Buying House & Liaison Office

Introduction

The export oriented RMG sector in Bangladesh started its modest journey as a small non-traditional sector of export in late the 1970s. After the liberation, especially from the 90s the RMG industry started to rapidly as the country was gaining political and social stability. Within three decades, RMG has transformed itself as the country’s highest revenue generating in this sector.70 or 80’s there have no BH or liaison office in Bangladesh. The early 90’s some entrepreneur brings the buying house or buyer represent office concept to fulfill the industrial demand.

Two types of Buying we see in the business Market.

• Buying House.
• Liaison office.

Buying House

A buying house is basically a trading partner between the buyer/retailer and manufacturer. Buying House is one of the most great business tracts in Bangladesh in RMG sector. It is the very well said that Bangladesh achieved second highest RMG exporters’ position in the world because the sector produces high quality product with a reasonable price than other competitor countries. We can say that Bangladesh has created a big place in the world’s apparel market where garments buying houses play a vital role for this significant contribution. Li & Fung is one of the most  buying house in Bangladesh.

1. Buying office is that works at a time with different buyers and brands. In this case, all the required approvals are coming from the buyer. They are only authorized from order execution not for major decision making.
2. Many garments manufacturers use their separate marketing office as a buying house and they are calculating 5 to 10% commission for that service.

Some of the activities of a buying house in the following.

1. Marketing for order collection from the buyer.
2. Select good suppliers to place the order.
3. Order execution process follow up to shipment.
4. Making product development samples for buyers.
5. Contacting with buyers for necessary approvals.
6. Forwarding all the comments and approvals to the factories.
7. Follow-up order processing according to buyer’s demand.
8. Maintain desired product quality from sample to production.
9. Should follow inspection terms and conditions according to buyer’s demand.
10. Shipping the goods and collect sales feedback.

Liaison Office

Liaison office is the customer’s representative office in anyplace. Liaison office is very import branch office operate through Head office. Liaison office is not the trading house or not commission based office. Liaison office maintain & mange all the responsibilities what have given the task from central office. Every task it must do its own responsibility. Sometimes liaison office maintains some task whatever given follow up from head office. All employee & staff pay remuneration from their head office or as per policy. H & M office is a liaison office in Bangladesh.

Some of the activities of a Liaison office in the following.

1. Buying agency or liaison office is an independent buyer’s regional office from where all kind of necessary approvals have given. It can’t show any income without expenditure according to local law.
2. PP meeting & production permission given by Liaison office.
3. Liaison offices given all approval authority expect fabric & lad dip. It is approved by Head office.
4. All quality issue monitoring.
5. All sample take approval through liaison office.
6. All production monitoring.
7. Commercial document also monitoring through liaison office.
8. .All Shipment follows up by liaison office.

Md.Mahbub-Ul Islam

RMG Consultant & Researcher

mahbub@textilemerchandise.com