Home / Knowledge / News / Apparel/Garments / 'India promising destination for HK apparel companies'
'India promising destination for HK apparel companies'
27
Apr '16
Courtesy: HKTDC Research
Courtesy: HKTDC Research
India offers not only an increasingly maturing environment for garment production for Hong Kong companies considering relocation of their factories from Southern China, but also the opportunity of selling into a huge potential domestic market of 1.2 billion people, according to the Hong Kong Trade Development Council Research.

In its latest article, the fourth of HKTDC Research's India series, it looks at the drivers of India's garment market, including the ongoing reforms to indirect tax, which have a clear bearing on domestic sales and the wider economy.

The articles highlights the fact that India sells more garments inland than in overseas markets.

India's textiles and apparel industry is valued at more than $100 billion. Domestic demand is the major contributor and accounts for more than 60 per cent of the industry's total output, which is expected to increase by 6 per cent during the fiscal year ending March 2016 (FY2015-16) and estimated to reach $100 billion by 2017, up from $67 billion in FY2013-2014.

The growth of India's retail market, of which apparel sales are an important part, has been driven by the country's phenomenal economic growth over the past decade or so amid a surge in business processing outsourcing (BPO) activity, which has quickly fueled a growing middle-class in India. For the apparel market, there has been an increasing penetration of apparel brands, both local and international, through traditional as well as e-commerce channels, with strong domestic sales during major Indian festivals.

During an HKTDC Research trip to India, interviews with local garment manufacturers and associations invariably pointed to the importance of the domestic market in India. Meanwhile, less than one-tenth of India's retail sales are in the organised sector, which includes department and chain stores selling a lot of branded apparel from local and international fashion houses, including Raymonds, Gap and H&M. Rather, it is the thousands of micro, small and midsize enterprises (MSMEs) that have come to supply the lion's share of India's unorganised retail market with garment products.

The article says Indian apparel makers are more focused on the domestic market.

For a long time, Indian garment manufacturers have predominantly placed their attention on the domestic market, as most of the country's MSME suppliers have not acquired the sophistication and supply chain management capability to produce export-grade garments. Further, they are situated close to the small-scale weaving entities scattered over various Indian states, which makes it easier and more expedient to target local rather than export markets.


Must ReadView All

Courtesy: ABARES

Textiles | On 13th Dec 2017

Australian cotton production to grow 4% in 2017-18: ABARES

Cotton production in Australia is forecast to rise by 4 per cent to...

Global economy now growing by about 3%: UN

Textiles | On 13th Dec 2017

Global economy now growing by about 3%: UN

There is an upturn in the global economy, and it is now growing by...

Winners of Outstanding Award for Exceptional Performance with Anusha Alles (extreme right) and Sakura Manthreerathne, P.A.C.E. specialist at Brandix; Courtesy: Brandix

Apparel/Garments | On 13th Dec 2017

Brandix’s female workers benefit from GAP’s P.A.C.E

A group of 181 Brandix female associates have recently completed...

Interviews View All

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search