National Institute of Fashion Technology

(NIFT)

Marketing Activities
of Merchandising

PREPARED BY
Name : Md Imam Uddin
ID: 11
Batch: 13th Batch (NIFT)
Department: Apparel Merchandising
Email: imammifkif@gmail.com
National Institute of fashion Technology

Name: Omar Faruk

ID-10,
MBA-14
Email:
National Institute of fashion Technology

Name:Nurul Alom Mozomder

( Asst. Group leader)
ID-33,
MBA-14
Email:
National Institute of fashion
Technology

Name: Abdulla Al Mamun

ID-11
MBA-14
Department: Apparel Merchandising
Email:
National Institute of fashion
Technology

Submit to
Name : Md Imam Uddin
1>19 Page
Nurul Alom
20-31 Page
Faruk
32>40 Page
Mamun
41>53 Page

Marketing
The
activity
of promoting the sale of goods at
retail.
Merchandising activities may include display techniques, free samples, on-the-spot
demonstration, pricing, shelf talkers, special offers, and other point-of-sale methods.
According to American Marketing Association, merchandising encompasses "planning
involved in marketing the right merchandise or service at the right place, at the right
time, in the right quantities, and at the right price.

Merchandiser
The person who is related in merchandising is called merchandiser. The merchandiser
coordinates with the design team to effectively present the product or product line. He
or she develops colors and specifications, and performs market research to determine
the most effective ways to sell and promote the product. This person needs strong
communication and negotiation skills and visual and analytical abilities. He or she also
needs to be a creative and innovative thinker.

Definition of Merchandising
The term merchandising related with trade
Trade means buying & selling
The person who is involved with trade, he/she is a merchandiser
And the activities of a merchandiser is known as a merchandising

Types of Merchandising:
Two type of merchandising done in garment exports
Marketing merchandising.
Product merchandising.
Marketing Merchandising:
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. (that is) first
sample onwards, the products merchandising work start and ends
till shipment.

Marketing Process Flow-Chart of Merchandiser

Merchandiser

Negotiation with buyer & collect order

Costing

Sample making (according to buyer requirement)

Get approval &Placement of order

Getting started (In-house preparation of

accessories)

Line balancing

Commencing production

Production Monitoring

Inspection

Buyers Inspection (After Finishing)

Preparation of banking & documentation

Shipment/delivery

Responsibilities
of Senior
Merchandiser
Responsibilities
of Senior
Merchandiser
1.Sample development
2.Price negotiation
3.Order confirmation
4.L/C opening
5.Opening summery
6.Sourcing
7.Material collection
8.Production planning
9.Production monitoring
10.Quality assurance
11.Arrange final inspection

Garment process flow chart

Garment finishing process flow chart

Some Factors Related to Buying Side:

Some Factors Related to Buying Side:
Customer: Those who buy the ultimate product are
called customers. Customer of a product may be the
consumer of this product or not.
Consumer: Those who use the ultimate product are
called consumers. Consumer of a product may be
the consumer of this product or not.
Buyer: Those who buy the product from other in
large quantity are called buyers.
Whole Seller: Those who sell the product to the
retailer are called whole-sellers.
Retailer: Those who sell the product directly to the
customer are called retailers.
Importers: Those who buy or import the product
from foreign or overseas country in large quantity
are called importers.

Some Factors Related to Selling Side:

Some Factors Related to Selling Side:
Seller: Those who sell the product to the others are called seller.
Manufacturer: Those who manufacturer the product are called
manufacturers.
Exporter: Those who sell or export the product to the buyer of
foreign country are called exporters.
Trader: Those who establish
manufacturer are called traders.

liaison

between

buyer

and

Multinational:
1.Li& Fung

List of Traders:
Local:
1. Team Sourcing

2. Synergies

2. Centro tex.

3Linmark
4. Complex tile
5. ZXY Apparel Buying Solution
6. Asmara
Buying House:
7. Texbo.
Buying
house means Buyers liaison office or trader office.
Traders are of two types1. Foreign Trader
2. Local Trader

Name of Some Important Buyer of Bangladesh:

Name of Some Important Buyer of Bangladesh:
Generally buyers of USA, Europe, Canada, Australia, Japan, India
are the main buyers of Garments and Textile product of
Bangladesh.
Name of some important buyers of these countries are described
below-

Name of Some Important Buyer of Bangladesh:

Name of Some USA Buyers:
GAP
Adidas
Wal-Mart
Levis (Brand: Dockler, Denizer,
Levistrauss)
VF Asia (Brand: Lee, Wrangler )
PVH -Phillips Von Heuson (Brand:
CK)
Peri Ellis
Academy
Banana

Old Navy

US Polo

Nike

American Eagle

Name of Some Important Buyer of Bangladesh:

Name of Some European
Buyers:
H&M
Hugo Boss
Zara
Mango(Turnkey)
Puma
European Eagle
C&A
M &S
Esprit
Terco
Decathlon
Sains Burry
Carretow
NKD
Tema
Lindex

Name of Some Important Buyer of Bangladesh:

Name of Australian Buyers:
K-mark
Name of Some Japanese
Buyers:
Uniquelo
Huloson Bay
Name of Some Indian Buyers:
Black Berry
Mahendra ( Brand: Peter
England )
ITC
Ramond

Name of Some Important Buyer of Bangladesh:

Name of Some Important Buyer of Bangladesh:

Seasons of Export:
Seasons of Export in USA:
1. Spring
2. Summer
3. Fall
Seasons of Export in Europe:

Major Garments Manufacturer Countries:

1. Bangladesh
2. China
3. Vietnam
4. Combodia
5. Pakistan
6. Thailand
7. Indonesia
Specialty
:
8. Turkey
Turkey:9.This
country is suitable for highly de curative and fancy
India
garments.
10.Shrilanka
China: Buyers select China for decorative garments and short
time shipment.
India: Buyers select India for decorative garments.
Vietnam: Buyers select Vietnam for plain printed T- Short.
Cambodia: Buyers select Vietnam for plain printed T- Short.
Bangladesh: Bangladesh is a Lower Developing Country with
GSP facility. Buyers import various types of garments from
Bangladesh.

GSP
The Generalized System of Preferences (known as GSP for short) is a scheme
whereby a wide range of industrial and agricultural products originating in
certain developing countries are given preferential access to the markets of
the European Union. Preferential treatment is given in the form of reduced or
zero rates of customs duties. The GSP scheme is specifically designed to
benefit certain developing countries and integrate them into the world
economy.
Since 1971, the EU has had rules ensuring that exporters from developing
countries pay lower duties on some or all of what they sell to the EU. This
gives them vital access to EU markets contributing to the growth of their
economies. This scheme is known as the "Generalized System of
Preferences".
Today Bangladesh offers a very flexible and feasible production base for its
customers in EU, America and Australia. The EU market is quota free for
apparels and goods are eligible for the GSP facilities. As an LDC member
Bangladesh also obtain special Tariff benefit from Canada (18% import Tax
free).
FOB:
FOB means Free on Board. It is the value of the product which is fixed without
cost of transportation of this product.
CIF:
FOB means Free on Board. It is the value of the product which is fixed
including the cost of transportation and insurance of this product.

GARMENTS EXPORT PROCEDURE

1.Space Availability:
Space availability or time agreement is the availability of
availability of production floor for the production of garments.
2.Costing:
Costing means the way of calculating the cost of production of
garments. Costing is done considering Fabric price
Accessories price &
C&M Cost
Way of Costing:
Costing can be done by Original Sample
Specification

Costing and Negotiations:

Costing:
Merchandise makes a cost sheet to see if the product is feasible or not in
terms of cost and revenue. Merchandiser has to calculate the cost of
products including all wastes and accessories to tell the final cost of the
product to his customers.
Negotiation:
Merchandiser must have a negotiating power on the price to convince his
buyers on specific price to lessen the chances of loss. If price is negotiated
then its time to sample approval from buyer.
The aim of negotiation/approach
"Win Win solution" Both parties are benefited.
The skill for negotiation:
1. Discovering common interest and removal of personal issues.
2. Questioning skill
3. Listening effectively
4. Understanding body language.
5. Observation and judgment.
6. Influencing skills

GARMENTS EXPORT PROCEDURE

Specification contains the following factors: Design or Sketch of garments
Fabric Type Composition
Color
Construction
GSM or Ozs. Per Square Yards.
Any other instruction
Accessories Detail
Any Kind of Instruction
Garments Size ( called Measurement Chart or Size
Chart )
Specification File:
The file which contain the specification of product is called the
Specification File or Technical Package or Tech-pack or PDM
(Product Development Manual) or Order Sheet or Product
Package. Specification File is issued by the buyer and collected by
the manufacturer.

GARMENTS EXPORT PROCEDURE

BOM Sheet:
The pages of specification file contain fabric and accessories detail is
called BOM ( Bill of Material ) Sheet.
3.Order Confirmation:
Order confirmation is issued by the buyer to the manufacturer which
contains Tech-pack.
4.Purchase Order:
PO or purchase order is issued by the buyer to the manufacturer.
5.Master L/C:
L/C or Letter of Credit is a confirmation which is prepared by the
buyer ( bank of buyer ) and issued to the manufacturer. It has
financial value. L/C is of two types Master L/C &
Back to Back L/C
When a L/C is opened to import goods directly from the exporter is
called master L/C. It is issued by the buyer (bank of buyer) to the
manufacturer.

GARMENTS EXPORT PROCEDURE

6.T & A Calendar Making:
T & A or Time and Action calendar is made by the manufacturer
to complete the production within a specific period of time.
7.Fabric & Accessories Booking:
After making of T & A calendar, fabric & accessories booking is
necessary.
Without fabric, all materials used in garments is called
Accessories or Trimmings. Accessories includes Sewing Thread
Button
Interlining
Zipper
Label
Tissue Paper
Ball head pin
Hager
Carton
Rib and
Silica Gee Bag
Plastic Clip so on.

GARMENTS EXPORT PROCEDURE

8.Back to Back L/C:
Back to Back L/ C is prepared by the manufacturer to collect raw
materials from the suppliers. It has 70-80% financial value of Master
L/C.

Difference Between Master L/C and Back

to Back L/C:
Master L/C
Master L/C is prepared by the
buyer to import goods from the
manufacturer.
This L/C is issued by the buyer to
the manufacturer.
It is the basic L/C.
Prepared for the import of goods
from the exporter.
It has higher financial value than
the Back to Back L/C.

Back to Back L/C

Back to Back L/C is prepared by the
manufacturer to collect raw
materials for the production.
This L/C is issued by the
manufacturer to the raw material
suppliers.
It depends on master L/C
Prepared to collect raw material
from the supplier.
It has lower financial value than
the Master L/C ( 70-80% of Master
L/C ).

GARMENTS EXPORT PROCEDURE

9.Sampling:
Sample is the small quantity which represents the bulk. The process
of collecting or making sample is called Sampling.
Types of Garments Sample
Proto Sample:
Features:
This type of sample is made by the manufacturer by available fabric
and accessories.
This sample is made before or after order confirmation.
Purpose:
Here buyer checks whether the factory can make the garments.
Fit Sample:
Features:
This type of sample is made by the manufacturer by available fabric
and accessories.
This sample is made after order confirmation.
Purpose:
Here buyer checks the fitness or measurement of the garments.

GARMENTS EXPORT PROCEDURE

PP Sample:
Features:
This type of sample is made by the manufacturer by actual fabric and
accessories.
This sample is made after order confirmation.
This sample must be approved by the buyer before production.
Purpose:
Bulk production is done following PP sample.
Size Set Sample:
Features:
This type of sample is made in all sizes.
These samples are sent to the buyer.
These samples are made in all sizes.
Purpose:
This sample is used for PP meeting.
Production Sample:
Features:
These samples are collected from the production floor while bulk
production is running.
These are sent to the buyer.
Purpose:
Here buyer compares Production Sample with the PP Sample.

GARMENTS EXPORT PROCEDURE

Garments Test Sample:

Features:
These samples are collected from the production floor while bulk
production is running.
These are sent to the testing house.
Purpose:
Here Testing House tests different aspects of the garments and sends
test report to the buyer.
Common Tests of Garments: Common tests of garments are as
follows.

Dimensional Stability Tests

Sewing Strength Tests

Button Attaching Tests

Spiraled Tests

Color Fastness Tests

Abrasion Tests

Radiation of Materials Tests

Testing Houses may be local or international. They test the garments
and send the test report to the buyer to inform the quality of product
producing by the manufacturer.

GARMENTS EXPORT PROCEDURE

Shipment Samples:
Features:
These samples are not so mandatory.
These are sent to the buyer after the shipment of the products.
Purpose:
Here buyer compares the Production Sample with the Shipment
Sample.
Salesman Samples:
If buyer collect sample garments of specific design for specific
season which are displayed in the retail shop to justify the demand
of these samples, then these are called Salesman Sample.

GARMENTS EXPORT PROCEDURE

Name of Some Currier:

Samples or any other important documents necessary for export are
sent by the currier.
Name of Some Currier:
1. DHL
2. Aramex
3. TNT
4. Fedex
5. UPS
6. Sky net
7. DPEX

GARMENTS EXPORT PROCEDURE

10. Fabric & Trims in House:
Here confirms all fabrics and accessories in their hand.
11. Innovatory Checking & Report Making:
The term innovatory checking is applied for checking the quality &
quantity of fabrics and accessories in house. After checking a report
is made with the test data.
12. PP Meeting:
This meeting is held just before going to the bulk production. This
meeting is conducted by following persons Buying House QC
Factory QC
Buying House Merchandiser
Factory Merchandiser
Cutting Master
Pattern Master
Production Manager
Sample man

GARMENTS EXPORT PROCEDURE

13. Pattern and Marker Making of Bulk Production:
Pattern is a hard paper which is made by following each individual
components for a style of garments.
Marker is a thin paper which contains all components of different
sizes for a particular style of garments.
14. Trial Cutting:
Little amount ( for 200-300 pieces of garments ) of fabrics are cut for
checking the efficiency and production cost of the garments.
15.Bulk Cutting:
Here total fabrics required for bulk production are cut.
16. Numbering Bundling & Sorting:
After cutting of fabrics numbering, Bundling and sorting process are
done. Then cut pieces are sent to the sewing section.

GARMENTS EXPORT PROCEDURE

17. Production Line Set-up:
Production line set-up is the arrangement of sewing machines where
the input of the first machine is cutting part of the fabrics and the
output of the last machine is complete garments. Production line
may be straight or V-shaped or face to face or any other suitable
type.
18. Sewing:
Cutting pieces are attached by sewing to make the complete
garments. Different types of sewing machines are used in production
line.
19. Finishing:
Finishing includes- ironing, accessories attaching, label attaching,
ironing etc.
20. Pre-Final Inspection:
This type of inspection is done by factory QC. It may be at the end of
the production line or in the lab.

GARMENTS EXPORT PROCEDURE

1. Final Inspection:
nal inspection is conducted by the

lf Inspection: Conducted by the factory QC.

ird Party Inspection: Conducted by the testing houses.

Name of Some Testing Houses:

Functions of Testing Houses:

Testing of Fabric
Testing of Garments
Testing of Trims
Garments factory Auditing for Compliance

Compliance:
Compliance:
Any type of rules and regulations that must be followed by an
ideal factory. These include Time of Work
Environment of Work Place
Salary & Wages
Facilities ( Dining, Child care, Toilet )
Treatment of Liquid Waste
Factories may be classified as Compliant
Semi Compliant &
Non Compliant

GARMENTS EXPORT PROCEDURE

In-line Inspection:
During production, buyer QC will come and check the product
quality and suggest to over-come any type of problem. This type
of inspection is called In-line Inspection.
On-line Inspection:
Inspection at the end of the production line during production is
called On-line Inspection.
This inspection is conducted by the factory QC

Logistic Firms:
Logistic Firms:
The firms or agents which take the responsibility to receive the
goods from the manufacturer company at the port and send to the
buyer or buyer agent are called Logistic Agent.
They also called Freight Forwarding Agent or Forwarder.
Buyer pays to the Logistic Agent.
Names of Some Logistic Firms:
1. Maersk
2. APL
3. MGH
4. Damco
5. Expolonca
6. Crown Logistic
7. NMC Corporation

C & F Agent:

C & F Agent:
The firms or agents which handle all kinds of customs related
formalities are called C & F Agent.
Factory pays to the C & F Agents.
1. Unit Price
2. Total Price

Document For Payment

1.Commercial Invoice:
A sheet contains1. Buyer Details
2. Manufacturer Details
3. Item Details
4. Unit Price
5. Total Price
2.Packing List:
It is the list of packed products according to the size, color and
content in each package.
3.Bill of Lading:
The document witch is issued by the Freight Forwarding Agent to the
manufacturer containing detail about product sent and
transportation company.
e.g. AW/B- Air Way Bill.
ICD:
ICD means Inland Container Depot. The goods which are not suitable
to transport in carton because of introducing crease marks are
transported hanging in ICD.

Document For Payment

Document For Payment

Export Procedure
1. INVOICE:In Invoice following criteria is
required.
1. Consignee and Applicant Addresses
2. Garment Description
3. Garment Price and Total Invoice value
4. Net and Gross Weight of Garments
5. PO (purchase order) no.
6. Freight Terms.
7. from # & Date
8. L/C. # (letter of credit)
2. PACKING LIST
There are following details in the packing list
required as per buyer's instruction or
mentioned in L/C.
1. Consignee and applicant addresses
2. Product description
3. Garment Style and color
4. Net and Gross weight of Garments

Export Procedure
3. Export-FORM:
E-FORM is issued and attested by the concerned bank
(Islami bank Bangladesh ltd.)
4. BILL OF ENTRY
Applicable only in case of the imported material used in
the manufacturing of the garments for the export
purposes.
5. SHIPPING BILL
The forwarder prepares shipping bill. After the sub
Management Information Systems ion of the custom
docs, by the forwarder, custom authorities check the
docs. And examine the shipment accordingly. They write
the report on the backside of the shipping bill and allow
the shipment for the export from Bangladesh. All these
docs are then returned to the export department.
6. VISA PROCESS
After receiving the Docs from the forwarder, Export
Department prepares the Visa docs, which are required
for the export of garment to the following countries;
USA, CANADA, EUROPEAN countries.

Export Procedure
8. DOCUMENTS FOR THE BUYER
Export department also prepare documents for the buyer for the
custom clearance of the shipment at the destination.
9. PAYMENT PROCEDURE
After the negotiation/ collection procedure of the docs, bank
dispatches the same to L/C opening bank, to realize the payment.
Foreign bank is bound to realize the same within the 10 to 15 days.
REBATE CLAIM
10. COMMERCIAL INVOIVCE
In the commercial invoice all the details are mentioned required
under conditions of L/C for the custom clearance and other
necessary purposes.
11. PACKING LIST
It consists of color, weight, product code/other, coding numbers, no.
of cartons, carton dimension, and carton packing.
12. BILL OF LADING/ AIRWAY
This is according to the L/C terms and conditions.

Do not forgetCVC- Chief Value of Cotton (cotton >

FOB- Free o Boat (up to port)

polyester)

L/C- Letter of Credits

PC- Polyester Cotton Blend (Polyester >

TT- Telegraphic Transfer

Cotton)

PO - Purchase Order

TC- Tetron Cotton (polyester & rayon

PP- Pre-Production

>cotton)

IDC- Inland Commercial Depo

GSP- Generalized System of Preferences.

AWB- Air Way Bill

LDC- Least Development Country

PO- Purchase Order

C&F Agents- Clearing & Forwarding Agents

PDM- Product Document Manu

T&A calendar- Time & Action Calendar

BOM- Bill Of Materials

CIF- Cost of Insurance & Freight

BTB- Back to Back L/C
ITS- Inter-tech Testing Service

Production overview yarn to garment

?
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