How to Improve Your Merchandising Skills [Part-1]

It was long since Arman Mahmud has published his last article on apparelmakers.org blog. Last few months the writer was busy with his regular desk work with his apparel merchandising jobs. There was lots of thing he had to do to organize his desk. In his recent experience, he felt that - to do well in merchandising job as well enjoying the life, one has to improve in certain areas of doing work (or process). So, his new writing is about "how to improve merchandising skills." This is the first part of five part series.

How to improve Merchandising Skills?

Apparel industry is the largest export earning industry in Bangladesh. A huge number of people are working as merchandiser and now-a-days it is one of the best job in Bangladesh. The job pays well, challenging too. Merchandisers are the heart of a Garments or Textiles. A good merchandiser can even change the fate of a garments factory or garments trading company. But if we analyze, we will find at least 70% of top position in this industry is grabbed by foreign managers. It doesn’t mean that we don’t have quality merchandisers or merchandising managers. The real scenario is our merchandisers are lacking few criteria. What I mean is there is some opportunity for improvements. Now these improvements can be done with academic knowledge or by skills development with individual’s hard work. Here I won’t talk about academic things. What I believe is academic degree or course will only help one to get a merchandising job, but for further improvements, one has to develop his/her own individual (personal) skills

Let's see the improvement points, those are -

• Developing Vision 
• Get updated about the market everyday
• Get idea of cost accounting
• Organize thyself
• Personal developments
• Positive mentality to technology

Developing Vision: At least 80% of the merchandisers working in this trade are not from textile background or degree, no degree from any textile college or textile university. I am not telling this is not suitable trade for them. What I wanted to say is - of those 80%, most of the merchandisers came into this industry, as they did not get any chance to be a doctor, engineer, pilot, or a banker. In most of our child hood, we have learned to dream about those careers only. So from the day they got the opportunity to be a merchandiser, they try to switch to a different job in another track where there is more comfort. But, working in this trade kept them busy, because of the less organized working structure in the industry. So it takes more effort and time from merchandisers to get the job done.If in first three or four years, this merchandiser don’t get any opportunity to switch the job, they stay, but meantime they have already lost important learning period.

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Do you really agree with the writer? 

Don't forget to tell us what you think about this article? In the next part, the writer will discuss about those points... So, don't miss it. Tell us what do you want to know about merchandising. 

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Economic View of Yarn Price Hike: The Facts and Future Trend

Written by Arman Mahmud. He is an experience Sr. Merchandiser working in a knit composite manufacturer.

Cotton yarn price is increasing in the global market. In last 10 years or so it is in its highest peak. Every week the price is fluctuating, and sometimes situation is getting very difficult for Garments manufacturers to quote price of a garments order. Because yarn is the first thing you should think of while quoting garments for the buyers and it is the 40% of the manufacturing cost.
 

But no one is absolutely sure - why the price is so high? How high this price will go up and what will be the future of the garments business. In my opinion, this trend of yarn price hike is mainly because of the “after affect of the recession” and bad weather or natural condition in cotton supply area has been a great influence. In this article I have defended my views in the yarn price hike situation – 

While the clouds of recession started clearing, the wheels of textile industry started spinning as a successful story. With more than 50% of the production being exported, companies started posting profits. Currently, a situation has come where the textile industry needs to face the music. Prices of cotton and yarn are skyrocketing, thereby affecting the overall profits of apparel businesses. Yarn prices increasing from March this year, and no one could give us idea that where it will end.

There is an increasing trend in the prices of yarn for the past one year. Due to increase in prices of cotton, yarn prices have simultaneously increased by 100%. The industry is jacking up the cotton yarn price recurrently. 30s count yarn, which was $3.70/kg in September 2009 has rose up to $4.50/kg. And in September 2006 its price were $2.23/kg

Yarn price hike: Facts and future trend in economic view [Pictorial view]. Click on the picture to enlarge.

According to the cotton suppliers, over the last decade price of every other commodity has been increased, other than cotton. And that is a good reason for yarn price increase. In the period of recession that’s why many farmers have switched to other profitable grains, so supply started to fall. And flood in Pakistan along with low productivity in China this year has made the supply of cotton situation worse. On the other hand, in the time of recession, end customers bought less and garments buyers also used up their yarn stock, but after recession period, suddenly demand of garments rose and there is a little stock in the hand of buyer, thus suddenly demand for garments is gone very high. Result is demand of yarn has gone very high. When there is demand more and supply less, result in yarn price hike. To meet the yarn demand farmers as well as spinning’s need to be encouraged and get more profit, that’s why yarn price has increasing more and price is not stable yet. This yarn price will rise up to December 2010 and there is a chance that 30/s card price will be ended up to $5.00/kg. So, get yourself prepared to handle the changed situation and keep your business wheels on a profitable track.

Where the Yarn Price Trending in Future

But, there is a glimpse hope of yarn price decrease. Already many buyers are changing their buy plan blending yarn with polyester to reduce the yard use as well cost. This will certainly decrease cotton demand. And also many farmers are already started to produce cotton, especially in USA. So next years, cotton supply should be adequate. In my view price of cotton yarn won’t fall as much, but it will not increase too much after January 2011.

You may defer our analysis, and have strong points for that. Please don’t hesitate to put your views as comments and let’s have discussion. You can put your points on our facebook too.

Tell us what would you like to see in this Apparel Maker’s blog, may be a regular updates of Yarn price trend in Bangladesh market?

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Who is a GOOD Merchandiser?

Who is a good Merchandiser? What are the qualities that can make you good? What can make you sustain in this challenging profession? To be a good merchandiser all those question need to be  answered. In our 50th post on 10.10.10 we have focused our readers that merchandisers are the driving force to keep the process in order along with others working in this apparel industry. Written by Arman Mahmud, an experienced merchandiser working in an well reputed garments manufacturer in Bangladesh. 

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In the apparel industry, merchandisers are the BRIDGE between the management (or industry) and the buyers. He/she builds up the relationship with the buyers, and acts as a seller. Merchandiser plays a vital role in an apparel business in a sense that they bear more responsibility than others in regard to the execution of an order.

Merchandiser has to look after every job, such as - buying the raw materials (required to produce the products), making the garments, finishing it, documenting (over all views) all the relevant papers and records, finally shipping out the goods.

Merchandisers are the responsible person to make the products.

See what Wikipedia says about merchandising -- 

Merchandising is the methods, practices, and operations used to promote and sustain certain categories of commercial activity.[1]  In the broadest sense, merchandising is any practice which contributes to the sale of products to a retail consumer. At a retail in-store level, merchandising refers to the variety of products available for sale and the display of those products in such a way that it stimulates interest and entices customers to make a purchase.

Image (C) myfashionmarketingcareers.com

In my view, the merchandiser is who creates a good relationship between exporters & buyers. The responsibilities that Merchandiser bears on the jobs -

• Represents as a buyer to the factory
• Represents as a seller to the buyers
• Looking into the business to flourish more in future
• Offer the deal in a more competitive mode without compromising the Quality
• To satisfy the buyers to progress more of the future business.

Merchandises aim is to impress the buyers by means of –  

1. Right product
2. Right quality
3. Right quantities
4. Schedule time

Required inner quality needed for a good Merchandiser:

Forecasting Ability

While more methodical than fortune telling, merchandising does require forecasting ability in many sense. A thorough knowledge of trends of the previous season and an awareness of current industry developments will serve you well in a merchandising career.

Analytical Ability

Problem solving and analytical ability also comes in handy in this field. A good sense of style would be an obvious help. However, a merchandiser must also determine how things fit into a budget, and whether they meet the functional needs of consumers. Other criteria may also influence merchandising decisions, so a merchandiser will need to be able to analyze a complex set of issues and stand behind his/her choices.

Communication Skills

Merchandising also requires good communication skills. From negotiating with manufacturers to getting your marketing message out to customers, there is ample opportunity to exercise the power of communication in the merchandising field - 

• Good command over English and an adequate knowledge of technical terms (we will publish a docs for the terms) for accurate and efficient communication. Especially good command in the language where the merchandise will be shipped. Now Japan is the most potential customer for Bangladesh, not only for apparel exports but also for other goods such as leather goods, shoes etc. So, right now, learning Japanese language would be the wisest and trendy decision in this trade.

• Good knowledge of Fiber, Yarn. Fabric, Dyeing, Printing, Finishing, Dyes and chemicals, Colorfastness, Garments production, etc. This knowledge can be acquired through both reading and practical experience. Apparel Makers’ blog would be your good choice for current industry news and information.

• You should have clear conception of the usual potential quality problems in the garments manufacturing.

• Good knowledge of the usual raw materials inspection systems & garments inspection systems. Relationship with the testing authority working in Bangladesh and knowing their process can be a definite advantage.

• Knowledge of the quota system used in each of the producing countries', duty rates, customs regulations, shipping and banking documentation etc.

That’s only a short description in which we have given you an idea who is good merchandisers for the industry. Our apparel industry needs you to be more skilled and capable in managing things well. This sector earns us more then 76% (appx.) of our foreign earnings and you are in the driving force to keep this process up. It is you, not the production who faces the buyers and meets their requirements with good customer service attitude in mind.

As merchandisers you need to develop yourself as well you need to march your company forward to meet its goal. You may have different opinion or suggestions, even some good experience to share with our readers’, let us know. We want to listen to you, just put your opinion into the comments box, and let’s have a discussion.

You can start discussing the same in our facebook community space at facebook.com/apparelmakers.

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Role of Merchandisers in Garments Industry (Part-2)

Here is the part-2 of "(Role of Merchandisers in Garments Industry (Part-2)" by Arman Mahmud. He is an experienced Merchandiser working in a 100 % export oriented Knit Composite  Garments Manufacturer in Bangladesh.    

[Part-1]

The main roles that merchandisers should follow is - 

Understanding Sample Order

Merchandiser has to understand the buyer's requirements after receiving specification in the sample order. In many cases, there are modifications pertaining to the specifications in the order to dispatch on time and the right quality.

He has to talk with the in-house veterans on the execution problems of sample orders, as the right information is required in decision making.

Managing Production Timetable (T&A plan)

Merchandiser has to manage every single production schedule and order route card that helps to follow-up the execution in the planned way. It is expected to be acknowledged of the various descriptions like: design, no. of modules, no. of operators, how many processes, date of dispatch, quantity, output capacity, and deadlines in the schedules.

The sub-ordinates are normally assigned to follow-up with execution of the plan. Merchandiser plans the activities depending on the essentials or non-essentials, and top priority are given to the most essential tasks. This is customary that the essential activities are handled personally or with the support of junior merchandisers/sub-ordinates.

In a "daily schedule", merchandiser has to carry-out and categorize which is the most significant and urgent task. The activity that has to be focused with full attention to sweep-off non-essential activities and have to be to be corrected by prioritizing to meet the deadlines.

Maintaining a Good Status to Schedule Activities

To get updated on the current status on the order, the route cards should be utilized. The latest status can be fed into the computers. In case, the buyer ask for the goods prior to the deadline, then merchandiser has to reorganize the schedules to accomplish tasks, output capacity, no. of pieces to be produced daily, substitute arrangements, time availability, supply time, scheduling critical ratio, etc.

Submitting Pre-production Samples

The pre-production samples should be provided on time to the concerned buyers. Quality of the sample must be verified. If required, revised samples should be made available to the buyers. Merchandiser should adjust to the required changes demanded by the buyer. The execution of bulk orders should be made only after samples are approved by the buyer.

In-process inspection denote between any tasks in order-execution. In case of non- conformation, it is better to focus on the concerns of quality. Merchandisers that works on complete orders have to check deviation to the production teams so that any amendments can be done to avoid the non-conformity.

Solving Shortage Problem

The merchandiser should know about the dearth of any commodity such as fabric, yarn, etc... from the beginning. Actions should be taken immediately to arrange required materials, after discovering the shortage. It is expected that the merchandisers should verify quality of the goods prior to execution of the order. If the material is found unavailable, the superior should be informed about the concern.

Communicating and Coordinating with Associated People and Buyer

It is essential to communicate with the buyers regarding the order. It is expected to give some time to the buyer to read the sent messages. Merchandiser should to go through the messages received from the buyer and reply on time. In many cases, merchandisers have to provide order status to the buyers. Also, merchandiser has to communicate with the people that are in-house, vendors, contractors and job-workers. Only through the right communication can one meet deadline for the concerned orders.

Conclusion

Apart from the above mention procedures, merchandiser has to assign subordinates to help him in the order execution, and direct the procedures. He has to revise his knowledge from time-to-time to know current market trends. To record preferences for all the planned activities, use daily or time log systems.

The Merchandiser should find out exact reasons for time consumption. It is necessary to keep record of time value and keeping it safe, as it is going to be shared with concerned parties/buyers. It is certain that merchandising jobs need huge time planning.

So there is a good future in in merchandising job in Bangladesh. In his next writing Arman Mahmud will write, How to be a good merchandiser.

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Other article of Arman Mahmud: 

• Importance of Quality Sample in Apparel Industry.

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Role of Merchandisers in Garments Industry (Part-1)

In our continuous effort to tell you the Apparel Makers' Story in Bangladesh here is our first post of the merchandisers series. In which Arman Mahmud tells you the Role of Merchandisers in Garments Industry. He is working as a Senior Merchandiser in a 100 % export oriented Knit Composite  Garments Manufacturer in Bangladesh.  
 

The textile and garment industry is booming in Bangladesh The main competitors of Bangladesh are countries like China, Korea, Pakistan, India  and Sri-Lanka.

The Bangladesh garment industry is gaining ground in the world market at breakneck speed, but still not flourished at its fullest extent. The key factors behind this are low technological development, lower output, cut throat competition, high raw material cost, inadequate infrastructure, traditional productivity, unfavorable regulatory policies, and globalization impact. However, there is a fair list of the producers, suppliers, and exporters that are fully acknowledged with regulatory policies and formalities, international marketing policies and procedures. The only concern is in executing their productivity initiatives, and meeting with order deadlines.

Cost of production is increasing day by day in Bangladesh, which was an added advantage when the wages and yarn price were low in Bangladesh. So, now to have the orders and to make money the only way is to better management of the order. And better management is possible with quality merchandising.

Now days, major companies are adopting merchandising concepts, which comply with all procedures to execute and on time shipment, considering quality, cost and time. Merchandisers are serious in the success of any garment retail business. They provide the right products at the right time, enabling a company to match with latest market trends and meet the market demand. In the merchandising concept, time management is the key to manage one's time properly, so he can focus on value adding actions.

Today's garment merchandisers have to move with frequent changes in demand and the developing technologies utilized in manufacturing and production. To find out customer requirements, they regularly visit retail outlets, and come up with latest updates from frontline staff. In order to keep an eye on developments in sourcing, site visits are made every week to mainland factories to meet suppliers and study production.

In garment merchandising, there is no specific rule, so it's important to be able to think on one's feet.

This is the end of this part. Click here to read Part-2 

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Other article by Arman Mahmud: 

• Importance of Quality Sample in Apparel Industry. 
• Role of Merchandisers in Garments Industry (Part-2)

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Importance of Quality Sample in Apparel Industry

This is our first guest post about Garments Merchandising Tutorial in Apparel Makers' Story in Bangladesh. The writer, Arman Mahmud working as a Merchandiser in a 100 % export oriented Knit Composite  Garments Manufacturer in Bangladesh. 

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The Textile Industry has its ups and downs during the last two decades. From the manufacture of traditional items, the industry diversified to manufacture fashion items. The Apparel (garment) industry made a phenomenal improvement in its exports during these years. The Apparel (garment) industry shows collective emporia in the Quota free global market and it is expected to grow at a rate of 30%.

This large expansion is possible by vertical integration in all the Apparel (garment) manufacturing. It is now time to exploit competitive advantages of production of superior quality and high productivity. Thus the manufacturers and exporters now have to compete with the global players and also have to face the emerging tariff and non-tariff barriers. Further awareness and general consciousness about business prospects after the post MFA (Multi Fiber Agreement) period has brought in several new dimensions to all the players in the textile sector, with changes in the markets, new insights and experiences, but above all the gradual improvement of professionalism will have in the coming years of business.

Here are the beautifully photographed crochet sample garments:

Image © KRISTIN

Designing and Making of Sample

Sample design and making are the main process in apparel (garment) Industry and it is a vital role in attracting buyers. The buyer generally places the order after they are satisfied with the quality of the samples. The sample decides the ability of an exporter. The buyer will access the exporter and his organization only by the samples. If the samples are of good quality and with reasonable price naturally the buyers will be encouraged to place the order. So it is essential that, the samples should be innovative and with optimum quality. The purpose of sample is not only to get bulk orders and also give some additional benefits to the exporters. By making sample, exporters can estimate the yarn consumption for developing the fabric, a clear idea on costing; moreover the manufacturing difficulties for the upcoming products. Besides, by doing sample only the exporter can optimize the processing parameters for mass production, which helps to avoid all kind of bottlenecks. All these works are carried out by the Sample Department of a garments manufacture, which is led by a Sample In-charge.

Importance of Fashion in Sample

Fashion is defined well as the prevailing mode or shape of dress designed by those lead is accepted. Fashion reflects the social, economic and cultural forces as well it reflects the time. A fashion remains popular for a few months or years before being replaced by yet another fashion. A product or activity is in fashion or is fashionable during the period of time that a large segment of society accepts it .After a time, however the same product or activity becomes old-fashioned when the majority of people no longer accept it.  

Let's see what else you need to care about -

Steps in designing a Garment

• The design
• Making a card pattern
• The finished dress

Persons Involved in Sampling

• Development team
• Designers/Sample developers,
• Customers/Clients
• Textile technologists
• Garment technologists
• Sourcing & Purchasing
• Costing & Finance
• Sales & Marketing
• Production team, Planning
• Control &Testing 
• Quality control

Types of Samples 

• Original samples
• Photo samples
• Development samples
• Salesman samples
• Revision sample
• Size set sample
• Pre-production sample
• Counter sample
• Shipment sample

Process of Making Sample

The process of sample department varies from context to context, and the development process covers a wide range of diverse products from new fibers, fiber blends, new yarns, fabric structures ,finishes and surface effects and all types of made up products such as knitwear, hosiery, cut and sewn garments, technical and medical products.

Different phases of making Sample -

First Phase: This phase covers the development of the initial concept or design idea through its approval by the customer and full review/risk analysis by the development and production teams.

Second Phase: It covers the process following acceptance of the first prototype sample and includes the functions of sourcing and ordering component, testing the product and carry out trails once the finalized sample specifications has been drawn up, the third and final phase commences.

Third Phase: The phase includes a range of activities that are carried out before large scale or bulk production capacity outside the home producer/developers wherever this is applicable.

Role of Merchandisers

In preparing sample the merchandiser places an optimal and pro-active role. The merchandiser is a person who has to follow all the activities which filled up sight from the manufacturing unit. Merchandiser should understand the specifications and requirement of the buyer and produce samples by considering:

1. Communication
2. Optimizing situation
3. Punctuality in giving details and samples to the buyers
4. Efficient follow up
5. Excellent negotiation skills

Conclusion

The merchandiser has to consider all the quality parameters related to the samples to be developed in case of non-conformity in the sample developed. Revised samples may be sending for approval purpose. It is the duty of the merchandiser to dispatch the developed samples on the time to the concerned buyers.

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