TH E K EY TO

M ER C H A N D IS IN G

W hat is M erchandising ?
Bring the orders by using different marketing
tools, arranging raw materials according to
buyers specifications, producing goods with
quality standard in a specified time with a
strong follow up, ship out the goods and
receiving the payments. After completing
everything, closing the order file and starting
the marketing activity again. This is Apparel
Merchandising as a whole.

ApparelM erchandising Activity Cycle

Professionalqualities ofa M erchandiser

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 ofa M erchandiser

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

Pre-O rder & Post-O rder m erchandising:

Pre-order Jobs (M arketing Part)
Marketing: Advertising/ Publicity/Promotional work
Receiving Inquiry: Tech pack, Measurement chart and

related
information
Price Quotation: Consumption, Costing, Pricing
Negotiation: For price fixation

Post order Jobs (Execution part)

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 m aterialSourcing,Production Follow up

and Post Production Tasks

 Micro Detailing is crucial in preparing cost

sheets. At times all the items are not listed on

the bill of material provided by the buyer, but
you are going to need them eventually in
making the garments. Examples are packing
trims, interlinings, buttons, threads etc. So its
important to not only include the items on the
BOM of a tech pack, but also include all the
items that will go on the garment.

CO ST N EG O TIATIO N

 Protect your cost sheet in every way. You dont

want to base your final price on a fabric

consumption only to find out during production
that you ended up ordering more fabric than
was estimated at costing stage. Its your money
being lost.

 Fabric is the biggest component of any garment

costing. Make sure you take accurate yields

based on ratio markers, make sure you take
formal commitments from fabric suppliers while
taking price quotes, regarding finished width of
fabric, shrinkage, defect percentages etc.

 This is important because later on it

will be possible for you to hold them

accountable to cover for your losses,
in case the fabric shrinkage
exceeded the expectations and you
ended up ordering extra fabric, or if
more than expected fabric got
wasted due to defects etc.

 So often due to time constraints,

merchants end up taking fabric price

quotes on phone, rather than through a
proper professional quotation sheet from
fabric supplier. Now if you were a
Marwari running your own business, you
will not do that, and will take care to
have a proper record in place for all raw
material prices, before quoting the final
price for the garment to the buyers.

 Knowing your competition is the secret for

becoming an astute negotiator. All businessmen

make it their business to know the competitors
they are dealing with. This knowledge gives you
that extra edge while quoting the prices to the
buyers. Are you competing with suppliers within
your own geographical location, or are there
players from other parts of the globe vying for
the same orders? What is your competitive edge
Vis a Vis competition and vice versa. Especially
when speed to market is so crucial in a tough
business environment,

 buyers do not have much time to haggle back

and forth and bring down the prices to

acceptable levels. You need to quote the right
price in one shot, and you have to be accurate.
If you over quote, you run the risk of losing the
business to another supplier, and if you under
quote, you lose money.

 An understanding of the buyer margins can help

you to hit the buyer targets more accurately in

one go. More often than not, you may end up
getting a higher price than you aimed for in the
first place, and still make customer happy by
meeting their targeted margin goals. What level
of market your customer operates in e.g. luxury
segment, middle segment or mass market?
What profit margins do they need to make to
run profitable business at their end?

 great negotiation power belongs to a person who

can think win-win. Armed with the knowledge

above and even after being as accurate and
detailed as possible, if your price quote is still not
satisfactory enough from buyer target price, by all
means make an alternate proposal to buyer. Give
options with suggestions to may be delete a trim
or change the fabric source or whatever it may
be... but give alternative suggestions to meet and
service the customer requirement in way which is
win win for both parties. Like Marlin Brando in
Godfather when he says I will make him an offer
he cant refuse.