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The following article was published in our article directory on October 14, 2010.
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Indian Apparel Brands to Switch to Local Suppliers Procurement

Article Category: Business

Author Name: xia zihui

India's booming fashion market change in strategy prompted the international brands, local manufacturers began to purchase clothing to meet domestic demand.

Donna Karan New York (DKNY), Gant, Arrow, Marks Spencer and other brands also use this way to avoid high import taxes, make the product more competitive, in some cases even the establishment of international logistics for additional procurement base.

SKNL clothing and retail group president of Ashesh Amin said the brands have learned in the price of retail stores in India, set at 7-11 U.S. dollars of garments imported from abroad is unreasonable if, because of high import duties will eat away profits. Formula for calculating tax based on the complexity of some items up to 50% tax.

Signed in May this year, SKNL group design, procurement, manufacturing license agreements, and a full range of DKNY men's clothing distribution to global markets outside of Japan. Chang goods store in India at present all procurement carried out in China, and the retail price can not be compared market prices higher than the affluent neighborhood more than 15%, such as Singapore and Dubai.
India's retail stores selling goods Chang increase local procurement wave of this wave of turning a key driver. Until a few years ago, most international brands is not common in India, so also in India, small to no sales in the domestic order.

According to the Indian Central Statistical Office data, in April 2009 to March 2010 during the fiscal year, India's textile and clothing retail market growth of 8.5%, although small in number, but also the Indian procurement brands and exported to other markets.

UK brand Marks & Spencer and Reliance Retail is a joint venture in India, an excellent example. They have 17 stores in India, commodity prices in the $ 2 to $ 75. Estimate of the company in India will soon be the proportion of local procurement increased from 40% to 70%. In April 2009 to March 2010 accounting years, the company from 42 suppliers in India amount of up to 175 million, including export to foreign goods Chang goods store.

This wave of "Indian" system in the wave of the rapid increase in international brands, another factor is entered into franchise agreements with Indian partners. Most of the lower-order industry, foreign brands in the last 2 years to form joint ventures with Indian companies, the provisions of the contract they signed the first two years, local manufacturers must be completely imported from abroad.

India's Arvind Brands is responsible for marketing in India, many international brands, including Gant, Izod, Arrow, etc., and in April 2009 to March 2010 fiscal year, the year sales amounted to $ 120,000,000, is also currently negotiating a new foreign brands, the brand will be purchasing in India.

Arvind Brands, said, as long as the import duties continue to exist, most of the purchasing company will stay in India, once the abolition of import duties, manufacturers can choose the best place to go shopping.

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