BUSINESS
Indian Garment exporters focusing on domestic retail
The exporters of garments made in India have turned their focus on the establishing domestic retail outlets with the experience they have gained in handling the international operations of several global retailers. A large batch of exporters have turned their eye to the domestic retail market, armed with the strengths of designing and resourcing, they have attained from the foreign players, in order to put their retailing skills to test. The textile and apparel manufacturers and exporters, who have flourished on exports for years, have suddenly felt the pinch due to the appreciation of the Indian Rupee against the United States Dollar. These companies have been chalking out plans to focus their attention on the domestic garments based retailers.
The main factors for the growth of the domestic demand is the growth in the young population, the increase in the general income level, the transformation of the consumption patterns with the changes in the income and also the phenomenal growth of the organized retail sector. Many of the apparel manufacturers are fuelling the boom in the retail sector with their own commercial activities.
The exporters are reaping windfall profits with the vast developments and increase in the demand in the retail sector. Earlier, these exporters thought the retailing business to be a small contributor to the annual turnover, which would be less than even 10%. The advantages of the better margins offered by the domestic retailers and the direct contact of the apparel manufacturing companies with the customers have influenced the exporters to venture into the commercial activity of domestic retailing of garments and apparels.
Some of the major brands such as the CUTS from Evinix Accessories, s.Oliver from Orient Craft and 109F from the Creative Group have turned their attention to the domestic organized retail chains in order to reap profits from the development of the country's retail sector. These companies have also introduced stores of their own in several of the metropolitan cities in India.
M S Vasant, the head, Retail, Royal Classic Group, said, "Though our company had planned to set up 20 stores within a year, it ended setting up 28 stores in 10 months. The company is aiming to open 100 stores across India this fiscal." Rs 30-40 crores has been earmarked by P Sundararajan, managing director, SP Apparels (SPAL), for the retail roll-out of the company.
The main factors for the growth of the domestic demand is the growth in the young population, the increase in the general income level, the transformation of the consumption patterns with the changes in the income and also the phenomenal growth of the organized retail sector. Many of the apparel manufacturers are fuelling the boom in the retail sector with their own commercial activities.
The exporters are reaping windfall profits with the vast developments and increase in the demand in the retail sector. Earlier, these exporters thought the retailing business to be a small contributor to the annual turnover, which would be less than even 10%. The advantages of the better margins offered by the domestic retailers and the direct contact of the apparel manufacturing companies with the customers have influenced the exporters to venture into the commercial activity of domestic retailing of garments and apparels.
Some of the major brands such as the CUTS from Evinix Accessories, s.Oliver from Orient Craft and 109F from the Creative Group have turned their attention to the domestic organized retail chains in order to reap profits from the development of the country's retail sector. These companies have also introduced stores of their own in several of the metropolitan cities in India.
M S Vasant, the head, Retail, Royal Classic Group, said, "Though our company had planned to set up 20 stores within a year, it ended setting up 28 stores in 10 months. The company is aiming to open 100 stores across India this fiscal." Rs 30-40 crores has been earmarked by P Sundararajan, managing director, SP Apparels (SPAL), for the retail roll-out of the company.
Related Links
