How to Setup Garment Buying House In Bangladesh:

Simply we can say the institution to buying goods or services for any trade is a Buying house.

In garment buying house there are some specific responsibilities & working procedures. To Set up & run buying a house must require a knowledgeable & skillful person for the individual department of Buying House (such as Merchandising, Sourcing, Quality, Compliance, Shipping, and technical). Buying Owners/ Entrepreneurs may hire Managers/technical persons for each department but basic knowledge of each department is required by the owners.

The main Buying Countries of Bangladeshi garment items in the USA and Europe, besides that, we are also exporting some garments to Canada, Russia, Japan, and the Middle East. A simple Buying House can be started with any relatives in any of these countries. Also, you solely can source a buyer for your buying house. There should have many methods to source buyers that I discussed on a different page.

Understanding the term Whole Sellers, Buying Agent, Retailer, and Customer:

Whole Seller: The Parties who buy  Garments for whole-selling purposes are known as the whole seller. The whole seller performs marketing for garment items & a well-understood trend of current fashion. They should have their own designer to follow market research to realize fashion trends. The whole seller sells garments to the retailer 

Buying Agent: Buying agent is the middleman and sells garments to the Whole Seller. Buying House should have a well set up of manpower to follow up orders so that the product meets the customer & goods are shipped on time. To Perform this job Buying Agent gets the commission. Buying Agent forwards the master LC to the factory/manufacturer with an endorsement of their commission in the LC by their Bank.

Retailer: Retailers have their own outlet in the market to sell the garments product. Retailer buys may form the whole seller & have arrangements with some Buying Agent from whom they get the garments as per their demand and directives.

Customer: Finally who purchases the garments and the ultimate user of the garment is called the Customer or Consumer. 

Prerequisite for setting up a Buying House:

1. An office in the prime location of the capital city
2. Computer, high-speed Internet connection, Photocopier, Scanner, Printer
3. Phones (Land/Mobile for each department)
4. Twenty hours of backup Power Supply
5. Conference room with Multimedia projector for meeting purposes
6. Lab room
7. Sample room

What are the various documents required to set up a Buying House in Bangladesh?

1. Name of Company (Need verification and Confirmation.
2. Trade License
3. Incorporation with Joint Stock (For limited company)
4. Memorandums of Article and Incorporation Certificate (For limited company)
5. Bank Account for the buying house (Current A/C)
6. VAT License.
7. TIN against Company Name
8. Partnership TIN of all Partners( For Partnership/Limited company)
9. Export Registration Certificate (ERC).
10. Import Registration Certificate (IRC)
11. Membership of Chamber of Commerce.
12. Membership of BGMEA

How an Order is placed to a Factory by a Buying House?

There are various ways of placing an order to any factory by Buying House. Placement of Order with Commission

1. FOB Basis: Placement of Order with less Price than Buyer's Price. That case needs to endorse commission % on buyer Master LC during forwarding LC to the garment factory

2 CM Basis. Placement of Cost of Making (All Fabric, Accessories, and Lab tests will arrange by Buying House. A factory will provide support only for the sewing of the garment. For a small factory, most of the factories run on CM basis order placement.

How one order is executed by Buying from its initiation to shipment?                   

First of all the Buying House places the order with the understanding of the Commission and underhand payment (if any) condition on how the order will be considering the terms and handled by the Factory.

Then Buying House arranges LC for e Factory.

After that Buying House ask for Time and Action Calendar from the Factory with the following details & follows up on each stage so thing task is done smoothly.

• When to Open BB L/C will be open for all Fabrics, Accessories, Printing, Embroidery, etc.
• Time and Action calendar may be supported by a Gantt chart
• Production Line plan
• Regular cutting, printing, embroidery, washes, sewing, finishing, and packing status during production

Duties Responsibilities at Buying House end:

1. Notify buyer of order status regularly 
2. Give Color Standard to the factory for lab dip submission as per buyer requirement
3. Arrange approval of Lab dip from the buyer's end
4. Arrange approval of Shade Band for color.
5. Follow up on all required Samples
6. Follow-up lab dip submission
7. Follow up on all lab-test.
8. Conduct all inspections ( pre-line, pre-final, Final)
9. Ensure shipment on time
10. Follow up the realization of Payment as per shipped quantity & value
11. Find the best solution for any sort of problem which relates to the order 

Build Good relations with Buyers:

You have to contact good relationships with some buyers when you’re going to start buying a house. And as you might know well about buyer behavior, prepare yourself accordingly: