The Hindu Business Line : Textile companies move to keep up with global trends

DOMESTIC textile suppliers are increasingly appointing design consultants in the US and Europe to keep up with fashion trends. Companies such as Welspun Industries and Mafatlal Industries are also setting up marketing and retail infrastructure, complete with warehousing facilities in the US and Europe, to cut down on lead time and ensure efficiency in deliveries.

Terry-towel major Welspun Industries has recently appointed two designers each in the US and the UK, industry sources said. The company has a full-fledged design house in India and the design team appointed abroad is expected to sharpen the company's response to new fashion ideas emerging in the two major markets of the UK and the US.

Mafatlal Industries is another player that has appointed design consultants and marketing personnel in the UK and the rest of Europe. The company is also working towards setting-up of outstation marketing agencies network, with emphasis on product development in these key markets, sources said.

India has already carved out a niche for itself in the US and European market in the value-added textile and garment business, while players such as China and Mexico are slugging it out in the low-cost, mass products market. "The rationale behind Indian suppliers appointing design consultants in key markets is that the step would enable them to be aware of the changing trends, and, thereby, give them a headstart to change over to the new trend," an industry player said.

Also, to reduce the lead-time involved in their delivery schedules, players are working on setting up either full-fledged subsidiaries or elaborate facilities in major markets such as the US and the EU. Welspun Industries, for instance, has set up a subsidiary in the US, mainly to co-ordinate with buyers. It has also created marketing infrastructure in the US, replete with a sales team and a 6,000-sq ft exclusive showroom in New York.

Mafatlal Industries has also firmed up a distribution alliance in the US, mainly for streamlined distribution and warehousing of supplies before they are delivered to the customers.

"Bigger retailers such as Wal-Mart and JC Penney are now demanding tighter supply deadlines. Also, the average shipping dates available with suppliers has been shrinking, with players from Mexico and Latin American countries offering consignments with just weeks of orders being placed. Having a set-up in these markets, therefore, enables Indian exporters to compete better with other suppliers in terms of delivery timelines for shipments," an industry player said.

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