Home / Knowledge / News / Apparel/Garments / Depreciating rupee does not enthuse apparel exporters
Depreciating rupee does not enthuse apparel exporters
07
Mar '09
The Bangladesh garment industry was able to pip India in clothing exports to the US markets by jumping to fifth place and in the process pushing India to the sixth place. This has come about due to the cost competitive rates quoted by Bangladeshi exporter's vis-à-vis Indian manufacturers.

The sliding rupee which also has depreciated to historic highs should have in better times been welcomed by exporters of all hues with smiles. But this time around, quoting competitive prices, which has to be less than those quoted by its competitor countries, is taking the shine off the depreciating rupee.

Global retailers have latched on to a new system of placing orders. They are now resorting to a system, akin to global tendering, which is taking its toll on the Indian apparel exporter. Orders are gained or lost by very thin margins and unless the manufacturer has not been able to improve his overall cost competitiveness, the orders end up going to neighbouring countries.

The only objective as on date adopted by each and every garment exporter, worth his weight is to ensure that ongoing orders do not slip out of his hand and get redirected to other countries, on the premises that he may not be able to regain them for good. Under these conditions they are quoting rates, which may even mean incurring losses on each and every order.

Though April-August 2008 figures delivered promising growth, clothing exports started registering negative rates, with the unveiling of the economic turmoil in September last year. Experts fear the cost competitiveness of Bangladesh garment industry is responsible for orders going their way, rather than to Indian apparel manufacturers.

Other than quoting rates lower than those cited by their competitors in other countries, the garment exporters are resorting to other ways to retain their existing clients. Some of them are holding ready stocks, so that there is no delay in dispatching orders, but this only adds to the troubles of the already financially strained Indian exporter.

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 28th May 2017

Over 45% US retailers to use AI in next 3 years: Report

Over 45 per cent retailers in the US plan to utilise artificial...

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Apparel/Garments | On 28th May 2017

Naked Brand, Bendon sign agreement to reorganise

Naked Brand Group, a fashion and lifestyle brand, and Bendon Limited, ...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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