Apparel Exporters Looking at Home Markets

Apparel exporters have started either to supplying the domestic companies or set up their own retailing units. 

Examples:

1. Bangalore Based Indian designs supplying to H & M and Old Navy now trying to open 30 new stores with their western casual brand Identiti. Presently they have 12 stores. ( Naseer Humayun- MD of Indian Designs). At present 5% of the revenue is from domestic market.

2. Forbes Brands, a division of Gokak Textiles, have launched a youth focussed innerwear brand recently called Facit. ( Nischal Puri- CEO of Forbes Brands).

3. Integra Apparels and Textiles of Ashok Piramal Group- supplying to brands such as Dockers, Levi's and Benetton. The revenues of the company from domestic markets have increased from 15% to 40%. The company supplies to Madura Garments, Reid & Taylor and Arrow.

4. Gokaldas Exports, India's biggest exporter- now increased their sales from 4% to 8% in the domestic markets. 

5. Go Go International, supplying to brands such as VF Corp, Lee and Marks and Spenser is exploring in domestic markets.

Reasons for entering into domestic Markets

1. To offset the losses arising from economic slowdown in the US and Europe.

2. Rupee fluctuation is becoming a concern.

3. Increase in yarn rates are making exports uncompetitive. While consumers in India have been able to absorb  a 10-15 percent hike in prices of garments. 

Challenges

1. Brand Building and Marketing are the most crucial factor for a company who want to establish their retail presence in India.