University of South Asia

B.Sc. in Textile Engineering Final Examination-2015

Project Report
On

Apparel Merchandising
MERCHANDISING: Merchandising is a specialized management functions
within the fashion industry. It is the business that moves the world fashion from designers
showroom to retail sales floor and in to the hands of consumers. It is the internal planning
that takes place within a retail organization in order ensures adequate amount of
merchandise are on hand to be sold at prices that the consumers are willing to pay to
ensure a profitable operation.

TYPES OF MERCHANDISERS:

Types of Merchandiser

►►Fashion Merchandising:
Fashion merchandising is a rather broad term that can be used to describe the business
side of the fashion industry. Professionals with a fashion merchandising career must still
have an eye for style, but they should also have a head for business as well.This field
involves buying, pricing, marketing, displaying, and selling certain types of garments and
accessories.A fashion merchandiser may have several different duties.Most fashion
merchandisers must be able to predict future fashion and market trends. In order to do
this, these professionals will often need to rely on their own research as well as current
trend reports.
►►Functions of Production Merchandiser:
Introduction:

Production Merchandising is a function of multiple activities performed by a person which are

either parallel or inter connected. Some of them are interdependent and others are
independent of each other. Merchandising involves planning and execution of the export order
with the right place, at the right time, in the right quantities, at the right price. It is concerned
with all the activities necessary to provide buyers with the merchandise they want to buy and
when and where they want it and at prices they can afford and are willing to pay. Hence it
involves making execution plans, understanding the buyers need regarding quality and cost,
follow up of running order, effective communication with buyer. The term 'Merchandising' has
always been a magic word and hot pick of the cake in the field of apparel and fashion
merchandising. Most of the persons who want to pursue a career in the apparel field want to
become a merchandiser. What makes this so much attractive and important is—reputation,
responsibility and career growth.

The functions of production merchandiser can be summarised as:

Over the years of the growth of merchandising as a discipline in the apparel export
industry, there have been many changes in the job profile of the apparel merchandiser to
perform these functions. It has charges from a simple to a much more complex job
transcending almost all departments and functions in an apparel export house. This has
led to a change in the skills required for the job and evolution of the discipline of export
merchandising. Merchandising has been to a large extent a function which was never
clearly defined not distinctly performed in the Apparel export industry. On one hand the
merchandiser had the job of getting orders and execute them; donning the role of
production coordinator in the same breath.
Product development:

Product development is the business policy of the organization which includes the
development of the new designs and styles within the organization. This activity brings the
more business to organization, by showing pro-activeness in design development buyer also
impress. The role of production merchandiser in this activity plays very important role.
Production merchandiser must keep update to buyer time to time about the product
development done by organization. Motivate the buyer to give the design development to the
organization instead of doing themselves. Whenever buyer visits to the organization,
presentation of new colour, prints, embroidery patterns and desk loom developments is done
by production merchandiser. To present new designs developed by product development
department. Try to convince the buyer to select the designs from presentation.  A very good
presentation and convincing ability of production merchandiser brings more business to the
organization.

Sampling

Sampling is one of the main processes in Garment manufacturing and it plays vital role in
attracting buyers and confirming the order, as the buyers generally places the order once
satisfied with the quality and responsiveness of the sampling. Sampling is the most crucial and
most important stage of fashion merchandising. Sampling department makes samples on the
basis of the specification and requirement by the buyer. Sampling in merchandising may be
defined as “The concept, perception and ideas of fashion designer developed into product
samples, in systematic stages of product development, with technical and quality clarity in a
development.” The role of merchandiser plays the crucial role as the follow up of the samples
is important aspect. Buyer passes some comments to the merchandiser after submitting the
sample. These comments are needed to understand and communicate with the sampling
department. Get changes from the sampling and resubmit to buyer. Follow up with buyer to
get approvals of the sample.

Costing

Costing is the very dynamic process, and it is the most important function performed by
merchandiser. Merchandiser should have knowledge of costing and it’s calculations. While
calculating the cost of the garment merchandiser keeps following things in mind.

• Fabric consumption

• Trims

• CMT

• Value added services: printing, embroidery, washing, applique

• Testing

• Transportation and logistics cost

• Profit of the manufacturing organization

• Currency exchange rate

The role of merchandiser does not end only after calculating the cost, but after quoting
the cost merchandiser need to negotiate with buyer on cost of the garment.
Planning (Time and action calendar)

Production merchandising is an interdependent activity. Successful

merchandising is outcome of effective preparation and follows up of time and
action calendar by all departments. Time and Action Calendar or TNA, a most
important jargon used in fashion merchandising, it is an effective way of
coordination and following up of important milestones in preproduction
processes to ensure timely delivery within stipulated delivery date. Despite
claims of being practically in use by most buying and manufacturing
organizations, the follow-up of orders/styles during the pre-production
processes are not fool proof and there are several myths which need to be
redressed claims. Production merchandiser prepares the TNA by keeping
things in mind like production capacity, lead time of buyer, holidays etc.

Communication

Communication is a most important aspect of any export order process. In

production merchandising there are various tools used to communicate with
buyers in order to proceed further in export order like quality manual,
purchase order, packing list, colour way communication, style no. tech pack.
Buyer communicates each and every aspect of on-going and future style with
merchandiser only. Merchandiser must be able to communicate with buyer
and with internal departments effectively to process the export order
effectively. There are several modes of communication like telephone, email,
actual meetings, fax etc. merchandiser must aware of etiquettes to use these
modes of communication.

Coordination

Coordination is the major aspect of fashion merchandising, one need to

coordinate with all the departments within the organization and outside the
organization in order to run the export order successfully. Coordinating with
other department is the one of the major responsibility of a production
merchandiser. A production merchandiser has to coordinate with the other
departments so as to complete its job and to following the production
activities. Factory merchandiser uses different formats and documents to
coordinate within the factory like BOM, production file, tech pack. Some of
them are need to create by factory merchandiser some of them are provides
by buyer. This type of coordination referred to as internal coordination.
Production merchandiser needs to coordinate with buyer asbuyer also takes
the follow up from merchandiser. Merchandiser provides the formats to the
buyer like production status report, packing list, TNA etc.
Sourcing

For garment export house fabric and trims are the raw material which needs
to be outsourced. Sourcing is basically determining the most cost efficient
vendor of materials, production, or finished goods at the specified quality and
service level. It is closely associated and an important part of apparel
merchandiser's responsibility. Materials basically include piece goods that will
be cut and converted into the garments. Not only does the fabric have to be
appropriate and suited to the garment design and end use but it must also be
made available at the precise time when it is needed. Thus, lead times play
an important role in the sourcing and placing orders for the materials
required for the production. Lead times required from a supplier can vary
from as little as two weeks to as much as nine months. Trims are all the
materials other than the piece goods that are required to make up a
garment. Findings require the same careful planning as the piece goods. As
soon as the fabric is in the stores, then only the sourcing of the threads start
because the colour of the thread must match the buyer's requirements. The
ordering of the threads must be complete by the time fabric is cut ready to
be feeded to the sewing lines.Sourcing department along with apparel
merchandiser plays the vital role to execute and shipment of export order
successfully. Merchandiser must make sure that all approvals related to
fabric and trims should be coordinated with the sourcing department in given
timeframe.

►►Retail merchandising:
Retail merchandising is the process used in order to conduct retail sales. As part of the
process, the merchandiser pays close attention to the types of products offered for sale,
how to best present those products to consumers, and determining what is a reasonable
retail price for each unit sold. While retailers have traditionally engaged in the task of
retail merchandising in a physical location

Typical work activities of Retail merchandising:

 These vary depending on the company and the particular retail sector, but will typically
include:
 planning product ranges and preparing sales and stock plans in conjunction with buyers;
 liaising with buyers, analysts, stores, suppliers and distributors;
 maintaining a comprehensive library of appropriate data;
 working closely with visual display staff and department heads to decide how goods
should be displayed to maximize customer interest and sales;
 producing layout plans for stores, sometimes called 'statements';
 forecasting profits and sales, and optimizing the sales volume and profitability of
designated product areas;
 planning budgets and presenting sales forecasts and figures for new ranges;
 controlling stock levels based on forecasts for the season;
 using specialist computer software, for example to handle sales statistics, produce sales
projections and present spreadsheets and graphs;
 analyzing every aspect of bestsellers (for example, the bestselling price points, colours or
styles) and ensuring that bestsellers reach their full potential;
 maintaining awareness of competitors' performance;
 monitoring slow sellers and taking action to reduce prices or set promotions as necessary;
 gathering information on customers' reactions to products;
 analyzing previous season's sales and reporting on the current season's lines;
 making financial presentations to senior managers;
 accompanying buyers on visits to manufacturers to appreciate production processes;
 meeting with suppliers and managing the distribution of stock, by negotiating cost prices,
ordering stock, agreeing timescales and delivery dates, and completing the necessary
paperwork;
 identifying production and supply difficulties and dealing with any problems or delays as
they arise;
 managing, training and supervising junior staff.

Process Flow Chart of Merchandising:

Receive product package form buyer
` ▼
Sample development
▼
Price negotiation
▼
Order confirmation and receive order sheet.
▼
Sourcing low good quality right time
▼
Material collection and receive it in factory
▼
Check and listing
▼
Swart card making and approval
▼
Pre production meeting
▼
Daily collect daily production report and daily quality report
▼
Arrange final inspection
▼
Shipment
►►Objects of Merchandising :
Merchandising denotes all the planned activities to execute and dispatch the merchandise
on time, taking into consideration of the 4 Rs to replenish the customer.

►Right Quantity: To dispatch right quantity of product what buyer ordered.

►Right Quality: It should be with right quality as accepted both parties.

►Right Cost: Everybody wants more from what they are paid.

►Right Time: No one wants to wait idle even in a Restaurant. Keeping delivery.
schedule is mandatory

Qualities of Merchandiser
►Planning Capability: Merchandiser should be capable of planning, based on the
planning the order is to be followed. If the planning is not done properly it will directly
affect the delivery time of the order.

►Decision making: For a Merchandiser, decision making power is most important. He

should think about the decision to be taken and to act in a right way.

►Communication Skill: The communication is very much important to promote the

business activity. The merchandiser should remember that communication must be lurid
and should having face to face conversation with the buyer.

►Loyalty: Loyalty is an essential character of human beings. Especially for the business
people like merchandiser it is a must.

►Knowledge about the field: Merchandiser should have adequate knowledge about the
garments, Computer knowledge, and technical knowledge to communicate with different
people in the business is a must.

►Co-ordinate & Co-operate: Merchandiser is the person who is actually co-ordinate

with the number of departments. To Co-ordinate with different people in the industry he
should be co- operative.

►Monitoring ability: Merchandiser should monitor to expedite the orders.

►Other qualities: Education, Experience, Situational Management, Ability to Evaluate,

Dedication, Knowledge of expediting procedures.
►Function of Merchandisers
1. Developing new samples, execute sample orders
2. Costing
3. Programming
4. Raw materials / Accessories arrangement
5. Production scheduling (or) route card drafting
6. Approval of various Process, Pattern and size set
7. Pre production follow up
8. Meet Inspection Agencies
9. Production controlling
10. Identifying shortages and make arrangement for the shortages
11. Following quality assurance procedures, quality control procedures
12. Monitoring the in-house, sub-contractors and junior activities
13. Buyer communication
14. Communication with sub-contractors, processing units & other 3rd parties
15. Proper reporting
16. Highlighting to the management
17. Record maintenance
18. Developing samples
19. Placement of orders to suppliers
20. Taking measures for consistent production
21. Taking preventive action to maintain the targeted performance in all areas of activities
22. Attending meeting with superiors and furnishing the required details about merchandising

Purchase order (PO) is received from the buyer which includes:

• PO no/date
• Buyer/Consignee
• Garment no
• measurement
• the description of the garment
• L/C date
• Last date within which shipment to be reach the destination.
• Sign and seal
•Order validity date
After receiving PO from the buyer merchandiser issues PO for the fabric unit, buttons, thread,
dyeing unit, printing, embroidery and other raw materials. These raw materials’ are checked
and color, quality and size approved by the merchandiser. 
Apparel Merchandising Activity Cycle:

Common merchandising activities are displayed in following diagram in a cycling from.

 Professional qualities of a Merchandiser:

 Following are key skill sets, a merchandiser need to acquire to execute his/her
responsibilities successfully.
 Should have computer skill
 Good communication skills written and verbal 
 Good knowledge in mathematics
 Always be Courageous and Active
 Knowledge of different fabrics
 Knowledge on Garment production
 Knowledge on washing
 Knowledge on banking, commercial, shipping etc
 Need to have at least a related training etc.
 Other important qualities are – able to take high mental pressure
 Must take responsibility for task undertaken 
Responsibilities of a Merchandiser:

 A mecrchadiser is responsible for the following tasks but not limited to these only.
 Marketing
 Costing and price quoting 
 Sample development and control whole sampling process 
 Fabric and accessories sourcing and tracking 
 Factory production scheduling and production tracking 
 Arranging final inspection
 Shipping plan and booking
 Customer liaison etc

Merchandising and interdepartmental relations:

In an export house or garment manufacturing unit, a merchant plays major role in order
execution. They need to interact with all the department in a factory. The major
departments in factory with whom merchants work closely is shown in the following
diagram.

Quick Response Merchandising:

Apparel Merchandising is such a profession where one needs to be very much active all
the time. As this is related with export, time management is very much important here.
This is one of the scale of efficiency here that, how fast you can response.
Pre-Order & Post-Order merchandising:

Marketing: Advertising/ Publicity/Promotional work

Receiving Inquiry: Tech pack, Measurement chart and related information

Price Quotation: Consumption, Costing, Pricing

Negotiation: For price fixation 

Sampling & Approvals: After confirmation of a order merchants need to sampling and
take approval on samples, fabric development and trim and accessories. See the following
chart for different types of sample.
Raw material Sourcing, Production Follow up and Post Production Tasks:  

Major tasks and process flow after sampling have been shown in the following diagram.
Merchandising as a Challenging Career:
There are lot of challenges in merchandising job. Those challenges may come from
different perspectives. Here are major point to be looked into as career challenges.

Career Perspective

Educational Perspective

Social Perspective

Industrial Perspective

Organizational Perspective

Leadership Perspective

Earning / Economical Perspective

From my personal point of view, in apparel merchandising, an individual needs to take

tons of challenges and face much struggles to give birth a baby as a garment compared to
other job profiles in the garment industry. “Time Management ” and “Hard Working” are
two most important key merchandising skills that one must have to become a
successful merchandiser.