Bangalore, June 26 Apparel exporters are not interested in the dollar alone and are slowly seeing profits with the rupee.
As export orders become thin and Indian retail matures, exporters are tapping the potential in the domestic market.
The result: reduced entry-level prices and international quality apparel for Indian shoppers.
Mr Vasanth Kumar, Executive Director, Max Retail, says garment makers are in a position to block capacity for Indian retailers as export business is weak.
“Also, exporters now respect Indian retail because we are now more evolved and are demanding healthy numbers from them.”
As export orders have reduced considerably, garment manufacturers are looking to fill capacity through domestic supply, says Mr Arun Sirdeshmukh, Chief Executive, Reliance Trends.
Local supply line
Bangalore-based exporter Gokaldas Images, which has been supplying to many retailers for two years, says though quantities in the domestic market are still small, there is potential.
This year, the company has seen a 50 per cent increase in domestic business and volumes compared to last year.
Mr K.A.S. Thirumurthy, owner of Tirupur-based Stallion Garments, too says the domestic market is showing positive signs for exporters.
Another Tirupur-based export firm, Prem Knitwear, which supplies to Shoppers’ Stop, has been trying to increase business with local players and establish an enviable presence locally.
An industry analyst, Mr Sampath Kasirajan, says, “The market is becoming bigger in our own backyard, and ignoring it makes no business sense. The Indian textile market is growing at 8-9 per cent; in contrast to markets in the US and Europe that have flattened or are declining.”
Retail play
The domestic market is also finding newer entrants from the exporting community.
The export hub of Tirupur is seeing export-oriented units taking the plunge locally. Some are even contemplating coming out with their own brand, says Mr A. Sakthivel, President, Tirupur Exporters’ Association.
Stallion Garments has bagged the exclusive licence for supply of Levis Signature’s underclothing. It has also launched its own undergarments’ brands and will supply to 35 distributors across the country. The company is negotiating with Reliance to supply its products.
Bangalore-based exporter Indus Fila too has come out with its own brand, John Hill, through a chain of exclusive outlets.
Price tag
All this spells good news for Indian consumers as they get to wear international designs in superior fabric at lower prices.
Explaining the reason for the reduced pricing in apparel retail outlets (most of them have lowered entry price to Rs 99), Mr Sirdeshmukh says the marketing costs for private brands is much lower than for external brands.
Mr Vasanth Kumar says consumers are seeing lower price tags as lead time from design to final product has reduced from five months to 100 days.
Source : Business Line