Functions of Buying House in Garments Business

The Buying house is a type of business in the export-oriented garment industry in the manufacturing country. The business we call 100% export-oriented business. Here the word buying house means “buy” means buying, and the word “house” is used in the sense of any business establishment. A buying house is a business organization that works as a trading company. Here I present on Functions of Buying House in Garments Business.

A buying house is a liaison office controlled or operated by the respective apparel buyer (retailer), set near to manufacturing plant to follow up and execute their order sheet. Working there is a job for a retailer; call a retailer (buyer) employee, and the buyer pays them. Garments buyers are giving buying garment clothes and buying houses to ensure goods are manufactured within specification, manufacturing, and delivery on time.

Functions of Buying House in Garments Business

Functions of Garments Buying House

The primary function of buying house is to communicate with buyers and negotiate orders. And finally, when the order is confirmed, it is the job of the garments-buying house to execute it through a factory and arrange the shipment of the order. And when the order comes to the factory from the hands of the buying house, the buying house supervises, leads, and takes care of all the work from the beginning to the end of that order. A foreigner who is a foreigner cannot be in constant contact with or care for him from abroad. Meanwhile, buying houses often acts as representatives or agents of foreign buyers. The primary responsibility of the buying house is to ensure the quality of the product that the buyer wants or the quality of the product that he wants.

How Buying House Works

Buying houses generally works in two ways. Namely:-

  1. As a trading company.
  2. As a buying agent.

How Buying House works as a trading company:-

An example will help you understand. Suppose a buying house negotiates an order with a foreign buyer and the order is confirmed at $3.5. The buying house will then shift this order to one of the factories, and while shifting it will aim to execute the order for less than $3.50. The less he can execute, the more his profit. Let’s say the buying house executes the order at $3 in this case; in that case, it will have a profit of 50 cents on each garment. If a buying house operates in this manner, it will be operating as a trading company.

How to work as a buying agent:-

The policy or system followed to work as a buying agent is to link the buyer with the manufacturer, i.e. with the garment factory. In that case, a commission is left for the buying house, which may be 5 to 10% or less in some cases. This 5 to 10% commission is collected from the buying house garments once the product is shipped.


The buying office have merchandisers, QC, and a technical team for perfect execution. It is the center of getting orders and shipping to customers. It plays are role help the garments product supplier.

Functions of Buying House in Garments Business

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