Buying houses act as intermediary between the foreign buyer and local apparel manufacturer. Buying houses hunt buyers, approach them, send sample of apparel, negotiate price, receives confirmed order after buyer is satisfied with price and quality. Then the buying house contacts local suppliers for production of apparel strictly as per buyer’s specification in exchange of buying house commission.
Bangladesh is a developing country. In this country unemployment problem is slightly overcoming by our garments or apparel sector. A huge number of people are working in this sector. Initially, the situation of this sector is not so good but now a day this sector is earning a lot of foreign currency, around 75%-80% of our total economic growth which is making our economic sector very strong. And merchandisers are those people who are working here day to night in order to develop this sector. Merchandisers’ goal is to collect order, execute, develop the best & supply the best.
It was a great pleasure for me to work in merchandising sector of Waymart apparels ltd which provides me a wide range of scope to observe different function of buying house industry through the cordial assistance of the employees and seniors. All the employees of Waymart apparels ltd tried to give optimum service.
3. Submitted To:
Md. Aslam Uddin
Assistant Professor
& Chairman (acting).
Department of Marketing
Bangladesh University of Business
and Technology (BUBT)
Submitted By:
Rizwan Mahbub Khan
ID: 12132101051
Intake: 30th, BBA program
Major in Marketing
Bangladesh University of
Business and Technology
(BUBT)
3
5. Background of the study
Buying houses act as intermediary between the foreign buyer and local apparel
manufacturer. Buying houses hunt buyers, approach them, send sample of apparel,
negotiate price, receives confirmed order after buyer is satisfied with price and
quality. Then the buying house contacts local suppliers for production of apparel
strictly as per buyer’s specification in exchange of buying house commission.
At the centre of all activities of a buying house is the merchandiser. He is in charge
of marketing, sample developing, costing, production planning. Ensuring quality
of the finished product is entirely his responsibility. For this reason he has to
closely monitor production process. To do all these in strict timeline he needs to be
the ultimate master of multi-tasking and must possess advanced communication
and negotiation skill.
5
6. Significance
The main motive of this project is to Merchandising Activities on
Waymart apparels ltd For any business student only curriculum activities
are not enough for handling the real business situation. Internship is a part
of the Bachelor of Business Administration (BBA) Degree that provides a
job experience for the students.
• The study will also help me to understand the merchandising activity in
garments sector.
•The study will give a clear idea about the merchandising activities.
•The guiding principle of the company is to develop and maintain strong,
secure relation with buyers and retailers and to support the customers.
6
7. Objectives of the study
Broad Objective
The main objective of this study is to analyze the merchandising activities of
Waymart apparels ltd.
Methodology of the study
The report is based on both primary and secondary data. But maximum data
used in this report are collected from secondary sources. Exact sources of the
secondary sources will be mentioned.
7
8. Research design
• It is a descriptive research by nature.
Sources of data
Primary data
• Interview with merchandisers.
• Group discussion with the company personnel and the clients.
Secondary Data
•Internet
•Newspaper
•Merchandising related books.
8
9. Sampling Plan
• Population: All the merchandisers of Waymart apparels ltd.
• Sample elements: : Individual merchandiser of Waymart apparels ltd.
• Sampling procedure: Non- probability convenience sampling procedure.
• Sample size : Sample size in this research is 10 merchandisers.
9
10. Limitations of the study
The limitations are-
• The people of Merchandising Incorporation are under tremendous
workload. Although, they wanted to cooperate with me in writing my
report, their busy schedules sometimes did not allow them to do so. On the
other hand, due to secrecy of official information, sometimes they showed
unwillingness to provide me information.
•There are many code names in garments industry that is very important
for production process, and I have memorized those codes.
•In garments factory most of the employee doesn’t have any educational
background they do their job only with experiences.
10
12. Profile of the Organization
Waymart apparels ltd is an export oriented Home Item manufacturer and exporters
in Bangladesh. It was established in 2008. Waymart apparels ltd is one of the
biggest readymade garment factories in Bangladesh.
The company is not use to promote any product in domestic market. The object of
the company is to produce various types of readymade garments Items.
The company has guaranteed uninterrupted production and timely supply of
Home Items as per the schedule and time frame of buyers.
The production unit has its own high powered generator that is being used as back-
up sources of electricity, which gives the manufacturing chain a lot more
dynamism and continuity. Wide array of indoor and outdoor facilities along with
safety measures is one of the prominent features. 12
13. Basic Information
Factory Name: Waymart Apparels Ltd. (ওয়েমার্ট এ্যাপায়েলস ললিঃ)
Authority Name: MD. Shohidul Islam.
Designation: Owner
Registration Number: 14174
Member of BKMEA (Bangladesh Knitwear Manufacturers and Exporters
Association)
Product type: Denim Shirts, Ladies Shirts, Trousers, Denim Pant, Light
Jackets, Denim Jackets.
Address: Ka-96/1, Kazi Shopping Center, Kuril, Vatara, Dhaka-1229,
Bangladesh.
District: Dhaka
Thana: Badda.
Employees: 500
Buyers Name: H&M, New look, Carrefour, Decathlon, Springfield & V.F
ASIA
Origin of Machineries: Greece, Germany, Japan, Taiwan, USA, UK, South
Korea
13
14. Vision of the Organization
• Clear communication with vendors.
• Clear instructions for production.
• Strict compliance with quality control system.
Mission of the Organization
Waymart Apparels Ltd is committed to maintain discipline, punctuality and
quality products at reasonable price and ensure quality service.
Objective of the Organization
• A truly international outlook for exporting.
• A long term commitment for exporting.
• A strategic approach to the development of new export market.
Goal of the Organization.
Its goal is to provide its clients with a high quality product that meets their
quality expectation. Waymart Apparels Ltd maintains quality assurance staff to
assist in the selection and development of manufacturers who manufacture
products according to Standards and who meet Waymart’s policy, principles
and guidelines. 14
15. 15
SWOT Analysis of Waymart Apparels Ltd
Strength of Waymart Apparels Ltd
• Skilled workforce
• Market Reputation
• Collaboration with suppliers
• Collaboration with backward linkage industry
16. Weaknesses of Waymart Apparels Ltd
• Fail to attract big Buyers
• Web site
• Lack of warehousing
• Communication Gap
Opportunities of Waymart Apparels Ltd
• Cheap labor
• Motivating the employees
• Waymart Apparels Ltd own Shops
• Advertising
Threats of Waymart Apparels Ltd
• Shortage of electricity
• The threat of new entrant
• The threat of substitute products
• Local competitors
16
18. Merchandising
Merchandising is any practice which contributes to the sale of products to a retail
consumer. At a retail in-store level, merchandising refers to the variety of
products available for sale and the display of those products in such a way that it
stimulates interest and encourage customers to make a purchase.
Merchandising department
• Searching buyers
• Introduce letter
• CM
• Price negotiation
• Select suppliers
Functions of the merchandiser
• Costing of the job order.
• Main task is “production monitoring”
• Collect “inventory report” from store
• Swatch making & getting approval from buyer
18
19. Merchandising Process of Waymart Apparels
Ltd
• Sample Development
• Receive L/C document from buyer
• Transfer Master L/C on the name of selected suppler
• Sheet
• Place order to suppliers for production
• Quality Control
•Final Inspection
• Liaison with the shipping lines
Merchandising activities on goods delivery to
buyers destination
• Booking to forwarder
• Export Documentation
Shipping bill of entry.
Export L/C.
Packing List.
Export Permission form (EXP).
• Bill of Landing (B/L) 19
20. The Daily Routine
I worked in the merchandizing section of Waymart Apparels Ltd I worked there
6 days in a week. My office hour was 9 am to 5 pm. But sometime I had to stay
more than 8 hour for work. At the beginning of my internship they tell me about
my duties and then they introduce me about the whole system of merchandising
department of Waymart Apparels Ltd They give me primary data about the
function of the different section of the buying house sector.
20
The Internship Program
I did my internship at Waymart Apparels Ltd .I got the opportunity to work as
an internee in the merchandising Department of Waymart Apparels Ltd.
The Job Description
• Typing mail for foreign clients.
• Follow up different types of accessories.
• Check the mail and give the answer Position of the production.
21. Learning
Merchandising section done some specific work. They are given below
• Communicate with buyer and receive the order.
• Meet the buyer and approve the sample.
• Collection raw materials and all accessories.
• Monitoring the production progress.
• Help the buyer for inspection of product.
21
23. 23
Q-1: For which of the following reason, you are not satisfied with your buyers
(you can choose several options)
1) High bargaining tendency in exchange.
2) Uncompressing attitude in exchange towards contingencies situations (like
hartal).
3) Tendency of undesirable rejection.
4) Fleeting tendency in business relation.
5) Cultural ethnocentrism
This question is selected to find out the reasons dissatisfactions with buyers, as the
satisfaction of buyers is important to survive in the industry.
0%
20%
40%
60%
80%
100%
120%
1 2 3 4 5
alternatives
percentage
Among the criteria’s, high bargaining tendency in exchange is one of the most selected
criteria’s that chosen by all the respondents. This criteria is chosen to investigate
whether foreign show the bargaining tendency and how much this exists in this
industry.
24. 24
Q-2: For which of the following reason, you are not satisfied with your suppliers
(means the garments factories) (you can choose several options)?
1) Failure to manage according to the desired way or based on the situation
2) Failure to maintain delivery on schedule
3) Inconvenient location
4) Fleeting tendency in business relation
5) High bargaining tendency
The reason of dissatisfaction towards the suppliers is asked to investigate the criteria that
may hamper the smooth function between the buying house and its suppliers.
0%
20%
40%
60%
80%
100%
120%
1 2 3 4 5
alternatives
percentage
The first criterion is chosen to find out the importance of suppliers product quality.
98% respondent select this one that means the buying houses is often disturbed for
poor quality product of suppliers.
25. 25
Q-3: Which of the following obstacles to export garments products through
buying houses can be treated as major? (You can choose several options)?
1) Casualties such as natural calamities or political crises
2) Failure to delivery on time
3) Unskilled garments workers
4) Fraudulence in trading
This question was asked to find out the severity off major obstacles to RMG export
process as this problem of export process makes the job of buying houses more
difficult to convince buyers.
0%
20%
40%
60%
80%
100%
120%
1 2 3 4
alternatives
percentage
The first major problem that is natural calamities and political crisis is ranked first. This
reveals that the activities of buying houses are very much vulnerable to these types of
obstacles.
Failure to delivery on time got the second rank as major obstacles as it is another
suffering matter to the smooth function of exporting products.
26. 26
Q-4: Which of the following problems of buying houses can be treated as
major? (You can choose several options)?
•Suppliers poor product quality
•Short shipment
•Stock lot or total LC unutilized
•Document delay
•Improper documents
This question was asked to know some of the major problems faced by the buying
houses. The major problems cause a serious hamper to the buying houses.
0%
20%
40%
60%
80%
100%
120%
1 2 3 4 5
alternatives
percentage
The most major problem is the suppliers’ poor product quality and respondents
marked it and ranked it as number one problem. For this problem, buyers become
dissatisfied and avoid further contract with that firm.
27. 27
Q-5: Rank the following problems regarding backward linkage industry of
garments export?
Insufficient number of such industry to meet the total demand (………)
Poor product quality (……….)
Lack of consciousness to understand the consequences of later or poor
product delivery (………)
Poor accessories product quality has been ranked 1 as 6 people ticked it as 1. As a
result the smooth production of RMG products is hampered.
Insufficient number of such industry to meet the total demand has been marked 2nd
by 3 people. So these people opinion is that still there is shortage of delivering
supporting accessories.
28. 28
Q-6: What are the problems you face in your supplier selection process?
•Tendency to stay with existing suppliers ignoring the necessity to find out more
efficient one
•Employee personal relationship with suppliers
•Failure to choose desired suppliers during seasonal excess demand
•Difficulty in choosing committed suppliers
This question was asked to investigate the problems in selecting the effective and
efficient suppliers. The selection of effective and efficient suppliers is must for the
effectiveness of export marketing process of RMG products.
0%
20%
40%
60%
80%
1 2 3 4
alternatives
percentage
70% respondents select the first one. This is a traditional tendency of business people
to depend on their existing stakeholders.
29. 29
Q-7: According to your opinion, what percentages of total order of R.M.G.
products bring through buying houses in Bangladesh?
• Above 70%
• Between 50%-70%
• Below 50%
This question is asked to know the effectiveness and efficiency of buying
houses in bringing RMG orders for the country.
53%
31%
16%
<70%
50%-70%
>50%
Majority of the respondent believe that buying houses brings the most RMG
products order in Bangladesh (53%), however 31% believe that only 50%-70%
order are brought by buying houses and only 16% believe that it can bring less
than 50% of RMG product orders.
30. 30
Q-08: Approximately, what percentage of your total order per year is rejected by
the foreign buyers after final inspection?
•Above 15%
•Between 10%-15%
•Below 10%
In this question, the efficiencies of buying houses are implies. The most efficient
buying houses incur less rejection where as less efficient buying houses incur more.
The 10 respondents’ response was like this:
31. 31
Q-09: Do you take any promotional strategy in order to attract buyers; if yes,
which are the strategies?
•No
•Yes (You can choose several options)
On line advertising
Personal selling
Promotional display
Trade fair exhibition
This question is asked to know about the promotional attempt taken the buying
houses to attract the foreign buyers. The low emphasize on promotion attempt has
revealed the apathy or the little knowledge of buying houses about their future.
20%
80%
no
yes
32. 32
Q-10: What steps you usually take to confirm the product quality? (You can
choose several options)?
•Selection of quality suppliers
•Schedule supervision
•Selection of efficient quality controller
•Prioritizing quality to cost
•Periodical report on quality
0%
20%
40%
60%
80%
100%
120%
1 2 3 4 5
alternatives
percentage
The first criterion is very much important to all the buying houses and that’s why
all of them marked this one. They remain anxious in selecting their suppliers.
The second one is chosen to look into the emphasis of buying houses own
activities to maintain the quality of their ordered product. 100% respondents
select this one. So ensuring the quality product they remain busy to supervise the
production process.
34. Major Findings
The following findings are perceived from the answer of the questionnaire.
Through these findings I tried to present the existing scenario of buying house
industry of Bangladesh under two classifications.
•According to the survey most of the buying houses are not efficient in
supplier selection process because of their tendency of long time inefficient
trade, harmful employee bias and lack of discretion to certify the efficient
suppliers for the first time as the soar of the system.
•The study also shows that a large part of RMG orders are brought annually
by the buying houses which determines their effectiveness in bringing order of
RMG products but efficiency remains unknown.
•While looking into the efficiency of backward linkage industry it is discovered
that this industry is afflicted with poor product quality, inadequate capacity and
the lack of consciousness to committed delivery.
34
35. .
35
• It has found that the foreign buyers reject small portions of goods shipped.
It is a good sign for buying house although indicating the lenient view of
foreign buyers towards the buying house.
• Their inefficiency once again has proved when I found that they are very
much reluctant in taking any promotional step to convince buyers.
• Buying houses attempt their heart contents to maintain the product quality.
• For the blessing of quota system the buying house, industry can be
mentioned as effective but not efficient one.
• Findings regarding the present and future problems of buying house
• The dissatisfaction of buying houses toward their buyers mainly based on
the buyers' uncompromising attitude toward the failure of commitment due to
contingencies.
• The dissatisfaction of buying houses toward their suppliers because of
their inefficiency to supply product in right quality and quantity.
37. Recommendations
Waymart apparels ltd is a new textiles industry in Bangladesh. It has
outstanding reputation in the global market. It will be a composite factory,
now woven sector is running.
However, this organization is not facing profit due to many of reasons what I
have observed from the internship period-
• Supply chain or procurement department is not very strong in this company
which causes that the merchandisers procure all the raw materials of garments
that’s why they feel more pressure to complete shipment and some time also
over the shipment date then company should pay the extra money for air
shipment. So when supply chain department procure all the raw material ls
then merchandiser can easily shipment the goods within lead time.
37
38. • Quality assurance system should be modernized because quality is the top
priority of all international buyers.
• Working environment should be increased
• Pay scale is very poor which is needed to be increased because company
will lose potential employees due to their policy
•Distribution of power should be well managed and transparency among the
workers and the management should be followed
38
39. Conclusions
Bangladesh is a developing country. In this country unemployment problem is
slightly overcoming by our garments or apparel sector. A huge number of
people are working in this sector. Initially, the situation of this sector is not so
good but now a day this sector is earning a lot of foreign currency, around
75%-80% of our total economic growth which is making our economic sector
very strong. And merchandisers are those people who are working here day to
night in order to develop this sector. Merchandisers’ goal is to collect order,
execute, develop the best & supply the best.
It was a great pleasure for me to work in merchandising sector of Waymart
apparels ltd which provides me a wide range of scope to observe different
function of buying house industry through the cordial assistance of the
employees and seniors. All the employees of Waymart apparels ltd tried to give
optimum service.
39
