PROJECT WORK
ON
STUDIES ON THE MERCHANDISING PROCEDURE
OF
BANGLADESH FOOTWEAR INDUSTRIES
The Footwear Industry in Bangladesh is at its early stage of development. ‘there was no mechanized Footwear Industry in the country until early 1900’s and the footwear manufacturing was limited to cottage and family level small factories. The first mechanized industry, Bata Shoe Co. (Bangladesh) Ltd., a multinational enterprise, carte into being in the then East Pakistan in 1962. Followed by Eastern Progressive Shot industries (LPSI) and Bengal Leather which used to produce mainly for domestic supply. Indeed, the shoe industry started featuring in Bangladesh in 1990 with the introduction of encouraging Government policy measures of granting fiscal and financial incentives for production of leather footwear in the country for export. There has been a rapid growth in footwear production capacity. Both complete leather shoes and sports shoes manufacturing for export during last decade. ‘there arc now about 42 mechanized (shown in annexure -D), and over 4.500 non-mechanized small and cottage level units in Bangladesh producing various types of footwear for both domestic market and export. Most of the mechanized units are export oriented So there is a great opportunity to develop a merchandising procedure for footwear in Bangladesh.
ILET : Institute of Leather Engineering & Technology.
BBS : Bangladesh Bureau of studies.
BFLLFEA : Bangladesh finished Leather Leather Goods and Footwear Association
EPB : Export Promotion Bureau.
EPZ : Export Promotion Zone.
GTZ : German Technical Cooperation.
ITC : International Trade Centre.
LFMEAB : Leather Goods and Footwear Manufacturer and Exports Association of Bangladesh.
RSMA : Raw hides & Skins Merchants Association.
R&D : Research and Development.
1.1 Introduction
From time immemorial, the arts and crafts of Bangladesh are closely linked to our culture and heritage. Leather and Footwear have always been a part of that heritage and after the emergence of an independent Bangladesh in 1971; the industry received a fresh impetus. Today the country earns a sizeable amount of foreign exchange every year through export of leather and Footwear to a number of overseas markets. The Leather Industry of Bangladesh has been given particular attention by the government for developing its infrastructure. By combining the latest leather technology with the abundant raw materials and inexpensive skilled labor, Footwear industry is now playing an important role in earning foreign exchange for the country. Export of leather and Leather goods (including Footwear) earned US$303.33 Million for Bangladesh in the fiscal year 2006-2007.
Bangladesh Government has earmarked Leather sector as one of the thrust sectors. By and large the sector has been registering steady progress. But it is still a long way to be traversed to attain desired level of performance. As of today (2010) 70 – 75% output in the sector is crust leather while 25 – 30% output is reportedly by coursed by finished leather. Global trade in leather sector is learnt to be around US $ 65 billion yearly. Bangladesh share only 0.60 % (US $ 390 million) while is by improving finished leather output say by 20% additionally the export in leather trade is expected to be within the region of US $ 500 million. This means, the potentials in the leather sector is enormous. But the concentration of the tanneries in Hazaribagh location is certainly a hole up in further improving the tannery operation at large. Government in association with the trade bodies has to cover this hole up to make this sector more prosperous for our country.
The raw materials leather industry of Bangladesh produces the world’s finest quality goatskin of a very fine and smooth grain pattern. Country’s cow leather has excellent natural compact fiber structure with a round feel and touch. More than eighty percent of the country’s annual production is exported worldwide as semi finished/finished Leather, footwear and accessories.
Over 250 manufacturers are producing various Leather items such as travel goods, suitcases, briefcases and fashion accessories, along with belts, wallets, hand bags, case holders etc. for overseas export. Bangladesh has also entered the field of Leather fashion garments with items of distinction and prestige. Now it is the high time we started taking action to improve our merchandizing strategies to make our leather products more attractive to the world market. The objective of this study is to explore the current merchandizing strategies for export and local market and to find some way forward to improve it to increase the annual income of the country from this resourceful sector.
Bangladesh earns a sizeable amount of foreign exchange every year through export of leather and leather products to international markets. Endowed with a strong stream of local supply of quality hides and skins and a large, skilled, and low-wage work force, Bangladesh has all the potentials to increase export earnings and employment in the leather sector. Taking into consideration the importance of leather sector as an option to backup RMG sector in the post MFA era it is considered to carryout a value-chain assessment for this sector.
Background and profile of Bangladesh leather sector
?Types of enterprises including value-chain analysis of leather and its sub-sectors
?actities of relevant private and public sector institutions
?National and international leather market situation and trend
?Value additions in different stages of value-chains
This study to identify the relevant value chain actors (enterprises/institutions) and their functions, sub-sector constraints that limit each of the actors from reaching their full potential and to analyze the domestic and export market situation of leather and its sub-sectors.
1.3. Footwear: The inside story
Shoes both protect feet as well as, when incompatible in size and shape, present exciting factors in inflammatory conditions e.g. bunion. Despite the presence of pain, people are reluctant to change their footwear styles. The main function of modern footwear is to provide feet with protection from hard and rough surfaces, as well as climate and environmental exposure. To the wearer the appearance of their footgear is often more important than its (mis)function. Consumer resistance to change style is common. Informed decisions of shoe styles are thought to occur when the benefits of alternative shoe styles are carefully explained and footwear habits discussed in a culturally sensitive manner. The author, in the interests of intellectual exchange, explores the world of shoe making in an attempt to inform both lay person and health professional.
According to McPhoil (1988) the anatomy of a shoe can be divided in an upper and lower (or bottom part). Sections of the upper include vamp, quarter, toebox, throat, insole board, and topline. The sections of the lower shoe consist of an outsole,
Figure 1 : parts of shoe
The Upper of the Shoe
All parts or sections of the shoe above the sole that are stitched or otherwise joined together to become a unit then attached to the insole and outsole. The upper of the shoe consists of the vamp or front of the shoe, the quarter i.e. the sides and back of the shoe, and the linings.
Vamp
The vamp covers the dorsum of the foot (includes the tongue piece) and superior aspects over the toes. This section i.e. the toe puff is reinforced which serves to give the shoe its shape as well as protect the toes.
Quarter
The complete upper part of the shoe behind the vamp line covering the sides and backpart. The top edge of the sides and back of the quarter describes the topline of the shoe. In athletic shoes the topline is often padded and referred to as a collar. The medial and lateral sections join in a seam at the posterior end of the shoe.
Toecap
Many shoes incorporate a toecap into the upper of the shoe. Toecaps are either stitched over or completely replace the distal superior aspect of the vamp and can be made into a decorative features referred to as toe tips. The toe box refers to the roofed area over and around the part of the shoe that covers the toes.
Linings
In quality shoes the quarters and vamps are lined to enhance comfort and durability. Linings may consist of various materials ie leathers, fabrics, and manmade synthetics.
Throat
The central part of the vamp just proximal to the toe box. The throat is formed by the seam joining the vamp to the quarter i.e. throatline. The position of the throat line depends on the construction of the shoe, for example a shorter vamp and longer quarters define a lower throat line.
The Sole of the Shoe
The term sole derives from ‘solea’ a Latin word meaning soil or ground.
Insole (inner sole)
A layer of material shaped to the bottom of the last and sandwiched between the outsole (or midsole) and the sole of the foot inside the shoe. The insole covers the join between the upper and the sole in most methods of construction and provides attachment for the upper, toe box linings and welting.
Outsole
This is the outer most sole of the shoe, which is directly exposed to abrasion and wear. Traditionally made from a variety of materials, the outsole is constructed in different thickness and degrees of flexibility. Ideal soling materials must be waterproof, durable and possess a coefficient of friction high enough to prevent slipping.
Heel
The heel is the raised component under the rear of the shoe. Heels consist of a variety of shapes, heights, and materials and are made of a series of raised platforms or a hollowed section. The part of the heel next to sole is usually shaped to fit the heel, this is called the heel seat or heel base. The heel breast describes front face of the heel.
Welt
The strip of material which joins the upper to the sole. Most shoes will be bonded by Goodyear-welted construction. Some shoes use an imitation welt stitched around the top flat edge of the sole for decorative purposes, but it is not a functional part of the shoe.
Shank
The shank bridges between the heel breast and the ball tred. The shankpiece or shank spring can be made from wood, metal, fibreglass or plastic and consists of a piece approximately 10cm long and 1.5 cm wide. The shank spring lies within the bridge or waist of the shoe, i.e. between heel and ball corresponding to the medial and lateral arches.
Last
“The close relationship between a man and his shoe maker was based on the shared secret of the client’s measurements. The statistics of clients were never disclosed.” Traditionally before mass production, the original shoemaker started the process by taking a footprint outline of the sole. He whittled or chiselled a wooden last from the print. A last ( ‘laest’, Old English meaning footprint) was traditionally made from wood but are now available now in metal or plastic.
It is impossible to estimate at exactly what phase in development on earth that man first thought of protecting his feet from the natural hazards of weather/climate and the rough ground that they walked on. Shoes are very interesting to analyze because they have a long history. It is obvious that shoes were made for the shielding of feet but aside from their actual purpose, shoes can help to tell the story of the person who wore them.
“It gives us a strong indication of personality”.
1.4.1. Shoes of ancient time
Figure 2 : Sandal made of Papyrus Fibre
It’s known that only the noblemen of that time owned sandals. Even Pharaoh as Tutankhamen paved footwear as sandals and simple leather shoes (despite the ornaments of gold).
In Mesopotamia it was common raw leather shoes tied to the feet by straps of the same material. The boots were symbol of high social status. The Greek introduced new fashion as different models for right and left feet.
In Rome the footwear indicated the social class. The consuls wore white shoes, the senators wore brown shoes moored by lour leather tapes tied with two knots and the traditional footwear of the legions was the short boot that uncovered the toes.
In the middle age, men as well as women wore leather shoes whose form was similar to the ballet slipper. Men also wore high and short boots tied in the front and in the side. The most current material was the cow skin, but the upper quality boots were made of goat skin.
Figure 3 : Ancient Leather shoes
The standardization of the numeration is of English origin. The king Edward (1272-1307) was the first to uniform the measures. The first reference known of the manufacture of footwear in England is of 1642 when Thomas Pendleton provided 4,000 pairs of shoes and 600 pairs of boots to the army. The military campaigns of this time initiated a substantial demand for boots and shoes. In the middle of the 19th century the machines that helped in the confection of the footwear began to appear, but only with the sewing machine the shoe started to be more accessible. From the fourth decade of the 20th century on, big changes in the footwear industries began to happen as the change of the leather by the rubber and synthetic materials. Mainly in the female and infantile footwear.
Figure 4 : Ancient Roman shoes
1.4.2. Shoes of modern time
Boot
Any footwear extending above the ankle. There are numerous designs and types for a variety of uses and made from a number of materials.
Figure 4 : Modern Leather shoes
Clog
A thick soled wooden shoe sometimes with leather upper.
Figure 5 : Clog
Lace-Up
Any low cut shoe fastened by lacings, such as an Oxford or Blucher.
Figure 6 : Lace up shoes
Originally a slab of leather sole attached to the foot by thongs. Today any open shoe who’s upper consists of any decorative or functional arrangement of straps. A sandal can be foot low to knee high, or with any heel height, designed for simple utility or casual wear or as a fashion shoe.
Moccasin
The term moccasin originates from the Algonquian language for foot covering. This is the oldest shoe construction known, dating back about 12000 years. It is simply a piece of upper material cradle-wrapped around the foot or last and sewn at the butting of the two edges along the center of the sole.
Figure 7 : Moccasin and imitation mocassin
Mule
A backless shoe or slipper with or without a heel.
Figure 8 : Mule
Sandal
Originally a slab of leather sole attached to the foot by thongs. Today any open shoe who’s upper consists of any decorative or functional arrangement of straps. A sandal can be foot low to knee high, or with any heel height, designed for simple utility or casual wear or as a fashion shoe.
Figure 9 : Sports and casual sandal
Monk
Similar to Derby Shoes but with a cross over section to fasten the quarters with a
side buckle.
Figure 10 : Monk
Pumps
Heeled shoes with low cut fronts and usually no fastening.
Figure 11 : Pumps
Chappal
This consists of an insole and a strap across the instep, with or without a ring to hold the big toe. Sole is either stitched or cemented with a low or high heel.
Sandal
This consists of an insole with the upper having straps across the vamp portion with flat or high heels. A belt passes round the heel to keep the foot in position by a buckle arrangement.
Slipper (mule)
Mule is without quarters, strap and buckle attachment. The foot is supported at the vamp by a strap. A high or low heel can be fitted.
Clogs
Bottom is of wood and the upper may be of straps with decoration across the vamp or with a vamp and toe cap.
Oxford
The quarters are kept under the vamp and stitched. An oxford construction with the upper decorated with stitches and punches.
Brogue
A shoe which is easy to wear and has an elastic gusset across the instep or on sides.
Derby or Gibson
The quarters are stitched apart on the vamp, with 2 or 3 eyelets.
Casual
A shoe which is easy to wear and has an elastic gusset across the instep or on sides.
Court shoe
A ladies high heeled shoe of slip-on type with a counter, toecap, vamp and quarters.
Other closed footwear’s are:
Sports shoes / Athletic footwear
· Running shoes.
· Walking shoes.
· Pole vault shoes.
· Tennis shoes
· Badminton shoes
· Basket ball shoes
Field game shoes
· Football shoes
· Hockey shoes
· Cricket shoes
· Boxing shoes
Walking shoes
During walking the foot is lifted, after the lead foot makes contact with the ground. The shoe is made up of a forepart midsole, a heel wedge of EVA. MCR or PU, outsole of hard wearing rubber compound wrapped up at the toe region, rigid non collapsible heel counter of leather.
Turned shoe
The turned shoe is made inside out with only an outset sole between the foot and the ground. The upper and soles are very flexible. The last is designed in a single size and then a set is made in the range of sizes and widths in which shoes are to be manufactured.
Welted Shoes
Any construction using a welting, either as an intrigal part of the construction or simply for imitative effect.
A continual frustration to many who care for the foot weary is the absence of a standard shoe size system. Shoe sizing systems based on standard metrological measurements have been in existence for just over 100 years but shoes made in half sizes have only been available half that time. As part of the protection many craftsmen operated in early times, shoes were individually coded.
Some few international systems for footwear size are briefly described below:
The first description of a shoe sizing system was made and recorded by British genealogist Randle Holme in the Academy of Armory and Blazon in 1688
Third Inch Scale (Barley Corn)
UK System Quarter Inch Scale
Child Sizes
Adult Sizes
The first shoe sizing system with detailed proportional measurements for lasts and shoes came from North America.
Adult Sizes
This was a proposed international shoe sizing system based on the metric system. The idea originated in Australia and was intended to replace English, French, Italian and other size systems. Shoes were described as 255/98 or 255 millimetres long and 98 millimetres broad.
Male Adult Sizes –Conversion
Female Sizes –Conversion
Children’s Sizes -Conversion
Width Fitting
In the American (Arithmetic standard width measurement) this ranges from AAAAA to EEEEEE.
1.6. Flowchart of footwear manufacture
Figure 12 : Footwear manufacturing process
1.7. Design and pattern development
In the processing and marketing of leather goods, design & development (pattern development is the off – shoot of design & development) is of utmost importance. Without proper conception or grasp of functional value, no design could converted into a fabricated product and such as the work relating to the design and pattern development aspect of footwear manufacture cannot be over emphasized.
Figure 13 : Last making
As the sole intention of design is to meet the requirements of its basic functions, its performance could be better built around its generic character rather than its additive character. A good designer has to foresee the fashion trend / change and style in the coming seasons usually a year ahead and form an idea of what things are in store for the market. In fact, designer
Figure 14 : Design Development
Another important aspect of design and pattern development is that the design should be easily translated or transformed into production schedule. Further productions and productivity are the key factors for a successful commercial venture. So in design and development of footwear (the above is only in illustration to drive home the point) a judicious blend of production technique and productivity, cost saving, value addition and quality control aspects should be taken into consideration.
The pattern maker, next to the designer should have sound knowledge about the design chosen, the various materials of construction that are to be used.
Fig 15: Pattern cutting
Undoubtedly, pattern cutting is an art, but it is scientific in the sense that it required elementary mathematics and geometry as symmetrical (sometimes odd) shapes of pattern are to be fitted in the area of leather judiciously to get the maximum advantage of cutting. The art of pattern cutting requires anticipation, sound judgment, cultivated style of approach with a sense of quality control.
After going through the scientific system of designing pattern development, one feels inclined that the principles of designing are based purely on mathematical calculations and geometrical drawings.
Fig 16: Product Life Cycle
Table 1: Present Scenery of World Footwear Production:
2.1. Definition of merchandising
Merchandising is the business art of matching goods to the needs and preferences of customers to ensure shelf off take. How a product is presented, how much is displayed, and in what form, size shape, colour, etc. can determine the rate of speed at which a product is bought. In other words merchandising is the marketing activity responsible for ensuring a product’s “desirability”, both qualitatively and quantitatively. This means that at the store end, your product has to be perceived as “just right” by your market. It is a whole lot of psyche satisfaction.
• Sometimes, people will and do change their minds about buying a certain product for the simple reason that a competitor’s goods were displayed better.
• Reasons can vary. They seem logical to you. And then again, they may not.
• But, being able to satisfy the needs of your average market is what will finally make those cash registers ring.
It’s as simple as taking the product (or merchandise) from a company, and selling it to the customer. To make sure that the merchandise actually sells, companies take great pains to make sure their products are visible in stores and presented in an appealing fashion.
This person actually represents the company in retail stores. By seeing the store layout, they make sure the product is located in an obvious and visible location, also known as product placement. The merchandising specialist also insures that the product is presented in an appealing way. This person must have strong sales and negotiating skills, as well as initiative and an eye for proper placement.
Merchandiser
The merchandiser coordinates with the design team to effectively present the product or product line. He or she develops colors and specifications, and performs market research to determine the most effective ways to sell and promote the product. This person needs strong communication and negotiation skills and visual and analytical abilities. He or she also needs to be a creative and innovative thinker.
2.3. The Role of a merchandiser
Think of it this way, a product is manufactured and then sold to the public.
1. Manufacturers are the ones who physically make the products that will be later sold.
2. Merchandisers or Retailers are the ones who buy those manufactured products and sell them to their customers.
3. Merchandisers are the middle man between the buyer and manufacturer – buyer wants the product > to produce and select the raw material > the total cost of product – all work are to be carried and handled by only one person, he is the merchandiser.
2.3.1. Role of a merchandiser in a export house
There are 2 types of merchandisers in export houses – buyer and production merchandisers. Buyer merchandisers act as a link between the buyer and the manufacturer. They have the responsibility of ensuring that the product is developed as per the requirements of the buyer so in between they have the responsibility of sourcing, sampling and communication with the buyer. The production merchants on the other hand are a link between production and buyer merchants. They have the responsibility of ensuring that the production goes as per the schedule and as per the requirements
2.3.2. Role of merchandiser in footwear industry
In footwear industry, merchandiser is the BRIDGE between the management(or)industry and the buyer.
He has to look after every job like buying the raw material (which is required to finish the product), making the footwear, finishing the footwear, documentation (over all view), finally shipping. He is the responsibility person to make the product. The person who creates a good relationship in between exporter & buyer is called Merchandiser.
2.4. Merchandising play in today’s advertising
It is undoubtedly assuming an increased and even new importance. This is in large measure due to the self-service trend in more and more retail stores. This trend has reached the point where “take-it-off-the-rack-at-Klein’s” type of selling dominates the food and variety stores and is growing in drug stores and hardware stores. Self-service increases the importance of merchandising. Why? Because now the purchaser is influenced more by point-of-sale material . . . special deals and offers . . . position of stock in store and displays. It is the job of merchandising to have all these factors in favor of your brand, and to achieve superiority to competitive brands.
One surefire piece of strategy is to make sure that the point-of-sale material is a close, direct tie-in with the basic theme and main appeal in the product’s consumer advertising.
Nowadays, with the growth of shopping centers and the variety of products carried in these supermarkets, the housewife can emerge with a full line of cosmetics from the food store. Certain marketing facts are assuming a new importance. Suburbs are growing in population. As automobiles grow more common, shopping centers are luring the customer away from former sales haunts by providing ease of parking. For example, about twelve years ago, 90 per cent of proprietary articles in the drug field were sold through conventional drug outfits, i.e., retail drug stores, drug wholesalers, etc. Today, 70 per cent of many of these items are now sold through food stores, supermarkets, etc.
With this trend, the factor of merchandising in the sense of getting display for your merchandise in these supermarkets is of paramount importance. No longer is there a clerk whose loyalty to your sales appeal could assert itself to the customer in your behalf. No, the pay-off nowadays is on the rack in the supermarket; there is where appeal in behalf of your products must pay off. The case for advertising prior to the store visit is being put to the acid test.
How about scientific and technical research? Is this growing in importance? Yes, I believe it is in all areas, not only with the advertiser, but as a tool for the advertising agency as well. Scientific and technical research is the open door looking constantly to the future, years or months ahead of you. Through research, we make constant improvements in old products. Here also we have the discovery of invention of new products. Here’s where stability and future growth really stem from. The best commercial bets are those companies and/or organizations which are maintaining and expanding their scientific research in both the area of fundamental research and the area of specific research addressed to specific objectives.
How about marketing research? In these dynamic, changing days, research in the marketing area is more important than ever. It can provide much to check the accuracy of your direction, as well as the accuracy of the results. Figures can be misleading, so be sure this matter of marketing research and the interpretation of its findings are entrusted to the minds of professionals and not to the amateurs.
Should one be concerned with trying to save advertising dollars? I interpret your question to mean the withholding of money from advertising. This will soon prove a false economy. Obviously, a person should make every dollar spent in advertising go further, especially he should make it go further than his competitor’s dollar. But never, as long as you have a formula that is working, withhold any possible available money that is earmarked for advertising. Remember, advertising is fundamentally a spending operation, not a withholding one.
2.5. Is merchandizing part of a sales man’s job?
• It definitely is.
• Consider that many salesmen who have never made it to the top probably never realized how much merchandising can help them.
• They probably saw it as extra work.
• Merchandising should not be perceived as “going that extra mile”. Rather it should be viewed as the last leg of the selling mile.
• It is not enough for a salesman to sell to the store.
• After acquiring an outlet for your product, you’d naturally want to secure it. You’d want future orders, of course.
• Helping the store merchandise your product to ensure smooth turnover and steady sales becomes mutually beneficial for you and your customer.
• We’ve said that merchandising is the clincher to a sale.
• Therefore, merchandising is an integral part of marketing and selling products.
2.6. Responsibilities of a merchandiser
– Costing and quoting
– Sample control
– Leather, fabrics and accessories sourcing, purchasing and tracking
– Factory scheduling and production tracking
– Customer liaison during design, sourcing, production and shipping
The merchandiser has to be a winner.
The Winner Vs the loser:
• The winner is always part of the answer;
– The loser is always part of the problem.
• The winner always has a programme;
– The loser always has an excuse.
• The winner always says, “let me do it for you”;
– The loser says, “That’s not my Job”.
• The winner sees an answer for every problem;
– The loser sees a problem in every answer.
• The winner says, “it may be difficult but it’s possible.”
– The loser says, “it may be possible but it’s too difficult.”
2.7. Merchandising and interdepartmental relations
• Merchandiser Vs Designer Vs product development.
• Merchandiser Vs Work study department
• Merchandiser Vs Production planning department
• Merchandising Vs sample management
• Merchandiser Vs Store
• Merchandiser Vs cutting room
• Merchandiser Vs Sewing floor
• Merchandiser Vs finishing room
• Merchandiser Vs Quality management.
• Merchandiser Vs commercial
• Merchandiser Vs Shipping department
2.8. Tools & Techniques of Merchandising:
Fig 18: The merchandizing work flow
Required Details & Information
§ PO / Order Sheet
ü Price
ü Quantity
ü Color & Size break-down
ü Ex-Factory / final inspection date
§ Leather / trim details – colors, quality, requirement, etc..
§ Size-spec
§ Sample, sketch & color ways
§ Sample requirement
§ Workmanship details
§ Packing & shipping instructions
Opening the Master File
• Should be very neat and tidy.
• Should always divide in to cages (with separators) for easy reference.
• Should always have a file label with the relevant details.
E.g.. for Cage separation
v Reports
v Sample follow-up
v Buyer in-out
v Suppliers in-out
v Order details
v Leather
v Trim
v Po’s, PI’s, & Requirements
v Lc’s & Documents
v Costings & Pre-booking correspondence
Leather Suppliers
ü Confirmation of delivery date and issue of Performa-Invoice
ü Lab-dip approvals
ü Leather quality approval
ü Wash standard approval
ü Leather Shade-bands
ü Leather sample requirement
ü Pre-shipment test reports
ü Bulk leather shipment
ü Payments
The flow (leather):
Fig 19: The flow for leather products
Trim Suppliers
ü Confirmation of delivery date and issue of Performa-Invoice
ü Color / Quality / Design approvals
ü Trim sample requirement
ü Pre-shipment test reports (If required)
ü Bulk shipments
ü Payments
The flow (Trims):
Fig 20: The flow for trims
Ordering (Leather & Trims)
Consumptions & requirements
Requirement break-downs & workings
Price quotations
Required quality standard / test reports
Purchase orders
Performa-invoices
Payment terms / Lc terms
Important
All approvals – Before cut-date
Leather – In-house before cut-date
Sewing trims – In-house before cut-date
– i.e. Thread, labels, zippers, etc..
Packing trims – In-house before packing starts
i.e. Tags, Work tickets, poly-bags, box,cartons, etc..
Trim Cards
• Details – Buyer, Po no., Style, Quantity, Manufacturing unit, Del date, etc..
• Leather – Swatch & thread (Color, Composition, & Consumption)
• Pocketing / Contrast / Trimming – Swatch & Thread if any (Color, Composition, & Consumption)
• Lining (Woven / leather)
• Buttons – Buttons and attaching thread
• Marketing – Labels & Tickets
• Trims – Zippers ,ornaments,buckles etc.. (Length per size, width, etc..)
• Extras & Comments
Trim-card distribution :
Tech Files
• Latest tech-spec
• Copy of order sheet
• Approved trim-card
• Approved wash standard
• Sample comments / alterations
• Special important comments / messages
• Copy of T&A
Tech-file distribution:
Commercial:
Suppliers that provides a Service
• Printing
• Embroidery
• Appliqué
• Washing & blasting
• Special hand work
** Above too have a flow, most importantly these are done on the garment while the garment is on production, hence we should get all approvals in hand before the cut-date.
Remember
• All requirements have to be double checked, since there is no roam for mistakes.
• Be extremely cautious when giving information to relevant departments.
• Should always do your best to execute the order in the proper manner, since short-cuts and assumptions might be costly.
A trend is a direction or sequence of events that have some momentum and durability. For example, one major trend is the increasing participation of women in the workforce, which has spawned the child day-care business, increased consumption of microwavable foods, office-oriented clothing lines for women, and other business opportunities. Identifying a trend, ferreting out the likely consequences, and determining opportunities are critical marketing skills. Trends are more predictable and durable than fad such as Pet Rocks or Cabbage of the future. Friedrich von Schiller said; “In today already walks tomorrow.” According to futurist Faith Popcorn, a trend has longevity, is observable across several market areas and consumer activities, and is consistent with other significant indicators occurring or emerging at the same time.
Marketing is not like Euclidean geometry, a fixed system of concepts and axioms. Rather, marketing is one of the most dynamic fields within the management arena. The marketplace continually throws out fresh challenges, and companies must respond. Therefore it is not surprising that new marketing ideas keep surfacing to meet the new marketplace challenges.
Here are several emphases in current marketing thinking:
1. A growing emphasis on quality, value, and customer satisfaction.
Different buying motivations (convenience, status, style, features, service, etc.) playa strong role at different times and places. Today’s customers are placing greater weight on quality and value in making their purchase decisions. Some remarkable companies are managing to increase their quality greatly while bringing down their costs. Their guiding principle is to continuously offer more for less.
2. A growing emphasis on relationship Building and customer retention.
Much marketing theory in the past has focused on how to “make a sale.” But, what good is it to make a sale and not know much about the customer and whether he ‘or she will ever buy again? Today’s marketers are focusing on creating lifelong customers. The shift is from transaction thinking to relationship building. Companies are now building customer databases containing customer demographics, lifestyles, levels of responsiveness to different marketing stimuli, past transactions-and orchestrating their offerings to produce ‘pleased or delighted customers who will remain loyal to the company.
3. A growing emphasis on managing business process and integrating business functions.
Today’s companies are shifting their thinking from managing a set
of semi-independent departments, each with its own logic, to managing a set of fundamental business processes, all of which impact customer service and satisfaction. Companies are assigning cross-disciplinary personnel to manage each process. Marketing personnel are increasingly working on cross disciplinary teams rather than only in the marketing department. This is a positive development that broadens marketers perspectives on the business and gives them the greater opportunity to broaden the perspective of workers from other departments.
4. A growing emphasis on global thinking and local market planning.
Companies are increasingly pursuing markets beyond their borders. As they enter these markets, they must drop their traditional assumptions about market behavior and adapt their offerings to other countries’ cultural prerequisites. They must place decision-making power in the hands of their local representatives, who are much more aware of the local economic, political, legal, and social realities facing the firm. Companies must, think globally, but plan and act locally.
5. A growing emphasis on building strategic alliances and networks.
As companies globalize, they realize that no matter how large they are, they lack the total resources and requisites for success. Viewing the complete supply chain for producing value, they recognize the necessity of partnering with other organization. Companies such as Ford, McDonald’s, and Levi Strauss owe their success to having built a set of global partners who supply different requirements for success. Senior management is spending an increasing ‘amount of time designing strategic alliances and networks that create a competitive advantage for the partnering firms.
6. A growing emphasis on direct and online marketing.
The information and communication revolution promises to change the nature of buying and selling. People anywhere in the world can access the Internet and companies’ home pages to scan offers and order goods. Via online services, they can give and get advice on products and services by chatting with other users, determine the best values, place orders, and get next-day delivery. As a result of advances in database technology, companies can do more direct marketing and rely less on wholesale and retail intermediaries. Beyond this, much company. Buying is now done automatically through electronic data interchange links among companies. All these trends portend greater buying and selling efficiency.
7. A growing emphasis on service marketing.
The US. population today consists of only 2.5% farmers and about 15% factory workers. Most people are doing service work: field salespeople, retailers, craftspeople, and knowledge workers such as physician engineers, accountants, and lawyers; Because services are intangible perishable variable, and inseparable, they pose additional challenges not found in tangible-good marketing. Marketers are increasingly developing strategies for service firms that sell insurance, software, consulting services, and other services.
8. A growing emphasis on high-tech industries.
Much economic growth is due to the emergence of high-tech firms, which differ from traditional firms. High-tech firms face higher risks, slower product acceptance, shorter product life cycles, and faster technological obsolescence. High-tech firms must master the art of marketing their venture to the financial community and convincing enough customers to adopt their new products.
9. A growing emphasis on ethical marketing behavior.
The general public is wary of ads and sales approaches that distort or lie about product benefits or that manipulate people into hasty purchases. The marketplace is highly susceptible to abuse by those who lack scruples and are willing to prosper at the expense of others. Marketers, in particular, must hold to high standards in practicing their craft. The American Marketing Association has promulgated a code of ethical marketing behavior, and marketers need to act as watchdogs to preserve a trusted and efficient- mark.
Over the ages the concepts of selling the product to the customer have been changed with enormous impact in the marketplace. Here we discuss some major concept of market:
The Production Concept:
The production concept is one of the oldest concepts in business. The production concept holds that consumers will prefer products that are widely available and inexpensive. The marketer assumes that consumers are primarily interested in product availability and low prices. The Product Concept: At the same time other business are guided by the product concept, which holds that consumers will favor those products that offer the most quality, performance, or innovative features. The marketer assumes that buyers admire well made products and can evaluate quality and performance.
The Selling concept:
The selling concept is another common business orientation. The Selling concept holds that consumers and business, if left alone, will ordinarily not buy enough of the organization’s products. The organization must therefore undertake an aggressive selling and promotional effort. The marketer assumes that the company has a whole better of effective selling and promotion tools to stimulate more buying.
The Marketing Concept:
The marketing concept emerged in the last century and challenged the preceding concepts. Instead of a product centered “make and sell” philosophy, it shifted to customer centered “sense and respond” philosophy. The marketer believes that the consumer has the right to choose the product feature and the manufacturer must produce the product according to the consumers need.
The Customize Marketing Concept:
This is the latest concept of marketing, where the manufacturers customize their product according to the consumers’ desire, it is some kind of made to measure tailoring concept. The marketer believes that each person has his own test and choice and they must customize their product to satisfy each customer individually.
3.3. Export Market of Bangladesh
Suppose the economy in which you go about your business is run by export revenue and remittances from migrant workers. Suppose further that one can reasonably suppose that remittance revenue will soon dip. In that circumstance, export revenue matters, doubly.
Consider then the long run impact of the Icelandic volcano mess on the import and export market in Europe and Asia. Flights to and from Continental Europe have been erratic, at best, even admitting the cataclysmic impact on the European imports and exports for that week when Europe was nothing but a shuttered island. Consider, more specifically that even if the macro-level economy is elastic to that terrible disruption, the micro-level impact of grounded planes, contracts unfulfilled, tenders unsigned was surely life-changing for the worse for many tradesmen, small business owners and service providers.
But Bangladesh’s economy isn’t elastic to that kind of shock. Its economy is buoyed by the garment’s export market and for those few days– even now given the disruptions in Ireland and so on– the Bangladeshi export market had been crippled, flung back into a circumstance where it was and remains hostage to nature’s whims. This is not unfamiliar territory for Bangladeshi’s. But since 1947 seldom have Bangladesh’s problems so obviously and unremittingly emanated from European skies.
§ Leather
§ Textile
§ <href=”#4>Sector Highlights
§ <href=”#5>Investment Incentive
§ <href=”#6>Industry Outlook
§ <href=”#7>Frozen food
§ <href=”#8>Industry Outlook
§ <href=”#9>Information Technology
§ <href=”#10>Sector Highlights
§ <href=”#11>Industry Outlook
§ <href=”#12>Agro-based Industry
§ <href=”#13>Sector Highlights
§ <href=”#14>Industry Outlook
§ <href=”#15>Ceramic
§ <href=”#16>Sector Highlights
§ <href=”#17>Industry Outlook
§ <href=”#18>Light Engineering
§ <href=”#19>Sector Highlights
§ <href=”#20>Industry Outlook
§ <href=”#21>Natural Gas-based Industries
§ <href=”#22>Sector Highlights
§ <href=”#23>Industry Outlook
§ <href=”#24>Electronics
§ <href=”#25>Sector Highlights
§ <href=”#26>Industry Outlook
§ <href=”#27>Jute goods
§ <href=”#28>Coal
§ <href=”#29>Power
§ <href=”#30>Air Transportation
§ <href=”#31>Tourism
3.3.2. Some extract of export policy of Bangladesh
Acceleration of production and expansion of trade result in growth of national wealth. Increased production in export sectors may become the prime mover in the development cycle in a densely populate of Bangladesh like our as this will generate employment opportunities which in turn will generate savings and investment on consequent flow of capital. The prime national objective of poverty alleviation will thus be materialized. As a first step towards reaching this goal we need to look at the country’s production infrastructure.
Our export trade is featured by the dominance of a few commodities in a narrow market. Such dependence on at limited number of export items targeted a limited market is not desirable for economic development. We must, therefore, aim both at product and market diversification or else our export trade will become stagnant in the near future.
Our export trade must keep pace with the projected GDP growth @ 7% and make due contribution through increased export earning. In this exercise it is imperative to identify new thrust sectors, increased export of higher value added items, diversify product wise , ensure products quality, improve packaging, attain efficient productivity. We should aim at marketing quality products at competitive price at the correct time.
The Export Policy 2005-2006 has been designed to operate in the imperatives and opportunities of the market economy with a view to maximizing export growth and narrowing down the gap between import payment and export earning.
3.3.3. The principal objectives of the export policy
The principal objectives of the export policy are :
Ø To achieve optimum national growth through increase of export in regional and international market.
Ø To narrow down the gap between the country’s export earning and import payment through achievement of the export targets.
Ø To undertake timely steps for production of exportable goods at a competitive price with a view to exporting and strengthening existing export markets and making dent in new markets.
Ø To take the highest advantage of entering into the post Uruguay liberalized and globalizes international market.
Ø To make our exportable items more attractive to the market through product diversification and quality improvement;
Ø To establish backward linkage industries and services with a view to using more indigenous raw materials, expand the product base and identify and export higher value added products ;
Ø To simplify export procedures and to rationalize and solidify export incentives
Ø To develop and expand infrastructure
Ø To develop trained human resources in the export sector
Ø To raise the quality and grading of export products to internationally recognized levels.
3.4. Leather Sector: A Thriving Sector in Bangladesh
Considering the local high quality raw material and cheap labor cost, Government of Bangladesh declared Leather Sector as one of the most important sector in Bangladesh with enormous potentiality. Although there is a lack of concentration from the Government’s side but this declaration will inspire both the community: inside and outside of leather sector.
Footwear Sector, as a s