Export Merchandiser-

The 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
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

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 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 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 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 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 A marketing and designing team can show
merchandisers to develop the sample at the samples developed in-house in the buyers’
the initial enquiry stage country and can work with them in
developing and understanding new styles

Yes Merchant Sends the quotes and the

Style
development samples with different
possible
options as per the tech pack received

Try No
convincing Fabrics and Client’s feedback:
the buyer by Reject accessories Order Sample change request
providing ordered confirmed
different
feasible
alternatives Resend the sample
** Send other by incorporating all
samples as per the comments
"Best quality at the first time”
reduces the time taken for all revised tech pack
the sample approvals viz. proto, size-set,
Pre-production, etc.

Wash approvals are done after

the first lot of original fabric
is in-house
If the vendor has
a vertical set-up
*** Fabrics and then there is a
Different washing options accessories in-house saving of atleast
helps in speedy approvals before 30 days from 10 to 15 days in
from the buyer the date of shipment 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.