Buying house plays a role of mediator of between buyer and manufacturer.
Mainly Foreign buyers depend on buying houses as they have very less or no idea of right manufacturers to place an order. Manufacturers are also dependent on buying house to get orders from them. In this way, the buying house creates a contract between the buyer and the factory.
It communicates with buyers of other countries who want to buy garment products. Buying house contacts with the manufacturers who can fulfill the buyer’s demands. The buying house procures garments from the manufacturers and then exports to foreign countries. The buying house is responsible to place and execute the order according to buyer recommendation.
In short, it is a combination of all marketing activities, which includes searching foreign garment buyer, collecting order and placing it to the appropriate manufacturer and also providing the necessary support to the buyers and manufacturers.
Buying house has a Marketing team to gain orders, Merchandising team to take follow up of the product processing and Quality assurance team to ensure quality maintenance according to the demand of the buyer.
The basic elements of garment buying house are one decorated room, chair, table, laptop, internet connection, telephone, some testing machine, equipment, and the most important, skilled merchandisers.
Take an example of XYZ Garment Buying House in India. Their mission is to facilitate global apparel buyers in their process of purchasing their desired quality ensured garments from India at a cost-effective price. Their mission is to become a trusted buying agent name in the industry. XYZ garment buying house will do the following functions.
The Functions of Buying House are
- Collect orders from buyers and keep searching for new buyers.
- Find good suppliers and vendors to complete the order.
- Contact local factories for job work.
- Get samples from factories and suppliers to buyers.
- Contact buyers for necessary approvals- Samples, raw materials, etc.
- Forward all the comments and approvals to the factories.
- Take follow up of orders.
- Check product quality from sample to production and maintain quality.
- Follow terms and conditions according to buyers demand.
- Ship the goods at the right time, right quality and right quantity.