I must express my gratitude to the honorable persons who have made significant contributions in the preparation of this report. I would like to express my heartfelt thanks to my respected and supervising teacher Prof.Dr.Md.Mahbubul Haque, Professor and Head, Department of Textile Engineering, development and preparation of the report. I express my gratitude to the Honorable Vice Chancellor, Chairman, Registrar and each Department of Daffodil International University of Science & Technology for providing the working facility for my project.
I declare that this project was made by me under the supervision of prof. I also declare that neither this project nor any part of this project has been submitted elsewhere for the award of any degree or diploma. The thesis is in brief on "A Study of Business Strategy in a Bangladeshi Knitwear Shopping House".
It explains how the buying and selling house dealers carry out their day-to-day activities. Information about the merchant process, responsibilities of merchant, workflow of merchant as merchant executes the order also included.
INTRODUCTION
HISTORY OF BANGLADESH GARMENTS INDUSTRY
The knitwear export sector moved forward with their performance in the late 80s. As part of this they were able to export $14.84 million in 1990-90, of which $2.02 million was exported to the US. This trend-linked sector has continued due to the market access facilities granted to LDCs under the benefit of the Generalized Systems of Preferences (GSP). This is the renewed beginning of the ambitious history of the knitwear sector in Bangladesh, which in the true sense has been possible due to massive industrialization in a sustainable manner with effect on all possible aspects of human development.
An important scenario is that China is the highest exporter of RMG products in the world. In recent years, China is facing problems due to rising labor costs. Since then, the export of knitwear has increased day by day and has also reduced the gap between knitting and weaving.
Gradually, knitwear exports became an important export compared to all exports, especially the woven goods. Due to the supply of knitwear, which is the main raw material for knitwear, knitwear exports increased very rapidly.
Daffodil International University 7 Shakawat (2008) expressed that the activities of a dealer may even include display techniques, negotiation techniques, free samples, on-site demonstration, prices, shelf talkers, special offers and other sales methods. Velumani Du.(2009), expressed that trader is a person who acts as media or interface between the buyer and seller, and he/she should also contribute to maintain appropriate interaction between the buying offices/buying agents/agency and seller/exporter . in terms of the handling and execution of an order. Harun (2007) stated that the activity of selling goods at retail is merchandising which includes display techniques, free samples, mock demonstration, prices, etc.
On Wikipedia it is defined as: “In the broadest sense of the word, merchandising is any practice that contributes to the sale of products to a private consumer. At the retail in-store level, merchandising refers to the variety of products for sale and the display of those products in a way that arouses interest and entices customers to make a purchase. Timely delivery of the goods plays an important role during the entire process and the merchandiser must coordinate with all processes and people involved.
Organogram of a Buying House
Order Place in Garments Factory
Process Flow Chart of Apparel or Garments Merchandising
- Sample Development
- Negotiation with buyers
- Researching the needs of both parties
- Preparation
- Order Execution
- Various Types of requirements to execute an order
- Measurement, price consumption & calculation
- Fabric consumption for 1 dozen men’s t-shirt
- Consumption for 1 dozen polo shirt
- Consumption for 1 dozen trousers
- Trims & Accessories
- Packing Accessories
- Analysis a cost sheet
- Commercial Terms
- Final Inspection
Because bulk production depends on the sample, if the sampling is not accurate, the whole purpose of the production will be damaged. In this sample the buyer will check the tailoring of the clothes and the measurement of the clothes. The suitable sample should also produce 2-3 pieces in which 1 piece sample kept by the dealer and other given to the buyer.
After approval of the Fit sample, the size sample must be produced. For the size sample, a pattern of each size must be made. Daffodil International University 13 buyer, so the merchandiser must offer the best price with the best quality clothes to be selected by the buyer. This way the buyer can understand the original price of the garments and can place the correct markup for the garments on the garment being sold.
The sea fear depends on the dimensions of the export cartons and the air fear depends on the dimensions of the export cartons or the gross weight of the cartons. To address these issues, the letter of credit, commonly known as “L/C”, comes into the scenario. Letters of Credit (L/C) are normally a preliminary document issued by the financial organization or bank in connection with the presentation of the export value.
A credit can be considered as an advice to a beneficiary through another bank (the advising bank), without any obligation on the part of the advising bank, but the bank concerned must take appropriate measures to check the apparent authenticity of the credit it advises. All above letters of credit must clearly specify whether the L/Cs are revocable or irrevocable. An irrevocable L/C: carries with it some responsibility on the part of the issuing bank, provided that the specified documents are presented and the terms of the credit are met.
Confirmed letter of credit: This is a credit for which the exporter's bank gives all types of guarantees for the advance payment. Confirmed and Irrevocable Letter of Credit: This type of L/C cannot be canceled or modified in any way except with the express consent of all parties concerned, i.e. the buyer, the supplier or seller and the issuing bank. Red Clause L/C: According to this type of L/C, there is a provision that allows the supplier to withdraw a certain amount from the advising or paying bank, before the shipment or before the required or necessary papers are produced.
Syns L/C: According to this type of L/C, payments are made immediately – within five to ten days – after the supplier/seller fulfills the requirements of the letter of credit. Usance L/C: It is also known as Deferred Payment Letter of Credit or Time LC or Term LC is a letter of credit payable at a pre-agreed time / ie.
Price for 1 dozen T-shirt
Price for 1 dozen Polo shirt
Price for 1 dozen Trousers
Also included here are the merchant's activities and attributes, which will be of great help in continuing this work. We should try to make our workforce from our own country as they can compete with foreign countries and can do their work without the help of foreigners. We hope that one day we will be able to do our own jobs and then our country will have more of the benefits that we truly deserve.
