What is Merchandising

What is Merchandising?

Merchandising is a process of selling goods and services. The process of  starts with identifying target customers, setting a price for a particular product, do the negotiation and finally deliver the product to the target customers.

I asked the question of what do you mean by merchandising to several people who are involved with the apparel industry just to hear from them how they actually define merchandising. Most of them said that all the activities to sell a product is merchandising. So, the scope of the job merchandising is not limited to how we define merchandising is rather than all activities are related to selling.

As a function of merchandising, apparel manufacturer or wholesaler use merchandisers to communicate with the buyer of garments or to bring new customer, negotiate with them and make them induce to place an order. So, in this case merchandising is related to wholesale of merchandise (garments).

Characteristics of Merchandising

If you analyze the term “Merchandising” you may identify the following characteristics:

  • Merchandisers are responsible for merchandising.
  • It helps to sell the product to the target customers or audiences.
  • Works as a communication media for manufactuere or wholesellers and retailer or final consumers.

What is Merchandising

Example of Apparel Merchandising

Suppose H & M buy different types of garments from Epyllion and those people responsible for communicating, placing the order, bargaining, receiving an order, sampling, etc. are a merchandiser and all together these tasks are merchandising.

So, the process by which a merchandiser sells its products to the target customer is called merchandising. Merchandising is a commonly used term, mostly applicable in the apparel industry. Every year in apparel industry many merchandisers are recruited for the purpose of merchandising.

The demand for merchandising is increasing for-profit motive organization but the question is who will deal with merchandising for the organization. A person deals with the selling of products who is known as a merchandiser. Remember one thing that it is not necessary to involve merchandising for an export purpose it also can be used for local business.

There are Basically Two Forms of Merchandising

  1. Retail Merchandising: Retail merchandising is mainly applicable to a retail store. The scope of retail merchandising is broad because we can use it for every type of products sold in the retail store.
  2. Visual Merchandising: On the other hand, visual merchandising is another form of retail merchandising where the main stimulating factor is visualizing the product and service to create attraction and interest and ultimately selling of products.

Recently Another two forms of Merchandising are visible from the functional characteristics of merchandising. These are:

  1. Virtual Merchandising (Online Selling) or Digital Merchandising or Ecommerce Merchandising
  2. Wholesale Selling (Merchandising on behalf of Wholesaler or manufacturer)

Difference Between Merchandising and Marketing

Many people become confused about whether marketing and merchandising are similar or different. There is a difference between merchandising and marketing. Marketing is a broad area of business where merchandising is a part of marketing activities, which deals with the selling of goods and services.

Finally, briefly, we can define merchandising as a set of activities we (Merchandisers) do to sell our product and services to the target customers for the purpose of generating revenue and satisfy our customer. Merchandising is a set of activities for selling products, merchandise, service to the target customer with the help of merchandiser.

Garments Merchandising

Garments merchandising is both applicable for wholesale and retail merchandising in the apparel industry, Where merchandisers work for manufacturer, wholesaler and retail store. It is also known as apparel merchandising. It is one of the popular forms of merchandising because of its extensive use in the apparel industry. Merchandising process make it easier to meet the buyer’s requirement through time to time follow up and ensuring on-time delivery of garments items.

Garments Merchandiser

Garments merchandiser is the person who is responsible for the merchandising of garments products and services. Merchandising is the core function of a merchandiser. A garments merchandiser need to have several qualifications to become a successful merchandising. Garments merchandiser basically contact with garments buyers, negotiate with them, take orders, manage samples and send it to the buyers, take the order and finally, ensure the delivery of the product to the buyers at the right time.

What is Merchandising pdf

Written by

Md. Nahian Mahmud Shaikat

Classification and Objects of Scouring

Classification and Objects of Scouring


Desized textile materials till containing oil, fats, and waxes which are removed by alkali or detergent are called scouring.

Classification and Objects of ScouringObjectives of Scouring

  1. To remove natural and added oils, fat and wax are from the textile materials.
  2. Improve hydrophilicity.
  3. Improve absorbency.
  4. Prepare for the next process.
  5. To get uniform bleaching result.

Flow Chart of Scouring

Flow chart of scouring

Flow Chart of Scouring

Scouring Process

There are two types of scouring process-

  • Hand Scouring
  • Machine Scouring

Hand Scouring

In this process, the fabric is boiled in an open trough with NaOH common soda and t.r oil for after a few hours. But be careful so that fabric does not come in contact with air otherwise fabric strength can be reduced. After that wash with cold water sour with dilute HCl to remove alkali from the fabric.

Machine Scouring

Now a day’s various types of machines are available for scouring with alkali. This alkali treatment can be divided into three categories.

  • Lime acid soda process.
  • Caustic soda process.
  • Soap soda process.

Written by

Engineer Sheikh Nurja

B.Sc engineer of textile

If you like this article please do not forget to share on facebook and put your valuable comments.

What is a Bond

What is a Bond?

Question may arise in your mind that what is a bond. A bond is a financial instrument used by the government or corporations to collect money from the market. It provides a fixed benefit to the bondholders periodically and also at the time of maturity. Although the use of bond as a financing instrument used in developed countries and is very popular around the world. But in Bangladesh the use of the bond not getting enough popularity yet.

By selling a bond, borrowers make a contract with the buyer to pay interest and principal at the time of maturity. All provisions, terms & conditions are written in the bond indenture. A bond indenture is the written document where all terms are clearly mentioned which actually helps to ensure the right of the bondholders.

Basically, a bond pays interest semi-annually to the bondholders at the specific rate which is mentioned in the bond indenture.

Bonds with the maturity of 10 years or more are considered as long-term bond. The interest of bond is set on the basis of market interest rate. Every bond has coupon rate (except zero coupon bonds), maturity date, and face value (basically Tk 1000). Some may have call provision and convertible features.

There is an inverse relationship between interest rate (market interest) and the price of the bond. Higher the interest rates lower the price of the bond and vice versa. We get the price of the bond by discounting the cash and capital gain received from the bond by the required rates of return. Normally large companies issue a bond for the purpose of collecting long-term funds from the market.

Basic Characteristics of Bond

what is a bond

Characteristics of a Bond

From above-mentioned issues we can draw some basic characteristics of a bond, these are:

  • Bond is a long-term financial instrument issued by the large companies to collect long-term funds.
  • Every bond must have a face value, maturity value, and coupon rate and maturity period.
  • It provides periodical benefit to the holders (basically for an interval of six months).
  • The terms and conditions are written in the bond indenture.
  • Zero coupon bonds do not provide any coupon/interest. It provides benefit at the maturity where the bond is issued at discount.
  • There is an inverse relationship between interest and price of the bond.
  • The callable or convertible feature is common for a bond.

Actually, the characteristics of a bond are depended upon the types of a bond which is being issued and where it is issued. Country to country the type and features of the bond vary.

Asymmetric Information

In financial market what is meant by asymmetric information?

When a manager knows more about his or her firm’s future than do the analysts and investors who follow the company then a situation of asymmetric information exists. In this situation, a firm’s managers may correctly conclude that its securities are undervalued or overvalued depending on whether the inside information is favorable or unfavorable. Of course, there are degrees of asymmetry management is almost always better informed about a firm’s prospects than are outsiders but in some situations, this informational difference is too small to influence managerial actions. In other circumstances such as prior to a merger announcement or when a drug company has made a major research breakthrough managers may have information that will significantly alter the prices of the firm’s securities when it becomes public. In most situations, the degree of information asymmetry lies between the two extremes.

asymmetric information

The potential impact of asymmetric information on markets was analyzed by George Akerlof in a paper titled “The market for Lemons”

The only convincing way for a seller to convey to potential buyers that the product is good to take some action that buyer can unambiguously interpret as a sign that the product is not defective. Such actions are called signals and the act of providing signals is called signaling.

 Since manager’s primary goal is to maximize shareholders wealth managers are generally motivated to convey favorable inside information to the public as rapidly as possible. The easiest way would be to issue a press release announcing the favorable development. However, an outsider would have no way of knowing whether the announcement was true or how important it really was. Therefore such announcements have limited value. But if managers could signal information concerning favorable prospects in some truly credible way then the information would be taken seriously by investors and reflected in security prices.

 Example: Dividend announcements are the classic example of managers providing information through signaling. If a firm announces a significant increase in cash dividend this is its managers signal that the firm has good future earnings and cash flow prospects. If dividend increase is widely anticipated but then is not forthcoming this is a negative signal.

 The presence of effective management signals plays an important role in financial management.

Written by

Md. Nahian Mahmud Shaikat

Student of MBA

Institute of Business Administration (IBA)

Jahangirnagar University

Email: [email protected]

Facebook: Ördïnärÿ Böÿ