⇒ Many Garments Buying House like Muslim Store Clothing company established for selling clothing to foreign buyers. Currently, the number of 911 Buying House are members of BGMEA and 179 of BGBA. About 8 hundred Buying House are not members of these two organizations. In all, the number of Buying Houses in the country is about 2 thousand.
We have five basic needs, clothes in the second position. Clothing demand is much higher in almost every country in the world. Bangladesh's ready-made garment exports to different countries. The country is far ahead in the garment industry. At present, the number of the garment manufacturing factory is around 5000. Thousands of people involved in this sector. Garments Buying House of Bangladesh corroborate international marketing and brings orders for factories.
Garments Buying House finds out new Market
The worth of quality management should be either in production or marketing. At present, the importance of management of the marketing department is highest. Market Concept is like a philosophy that cannot define. In fact, it is actually a set of behaviors or opinions that control the entire management process. Garments Buying House find out new market and buyer for Bangladesh clothing. Currently, the country's major export earnings are from the garment sector. Bangladesh's ability to make garments cannot exclude by any country in the world. The main items of export are woven shirts, trousers, T-shirts, Sweaters. Their main consumer countries are USA, Canada & European countries.
Garments Buying House works as mediator
There are two parts in the garment industry. One garment factory, the other is the Buying House. Overseas Buyer does not usually contact with a garment factory. They find a manufacturer through a mediator like Buying Houses. Garment Buyer and Buying House do an agreement on the basis of mutual interest. The Garments Buying House supply particular types of goods to the buyer.
Garments Buying House develop a buyer. Handles an order from sample making to shipment. Submit order in the garment factory for production. Control quality. Inspect goods. Make sure shipment in time.
Collecting the order is not the last thing. The main purpose is to handle each order well. The garment factory plays here the important role in the clothing production. Business relation with buyers depends on the accomplishment of the garment factory. Bad or good, all credit goes to Buying House. Because Buying Houses are responsible to buyers for everything. So Buying House is very much conscious for selecting a garment factory of production.
Risk factor at Garments Buying House Business
Business means profit or loss. When getting profit in business, feel great. But, cannot accept losing something. This mentality is not favorable for business. Because when there will be a problem, will desperate to escape. Garments Buying House invest money & time to develop a Buyer. Financial risk factors involved in the business if goods do not ship out in time or bad production. Buyer may ask to ship goods by Air prepaid at factory cost. But if the factory doesn't agree, Buying House may pay Air Freight. The Buyer can fine for the bad quality. But if the factory doesn't agree, Buying House may pay from their commission.
The factory handles production & arrange shipment. But the Buying House take responsibility to please the buyer. Not same case every time. Some factory understands and bears the full loss. Or, factory and Buying House share.
If the production takes care from the very beginning, can avoid the quality issue. For sure shipment will effect due date if production handles proper way. Extra care will save many things. It's the best solution ever.
Responsibilities of Garments Buying House
Garments Buying House gets a commission from the buyer in exchange for the service. One-Time business is not desired. The longer business relationship, more profitable for both. It takes time to build a trustful relation but sustain. So it's not right to expect more profits at the beginning of the business. Should be honest at work. Necessary steps should take so that the buyer feels work is going fine. A professional buying house does work based on the certain aim. The organization does some common work. They source factory, negotiate price, develop samples, control Quality & make sure in time shipment.
Garments Buying House helps small factories
Garments Buying House helps many small factories to survive. The Buying House combines garment makers with foreign buyers. Factories of 20 lines or 25 lines or fewer lines depend on Buying House. They do not get a direct buyer. There is no way to export their products to the overseas market except the garments Buying House. The number of such small factories is much higher than the BGMEA member factory. These factories are playing role in the country's economy. They are not under any organization. But the important part of the garment industry. In the garment sector, the amount of $ 28 billion in export revenue. Those small neglected factories claimant credits of this export earning.
Start a Garments Buying House Business
Need Valid Business Certificates
Get a trade license from city corporation. After that open a company bank account. An income tax certificate (TIN) required opening a bank account. Get the certificate from income tax office.
Apply for BGMEA membership. Collect the application form from BGMEA. After applying, BGMEA will send an investigation officer to verify. At the end of the investigation, BGMEA will give a certificate as a member.
Need some documents to apply for BGMEA membership. 1. Copy of trade license. 2. The copy of Memorandum of Article. 3. Two copies of passport size photographs. 4. House rental documents or buying documents. 5. The copy of tax certificate. 6. Certificate of Bangladesh Bank (if any). 7. The work permit of the investment board.
All documents have to submit with a letter on organization letterhead. BGMEA will provide the certificate for one-year. Evert new year, the certificate needs to renew.
Disadvantage for the Non-member of BGMEA
If a buying house is not registered with BGMEA, will have to face some disadvantage in doing business. The buyer may ask to BGMEA to know about the Buying House before makes a deal. BGMEA cannot provide any information about the Buying House if it's not their member. Foreign buyers do not want to contract with Buying House, which is not a member of the BGMEA due to business risk.
Many garments Buying House are not the member of BGMEA. But, they are doing very well in the business.
Set-up an office with proper decoration and assign the manpower as per the need. Main work of a Buying Houses is to contact the Buyer. The office will need a telephone, Internet connection and computer. It is necessary to know operate the computer. E-mail communication is the must. The business depends on communication skills. So, should be proficient in English.
Vast knowledge on ready-made garments will give the advantage. Because have to talk with foreign buyers at different times. They will ask about products and need to answer smart way.
The quality product is the main issue of the business, so buyer pays commission to the Buying House. The quality control team should very strong. Keep a big part of the investment for this department.
There are six departments of Buying House. 1. Merchandising department. 2. Sampling department. 3. Commercial department. 4. Accessories department. 5. Production department. 6. Shipping department.
Have a nice office. There are many people. There is good capital. But there is no customer. So there is actually nothing. The buyer will find out. It would be better if there is a buyer in the hand before starting the business. What to do if there is no buyer?
If you have money, then take part trade Shows of Garment. Many garments buyer and fashion agent visit trade shows to find suppliers. Rent a stall within your budget. Decorate the stall with your best products. Show them high-quality products and offer the good price. Face-to-face meeting much effective than sending a thousand e-mails to the buyer. Rather, they will annoy sometime and identify the email id as spam.
There are many business sites over the Internet. Buyers provide leads to buy the ready-made garment. But be careful. There you will see many nice buying leads. All buyers are not real. Some are fraud, can trap you. So, how do you know who is the real buyer? If you see a phone number in the buying lead, call the buyer. Talk about technical points of garment products. If the buyer answer perfect, then you may start the business co-operation. If you are an expert on the subject, then none can cheat you.
Launch a lucrative business website. Register your company in B2B Site. Search with the query 'submit URL', 'submit company' etc.
Open Secrets of Success
Don't contempt small orders. Don't take advantage at price quotation. Don't run away if a problem arises. Supply good quality products. Ship goods in time. If a Garments Buying House maintains these, success is the must.
Keep Safe Business
A home safer inside boundary wall. It is very hard to develop a business. Maintain some rules, keep safe business.
Some think that small factory quotes the cheap price. Calculate yourself if the factory can produce goods at the price. If you think the price is unrealistic, do not place order them. The factory is not professional. They will not ship goods in time. You have the chance to lost the buyer. Better go to a good factory. Give them the workable price.
Never start production without buyer permission. Get buyer approval on materials & pre-production samples. Remember that buyer can change anything anytime.
Never think that factory is responsible for production & shipment. Yes, they are. But don't leave them alone. Manage time & action plan and daily production report. Send quality controller to the factory regular basis.
Never give a chance to the factory to contact with your buyer under any circumstances.
Never accept LC, which is not according to UCP latest version. Ask buyer for a draft LC. Check carefully. If need any correction, ask them.
Never give TT advance payment to a factory without a clear agreement.
Never keep commission to the garment factory. Keep commission in the transferring LC. Or, get a Back to Back LC for Accessories including Buying House commission.
Work in Garment Buying House
Those who want to work at Garments Buying House should have some idea of the garment and work of Buying House. After starting work at Buying House, daily work should complete every day. If the worker proficient, Buying House owner will come out to find him/her. There must be one more thing, must have the ability to solve the work. Don't talk only about the problem. After fixing the problem, then say that I have done this way, is it okay?
Garments Buying House works with garment factories. If factory's work interrupts its effects also fall in the Buying House. The biggest barrier for the factory is the power. Though many factories run by their own generators but the cost too much. As a result, the garments Buying House and factories lose a part of profits.