Working with several wholesalers and importers across 3 European countries, Dr. G. Loganathan, Managing Director, The Imperial, Tirupur in an exclusive interaction with team Apparel Online, details the challenges, pluses and relevance of commitment in today’s business scenario, while sharing the enriching experience he has had working closely with wholesalers/importers and retailers.
Already sourcing products worth over US $ 5.5 million from the country, the company is exploring options to expand their market reach to more countries including the US. “We are putting in efforts to enter the US market. India, however, still has some distance to cover when compared to countries like Bangladesh, Sri Lanka, and Indonesia, especially with regard to labour and price,” averred Dr. Loganathan. He emphasized that in today’s scenario, the wholesalers and importers are looking for only price to win the competition in their markets. “Most of the buyers prefer to work with India rather than other competitive countries, but they expect the price of those countries in India. Also, implementation of technology is still in slow phase compared to many other competitors,” mentions Dr. Loganathan..
For a buying house working with wholesalers/importers, emphasis on product inspection and ensuring deadlines are imperative. “Commitment is the key and nothing can substitute it,” believes Dr. Loganathan. While inspecting a product, in addition to meeting all the required customers’ specifications, the appearance and look of the product are also key areas, as it is always the appearance of the product that first captivates a buyer.
With competition getting tougher among wholesalers and retailers worldwide, the gap between price and quality is increasing each day. “One of the key differences of working for retailers and with wholesalers/importers is that while the importers choose the price, when narrowing into a vendor, the retailers prefer working with standard factories. Hence, the importers would never think twice before changing factories if any factory quotes lower price,” states Dr. Loganathan. Building and, more importantly, maintaining a good relationship is key to doing great business, be it with retailers, wholesalers or exporters. “If there is anything that one really needs to invest in, it is relationships – A trait that surges forward any business,” reasons Dr. Loganathan. This is even more important in the case of wholesalers/importers as they have a very hands-on approach to business.
One of the biggest pluses of working with wholesalers/importers is that one always remains updated with international fashion as they ask for regular developments. However, the biggest challenge is that the wholesalers/importers are constantly on the lookout for new sourcing destinations, offering products at a cheaper price. “Indian exporters need to ensure optimum production to achieve the competitive price,” said Dr. Loganathan. If the exporters work on this shortcoming, the challenge of losing importers could be arrested.
● It is buyers’ market where the price is the predominant factor.
● Demand in high quality standards are escalating day by day.
● In the recent years, the gap between price and quality is increasing due to hectic competition among the wholesalers and retailers at importing countries.
● The buyers’ expectation with regard to product, technology, service is tremendous.
● Garment being a consumer product, everyone wants to fish in the ocean across the globe, making the competition for good bargaining and getting it at lower price, more confused.
● Most of the buyers prefer to work with India than any other competitive countries, but they expect the price of those countries in India.
● Candidly, buyers are not so comfortable with our production because, implementing technology is still in slow phase in comparison to Bangladesh.
● Buyer feels our competitive markets are improving faster in terms of technologies, quality satisfaction and timely deliveries than Indian exporters.
● In today’s scenario, buyers are looking for only the PRICE to win the competition in their markets.
On a scale of 1-10, while determining the relevance of product, price, infrastructure, types of buyers/markets already working with, compliances and lead times for any buyer, Dr. Loganathan was quick to give 10 to product. “Product is the one that finally sells,” said Dr. Loganathan. Infrastructure was rated 8. He also gave 8 to type of buyers/markets as there is now big competition among buyers too and they are always exploring new markets at less price. Compliance was rated 7 and lead time, significantly 9.
Although the role of the Government is improtant in supporting the industry, exporters too should upscale themselves – it’s time to wake up. “If the issues regarding labour and the failure to achieve optimum production are eliminated, then India could rule the market and be a force to reckon with in the years to come, especially with the huge talent that India has,” concluded Dr. Loganathan.
