The post quota regime favors suppliers like China who quote best prices for the products in the first shot. In current day’s unpredictable economy, no one has the time to negotiate. China is the biggest shareholder in global apparel sourcing market.
Surpassing Chinese styles and prices are a hard nut to crack. But it is not impossible for those who can put their hard efforts. Currently India is considered as a best sourcing destination, only next to China.
Prices of Indian fabrics are much higher as compared to Chinese fabrics. Lead times of Indian mills on fabrics are also longer than Chinese counterparts. Fabric suppliers in India are dependent for their exports, and do not sell their fabrics directly to their end users.
On the contrary, most of the Chinese fabric mills/ agents-NDP, Winnitex to name a few are directly getting in touch with the end customer and getting into nominated fabric sources. Garment manufacturers are responsible for sourcing fabric.
Garment exporters get in touch with their fabric sources, negotiate prices, and the buyer need not know the actual negotiated fabric price b/w the garment factory and the fabric mill.
Indian manufacturers need to gear up to international market conditions, and offer competitive prices along with good quality fabric than their Chinese counterparts. They need to keep up with the delivery commitments in a professional manner.
Source: www.fibre2fashion.com
