Buying houses, with their specialised knowledge and expertise, plays an integral role in the apparel industry. They serve as a middleman between the suppliers (apparel manufacturers, export houses) and vendors (garments buyers), also known as a sourcing agency. Buying houses helps buyers to identify and assess suppliers, often specialising in specific product categories or industries like textiles, apparel, electronics, and food. We will discuss the role of these experts in buying houses in the garment sector.
Definition of a Buying House
Buying-House is a place where buyers and suppliers can fulfil their needs regarding procurement. It is the negotiator between suppliers (manufacturing units) and buyers (retailers, export houses, etc.). It is also known as a buying agency (office) and buying agent. Buying house handles the process of sourcing, arranging and placing orders with manufacturers on behalf of their buyers. It has become the largest industry worldwide and keeps increasing continually.
Buyers often work with buying houses to facilitate the sourcing process and reduce expenses. Buying houses has established relationships with factories and buyers. They directly contact buyers to confirm orders and place orders in relevant factories to eliminate the distance between the buyer and the manufacturer. It also acts as a single point of contact for buyers, allowing them to focus on other aspects of their business. They also deliver additional assistance in product design, market research and trend analysis. However, it is important for buyers to choose a reputed buying house that has a good reputation in the apparel industry and a proven track record of success.
The buying office is an independent buyer’s regional office and company that works with different buyers and brands. It is equipped with skilled workers, testing machines, and equipment. They directly contact buyers to confirm orders and place orders in relevant factories to eliminate the distance between the buyer and the manufacturer.
Functions of a Buying House
Essential functions of a garment-buying house include:
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Collect orders from buyers and keep searching for new buyers.
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Find good suppliers and vendors to complete the order.
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Contact local factories for work.
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Get samples from factories and suppliers to buyers.
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Contact buyers for necessary approvals- samples, raw materials, etc.
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Forward all the comments and approvals to the factories.
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Take follow-up on orders.
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Check product quality from sample to production and maintain quality.
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Follow terms and conditions according to buyers’ demand.
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Ship high-quality goods at the right time in the proper quantity.
Working Procedure of a Buying House
Buying houses follows a systematic procedure for each garment order:
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Confirm order requirements and specifications with the buyer
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Select the appropriate factory and negotiate pricing
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Issue purchase order and coordinate pre-production sampling
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Oversee production, conducting quality inspections
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Manage shipment, customs clearance and delivery
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Provide tracking and status updates throughout
Roles and Responsibilities of Buying Houses in the Garments Business
Buying houses is a medium of communication between buyer and supplier. It carries out all marketing tasks, including looking for international customers, gathering orders, and placing orders with nearby clothing factories. Buying houses is responsible for providing various services to the buyer as given below:
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It provides the facility to develop samples and products at a cheap cost
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They identify suitable suppliers according to the reputation of the buyers
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It also processes orders from local vendors
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Buying houses always get in touch with buyers and seek approval for product development
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Sometimes, it also forwards specific requirements to suppliers on behalf of buyers
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They get all the approval for local vendors or suppliers from the buyers
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It facilitates follow-up on orders with export houses and ensures product quality and services
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They also look over logistics and supplies
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They carry out an audit to maintain the quality of products
Buying houses allows apparel companies to focus on design, sales and marketing while they handle the complexities of global garment sourcing and supply chain management.
Garments Buying House and Apparel Merchandising
Buying houses enables efficient garment merchandise management, from sourcing to delivery. Their networks and expertise in cost negotiations, vendor relationships, production planning, quality assurance, compliance and logistics provide advantages in:
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Reduced time to market
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Lower supply chain costs
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Adequate inventory and garment order management
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Enhanced supply chain flexibility and resilience
Importance of Buying Houses in the Garments Industry
Buying houses provides vital benefits to both garment factories and brands/retailers:
For factories:
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Increased and reliable garment order volumes
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Streamlined buying processes and communications
For brands/retailers:
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Instant access to audited, approved factories
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Quality assurance and compliance oversight
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Accelerated speed to market
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Supply chain visibility and cost optimisation
Their intermediary role adds tremendous value to the garment industry. Buying houses serves as a bridge, connecting the manufacturing capabilities of garment factories with the needs of international apparel buyers and retailers. This requires deep expertise in merchandising, production, compliance, logistics and relationship management.
Benefits of Collaborating with a Buying House
Collaborating with a garments-buying house comes with a multitude of advantages for apparel brands and vendors. These advantages include access to trusted manufacturers, more rapid production, cost savings, certified quality, compliance management, transparent processes, lower costs, and flexibility. This comprehensive support can significantly improve the efficiency and competitiveness of clothing businesses.
Access to audited manufacturing partners – Buying houses provide instant access to factories that have been thoroughly vetted for quality, capability and ethical practices. This accelerates speed to market, especially when entering new territories.
Reduced time to market – Leveraging the established manufacturing relationships and expertise of the buying house promotes faster product development and production timelines.
Cost efficiencies – It fulfils lower material and production costs through purchase volumes. Their experience with quota allocations and shipment rates also optimises costs.
Quality assurance – Buying houses manage the whole production process with quality control inspections. This oversight greatly reduces defects and avoids costly rework.
Compliance risk mitigation – Buying houses manage social and environmental audits and compliance at supplier factories, safeguarding brand reputation.
Supply chain transparency – Buying houses provide visibility into fabric sourcing, production tracking, shipments and more. This allows brands to access and analyse supply chain data.
Reduced overhead – Brands can reduce internal headcount, labour costs and operational overhead by leveraging the infrastructure and networks of a buying house.
Flexibility & responsiveness – The expansive factory network of a buying house enables flexibility in ordering and rapid responsiveness to shifts in market demand.
Final Words
Buying house plays an essential role in the apparel supply chain. Their global connections, ability to manage orders, and role as intermediaries bring significant value to both factories and brands. However, to stay relevant, they must adapt to changes in the industry.
As an example, Anoosha Apparel Sourcing Ltd. is a top Bangladeshi buying house focused on supplying quality apparel products to reputable international buyers. With a trustworthy reputation built on reliable services and on-time delivery, this sourcing company’s experienced team aims to be a valued supply chain partner. They guarantee quality and on-time delivery, inviting new business partners to share requirements so they can provide competitive pricing and samples customised according to their needs. Anoosha Apparel Sourcing Ltd. symbolises the buying house hovering to remain a fundamental player in the dynamic apparel merchandising business by delivering expertise, networks, and execution excellence.