Role Of a Merchandiser in an Export House

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 divisi

Role of a

Merchandiser in an

Export House

Presented By:

Geetika Arora (07) Nimisha

Dhingra(10) Swati Keswani (12) Vanya Rajput (13)

 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

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.”

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.

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.

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.

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.”

Department functions and operations of an SPL

industries

 Production Planning and Control

Department

 Yarn Department

 Knitting Department

 Finishing Department

 Stitching Department

 Finishing and Packaging Department

Role of merchandisers in apparel

export house

 Key link between the factory and the

customer.

 To ensure and assure quality

 Optimally using capabilities of the export house by generating enough profitable business

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

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

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.

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

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.

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.

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.

Export Procedure

 Pre-shipment Procedure

 Terms of Shipment

 Inco terms

For example,

 FCA, CFR, DAF, DDP

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

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.

Thank You