The importance of buying house can’t be described in a word. Trading house is also an important business entity. The function of them is not the same. There are some basic difference between buying house and trading house.
The buying house find out the foreign buyers, place orders, communicate with the manufacturers and does all the responsibility of getting the order done. Whereas, the trading house does the transaction job and ease the process between home and abroad companies.
Buying house is the working place of merchandizers. The basic function of the buying house is to communicate with the buyers of other countries who are interested to buy garment products. Quality products at lower price is possible in Our RMG industry. So, the overseas buying house places their orders to us quite frequently.
Trading house is such a type of business which aids the transaction between the home companies and abroad companies. It can be said that it is an importer, exporter even a trader also. It purchases products and then sells the products also for other business. They act as intermediaries by manufactures to trade their business in foreign location.
7 Difference Between Buying House and Trading House
Buying house has its’ own brand
Buying house can directly place order to the manufacturing plant or can place order through the trading house
They always directly place order to the manufacturing plant by taking it from the buyer
Buying house has less risk
Takes more risk because if the order is not according to the buyer then it has to take the risk of money
Job of buying house quite easier
This job is quite difficult as it has to communicate with both the buying house and manufacturing plant
· Example- H&M which is located at Sweden
· It has more than 4000 outlets
. Net worth more than $2 B
· Example- Li-fung
· Works for only retailer buyer
. Net worth more than $1 B
The last Thought
Buying house as well as trading house both of them plays a tremendous job in our RMG sector to achieve the revenue. This sectors help to build up strong economic support for our local industries.