With the changing scenario in the international apparel retail industry, some of the Indian buying houses are also changing their strategy for growth. The good thing is that this change is not only bringing in more business for them, but they are even able to get more margins with the change in strategy. Going to complete 15 years of its establishment, India Buying Consultant (IBC), Gurgaon is one such buying agency that has changed its strategy and is now focusing more on high-value addition products, be it home furnishing, apparel, accessories or leather, as it deals in all four categories.
“Earlier we were more into the products with the average FOB range of US $ 10-15 (in woven) but now our products are from US $ 25-30. We observed that customers are willing to pay more if they are getting what they really want. They want to get noticed and few extra dollars are not a big deal for them,” informed Jitendra Sodhi, MD, IBC.
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Catering to seven buyers of the US (retailers as well as wholesalers), IBC has recently added 4 new suppliers from Delhi-NCR and Jaipur so that the buyers can have more options in products. He further added that another reason to focus on high value-added garments was the more profit margins that were possible as in such products buyers negotiate comparatively less on costing. “We are focusing on every kind of value-addition, be it handwork, beadwork, different kinds of embroidery or printing. Our decision has proved right and we are sure that the same trend of more demand of highly value-added garment will remain and continue in the long term. It is a win-win situation for everyone be it customer, buyer, suppliers or buying houses like us,” concluded Jitendra, who is expecting 25 per cent growth in the current fiscal year.
