACULTY OF COMMERCE AND MANAGEMENT

PDM UNIVERSITY
 BONAFIDE CERTIFICATE

This is to certify that the project Work Titled “A Project Report on study of WORKING

PROCESS OF MERCHANDISER IN BUYING HOUSE is a bonafide work of Mr Raghav

Bansal , H50222010 Carried out in partial fulfillment for the award of degree of

MBA (General) of PDM University under my guidance. This project work is original and not

submitted earlier for the award of any degree of any other University.

Signature of the Guide

Place:

Date
 DECLARATION

I Mr. Raghav Bansal hereby declare that the Project Work titled “A Project
Report on working process merchandiser in buying house is the original work
done by me and submitted to the PDM University in partial fulfillment of
requirements for the award of MBA (General) is a record of original work
done by me under the supervision of Ms. Sikha Gupta.

Registration No.: H50222010

Student’s Signature:

Date:
 ACKNOWLEDGEMENT

I would like to thank to my External Supervisor Mr. Dinesh kumar , senior

merchandiser, Jyoti apparels and Internal Supervisor Ms. Sikha Gupta Assistant
Professor for his invaluable guidance and continuous encouragement
throughout my Summer InternshipProject work which helped me to learn
about the company and its working culture.
I would like to take this opportunity to sincerely thank to Prof (Dr.).Shika
Mam , Professor& Dean, Faculty of Commerce and Management, PDM
University for their valuable support and encouragement.
I am also deeply indebted to Ms. Sikha Gupta for their valuable help and
Encouragement

RAGHAV BANSAL
 TABLE OF CONTENT

PAGE
S.NO. TOPIC NO.
1) Objectives of SIP

2) Organizational profile and organizational

structure
3) Company Perforamnce

4) Swot Analysis

5) Training schedule

6) Learning details

7) Summary and recommendations

8) Contact Details

9) Bibliography
CHAPTER: 1(OBJECTIVES OF SUMMER INTERNSHIP
PROJECT)
 OBJECTIVES

• To understand the whole working process of merchandising of buying house.

• To know about the working of different departments in buying house.

• To acquaint myself how to communicate with the buyers to take the deal.

• To know how to negotiate with the buyer.

CHAPTER: 2 (ORGANIZATIONAL PROFILE AND
ORGANIZATIONAL STRUCTURE)
 ABOUT THE ORGANIZATION

A buying house is a media between buyer and manufacturer. It can be a buying agency or a
buying office. Both term contains different meanings. Buying agency is an independent buyer’s
regional office, from where all kinds of necessary approval has given. On the other hand, buying
office is that, which works at a time withdifferentbuyersandbrands. In this case, all the required
approvals are comes from the buyer, not from buying house.

GarmentsBuyingHouseis a very profitable business, any smart people with less investment can
earn millions of Dollars. Buying house basically is an office with
sometestingmachineandequipments, as it is not directly execute the order. So every Buying
house needs some energetic skilled merchandiser to maintain the placement of order and
execution, some quality controller (QC) to maintain the products quality some other officials to
do official works. Garment buying house means, the buying house procures garments from the
manufacturers and exports to other countries is called garment buying house.

Basically Garment Buying houses try to communicate with buyers of other countries who want
to buy garment products. Then they contact with garment factories who can make those kinds of
products and fulfill buyer’s demand. Like this they create a contract between these two parties.

ROLE OF BUYING HOUSE IN GARMENTS BUSINESS:

In normal sense, buying house is the combination of all marketing activities, which is not only
related with searching foreign garment buyers, order collecting media for the manufacturer but
also placing order to local garments manufacturing factories and providing all the necessary
support to the buyers and manufacturers.

Buying house plays an important role forgarmentsmanufacturingsectorofBangladesh. As

garments sector is totally related with foreign buyers, but foreign buyers are too much dependent
on garments buying house. Because they have no enough idea to place order and execution here,
where as buying house provides them strong support by supplying garments products according
to their demands. Foreign buyers are totally bounded with buying house. As a result, new buying
houses are increasing day by day, which was too difficult to find out reliable garments buying
house in the past 3-4years ago.

On the other hand, they create a show room of their product to attract the buyer. Moreover, this
house maintain the merchandiser to follow up the product processing line perfectly and also build
a quality assurance team for checking the actual quality of the product.

FLOW CHART OF BUYING HOUSE :

Contact with the Buyer

↓
Communicate
↓
Meeting
↓
SendL/CtotheGarment
↓
Develop the product
↓
Inspection by Buying House
↓
Complete working paper or document for shipping
↓
Send one copy to the bank↔Attach one copy with the product
↓
Shipment

WORKING PROCEDURE OF A BUYING HOUSE:

 Every organization has its own working procedure. It’s varies from organization to
organization. Buying house work flow is given below,

1. First of all marketing merchandiser contact with a buyer and collect an order by showing the
garments they made before or directly ask which type of garments buyer need.
2. Then he /she find out the suitable factory for that specified garments. The factory must be
audited by recognized organization like Oeko-tex, WRAP etc. (Depends on Buyer).
3. Doconsumption&costingand bargaining with factory for cost for the specific product.
Finalize cost and send it to buyer.
4. Then development merchandiser develops the product send 1st pattern for any correction.
5. Usually buyer makes some modification on 1st pattern, so 2nd pattern is submitted
according to 1st pattern comments.
6. Then fit sample is made andQC(QualityController)check is it follows the approved 2nd
pattern.
7. Then the Red seal sample is sent for approval which is also known as buying sample.
And if the red seal sample approved then the order is confirmed.
8. Then production merchandiser starts his work.
9. Production merchandiser basically follows up the total production stage. After getting
approval of red seal sample he has to book the fabric and trims.
10. He has to Follow up the fabric and trim arrived in factory in time or not. After all approval
he does production planning meeting with factory

NORMALLY A BUYING HOUSE HAS TO DO THE

FOLLOWING FUNCTIONS:
 1. Order collection from the buyer,
2. Finding good suppliers (local factory) to complete the order,
3. Order processing from local factories,
4. Making product development samples for buyers,
5. Contacting with buyers for necessary approvals,
6. Forwarding all the comments and approvals to the factories,
7. Follow-up order processing according to buyers demand,
8. Maintain desired product quality from sample to production,
9. Should follow inspection terms and conditions according to buyers demand,
10. Shipping the goods.

Buying house works not only with the reputed factories, it also helps to small factories. At
present, a lot of small factories are growing, whose have no specified buyer. Buying house
provides them sound opportunity by providing garments order if they have capability to complete
an order by maintaining buyers demand. As a result, new entrepreneurs are willingly come to
invest in garments sector by opening garments factory, which is too good for the nations
specially for the garments business.’

APPAREL BUYING HOUSE - AN OVERVIEW

An apparel buying house works as mediator between apparel buyers (retailers) and garment
manufacturers (export houses, garment suppliers). Apparel buying houses are also known buying
agency and buying office.

Buying office may be buyer’s regional office or an independent company that works with
multiple buyers. For example,H&Mhas its own regional buying office to the sourcing countries.
On the other handAsmara Internationalis a buying house that works with many buyers, brands
and High street retailers.

DIFFERENT DEPARTMENTS IN A BUYING HOUSE

A buying office may be run by couple of people from a single room office to a big office
equipped with various departments and dozens of employees.
1. Design and product development
2. Technical team (Pattern making and fit approval)
3. Merchandising team

4. Quality assurance team

5. Sampling room with few sewing machines and tailors
6. Shipping and Documentation
7. Textile testing lab
8. Sourcing of fabric and trims
9. Factory compliance audit team
10.Shipping and documentation
11.Other administrative department

ABOUT JYOTI APPARELS

Jyoti Apparels Private Limited is a Private incorporated on 16 September 2005. It is classified as
Non-govt company and is registered at Registrar of Companies, Delhi. Its authorized share
capital is Rs. 100,000 and its paid up capital is Rs. 100,000.

Jyoti Apparels Private Limited's Annual General Meeting (AGM) was last held on 28 September
2018 and as per records from Ministry of Corporate Affairs (MCA), its balance sheet was last
filed on 31 March 2018.
Current status of Jyoti Apparels Private Limited is - Active.

VISION OF THE COMPANY

“Continual improvement for consumer satisfaction”

MISSION OF THE COMPANY

Jyoti apparels aims to be most preferred name in the garment industry worldwide by
manufacturing high quality and high street fashion garments for the global market.

ORGANIZATIONAL STRUCTURE
CHAPTER:3 (COMPANY PERFORMANCE)
1.PROFIT AND LOSS STATEMENT OF JYOTI APPARELS

Y/E MAR (IN. CR) MAR-2018 MAR-2017 MAR-2016

REVENUE 260 269 238

YOG GROWTH 3.30 13.20 0.43

RAW MATERIALS 189 194 173

AS % OF SALES 72.60 72.10 72.90

EMPLOYEE COSTS 31 31 33

OTHER COSTS 24 24 25

AS% OF SALES 12.10 11.50 13.80

OPERATING PROFIT 16.50 20.10 6.72

OPM 6.33 7.47 6.47

DEPRECIATION 10 11 14

INTEREST EXPENSE 1.70 74 75

OTHER INCOME 6.26 9.49 2.83

PROFIT BEFORE TAX 10.90 55 78

TAXES 0.83 0.31 0.30

TAX RATE 7.60 0.60 0.40

- -
MINORITIES AND -
OTHER

ADJ. PROFIT 11.70 54 78

-
EXCEPTION ITEMS 8.10 64

NET PROFIT 3.62 118 78

YOG GROWTH (%) 103 51.20 31

NPM 1.39 44 33
 2. BALANCE SHEET OF JYOTI APPARELS

Y/E MAR (IN. CR) MARCH-2018 MARCH-2017 MARCH-2016

EQUITY CAPITAL 36.90 36 36.50

- - -
PERFERENCE CAPITAL

RESERVES 369 373 246

NET WORTH 332 336 209

- - -
MINORITY INTEREST

DEBT 583 618 605

DEFERRED TAX
LIABILITIES 4.95 5.77 6.01

TOTAL LIABILITIES 257 288 402

FIXED ASSESTS 110 121 133

- - -
INTANGIBLE ASSETS

INVESTMENT 16.40 14.10 0.37

- - -
DEFERRED TAX ASSETS

NET WORKING CAPITAL 113 133 246

INVENTORIES 26.20 43.56 65.90

INVENTORY DAYS 36.80 59.20 101

SUNDRY DEBTORS 300 318 346

DEBTOR DAYS 421 431 531

CASH 17.10 19.50 22.80

TOTAL ASSSETS 257 298 402

3. CASH FLOW STATEMENT OF JYOTI APPARELS

Y/E MAR (IN. CR) MARCH-2018 MARCH-2017 MARCH-2016

PROFIT BEFORE TAX 10.90 55 78

DEPRECIATION 10 11 14

TAX PAID 0.83 0.31 0.30

WORKING CAPITAL 174 127 125

OTHER OPERATING
CAPITAL - - -

OPERATING CASHFLOW 172 193 35.60

CAPITAL EXPENDITURE 4.65 1.20 1.22

FREE CASH FLOW 167 194 36.80

EQUITY RAISE 512 461 36.80

INVESTMENTS 15.20 13.80 14

DEBT FINANCING 5.82 13 13

- - -
DIVIDENTS PAID
- - -
OTHER ITEMS

NET IN CASH 658 628 491

CHAPTER:4 (SWOT ANALYSIS)
 SWOT ANALYSIS OF THE COMPANY

STRENGTH

Excellent sales staff with strong knowledge of existing products

Good relationship with customers

Good internal communications

High traffic location

Successful marketing strategies

Reputation for innovation

A company's strengths are the tools used to counter threats and seize opportunities, so
thoroughness is important. To create a thorough strengths list, examine each of a company's
functional areas: marketing, finance, production or operations and human resources.

Marketing

Marketing depends not just on promotions but also on pricing, distribution, packaging and
service. A strength in marketing might be a company's distribution channels, which are able to
quickly get products out to customers. Customers might be satisfied with the company's products
and its service. Indeed, a company might have differentiated itself from its competition by
service, a definite strength.

Finance

Financial strengths not only mean a company has done well in the past but that it can use its
situation to compete in the future. For instance, a company might be able to innovate if it has
money to invest in research. Another financial strength might be the ability to borrow as
indicated by possessing a lower debt ratio -- liabilities divided by net worth -- than that of other
companies in the same industry. Other strengths might include profit margin and the return a
company sees on investment.
Production or Operations

Efficiency is an important strength that can be measured by determining the productivity index,
which is output divided by input. The output is the number of something being produced whereas
input is what's invested to create the product units -- hours, labor or money, for instance. Other
strengths a company might possess are cutting edge technology, facilities located in strategically
important areas, low waste and production capacity.

Human Resources

Of all the resources a company boasts, its employees are the most important. If a company has
strength in human resources, it may include an ability to attract and retain the best candidates
from the labor pool. A company might also have a superior training program that lets new
employees quickly acclimate or one that keeps developing employee know-how through cross-
training or leadership development. Other strengths a company might have include depth and
breadth of expertise, turnover rate, morale and satisfaction.

Research and Development

Though not all companies have a research and development functional area, businesses still need
some research capability to monitor the external environment. The ability to conduct and use
customer and product research may be a company's strength, allowing it to capitalize on trends or
market niches. The facilities, expertise and creativity to develop new products could be a
strength.

WEAKNESS
Currently struggling to meet deadlines - too much work?

High rental costs

Market research data may be out of date

Cash flow problems

OPPORTUNITIES
Similar products on the market are not as reliable or are more expensive

Loyal customers
Product could be on the market for Christmas

Customer demand - have asked sales staff for similar product

THREATS
Competitors have a similar product

Competitors have launched a new advertising campaign Competitor

opening shop nearby.

Donturn in economy may mean people are spending less

CHAPTER: 5 (TRAINING SCHEDULE)
 SCHEDULE OF INTERNSHIP

The training was conducted from 1 June to 15 July 2022

Initially training session were conducted for 20 days to learn about the company and its policies,
also personality development lectures were conducted

Next 15 days were the field work related to the part time job which be offered to peoples and
provide other details about different plans and policies of the company, taking feedbacks from
the buyer. And then next 10 days were to create a report on the data and merchandising research
conducted with in the past 10 days

`
CHAPTER:6 (LEARNING DETAILS)
 LEARNING DETAILS

UNDER MERCHANDISING TEAM

Merchandiser job description

A merchandiser needs to know what’s new on the market, what the customers will like and
which products will make a profit.

• It’s not all glamour How to deal withsuppliersand manufacturers.

• To Analysing sales information which helps us to understand the need of the buyer.

• How to Negotiating prices with suppliers which helps the company to reduce its cost.

• `Check the Proper details of Ordering goods .

• Talking to other departments helps us to know about the surplus or deficit

• Helping with promotions and advertising campaigns

• Producing sales projections and shopping as a merchandiser and no two days are ever the same.
Your typical daily tasks are likely to include:

Merchandisers are "image consultants for the retail world."Retailersuse merchandising to

promote specific products and services and increase sales. When you walk by a store that's
having a sale, you typically see eye-catching signs in the front windows announcing, "Up to 50%
off the entire store!" or "Buy one get one free!" This entices customers to enter the store, thus
increasing their chances of purchasing something. You may also see brochures and coupons at
the register that encourage you to return to the store and buy again. Pretty smart thinking, don't
you agree? All this is the work of merchandisers.
Merchandisersalso deliver educational materials to the store for training new employees or
teaching sales tactics to existing workers. They also conduct inventory reports -counting the
merchandise at a particular location - and replace old or defective stock.
Some stores have their own merchandising departments, but others use third-party companies to
handle merchandising certain displays. If you are employed by one of these companies,
likeMosaic, you will need your own reliable transportation to get you to and from each location.
You'll travel from store to store setting up displays, doing reports and talking with employees.

GARMENT MERCHANDISER
Garment merchandiser is like a bridge between the buyer and industry. He has to look after every
job like buying the raw materials which is required to finish the product, making the garment,
finishing the garment, preparing documentation and finally shipping. Actually, he is the main
responsible person to make the product in timely. As its importance, this article has presented a
vast discussion on the roles and responsibilities of a merchandiser.

Garment merchandiser works in apparel industry

Duties of Merchandiser in Readymade Garment Industry:

An apparel merchandiser should follow the below responsibilities:

1. Internal & external communication,

2. Sampling,

3. Preparing internal order sheets,

4. Accessories & trims in-housing,

5. Preparing purchase orders,

6. Getting approvals on lab dips,

7. Advising and assisting production and quality department,

8. Taking responsibility for inspections,

9. Giving shipping instructions and following shipment.

CHAPTER: 7 (SUMMARY AND RECOMMENDATIONS)
 SUMMARY

As a marketing intern in jyoti apparels my major task was the brand promation of the products of
jyoti apparels and through this studying various patients and trend of the germant sector and
comparison between different market through collection of data. I learned that I needed to be
organized and have questions ready for when it was the correct time to get feedback.. It also
included selling of various type garments which customers buy through offline or online both.I
have so many abot the germent buying house like the different department in buying and hoe all
these department works. As so I am in merchandising team so I have learned the roles and
responsibilites of merchandiser now and whole working process of merchandising team. As it
also improve my communication skills and know about how to deal with buyer. My objectives
are fully satisfied with the training in jyoti apparels.
 RECOMMENDATIONS:
As I was intern at jyoti apparels for around 2 months. I have learned many thing there in my
learning section. For 10 days of starting of my internship we (me and my friend ) we learned to
adapt the changes and adjust our self according to it which literally work lots of time, thus I
recommend interns asa well as mentors to make interns adjust in the culture of the organization.
Also I observed that jyoti apparels is very good company having lots of departments and
garments products for customers but our mentor made ourself familiar with with the main
departments of the company. I recommend mentor to introduce asa much as departments they
can to the interns in case they are not doing it by themselves interns should ask them to do it .
Also the most important point I wantn to include here is that intern should be toatally depond
upon the mentors they should always hungry to learn
CHAPTER: 8(CONTACT DETAILS)
 CONTACT DETAILS OF MENTOR

✓ Name: Mr. Dinesh Kumar

✓ Company: Jyoti Apparels pvt.ltd.

✓ Designation: Sr. Merchandiser

✓ Address: Plot No.- 124 Phase- 4, Udyog Vihar, Gurugram (Haryana)- 122016

✓ Mobile no.: 9999819784

✓ Email id: Dinesh@jyotiapparels124.com

CHAPTER: 9(BIBLIOGRAPHY)
 BIBLIOGRAPHY

❖WEBSITES:

• www.jyotiapparels.com

• https://in.kompass.com/c/jyoti-apparels-private-limited/in

• https://www.justdial.com/Delhi/Jyoti-Apparels-Okhla-Industrial-Area

• https://www.tradeindia.com/Seller-10146681-JYOTI-APPARELS/

• https://www.indiamart.com/jyoti-apparel/