Managing Director Global Ocean Group
When R&D is a process
The Indian fashion and textile logistics industry is growing fast. Though it is still to be considered a major portion of the fashion industry, it holds immense potential. Brijesh Lohia, MD of Global Ocean Group, shares some insights with Fibre2Fashion.com
What is the size of India's logistics industry? What share of that does fashion and textile logistics occupy?
According to India Logistics Expo 2016, the Indian logistics market recorded revenue of US$ 104.10 billion in 2014. It is likely to reach US$ 150-160 billion by 2020. Transportation accounts for about 60 per cent of the market revenue.
According to a study by Wazir Advisors and PCI Xylenes & Polyester in a report by IBEF in 2016, the Indian textile industry has the potential to reach US$ 500 billion. The growth implies domestic sales are to rise to US$ 315 billion from the current US$ 68 billion. Exports are expected to increase to US$ 185 billion from the current US$ 41 billion or thereabouts. The organised apparel segment is expected to grow at a Compound Annual Growth Rate (CAGR) of more than 13 per cent over a ten-year period.
These figures show robust growth in the fashion and textile industries. E-commerce firms in India are promoting a new concept in fashion, and establishing their presence in tier II and tier III cities. As Google's Director for E-commerce and other segments, Nitin Bawankule shared, India, with an aspiring middle class, is expected to see fashion business through e-commerce portals reach a turnover of US$ 35 billion by 2020.
The textile industry is also getting a boost under Make in India. As a result, it is expected to contribute a major portion to exports. Indian traditional textiles are gaining popularity through e-commerce. So, there is much more on-ground action happening on both fronts.
What is the growth percentage recorded in the fashion and textile logistics industry of India in the last two years?
There is no round figure available on fashion and textile logistics. Tremendous growth has been witnessed in the apparel and fashion segments, with both online and retail players trying to reach as many customers as possible. This is good news for the logistics sector which corresponds strongly with the growth in consumer demand.
What are the innovations in terms of speed in the textile logistics industry?
We believe the biggest breakthrough, in terms of approachability and speed in textile logistics, has been a shift from India's traditional selling model to an online marketplace. There are many leading online retail companies showcasing vast textile collections of even traditional handloom players. Then, there are traditional retail brands that have expanded their presence through online and offline channels. As a result, the market has become hyper-competitive. This means, it is hyper-active for logistics players. At times, customer satisfaction is measured in terms of same day delivery when ordered online. On the other hand, there is a spurt in demand for more brands with growing accessibility.
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