Fashion giants step up sourcing from India
Nautica, Puma, M&S and Espirit have increased their local sourcing as they expand their presence in domestic market.
By Urvashi Jha & Shruti Sabharwal, TNN |
BANGALORE: International fashion brands such as Nautica, Puma, Marks & Spencer and Espirit have stepped up their local sourcing as they expand their presence in the domestic market. With advantages of higher profits, lesser lead time and competitive price points, these brands are now shedding their inhibition towards local sourcing.
Nautica, the sportswear brand introduced by VF-Arvind Brands in India, plans to source locally the core or standard products that are non-seasonal. Puma too plans to take its local sourcing of apparel to the maximum extent possible for the domestic stores next year.
“We already source 80% of the apparel that we sell in our Indian stores. This gives us several advantages like saving on duties and cutting down transport time and cost. We will increase our local sourcing as much as possible, but it will never go up to 100% as we also have a lot of licensed products,” Puma India’s managing director Rajiv Mehta said. Depending on the category, the import duty could range from 30% to 40%.
Nautica plans to increase its sourcing by 10% next year. At present, it locally sources close to 15% of products and this will go up to 25% next year. “However, we intend to locally source majority of our standard products sold throughout the year. It makes sense to make production of core products in-house as it enables us to offer value to customers for the products,” said brand head of Nautica, Dhruv Bogra.
Nautica plans to have 12 exclusive outlets by end of next year, including the existing seven. Similarly, Marks & Spencer plans to source 40% of its products locally. While GAS is also looking at sourcing locally next year.
Nautica, the sportswear brand introduced by VF-Arvind Brands in India, plans to source locally the core or standard products that are non-seasonal. Puma too plans to take its local sourcing of apparel to the maximum extent possible for the domestic stores next year.
“We already source 80% of the apparel that we sell in our Indian stores. This gives us several advantages like saving on duties and cutting down transport time and cost. We will increase our local sourcing as much as possible, but it will never go up to 100% as we also have a lot of licensed products,” Puma India’s managing director Rajiv Mehta said. Depending on the category, the import duty could range from 30% to 40%.
Nautica plans to increase its sourcing by 10% next year. At present, it locally sources close to 15% of products and this will go up to 25% next year. “However, we intend to locally source majority of our standard products sold throughout the year. It makes sense to make production of core products in-house as it enables us to offer value to customers for the products,” said brand head of Nautica, Dhruv Bogra.
Nautica plans to have 12 exclusive outlets by end of next year, including the existing seven. Similarly, Marks & Spencer plans to source 40% of its products locally. While GAS is also looking at sourcing locally next year.
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