Apparel Merchandising by R. Rathinamoorthy and R. Surjit

Contents
Foreword xi
Preface xiii
1 Introduction to merchandising 1
1.1 Introduction to apparel industry 1
1.2 Merchandiser in apparel industry 2
1.3 Roles of a fashion merchandiser 4
1.4 Role of a production merchandiser 5
1.5 Role of a retail merchandiser 10
1.6 Samples in apparel industry 12
1.6.1 Sampling process 13
1.6.2 Samples and their importance 15
1.7 Responsibilities of a merchandiser 17
1.8 Quality of a merchandiser 18
1.9 Merchandiser interface with other departments of apparel industry 18
1.10 Terminologies and abbreviations used in merchandising process 23
1.11 Summary 27
References 27
2 Forecasting and product development 29
2.1 Introduction 29
2.2 Line planning 30
2.3 Line development 31
2.3.1 Fashion forecasting process 33
2.3.2 Market research 33
2.3.3 Fashion research 34
2.4 Product development 38
2.4.1 Role of merchandiser in product development process 39
2.5 Line adoption 46
2.6 Apparel analysis process 47
2.6.1 Style description 49
2.6.2 Positioning strategy 50
2.6.3 Sizing and fit 50
2.6.4 Material specifications 50
2.6.5 Garment component assembly 51
2.6.6 Final assembly and finishing 51
2.6.7 Style presentation 51
2.6.8 Example of apparel analysis process:
Analysis of a “Polo T-Shirt” 52
2.7 Customer profiling for apparel merchandisers 60
2.7.1 Customer profiling methods 61
2.7.2 Benefits of customer profiling 62
2.8 Summary 64
References 64
Appendix I 65
3 Merchandising planning and order execution 71
3.1 Introduction 71
3.2 Time and action plan for merchandisers 72
3.3 Development of time and action plan 76
3.3.1 Gantt chart 77
3.3.2 Network charts 80
3.4 Raw material consumption estimations 98
3.4.1 Fabric and yarn weight calculations 98
3.4.2 Size wise – Colour wise order quantity breakup
identification 103
3.4.3 Yarn or fabric consumption calculations 106
3.4.4 Sewing threads – consumption calculation 116
3.4.5 Other raw material consumptions 126
3.5 Factory capacity planning 127
3.5.1 Sewing department capacity calculation – Line
efficiency and capacity 128
3.5.2 Capacity calculation for other departments 132
3.6 Summary 142
References 143
4 Sourcing for merchandiser 145
4.1 Introduction 145
4.2 Classifications of sourcing process 147
4.3 Sourcing strategies for decision-making 148
4.4 Sourcing process in an apparel industry 150
4.5 Role of merchandiser in sourcing process 151
4.6 Factors affecting sourcing process 152
4.6.1 Lead time 152
4.6.2 Minimum order quantity (MOQ) 154
4.6.3 Logistics facilities 154
4.6.4 Quality parameters 156
4.6.5 Sourcing costs 156
4.7 Supplier or vendor management 156
4.7.1 Supplier / vendor selection criteria 157
4.7.2 Supplier selection process 158
4.8 Types of supplier for apparel industry 159
4.9 Vendor / supplier evaluation 160
4.10 Vendor evaluation methods 165
4.11 Summary 172
References 172
5 Apparel costing for merchandiser 175
5.1 Introduction 175
5.2 Elements of cost 176
5.2.1 Material cost 177
5.2.2 Labour cost 177
5.2.3 Expenses 178
5.2.4 Overheads 179
5.3 Factors influencing the costing process 179
5.4 Calculation of fabric cost 180
5.4.1 Yarn cost calculation 181
5.4.2 Process cost calculation 184
5.5 Fabric cost calculation 197
5.6 Cost calculation inapparel production departments 203
5.6.1 Cutting department costs 203
5.6.2 Sewing department costs 208
5.6.3 Trimming and checking department cost 217
5.6.4 Packing department costs 220
5.6.5 Calculation of shipping and forwarding cost 228
5.7 Calculation of overall apparel manufacturing cost
(Cut – Make – Trim/Pack and Shipping) 232
5.8 Summary 251
References 251
6 Export procedure and documentation 253
6.1 Export procedure 253
6.2 Terms of payment 255
6.2.1 Advance payment 255
6.2.2 Letter of credit (L/C) 256
6.2.3 Documents against acceptance 261
6.2.4 Documents against payment 263
6.3 Delivery terms 263
6.3.1 INCOTERMS 2010 264
6.3.2 INCOTERMS 2000 267
6.4 Export finance 268
6.4.1 Pre- and post-shipment finance 269
6.4.2 Other initiatives 273
6.5 Pre-shipment inspection 274
6.5.1 Pre-shipment inspection agencies 276
6.6 Shipment modes 276
6.6.1 Types of load 276
6.6.2 Types of containers 277
6.6.3 Selection of freight forwarder 279
6.7 Export customs clearance procedure 279
6.8 Export documentation 280
6.8.1 Need for export documentation 281
6.8.2 Types of export documents 282
6.8.3 Commercial documents 283
6.8.4 Regulatory documents 299
6.9 Internal documents for merchandiser 302
6.9.1 Customer information 302
6.9.2 List of customer 302
6.9.3 Sample / pattern request form 303
6.9.4 Order review form 303
6.9.5 Order register (OCN) 303
6.9.6 Accessories indent form 304
6.9.7 Fabric indents cum cut planner 304
6.9.8 Yarn requisition form 304
6.9.9 Lap dip approval report 304
6.9.10 Photo sample / fit sample / size set report 304
6.9.11 Work order 305
6.9.12 Pre-production meeting form 305
6.9.13 Bulk fabric approval and trim card approval 305
6.9.14 Amendment form 306
6.9.15 Order status report 306
6.9.16 Customer feedback form 306
6.10 Summary 306
References 307
Annexure I 309
7 Communication skills for merchandiser 329
7.1 Communication 329
7.2 Process and elements of communication 330
7.3 Business communication 332
7.4 Objectives of business communication 333
7.5 Importance of business communication 333
7.6 Types of business communication 336
7.6.1 Formal communication 336
7.6.2 Informal communication 340
7.6.3 Communication in internal environment 342
7.6.4 Communication in external environment 342
7.7 Principles of good communication 342
7.7.1 7 C’s of communication 343
7.7.2 4 S’s of communication 345
7.8 Barriers in communication 346
7.8.1 Overcoming barriers in communication 348
7.9 Merchandiser and communication 349
7.10 Communication skills for a merchandiser 349
7.11 Improving communication skills of a merchandiser 352
7.11.1 Improving listening skills 353
7.11.2 Improving body language in communication 353
7.11.3 Improving writing skills 354
7.11.4 Improving presentation skills 360
7.11.5 Improving negotiation skills 361
7.11.6 Improving intercultural communication skills 362
7.11.7 Improving skills to conduct meetings effectively 363
7.11.8 Improving speaking skills 364
7.12 Cases to understand importance of communication for a
merchandiser 365
7.13 Summary 368
References 368
Index 371

Preface
“Apparel Merchandising” book has been written keeping in mind the requirements of students, academicians and industry personnel with respect to the merchandising activities in an apparel company. Merchandising is one of the major contributing departments in the apparel industry. Merchandiser is the one who communicates and connects the apparel manufacturing units with the buyers. The main role of merchandiser in the industry is to co-ordinate, communicate and complete any particular job inside and outside the manufacturing unit. The merchandising department also performs few important cost related activities in the manufacturing firm along with marketing department. Hence, the merchandiser should also have knowledge on product pricing and costing of apparel products. This book gives wholesome knowledge on the above aspects of merchandiser.

When we initially handled this subject for undergraduate students, we found many hurdles in collecting information for the students. Despite the availability of few academic books in the market, we found lot of practical aspects in merchandising process missing which are particularly followed in Asian countries. They remained unexplored or were not explained clearly. In the perspective of educating undergraduate level students, we have been a part of several industrial trainings and industrial collaborative work to understand the real time industrial responsibilities of merchandiser. The main intention of the book is to provide detailed real time job responsibilities of an apparel industry merchandiser from communicating and receiving order to dispatching the goods from the export house leading to maintenance of a healthy relationship with the buyer.

In this context, the book discusses about the different job responsibilities of the merchandiser at the varied stages of order execution from the buyer contact to dispatch. Further, the chapters also detail the different sampling procedures followed in industry to get product approval. The activities of the merchandiser starting from design to product development and then product development through apparel analysis is explained in depth. The raw material consumption calculations at different stages of the product development like, yarn, fabric, sewing thread, trims, accessories and packaging material are provided with illustrative examples for better understanding. The order planning activity by analysing the factory or individual department capacity planning process is explained. The sourcing activity of the merchandising process is discussed with details about the various sourcing hubs in the apparel world.

The costing process of the apparel product is explained in depth for the better understanding with lot of worked out problems. The costing activity at different departmental levels are explained along with the overall cost sheet preparation for an order. The internal and external documents required for export and import activity is described with sample documents. The importances, requirements of those documents along with their content details are illustrated. Last but not the least, the communication skillsrequired for a merchandiserare elaborated. We believe that this book will be a useful tool for all the budding technocrats, academicians and industry personnel to carry out the merchandising activities in an apparel company.