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Monday, 09 August 2010 |
 Tirupur the ‘Knitwear Capital of India’ is getting ready to hold RAMP – the Sourcing Show from August 30-31. This year, the annual event from Retail Apparel Manufacturers Presentation is targeted at the domestic market and will attract
national brand owners and stakeholders from the retailing spectrum such as specialty stores, discount stores, department stores, hyper-marts, MBOs and the like. It will showcase the capabilities of knitwear manufacturers and home textiles manufacturers for the domestic brand owners, retailers etc. Nearly 70 manufacturers are expected to participate and over 5,000 knitwear designs are to be showcased.
“It has been long felt that there is a need for a forum which provides opportunities for the buyers from the domestic retail sector especially in the area of knitwear and home textiles to source their requirements and interact with suppliers,” explains Nandagopal K, Managing Director of Vision Trade and Exhibitions, the organizers of the event. This forum offers an opportunity to showcase capabilities and display latest collections to an invited audience from all over India.
What makes the event even more significant is that it’s being held at a time when several apparel and fashion accessory manufacturers catering to global brands are shifting their focus to the domestic retail market. Reason: slowing overseas demand and rising consumption at home. Latest reports suggest that more than half a dozen companies including Gokaldas Exports, Orient Craft, Mandhana Industries, Royal Classic Group, SP Apparels and Crew Republica plan to expand retail network with single-brand stores of either their own labels or partnering foreign brands, company. Expert say this is because of the uncertainties in the European market, fall of demand from the US, as well as increasing competition from cheaper products from neighboring countries. As per estimates, the organized branded apparel market is around $7 billion and is expected to grow to $19 billion by 2015.
As Prashant Agarwal, vice-president, Technopak Advisors, points out, “With the growth in India’s organized retailing, exporters will increase their domestic business to 30 per cent from the current average of 10per cent.” As per Technopak, India’s textile exports are valued at above $20 billion while domestic textile and apparel business is $40 billion.
No wonder top exporters are now focusing on the domestic market. Gokaldas Export for example, sees huge potential among small retailers and wholesalers, and plans to open large stores in Chennai and New Delhi after its 30,000 sq. ft. wholesale store in Bangalore started doing well since it opened in late 2009. They expect around 10 per cent of net sales worth Rs1,100 crores would come from their cash and carry business in a couple of years.
Similarly, Mandhana Industries, which makes apparel for international brands such as Tommy Hilfiger, French Connection and FCUK, plans to float a retail subsidiary to launch its own casual-wear brands. Tirupur-based Royal Classic Group, which targets the youth with affordable brands such as Classic Polo and Smash, plans to open around 100 exclusive outlets by the end of 2011.
Mumbai-based Alok Industries too begun to use this route to better penetrate the local market. An integrated textile firm Alok Industries launched its retail apparel brand H&A three years ago, but converted it into a wholesale format in December last year. Now they have about 220 stores through a franchise model.
Indeed, the companies are aware of the challenge ahead but they are prepared to take on the challenge. |
