export merchandising

1. Role of a Merchandiser
in an Export House
Presented By:
Geetika Arora (07)
Nimisha Dhingra(10)
Swati Keswani (12)
Vanya Rajput (13)

2. Contents

Export House

Importance of Global Economy.

Export Merchandising

Cost of Export Merchandising

Company Profile of SPL Industries Ltd.

Department functions and Operations of an Export
House

Role of Merchandisers

Export procedure in SPL Industries Ltd
 Pre-Shipment procedure
 Post – Shipment procedure
 Export Documents and Terms

3. Export House
“Export House is a business term used in global
markets to describe a company that develops
products for its country's export market.”

4. Importance of Global
Economy
 Globalization of business due to an increase in digital
technology fuelled by the Internet has made export
merchandising a necessity for companies looking to
expand and keep up with competitors.
 Foreign countries can provide an untapped source of
revenue for companies based in the domestic country for
existing products and also as an avenue to launch new
products targeted specifically for foreign markets.
 For example, automakers in the US have utilized export
merchandising strategies for years by marketing smaller,
more fuel-efficient vehicles to the European market while
marketing larger sport utility vehicles to domestic
consumers.

5. Export Merchandising
 Export merchandising is a method of offering retail goods for sale
in a foreign consumer market.
 Many large companies across the country maintain entire
divisions devoted to finding ways to better enter foreign retail
markets through export merchandising to increase profit and
sustain growth.
 Thanks to the Internet, small businesses can get in on the act as
well without the need of establishing an international supply
chain and foreign retail locations.
 Export merchandising applies all the principles of product
merchandising but in a country separate from the originating
business's home territory.
 Marketing personnel must determine how the company's
proposed product export can find a niche within a foreign
market and how foreign consumers might receive the product.
 The business must also find retail locations to display and sell
the merchandise to be exported and ensure that these locations
provide adequate access for targeted consumers to purchase the
exported product.

6. Cost of Export Merchandising
 Establishing a physical retail presence within a
foreign country for export merchandising purposes is
expensive.
 It also requires a business to go through multiple
legal requirements in both the exporting and the
receiving foreign country.
 The internet provides a cheap alternative for a
company to conduct export merchandising while
keeping all company operations located in the
domestic country.
 Establishing a retail website can allow a small
domestic business the ability to process orders and
ship abroad without the need of building a costly
shipping and supply infrastructure.

7. Company Profile
SPL Industries Ltd

Established in 1994

Company promoted by Mr. H.R. Gupta and Mr. Vijay Jindal

Incorporated as Shivalik Prints Private Limited in 1991, name changed to
SPL Industries (SPL) in 1994.

SPLIL has five factories in Faridabad covering 500,000 square feet spread
over14 acres of prime land. It employs about 6000 people including contract
labour.

The Company’s total turnover for the year ended March 31, 2009 was US
$6,62,63,537.1907 from the sale of 2,07,17,285 pieces.

A leading Apparel Export House of India

One of the largest vertically integrated Knitwear plants in India

Reputed for excellent Product Development and Design capability

A leading manufacturer & exporter of Knitted fabric and Knitted garments SPL
designs, manufactures and sells a wide range of outer wear-T shirts, sweat
shirts, polo shirts, etc. for top end customers in the international market.
“The vision of the Company is to become a leading manufacturer and exporter
of apparel by continuously excelling in quality, service, and customer
satisfaction using the best technology, processes and people.”

8. Department functions and
operations of an SPL industries
 Production Planning and Control Department
 Yarn Department
 Knitting Department
 Washing and dyeing Department
 Finishing Department
 Cutting Department
 Stitching Department
 Finishing and Packaging Department

9. Role of merchandisers in
apparel export house

Key link between the factory and the customer.

Communicate the customer demands

To ensure and assure quality

Optimally using capabilities of the export
house by generating enough profitable
business.

10. Role of Merchandisers in
ensuring Quality
 Provide correct and clear information on time to relevant departments
 Ensure fabric quality
 On time sealer sample availability
 Timely preparation of budget for fabric and trims
 Make sure to get the sources of accessories and fabrics at as early as
sampling stage of the style
 Ensure timely trims arrival
 Ensure right first time submissions to buyer to save time and reputation
 Ensure timely approvals from buyers
 Identify possible problems in the style and the ways to avoid them
 Discuss the style, its target with production team
 Conduct/be present for in-line inspection to anticipate defects and
avoidance of the same in the future.

11. Role of merchandisers in
Customer Satisfaction
 Track customer satisfaction level on regular basis
through structured formats
 Identify the gaps in customer satisfaction by analyzing
the customer complaints or routine communication.
 Customer feedback in the final inspection report by
the customer.
 Acquire knowledge on problem solving techniques
 Identify factors that will delight the customer

12. Role of merchandisers in Buyer
contact and communication
From time of
 initiating the contact to
 procuring the orders,
 getting samples approved
 production, &
 delievery
Buyer contact is maintained by the merchandisers.
Buyer contact has to be kept at both pre and post shipment
stages.
It is because of merchandiser’s 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.

13. Role of merchandisers in
Product Development
 To understand and know his buyers requirements
completely and thoroughly.
 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.
 To gauge the seasonality of the product (color
trends, style, silhouettes and fabric forecast).
 To be thorough with source market and product
knowledge
 Advice and updating the buyer on the latest
developments and possibilities.

14. Role of merchandisers in
Costing and Pricing
 To cost and price the product.
 To cost the raw materials used
 Operating cost of the company
 To know price, competition is costing at
 To Profit planning of the organization.
 To bear in mind the buyers price point
requirements and his (the buyers) end
consumer as well.

15. Role of merchandisers in Selling
and Booking of orders
 Selling of a product range or “getting the buyer
to buy”.
 Buying meetings with the buyer either in the
country of origin of the products, or, on sales
trips abroad.
 Participation in trade fairs, buyer- seller meets
 Selling is also done through various buying
representations of the buyer within the country.

16. Role of merchandisers in
Production Follow - up
 Merchandiser is best equipped to instruct the
production department about the product
requirement of the buyer.
 To keep the buyer up-to-date on the status and
progress of his order through the production
process through weekly updates.

17. Export Procedure
 Pre-shipment Procedure
 Post-shipment Procedure
 Terms of Shipment
 Inco terms
For example,
 FCA, CFR, DAF, DDP

18. Export Documents and Terms
 Export Documents
 Invoice
 Packing List
 Certificate of inspection
 Certificate of origin
 GSP
 IEC certificate
 Wearing Apparel Sheet
 Bill of Landings
 Airway Bill
 Mate’s Receipt
 Shipping Bill
 Letter of Credit

19. Requirements of a successful
Export Merchandiser
 Key interface.
 Examining customer’s objectives.
 Translating the customers requirements to the designers.
 Confirm the capability to meet cost, product and delivery schedule.
 Knowledge of latest trend, fabric research and familiarity with the
market.
 Monitor approval sampling, fitting and production right till delivery.
 Keep track of follow up and status of production.
 Should be able to work and communicate well with people.
 Should be open to all kind of feedback and improvements.