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Why should a Garment factory open its own buying office?

Bangladesh has made significant strides toward a safe workplace and high-quality goods. There are also modern equipment and productivity tools in use. Businesses are now prepared to invest in any new development procedure. Marketing is always been given a low priority when it ought to be given top attention. According to a recent McKinsey survey, 83 percent of global CEOs said they look to marketing to be a major driver for most or all of a company’s growth agenda.

Figure 1: Numerous businesses are now addressing such problems in the wake of the pandemic and are empowering their marketing teams.

We can see how unstable we are when major global problems like pandemics, wars, or recessions strike. We lack an effective marketing team that can foresee future events based on their research; prepare a backup strategy when a customer cuts their orders; and bargain for recompense. Numerous businesses are now addressing such problems in the wake of the pandemic and are empowering their marketing teams. Besides the regular marketing team, they are now thinking about their own buying house.

Here, we would like to focus on some key points why it is essential to have this as a factory’s integral part.

  1. In order to support current production:

A buying office can provide special support when your manufacturing unit faces an order shortage. Business is very much uncertain now. The buyer got bank crafted, and sales fell because of the economic recession, pandemic, war, and global politics. A backup plan is always necessary when dealing with such situations. There is no better option than having your own buying office, from where you can move business to your factory when circumstances demand it.

2. To accommodate different range customers:

In the retail world, there is a variety of customer segments and each has its own business strategy. From high prices to low prices, small quantities to large quantities, quick response orders to large lead-time orders, high-quality products to low-quality products, and high compliance requirements to low compliance requirements, there are many differences.

Each factory is been programmed to produce a specific product and meet specific criteria. With exposure to the global market, you will be able to access all types of customers, and they might want your support. How would you respond? If they are not in your zone, you can either close the doors or assign them to your partner factories through your buying house, so that they can share the benefits with you.

Garment factory
Figure 2: The first step in buying a house is to make a strategic plan containing pros and cons.

3. One stop solution:

These days, customers prefer supermalls to specialized shops. A similar approach can be applied to the apparel industry. Buyers are looking for one Stop Product solution, which is quite difficult to put together from a single source. Hence, trading businesses can help factories arrange all types of product solutions for their potential buyers.

4. Resist mediators taking the big margins:

When factories work with buyers through other trading offices, it is quite common for mediators to keep a large margin, which leaves very little opportunity to make a profit. We still have to take the orders to fill up the capacity. When a mediator is in the middle, there is limited opportunity for trust building with the end customer.

5. Investment & effort are minimal:

When you have your own factory, you need very little investment and effort to establish a buying house. As you can use many facilities from your manufacturing unit, you do not need to recruit so many people as they can work in parallel. Office costs, sample development, and other urgent issues can easily solve with little effort.

6. Form a fully functioning marketing team:

There are a lot of factories in Bangladesh that do not have a fully functioning marketing team. They are involved in supporting some familiar buyers having a sourcing office in Bangladesh or working through a local buying office.

Today, marketing is more than that; it is about utilizing all the capabilities of a business to deliver the most valuable experience to customers and thus drive growth. There are now researchers, designers, product developers, digital marketers, and visual merchandisers on the marketing team. The factories that cannot afford this team might consider setting up a buying office in parallel to use this team.

Finally yet importantly, setting up a buying house sounds simple. However, it is not. It takes time, patience, and hard work to establish a buying house.  The first step in buying a house is to make a strategic plan containing pros and cons. Your future road map can also be prepared with the assistance of experts.

If anyone has any feedback or input regarding the published news, please contact: info@textiletoday.com.bd

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