A survey by Borzo (previously WeFast), a worldwide same-day delivery company, found that MSMEs in India’s garment and textile sector are dealing with increasing logistics and sustainability problems as they navigate a market that is changing quickly.
The survey, which was carried out in 18 cities, provides information on how MSMEs are adjusting to these difficulties. With 78.5 per cent of sales, apparel continues to be the most popular product category in this industry. Fabrics come in at 31 per cent, and home textiles at 7 per cent. Raw materials and industrial textiles only make a little contribution.
Mumbai, Delhi, Pune, Hyderabad, Bengaluru, Jaipur, Ahmedabad, Kolkata, Gurgaon, Noida, Lucknow, Indore, Chandigarh, Surat, Ghaziabad, Faridabad, Thane, and Nashik were among the places where the survey was carried out.
Logistics and delivery issues are the biggest challenge for businesses, according to 40.5 per cent of respondents. These are followed by the inability to meet quick fashion demands and a lack of trained labour. According to the survey, inventory management and growing operating costs continue to be major issues.
Order sizes vary greatly; according to 38 per cent of firms, the average order amount is between Rs. 1,000 and Rs. 5,000. Higher-value orders over Rs. 10,000 are still less common, but a sizable portion (23.5 per cent) serve smaller-value transactions of less than Rs 1,000.
With more than half of businesses processing fewer than 50 orders per month and only a small fraction handling quantities exceeding 1,000 orders, monthly order volumes show a similar trend.
With 70.5 per cent of companies concentrating mostly on D2C sales, the survey shows a significant inclination towards the B2C model. With 36 per cent of respondents reporting a 20–30 per cent boost in orders and nearly a quarter reporting spikes of over 50 per cent, the holiday season continues to be a critical time for growth. According to the survey, 71.5 per cent of MSMEs move items worth Rs. 50,000 to Rs. 2 lakh per month using same-day logistics, demonstrating the growing importance of this service in the industry.
The biggest logistical pain point, according to firms, is high delivery prices, which are followed by delivery delays and an excessive dependence on outside suppliers. With 58 per cent of firms wanting a delivery window of 30 to 60 minutes and only a small minority requiring 10-minute deliveries, the demand for speedier delivery is clear.
Even while D2C business models are becoming more and more popular, just 28.5 per cent of companies sell on their own website, citing challenges with handling delivery during periods of high sales. According to the report, the majority still rely on outside channels for sales.
Additionally, more than half of MSMEs want dependable same-day delivery services, while others want to reduce expenses or upgrade their tracking systems.
Around 70 per cent of companies are using sustainable packaging, demonstrating the growing popularity of sustainability. Costly raw materials are cited by almost half of respondents as the reason why sustainable fashion is still not widely adopted. 59.5 per cent of respondents, however, anticipate a future decline in the cost of making sustainable products.
