Export MerThe New

BMs. Divy chandiser- Avatar

y: a 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

passing 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

ImportantVery ImportantAbsolutely 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 day-

to-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 contact and communication: - It is one of the most important functions

performed by the merchandiser. From the time of initiating the contact to making

the sale, then procuring the orders, getting samples approved and following up on

production, buyer contact is maintained. The buyer contact 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 buyers 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 merchandisers

ability to handle and maintain buyer contact.

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 merchandisers 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

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

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

Try convincing the buyer by providing different feasible alternatives

Style possible

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

Reject Clients feedback: Sample change request

Resend the sample by incorporating all comments

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

Order confirmed

Fabrics and accessories ordered

No

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

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

Start production

Different washing options helps in speedy approvals from the buyer

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

End production Inspection and freighting to

Buyers 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.