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Introduction To Merchandising
Introduction To Merchandising
Md.Maniruzzaman Chowdhury
Assistant Professor & Head of the Department (AME)
CTEC
Merchandising
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
MERCHANDISING
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
MERCHANDISING
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
Departmental structures in merchandising
On Basis of Customers:
Merchandisers are supposed to retain the customers and they are
their representatives, so the division based on customers is very
logical from this point of view.
• Merchandiser A: taking care of “IKEA”
• Merchandiser B: Taking care of “WALMART”
• Merchandiser C: Taking care of “LI &FUNGs”
• Merchandiser D: Taking care of “TESCO”
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
On Basis of Customers
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
On basis of products
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
On the basis of Geography
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
MERCHANDISING FUNCTIONS
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
MERCHANDISING FUNCTIONS
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
LEAD TIME
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
LEAD TIME FOR DIFFERENT PROCESSES
LEAD TIME FOR AOP KNIT FABRICS
Leadtime
Type of work Remarks
(in days)
Yarn Leadtime 10 To be counted from opening yarn BTB LC.
Knitting Leadtime 10 To be counted from yarn inhouse date
1st submission of AOP strike-off 10 To be counted from receipt of color standard and artwork
Comments on 1st submission of AOP
7 To be counted from receipt of lab dip
strike-off
Revised submission of AOP strike-offs 7 To be counted from receipt of AOP strike-off rejection comment
Comments on re-submission of AOP
7 To be counted from receipt of revised submission of AOP strike-off
strike-off
To be counted from AOP strike-off approval date. (provided that
Bulk hanger submission & PP fabrics 20
ground fabric is ready)
Bulk hanger approval 7 To be counted from receipt of bulk hanger
Fabric quality check at central store 2 To be counted from once fabric is inhouse at Central store
IMPORTANT NOTES:
1) For any new quality of fabric, pls consider 2-4 weeks (depending on yarn availability) of fabric approval time.
Md.Maniruzzaman
2) In case of AOP fabric, pls do NOT submit any lab dip Chowdhury,Assistant
for ground color approval. The AOP strike-off or sample length must be in correct fabric ground.
Professor,CTEC
LEAD TIME FOR DIFFERENT PROCESSES
LEAD TIME FOR SOLID DYED KNIT FABRICS
Leadtime
Type of work Remarks
(in days)
Yarn Leadtime 10 To be counted from opening yarn BTB LC
Knitting Leadtime 10 To be counted from yarn inhouse date
1st submission of Lab dips 7 To be counted from receipt of color standard
Comments on 1st submission of Lab
7 To be counted from receipt of lab dip
dip
Revised submission of Lab dips 5 To be counted from receipt of lab dip rejection comment
Comments on re-submission of Lab dip 7 To be counted from receipt of lab dip
Bulk hanger submission & PP fabrics 15 To be counted from lab dip approval date. (provided that greige is ready)
Commensts on first bulk 7 To be counted from receipt of bulk hanger
Resubmission of bulk hanger & PP
7 To be counted from receipt of rejection comments
fabrics
Comments on resubmission of bulk 7 To be counted from receipt of revised bulk hanger
Leadtime for dyeing completion of full
25 To be counted from lab dip approval date. (provided that greige is ready)
qnty
Fabric quality check at central store 2 To be counted from once fabric is inhouse at Central store
IMPORTANT NOTES:
1) For any new quality of fabric, pls consider 2-4 weeks (depending on yarn availability) of fabric approval time.
2) Fabric dept will need to check and approve the shade of the first batch internally and go for dyeing of consequent batches.
If they have confusion on shade matching/qualityMd.Maniruzzaman
of first batch, then they should seek commercial approval to merchandising
Chowdhury,Assistant
3) For grey marl, yarn inhouse to first bulk submission to be 15Professor,CTEC
days
LEAD TIME FOR DIFFERENT PROCESSES
LEAD TIME FOR YARN DYED KNIT FABRICS
Leadtime
Type of work Remarks
(in days)
Yarn Leadtime 10 To be counted from opening yarn BTB LC
1st submission of yarn dips 7 To be counted from receipt of color standard
Comments on 1st submission of yarn dip 7 To be counted from receipt of yarn dip
Revised submission of yarn dips 5 To be counted from receipt of yarn dip rejection comment
Comments on re-submission of yarn dip 7 To be counted from receipt of lab dip
Submission of stripe layout in available
7 To be counted from receipt of stripe artwork
color
Comments on stripe layout 7 To be counted from receipt of the fabric length for stripe layout
Bulk Yarn Dyeing 20 To be counted from receipt of yarn dips and layout approval
Bulk hanger submission & PP fabrics 5 To be counted from bulk yarn dyeing completion date
Commensts on first bulk 7 To be counted from receipt of bulk hanger
Leadtime for completion of whole bulk
10 To be counted from approval on first bulk
knitting
Fabric quality check at central store 2 To be counted from once fabric is inhouse at Central store
IMPORTANT NOTES:
1) For any new quality of fabric, pls consider 2-4 weeks (depending on yarn availability) of fabric approval time.
2) Fabric dept will need to check and approve the shade of the first dyed yarn batch internally and go for dyeing of consequen
Md.Maniruzzaman Chowdhury,Assistant
3) UNTIL and UNLESS the bulk hanger is approved, theProfessor,CTEC
bulk knitting can NOT be started.
TIME AND ACTION (TNA) CALENDAR
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
IMPORTANCE OF (TNA)
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
FACTORS TO BE CONSIDERED WHILE PREPARING
TNA
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
TNA EXAMPLE
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
6 15.03.2014 To receive fabric samples
from supplier
7 15.03.2014 To received trims &
accessories sample
8 16.03.2014 To received comments on
fit sample
9 18.03.2014 To submit size set sample
to buyer
10 23.03.2014 To receive
comments/approval of size
set sample
11 25.03.2014 Ex-factory of fabric
12 25.03.2014 To submit PP sample to
buyer
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
13 26.03.2014 Fabric supplied from
supplier port
14 30.03.2014 To get approval of PP
sample from buyer
15 To receive trims &
9.4.2014 accessories at store
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
21 18.4.2014 To start finishing of garments
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
FLOW CHART OF MERCHANDISING ACTIVITIES
Marketing
Buyer Request
Pricing-costing
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
FLOW CHART OF MERCHANDISING ACTIVITIES
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
FLOW CHART OF MERCHANDISING ACTIVITIES
Start Production
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
COLOR STANDARDS
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
SAMPLING
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
SAMPLING PROCESS
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
SAMPLING PROCESS
4. Sample packing and dispatch: the sample is properly
packed for its safe arrival at the destination. For the
sample dispatch, the merchandiser sends the sample via
courier and puts complete detail along- with the sample
for buyer reference.
5. Seeking buyer’s comments: Once the sample reaches
the buyer, merchandiser gets the comments from the
buyer and keeps records of it.
–If sample is approved, then he go for bulk production or
next processes.
–If rejected , requires rework according to buyer
comments.
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
TYPES OF SAMPLES
❖ Prototype sample
❖ Fit sample
❖ Size-Set sample
❖ Sales man / Marketing /Showroom sample
❖ Pre- production sample: (PP sample)
❖Approved samples
❖ Production Samples
❖ GPT sample (Garment Performance Test)
❖ Photo Samples
❖ Counter Samples
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
TYPES OF SAMPLES
• Fit sample: Fit sample is made and sent to conform the fit of the garment
on live models or on dummy and for approval of construction details.
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
TYPES OF SAMPLES
• Sales man / Marketing /Showroom sample: These are the samples used
by the buyer for promotion or sale of their product. It is a special order
from buyer. These are required in exact fabrics, shades and accessories.
More quantities are required in this case and payments are made by the
customer.
• Pre- production sample (PP sample): Must be in actual fabrics, trims and
accessories. Bulk fabric cannot be cut until these samples are approved by
the buyer.
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
TYPES OF SAMPLES
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
TYPES OF SAMPLES
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
REQUIREMENT OF SAMPLE SUBMISSION
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
SAMPLING DOCUMENTS
A. Covering letter
B. Specification sheet
C. Sample tag
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
Sampling Documents
• Covering letter: In covering letter, Merchandiser mentions the
below details:
✓ The name of company which asks the sample
✓ Contact person
✓ Phone no of destination
✓ The brief description of the sample
✓ The weight and quantity of sample
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
Sampling Documents
• Specification sheet: In specification sheet, Merchandiser
mentions the technical aspects of the sample with quality lab
results. Example- Knitted Garments T-Shirt:
✓ GSM of Fabric
✓ Fabric Type
✓ Half chest
✓ Garments length
✓ Sleeve length
✓ Armhole
✓ Shoulder with etc.
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
Sampling Documents
• Sample Tag: The sample Hang-tag is attached to the
fabric/garments. It can contain the following information:
✓ Sample Number
✓ Garment style #
✓ Composition
✓ Fabric/Garments type
✓ Shade
✓ GSM
✓ Price
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
Qualities of a Merchandiser
• Good knowledge about fiber, yarn, fabric, dyeing, printing,
finishing, dyes, color fastness, garments production, etc.
• Clear conception of the usual potential quality problems in the
garments manufacturing.
• Good knowledge of the usual raw materials inspection systems &
garments inspection system
• Knowledge of the quota system used in each of the production
countries, duty rates, custom regulation, shipping and banking
documentation etc.
• Right consumption knowledge of various goods
• Costing knowledge of raw materials
• Order getting ability
• Sincere& responsible
• Hard worker
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
Qualities of a Merchandiser (contd…..)
• Communication Skills (Verbal, Written, Listening)
• Managerial Skills (Technical, Human, Conceptual)
• Well-Groomed Personality
• Accessibility, Available and Mobility
• Politeness & Tolerance
• Coordination and Follow-ups
First and foremost, you’ll need to have a passion for retail.
Employers will look for commercial awareness, numeracy
and the ability to think logically, and you will need to be good
at quickly identifying problems and recommending solutions.
It will help if you have experience of working with customers
and experience working in a retail environment will set you
ahead of the competition.
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
Scope of Merchandising
Buying
Manufacturin
Brands g Companies Houses/
Liaison offices
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
Scope of Merchandising
(contd….)
• Brands: Merchandising doing all sorts of marketing research,
promotions, fashion designing, selecting new fabrics, garments
styles and shades for the upcoming seasons.
– Example: Adidas, Benetton, Calvin Klein, Esprit, Hugo Boss, J. Crew,
Izod, Levi's, Lee etc.
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
Order Negotiation
• Orders that have been sent to factories will be negotiated for price,
delivery, quota and quality etc. The order negotiation between the
buyer and the manufacturer is not always an easy task. The buyers
are always trying to get this garments made at very low prices whilst
the manufacturers are hoping they will get at least 2 per cent more
than what they got last time for a similar style.
• The buyer always has a target price for the merchandise he hopes to
buy. He has already finished his home work and fully aware of the
market price for the particular type of garment. Therefore, he will do
his best to buy the garments bellow his target price or for his target
price. We should not forget the globe is full of manufacturers and
suppliers. The buyer will certainly move to another manufacturer or
country if he fails to buy at his price.
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
Order Negotiation
• On the other hand, the manufacturers will promise the best quality
and prompt delivery to convince the buyers to pay extra dollar or
two for his merchandise. It is rather difficult to convince a buyer to
pay more than his target price, but it may be possible to do so if the
company has a good relationship with the buyer or if the company
has a very good reputation for excellent performance. In other words
a good image should do the trick.
• Buying offices or their representatives should not consult
companies operating at very high CMT to do very low priced
merchandise. Therefore the buying offices not only should
have knowledge on company’s performance but also their
average CMT prices.
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
Order Negotiation
• Another important aspect in the order negotiation is to know the
fairly accurate cost of making the garment. Most factories do this in
a hurry and invariably arrive at out of focus cost. This situation will
cause frustration to both parties during an order negotiation. The
buyers are generally more conversant with the costing and would be
able to judge almost immediately the manufacturer’s operations if
the price quoted is very much different from his target price,
• If the quoted price is higher it may be due to
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
Order Negotiation
• However the Buyer may not be that dissatisfied if the price quoted is little
higher than his expected price. We might think that the price would be able
to bring it down through negotiations. He might offer his help to improve
productivity consumption and in the purchase of raw material at very
competitive prices.
• If the quoted price is significantly low, the buyer might think the factory
is not capable of manufacturing his goods for his satisfaction. Low price
would reflect bad on the factory rather that securing he order. It looks rather
funny, because we are in era where prices are at rock-bottom but still there
is a minimum price which is offered by the buyer. Anything below means
poor quality merchandise.
• Therefore it is paramount importance to be at least 80 percent accurate -
the costing of a garment. It must also be remembered that the buyer will not
buy a particular garment at one price from two different companies. The
successful company will be offered the contract to manufacture.
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC
SOME MERCHANDISING BOOKING FORMATS
Fabric Quality
style# Factory ref. no. Fibre composition construction color name color std. comments
weight /Finish
1 100% cotton 180GSM Regular S/J Sweet Lilac as swatch L/D or Y/D booking
MGK7022 2013/78 2 100% cotton 180GSM Regular S/J Baby Pink as swatch L/D or Y/D booking
3 100% cotton 180GSM Regular S/J Deep Blue as swatch L/D or Y/D booking
Md.Maniruzzaman Chowdhury,Assistant
Professor,CTEC