Export Merchandising 93j1b

Export MerchandiserThe New Avatar

By: Ms. Divya Satyan

Export Merchandiser- The New Avatar By: Ms. Divya Satyan Abstract Over the years of the growth of merchandising as a discipline in the export industry, there have been many changes in the job profile of the merchandiser. It has changes from a simple to a much more complex job transcending almost all departments and functions in an export house. This has led to a change in the skills required for the job and evolution of the discipline of export merchandising.

Article Merchandising has been to a large extent a function which was never clearly defined not distinctly performed in the Indian Apparel export industry of old. On one hand the merchandiser had the job of getting orders and had to execute them; donning the role of production coordinator in the same breath, whilst for others the job was only follow up of the confirmed orders.

The merchandisers had often been used as glorified clerks with the job focusing on ing the information received from one source to another without any ‘value addition’ to it.

In the burgeoning market of apparel exports 80`s, Merchandising function was often assigned to fresh graduated of any discipline who were capable of responding to the queries of the customers in the English language. No other qualification was largely sought from them as the work was primarily decentralized and the merchants needed little technical knowledge. But the dependency on the technicians was inevitable.

Gradually, this role gained importance as over the years specialized training was given in these areas in institutes like NIFT catering to the needs of the fashion business. This can

be judged by the results of a survey of the apparel industry published in Apparel online cited below

Im portant Very Im portant Absolutely Crucial

Source: Apparel Online, 2004 Fig 1 - How important is the merchandiser to the manager

This transformed the merchandising function and the job definition became much clearer. According to a study conducted by NIFT students in 2004 the following were the job requirements of the merchandisers in the pre millennia era

1. To coordinate with factories and buyers very closely to ensure that all the samples and bulk production are shipped on time as per the quality parameters set by the buyer 2. Merchandisers need to be meticulous, update the records/system on time and need to systematically follow up with factories and buyers. 3. Merchandisers need to have updated information on colors, fabrics, and styling for the forthcoming season which can be obtained from the buyers, foreign counterparts of buying agencies and from fashion/clothing magazines that cover the latest fashion shows conducted in different parts of the world. 4. Based on this information, sourcing merchandisers should work with mills, fabric sources and export houses for new developments. 5. Coordinating with factories for submits such as yarns/ lab dips, desk loom, bulk fabrics, fit samples, pre-production samples, etc. 6. Even though quality checks and production supervision at the floor level is the responsibility of QA/QC, it is very important that the merchandiser also get involved in the process as they need to ensure that all comments made by the

buyers on the samples submitted prior to production i.e. proto, fit, pre-production samples are implemented in the actual product. 7. Cross check samples at the pilot run, inline and midline and keep a track of dayto-day production output based on the status given by the factory as well as the stationed QCs. 8.

Merchandisers should perform the role of a product technologist.

Due to this definition of the job, the merchandiser became an indispensable unit in this phase in the export cycle, managing and handling not only the follow up of the orders but the entire supply chain.

Post the new millennia and the 2004 quota free era; there has been a fresh change in the working of the Indian apparel exporter. With the new challenges of Globalization facing the small and medium size companies, the role of the merchant has become further defined.

In an attempt to adjust to the changing global scenario, more companies are vying towards a more streamlined approach towards their communication and merchandising functions. Separate merchants now handle product development, order enquiry and costing negotiations, sampling and production follow up in an attempt to provide better value and service to the customer. The role of the merchant has thus undergone some more changes. Added on are the qualities required in this changing environment to face the threats thrown in by the globalization as well as the IT boom.

The main role and responsibility of a merchandiser

1. Buyer and communication: - It is one of the most important functions performed by the merchandiser. From the time of initiating the to making the sale, then procuring the orders, getting samples approved and following up on production, buyer is maintained. The buyer has to be kept at both pre and post shipment stages. It is because of his/her link with the buyer that the

merchandiser is synonymous as a buyer’s representative within the organization, and similarly to the buyer he represents his own organization. Thus the success of an export organization largely depends on the efficiency of the merchandiser’s ability to handle and maintain buyer . 2. Product development: - merchandise or product development is the next area of function of a merchandiser. With growing importance of vendor partnerships, the buyer expects the vendor to be a partner in product development almost as a mandatory requirement. To be able to carry out this function successfully and efficiently a merchandiser needs to understand and know his buyers requirements completely and thoroughly. The merchandiser must, therefore be aware of the characteristics of the buyer and the end consumer from the point of view of market segment, price points, age groups, fashion preferences. Apart from this, he/she must also be able to gauge the seasonality of the product and therefore understand color trends, style, silhouettes and fabric forecast. To be able to do this he/she requires having thorough source market and product knowledge and advice and updating the buyer on the latest developments and possibilities. Above all, through the entire process of carrying out this function he/she has to constantly keep the commercial viability of his product in perspective. 3. Costing and pricing of merchandise: - In continuation of the function of the product development, the merchandiser is also required to cost and price the product. The costing is done keeping in mind the cost of the various raw materials used, the operating cost of the company, the price competition is costing at and the profit planning of the organization. At the same time, it is necessary to bear in mind the buyers price point requirements and his (the buyers) end consumer as well. 4. Selling and booking of orders: - Following the functions of product development and pricing the next area of function for a merchandiser is the actual selling of a product range or “getting the buyer to buy”. Buying meetings are held with the buyer either in the country of origin of the products, or, on sales trips abroad. Participation in trade fairs, buyer- seller meets and other marketing

techniques are used to gain orders. Selling is also done through various buying representations of the buyer within the country. 5. Production follow- up: - Once the orders are booked the merchandiser is required to follow- up on production. Because of the level of interface between the buyer and the merchandiser, the merchandiser is best equipped to instruct the production department about the product requirement of the buyer. The merchandiser is also required to keep the buyer up-to-date on the status and progress of his order through the production process through weekly updates. 6. Quality control: - As the merchandisers interface with the buyer is frequent and ongoing, it therefore becomes the merchandiser’s responsibility to ensure that the product meets with the buyers quality requirements. The merchandiser is required to do random quality checks on the merchandise at various stages of production. However, at all times he has to control quality from a commercial viability angle. 7. The knowledge of the IT applications and training thereof. 8. Basic economics and world trade knowledge.

The process flow of a typical export house functioning is as detailed below and merchandising finds its place in the entire process today. Also given below are some of the suggestions in the process that can help in reducing the lead times for the process and gaining additional time for performing well on quality and service front.

* Buyer sends the tech pack to the merchandisers to develop the sample at the initial enquiry stage

Style possible

Yes

No Try convincing Reject the buyer by providing different feasible alternatives

A marketing and deg team can show the samples developed in-house in the buyers’ country and can work with them in developing and understanding new styles

Merchant Sends the quotes and the development samples with different options as per the tech pack received

Fabrics and accessories ordered

"Best quality at the first time” reduces the time taken for all the sample approvals

Order confirmed

** Send other samples as per the revised tech pack viz. proto, size-set, Pre-production, etc.

Wash approvals are done after the first lot of original fabric is in-house

Different washing options helps in speedy approvals from the buyer

*** Fabrics and accessories in-house before 30 days from the date of shipment

Client’s : Sample change request

Resend the sample by incorporating all comments

If the vendor has a vertical set-up then there is a saving of atleast 10 to 15 days in sourcing of fabrics

Start production

End production Inspection and freighting to Buyer’s destination

Post production Follow Up Feed Back Further order enquiries Process Flow for the preproduction activities in a typical export house

In conclusion, it can be easily ascertained that the skills required to fulfill the many faceted job profile of an apparel export house merchandiser have undergone some drastic changes. Add on the burgeoning retail sector and the new dimension of the retail house merchandisers, the export house merchandisers need to create a niche for themselves very distinct from other merchandising jobs. In the present scenario of reducing lead times, recession hitting the very core of manufacturing activities, it will become even more essential to keep the skill set honed to the changing requirements of the market if survival is to be guaranteed. About the Author The author is Associate Professor, Centre Coordinator, Department of Fashion Technology, National Institute of Fashion Technology, Chennai. Reference: Diploma project of Namit Nigam and Vineet Kumar Choubey; Sem IV students- NIFT, Chennai 2004 under the guidance of the Author.