Third Eyesight - Management Consultants, retail, consumer goods, business strategy, marketing, supply chain, India Subscribe by Email  thirdeyesight retail consumer products consultants Subscribe   |    Facebook  Join the Third Eyesight network on Facebook   |   Contact   |   Sitemap

Recent Posts

 

Recent Comments

Categories

 

What we’re discussing

 

Archives

Delhi – A Growth Hub for India’s Apparel Exports

August 9th, 2010 by Chandni Jain

India’s traditional skills in textiles, intricate craftsmanship, and creativity in producing a range of design-intensive products have enticed buyers from all over the world. India retains a strong and sustainable position among the top five exporters of textiles and clothing in the world.

India’s textile exports are currently weighted in favour of raw materials and intermediate products leading to ‘value-leakage’, which is a major concern from the long-term competitiveness perspective.

Within India, Delhi holds a position of prominence and can play a significant role in capturing additional value within the country. As a sourcing destination and as a gateway to the rest of India’s textile and apparel sector, Delhi provides unique value in product development and design, and a tremendously flexible supply base.

This capability is especially critical in an unpredictable market where retailers and brands are looking to source ever-smaller quantities of product, increasingly closer to the season.

According to the Director (Merchandising) of one of the largest US retailers sourcing from India, “Delhi scores high on responsiveness, and is more enterprising. It has the capability to handle extraordinary fabrics and is strong in interpretations of artwork.”

The apparel cluster in Delhi-National Capital Region (Delhi NCR) includes locations across four states, and accounts for about twenty five percent share in the country’s current apparel exports. If Delhi’s apparel cluster were to be treated as a country, at US$ 2.6 billion (Rs. 12,000 crores) of apparel exports, it would fall within the Top-20 list, ahead of countries such as El Salvador, South Korea, Philippines, Peru and Egypt. Moreover, being a labour intensive industry, apparel cluster offers immense employment opportunities in NCR, already with current direct employment of over 1 million as per Third Eyesight’s estimate.

A study carried out by Third Eyesight has identified an additional growth opportunity of over US$ 5.5 billion (Rs. 25,000 crores) both in its current markets and products, as well as new product opportunities.

For many buyers, sourcing from Delhi NCR cluster is still restricted to beaded, sequined, and tie-dyed blouses, dresses and skirts. While Delhi remains strong in these products, it now also sells funky denim and jersey wear to young fashion brands, men’s tailored suits to American brands, and women’s undergarments to Europe.

Delhi now offers a base both to international buyers looking at buying finished products, and to Asian, European and American manufacturers looking at setting up alternative manufacturing locations that can tap international as well as the Indian market.

Going forward, the key stakeholders of the Delhi NCR apparel export cluster – individual companies, industry associations and the government need to urgently undertake adequate action steps as the competition is gearing up and the perceived strength of Delhi NCR cluster at the moment may not remain a USP of this cluster in the future.

The Delhi NCR apparel export cluster strategy report along with action steps and key implementation areas was presented at an industry seminar ‘Discovering Growth’ in New Delhi. The seminar was hosted by GTZ in partnership with Small Industries Development Bank of India (SIDBI) and Apparel Export Promotion Council (AEPC). The seminar was attended by the key stakeholders of the Delhi NCR apparel cluster including leading apparel exporters, buying agencies and retailers.

Posted in Apparel, Branding, Entrepreneurship, EVENTS, India, Lifestyle & Fashion, Market Research, Marketing, Outsourcing, Product Development and Design, Retail, Soft Goods, Strategy, Textiles, Uncategorized | 2 Comments »

2 Responses

  1. Beena Says:

    Well textile has always been India’s strength in International trade and even now the overall clothing and apparel sector is doing good in India. We can see many apparel retail chains like shoppersstop, pantaloons have established and doing great business in all three.. men, women and kids apparel segments. BTW thanks for sharing such detailed information on apparel exports.

  2. krishnan.M Says:

    nice work!!! if any one have idea/knowledge on branded apparels in Bangalore,share your views based on its growth and consumer perspective

Leave a Comment

Please note: Please enter a valid email ID if you need a response from us. There will be no comments displayed on this page

Copyright © 2003-2010 by Third Eyesight