A STUDY ON THE SATISFACTION LEVEL OF EXPORTERS TOWARDS THE SERVICES PROVIDED BY BUYING HOUSES

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1 A STUDY ON THE SATISFACTION LEVEL OF EXPORTERS TOWARDS THE SERVICES PROVIDED BY BUYING HOUSES M. ABINAYA 1 P. ARULMOZHI 2 1 M.Phil. Research scholar, Tiruppur Kumaran College for women, Tirupur. 2 Associate professor, Tiruppur Kumaran College for women, Tirupur. ABSTRACT Tirupur is a textile town where commerce precedes everything.indian Garment Industry is closely connected to the fashion industry and grows hand in hand. Buyers from over 35 countries frequently visit Tirupur.Garments Buying House is a very profitable business, any smart people with less investment can earn millions of Dollars.All works will be done under a professional and sincere guidance. The satisfaction of exporters towards the services provided by the buying houses has been analyzed in this study.it further studies about the working procedure of the garment buying house, their roles and responsibilities. The sampling used was convenience sampling. The sample size was 100 people. Key Words: Buying house, trade, garment, exporters, merchandiser, services. INTRODUCTION The textile and garment industry is one of the major industries in India having major contribution in GDP of the Economy. Indian textile and garment industry has its significance not only in the Indian market but it has its recognized presence and high stature in the global market. Indian Garment Industry is closely connected to the fashion industry and grows hand in hand.tirupur, the heartland of the knitwear industry in India has a supplier base which consists essentially of manufacturer who are mostly integrated forward or backward if not vertical.tirupur being able to access its basic raw materials quickly and as and when required; the strong entrepreneurial élan and personalized management contributes to efficient management of negotiations and direct control of operations causing cost effective competitiveness of the Industry; quick delivery and quality products add dimension to the Tirupur's prowess as a centre to outsource excellent products.the Export Import Policy of makes laudable tribute to Tirupur for its contribution to the export efforts and calls it a 'Town of Export Excellence'. Buying House of ready-made garments has developed with the growth of garment export of our country. The idea of Buying House is developed to perform the marketing activity of garment industry. Buying house agents are professionals exclusively acting on behalf of a property buyer who assist the client during the entire purchasing process from sourcing the properties the correspond to the clients requirements to negotiating the best possible price and terms with the seller and helping the client during the legal process to complete the acquisition. The buying house agents take care of their entire sourcing requirements with their exact international quality standards, competitive pricing and punctual delivery with vast experience in client servicing and good product knowledge, together with a team of their excellent professional and dedicated staffs. Garments Buying House is a very profitable business, any smart people with less investment can earn millions of Dollars.Basically Garment Buying houses try to communicate with buyers of 22 icmrrjournal@gmail.com

2 other countries who want to buy garment products. They take orders from buyers and place them to their most trusted as well as potential factories and do production planning from very initial stage, do follow up, communicate with buyers regularly, inform daily status, do inline and final inspection, control shipping schedule and finally check and dispatch shipping documents to buyers. REVIEW OF LITERATURE Ali and Zeeshan (2010) 1 in their article, have observed and analyzed the role of a textile buying house in managing the supply chain of the textiles in the Buying or retailing and with the Agents. The article also highlights the comparative analysis of the practices followed by buying houses in the retail side and those in the Agents, on the basis of the functions which supports the supply chain. The article also highlights the importance of the Role played by an Agent and by the merchandisers of Buyer and supplier in different situations. They have also found out about the challenges faced by the buying houses and then gave some suggestions. This research article has been developed by contacting and visiting Imperial buying house, Brink Textiles, by interviewing the merchandisers working in the industries. By analyzing the information and the data through the visits and the interviews, this research article has been combined to give in-depth knowledge about the activities performed in a buying house. Pinaki Dasgupta and Anupama Gupta (2009) 2 in their article, have investigated the relationship of apparel sourcing issues and logistics performance variables of apparel exports from India. Data acquired electronically showcased that International sourcing issues, information system capability and communication infrastructure have been rated with least satisfaction scores by sourcing intermediaries. Product quality and production capability are more strongly associated with logistics performance variables than other three international sourcing issues. The survey data and analysis focused on apparel sourcing intermediaries based in national capital region (NCR), India. This research will help to understand that how sourcing intermediaries, who locally represent international apparel buyers, perceive about the existing sourcing issues in doing business with garment manufacturing houses and how these sourcing issues are correlated with logistics performance variables. Sabbir hussain(2012) 3 in his article has emphasized on the working procedure of buying house and buying house merchandiser. It is known to all, that buying house playing an important role in our RMG sector, as a huge amount of order is coming into our country through buying house. This article describes the main functions of buying house. Organ gram of a buying house, working procedures are also included here. The article needs to confirm an order, commercial Inco terms, test requirements and spec sheets also discussed in this paper. It also describes about the merchandising process, responsibilities of merchandiser, work flow of merchandiser as merchandiser execute the order. The qualities of merchandiser, the papers handled by merchandiser, the area of merchandiser all are included here. He has concluded by saying that by careful training, education, planning, assisting and co-coordinating the activities of buying house will spread out and help our RMG sector as well as our economy. Dr. Archana Gandhi and Dr. Sunil Sharma (2001) 4 in their article, have explored the various attributes of merchandiser s performance at organisational level and parameters of supply chain competitiveness that affects the apparel industry. The areas covered in article encompassed aspects of merchandisers job responsibilities and apparel supply chain competitiveness factors as relevant to apparel industry. Organisation and Communication skills, knowledge of apparel 23 icmrrjournal@gmail.com

3 manufacturing and quality assurance, knowledge of dynamic product costing have a strong association with supply chain competitiveness parameters of product quality, product delivery and retail pricing. Training of merchandisers in the areas which affect supply chain competitiveness of apparel export units is of key importance. The recommendations primarily include education and training of merchandisers, standardising documentation requirements in the company and having a Standard Operation Procedure (SOP), strengthening of Information and Communication Technology (ICT) and apparel manufacturing systems, performance appraisal with respect to Key Result Areas (KRAs) and training by buyers. Hussain and Mohammad Faruk (2013) 5 in their article has analysed value added servicesof the buying house. The services include communication, documentation, follow up etc. They have also suggested some recommendations to improve buying. In this article the problems, scope, limitations and various analyses are also done. This article analyses the benefits of these services. Many aspects of Merchandising, working with different sections of the company mainly working with Merchandising Division of the buying are also discussed. Objectives of the study To determine the role of buying house in international trade. To know about the working procedure of buying house. To analyze the satisfactory level of exporters with regard to the services provided by the buying houses. Research methodology Research design As objectives are clear & well defined, the design adopted in this study is descriptive in nature. Data collection method The Primary data has been collected through a formal interview with a structured questionnaire. The secondary data are mostly collected from journals, magazines, newspaper and websites. Sampling Technique The sampling technique used for the study is convenience sampling technique. Sample Size The sample size of this study consists of 100 respondents. Statistical tools The statistical tools used for the study are Point analysis, Simple percentage analysis and the Ranking method. Period of study: The period of study is 6 months from April to September 24 icmrrjournal@gmail.com

4 TABLE NO: 1 - SAMPLING METHOD FOR INSPECTION S. No Sampling method for inspection No of respondents Percentage 1 AQL sampling method 77 77% 2 Method designed by the buyer 23 23% Total % TABLE NO: 2 -MODE OF TRANSPORTATION S. No Mode of transportation No of respondents Percentage 1 Sea 53 53% 2 Air 15 15% 3 Both 32 32% Total % TABLE NO: 3 -DEFECTS IN QUALITY CHECKING S. No Defects in quality checking No of respondents Percentage 1 Fabric 13 13% 2 Production level 27 27% 3 Packing level 22 22% 4 Measurement 38 38% Total % TABLE NO: 4 -GARMENT WASHING METHOD Weightage of the respondents S. No Size Total weightage Rank 1 Garment washing II 2 Enzyme washing I 3 Silicon washing III 4 Bio wash V 5 Acid wash IV 25 icmrrjournal@gmail.com

5 TABLE NO: 5 -SATISFACTORY LEVEL WITH THE BUYING HOUSE S.NO SERVICES PROVIDED HS S N DS HDS TOTAL POINT MEAN VALUE Design and product 1. development Finding good buyers Merchandising Sampling Communication Quality Assurance Shipping and documentation Follow up INTERPRETATION The above table reveals that out of 100 respondents, 57% of the respondent are neutral with design and product development, 62% of the respondents are satisfied with finding good buyers, 72% of the respondent are satisfied with merchandising, 38% of the respondent are satisfied with sampling, 43% of the respondent are satisfied with communication services, 37% of the respondent are neutral with quality assurance, 35% of the respondent are neutral withshipping and documentation, 43% of the respondents are highly satisfied with the order follow up. POINT ANALYSIS The total points obtained are 333,374,367,375,325,329,320,397 and the calculated mean values are 3.33, 3.74, 3.67, 3.75, 3.25, 3.29, 3.20, 3.97which is greater than normal mean value 3. Hence the respondents are highly satisfied with this suggestion. LIMITATIONS OF THE STUDY Study is restricted to Tirupur city. Sample size of the study is restricted to 100 respondents. Time is one of the major constraints in undergoing this project. Study is purely based on the information given by the respondents and there is a chance for getting biased view from the respondents. FINDINGS OF THE STUDY Buying house vision is to shape the customer s expectations through effective quality and services. Buying house bridges the gap between exporter and importer. Most of the shipment is through sea, air shipment is also done for urgent requirements Most of the buying houses prefer AQL sampling method for inspection. Mostly the defects will be found at measurement level Mostly enzyme washing method is used because the shrinkage will be 100% nil and as the measurement will not get changed after washing icmrrjournal@gmail.com

6 Buying house always believes in ethical and transparent relationship with their customers and suppliers and continues to strengthen them through high quality service. SUGGESTIONS Buying agents could try to have regular contact with the buyers and use relationship to give competitive rates, which will be a gateway for maximizing their business. Most of the customers expect quality service from the exporters. This could be possible only by maintaining quality standards at every stage in entire processing. Exporters must improve both speed and quality simultaneously. Facilitation of client intermediary interface will ensure better relationship among the buying house and exporters. Merchandiser should undergo practical training to improve their efficiency. CONCLUSION The buying house play a vital part in the development on international trade, they should improve the quality of service in areas like quick processing and prompt communication. Merchandiser should be trained to communicate more efficiently and the customer should also be made to understand the commitment too. They should also be more innovative in their ways of providing sophisticated services to their valued customers in each and every day. Buying house has to serve their customers professionally, with the integration of marketing and merchandising expertise along with technical support to build such a comfort level with customers, which would make them feel that they are in the right place to get the true competitive merchandise with outstanding quality. REFERENCES 1) Ali and Zeeshan (2010) The role of buying house in supply chain management series no: Magisteruppsats Publisher: university of Boras/ Swedish school of textiles. 2) Pinaki Dasgupta and Anupama Gupta (2009) An empirical analysis of sourcing intermediaries Journal: international marketing and management research, Palgrave. Citations: ISBN: , ISBN10: ) Sabbir hussain (2012) Study on garments buying house merchandising published by Daffodil international university, Dhaka: April ) Dr. Archana Gandhi and Dr. Sunil Sharma (2001) Merchandisers Performance and Supply Chain Competitiveness in Apparel Export Units IOSR Journal of business and management (IOSR_JBM) e-issn: x. Volume 16, Issue 7. Ver V, PP ) Hussain and Mohammad Faruk (2013) An evaluation on merchandising activities Manchester Business School, The University of Manchester icmrrjournal@gmail.com