INDIA Your Big Marketing Opportunity By Arun Roongta Editor & Publisher India a big market •For Domestic Consumption •For Export Production •For Re-export (Trading) India a big market for domestic consumption • Population - 1 Billion • Per capita domestic fabric consumption is 34 mtrs., one of the lowest in the world. • Overall consumer spending grew by 12% p.a. • On Textile & clothing it grew by 48% in 2003. • One of the fastest growing economy, at the rate of 6% p.a. • One of the lowest consumer of man-made textiles in the world.(only 25% of total fiber consumption against the world consumption of 52%.) Contd…. India a big market for export production • Garment Exports target is USD 25 billion against current export of USD 5.8 billion.This will need huge additional quantity of fabrics. • Leading global buyers like GAP, JC Penney, Otto, Sarah Lee & Wal-Mart have set up new sourcing office in India with huge sourcing targets • India’s image is acquiring the image of a superior quality and highly flexible supplier amongst European and American buyers. • A gateway to large non-resident Indian population in the gulf countries, Africa, UK & rest of the world India a big market for re - export production • Increasing buying by traders of neighboring countries like Nepal, Sri Lanka, Bangladesh for their domestic consumption due to cultural similarities Elements of market For Domestic Consumption • • • • • • Organised garment brands Unorganised Garment manufacturers Organised Garment manufacturers Fabric Retail channels Designers & Boutiques Tailoring Fabric buying through different channels & their growth rate for Domestic Consumption Consumption Route Fabric Consumption Share Annual Growth Rate Organised garment brands Unorganised garment brands Organised garment manufacturers Fabric retail channels Designers & Boutiques Tailoring 5% 10% 15% 10% 5% 10% 60% 2% 5% 3.5% 10 – 15% 1–2% Organised garment brands • About 50 Global Brands Operating (Levi’s, Dockers, Arrow, Van Huesan, Allen Solly, Louise Phillipe, Lee, Lacoste, Lee Cooper, Nike, Marks & Spencer) • About 50 Indian Brands with over 10 million US dollar sales ( Park Avenue, Zodiac, Killer, Oxemberg, Blackberry’s) • Mainly cater to men’s wear & Unisex Casual wear (Trousers, Shirts, Jeans , T -Shirts) • Average daily Sales - 1000 - 4000 pieces. • Buy Fabrics directly from Mills/manufacturers Elements of market for Domestic Consumption Unorganised Garment manufacturers •Unbranded garment seller •Very large in numbers (About 1,00,000 units) •Disbursed all over the country •Average production 50 -2000 pieces per day •Mainly cater to kids wear & Women’s wear •Buy fabrics through traders/distributors Elements of market for Domestic Consumption Organised Garment manufacturers • Produce for garment exporters, merchant exporters & organised garment brands • Produce for institutional buyers, specialised industrial clothing • About 150 factories with average production between 500-1500 pieces per day • Are supplied fabrics by companies they produce for Elements of market for Domestic Consumption Fabric Retail channels • Consumers buying fabric length to get clothes from tailors(Trousers, suits, women’s dresses, blouses) • There are 5 million retailers of which 20% cater to textiles • Major retail chains and Shopping Malls are rapidly emerging in India catering to the Middle, Upper Middle and Upper class of the consumers. • Shopper’s Stop, Westside, Lifestyle, Pantaloons, Globus, etc… Elements of market for Domestic Consumption Designers & Boutiques • India is slowly developing its fashion industry. • Designs of Indian designers are being shown at the major fashion centers of world like Milan, New York and Paris. • The Designers do a annual business of USD 250 million Elements of market for Domestic Consumption Tailoring • Reducing in urban India and metros (28% population) but growing in Semi-urban & rural(72% population) India • Tailors are increasingly becoming fabric sellers as in Hong Kong, Taiwan and Thailand. • Superior fabric manufacturers like Raymond, BSL & Grasim are increasing their market presence through this channel • Can be reached through wholesalers & distributors only Elements of market for Domestic Consumption Traditional Women Wear - Sarees Indian Designer Saree Formal Women Wear - Churidars Formal Designer Wear - Churidars Indian Urban Wear Overall Per capita Textile Urban/Rural consumption Indian Urban/Rural markets • At the highest income level there are 2.3 million urban households as against 1.6 million households in rural areas. • The money available to spend on FMCG (Fast Moving Consumer Goods) products by urban India is Rs. 49,500 crores (11 billion US$) as against is Rs. 63,500 crores (14 billion US$) in rural India. Total Textile consumption Per capita fiber consumption • Fiber usage in India per person per year – 2.8 - 2.9 kg/person/year • Manmade - 25% • Natural - 75% Fiber & Filament Consumption in India in India Fibers & Filaments Cotton 1999-00 2526 2000-01 2558 2001-02 2503 %share in 2001-02 62.00 Polyester staple fiber 534 582 466 11.54 Viscose staple fiber 205 221 156 3.86 Acrylic staple fiber Other miscellaneous fibers Polyester filament yarn 99 2 104 2 94 2 2.33 0.05 809 789 741 18.36 Viscose filament yarn 45 47 36 0.89 Nylon filament yarn 28 25 23 0.57 Polypropylene filament yarn Total 17 17 16 0.40 4265 4345 4037 100.00 Elements of market for Export Production • Conventional Small Exporters, exporting fashion goods all over the world including Asia, to small semi - organised buyers - exports - below 2 million dollars p.a. - about 5000 in numbers • Medium sized exporters catering to wholesalers, designers & smaller chain stores in Europe and US - 2 million to 8 million dollars p.a. - about 250 to 300 companies • Large sized exporters catering to well known brands and stores like GAP, Macy’s, M&S, Wal-mart - 8 million to 50 million dollars p.a. - about 50 - 75 companies • Very large sized exporters working with long run programs with biggest global buyers - 50 to 100 million dollars p.a. 30 to 35 companies Elements of market for Exports • • • • • • Made-up manufacturers Yarn exporters Processed apparel fabric exporters Grey fabric/sheetings exporters Furnishing fabrics exporters Fashion accessories & home accessories exporters Elements of market for Re-exports • Trade channels • Merchant Exporters • Garment factories in countries like Sri Lanka, Nepal, Bangladesh, Mauritius with Indian investments Trade channels - markets/distribution • • • • • • Indenting agents Importers Distributors Wholesalers Semi-wholesalers Retailers Indenting agents • • • • • • • Effective for developing markets and wholesalers Cater to all types of demands Very loyal to companies Well connected Work on margins between 3 - 5 % Operate from larger cities with good infrastructure Effective for supplies to big garment exporters & domestic brands • Work for multiple companies Trade channels - markets/distribution Importers • • • • Stock & supply Work on higher margins Limited volumes Do not cater to Ready made garment demands but sell through trade channels • Largely buy stock lots • Require high working capital hence limited buying Trade channels - markets/distribution Distributors • Spread across India • Good to create network if long term perspective • Medium to large operations • More planned in their purchase Trade channels - markets/distribution Semi - Wholesalers • Work through distributors • Have a strong reach with fabric retailers • Strong reach with smaller garment manufacturers • Mainly act as credit agents • Expand reach in semi-urban & rural markets Trade channels - markets/distribution Retailers • 5 million of which 20% deal with clothing and textiles • Not possible to cater to retailers directly since they are highly scattered • Changing over to ready made garments in cities like Mumbai, Delhi & Bangalore Trade channels - markets/distribution Distribution channels for reaching out to bigger users of fabrics • Trade fairs • Buyer Seller meets • Indenting agents Import of textile products in India • • • • • • • • Textile & Garment Import Scenario - India Total imports into India Countries-wise imports Items-wise imports Country-wise competitive perceptions Country-wise qualitative perceptions Import Duty structure Detailed statistics Textile Import Scenario - India Imports were worth US$ 798.77 million during April-February 2002-2003. Imports are growing slowly, but consistently. During April-February 2002-2003 grew by 23.16%. Imports shifting in favour of more value-added products - from fiber to yarn to fabrics The growth was highest in the low end products – cotton yarn and fabrics and man made filament yarns. Contd... Textile Import Scenario - India The share of both these categories increased by around 4% at the cost of readymade garments whose share declined further. China continued to be the top supplier although their growth rate decelerated from 73.48 % during April-January 2002-2003 to 67.97% during AprilFebruary 2002-2003. India’s Current Product/ Country import relationship Italy - worsted, poly/wool, 100%wool Korea - Synthetics & specialty fabrics like flock, velvets, jacquards in blends of man-made & natural fiber China - coarse & medium synthetic & polyester cotton blends(basic fabrics), low end synthetics, silk yarn, low end worsted fabrics Indonesia - 100% polyester Prints & Denims Taiwan - polyester filaments, menswear fabrics, knitted fabrics(polar fleece) Imports of Textile Items %age Increase Description FIBRE 2001-2002 2002-03 Raw silk (Incl silk waste) 133.29 137.05 2.82 Wool / Fine / coarse animal hair (incl wool waste) Raw Cotton (incl cotton waste) 139.22 432.07 173.54 255.49 24.65 -40.87 Flax, Jute, other vegetable textile fibre Synthetic / Artificial filament tow., Man-made staple fibre, Man-made staple fibre 24.78 31.35 26.51 61.01 84.02 37.72 Total 790.38 681.45 -13.78 YARN Silk yarn 15.75 18.98 20.51 Woollen yarn including yarn of animal hair. 2.38 5.35 124.79 Cotton yarn (incl cotton sewing thread) 7.51 10.92 45.41 Flax Yarn,Jute yarn and other vegetable textile yarn. 2.25 2.50 11.11 Man-made filament yarn 200.87 250.09 24.50 100% non-cotton yarn (incl 100% nc sewing thread) 18 22.66 25.89 Total 246.77 Contd…. FABRICS 310.48 25.82 Description 2001-2002 2002-03 %age Increase FABRICS Silk fabrics 20.64 40.16 94.57 Woollen fabrics 1.95 18.31 838.97 Wooven fabrics of cotton Wooven fabrics of flax, Wooven fabrics of jute, other vegetable textile fibres. 41.37 75.75 83.10 14.71 29.00 97.14 Man-made woven fabrics. 69.75 116.65 67.24 Pile fabrics 20.59 22.22 7.92 Other knitted or crocheted fabrics Special woven fabrics; tufted textile fabrics; 'tapestries; trimmings; embroidary 23.4 21.47 -8.25 26.03 41.39 59.01 Total 218.44 364.95 67.07 RMG Articles of apparel and clothing accessories 36.3 Total 36.3 22.40 -38.29 22.40 -38.29 MADEUPS / CARPETS Other made up textile articles; sets; worn textile 'articles; rags, Carpets and other textile floor coverings. 69.26 Total 69.26 67.89 -1.98 67.89 -1.98 OTHER TEXTILE ITEMS Impregnated, coated & laminated textile fabrics; 'textile articles for industrial use, Wadding, felt and nonwovens; special yarns; twine,'cordage, ropes and cables and articles thereof 175.95 Total 1,537.10 188.67 1635.84 7.23 6.42 IMPORT OF TEXTILE ITEMS FROM CHINA P RP (Value in Rs. Lakh) April - May Description 2002-03 MAN-MADE FILAMENT/SPUN YARN 2003-04 5644.88 3256.86 SYNTHETIC & REGENERATED FIBRES 274.01 51.93 READYMADE GARMENTS(WOVN & KNIT) 748.36 115.42 Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata. IMPORT OF TEXTILE ITEMS FROM TAIWAN (Value in Rs. Lakh) April - May Description 2002-03 2003-04 MA N-MA DE FILA MENT/SPUN YA RN 2729.85 3562.27 SYNTHETIC & REGENERA TED FIBRES 1145.35 532.02 16.07 34.77 REA DYMA DE GA RMENTS(WOVN & KNIT) Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata. IMPORT OF TEXTILE ITEMS FROM THAILAND (Value in Rs. Lakh) April - May Description 2002-03 2003-04 MA N-MA DE FILA MENT/SPUN YA RN 1331.62 1160.32 SYNTHETIC & REGENERA TED FIBRES 318.09 732.14 18.82 63.32 REA DYMA DE GA RMENTS(WOVN & KNIT) Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata. IMPORT OF TEXTILE ITEMS FROM ALL COUNTRIES (Value in Rs. Lakh) April - May Description 2002-03 MAN-MADE FILAMENT/SPUN YARN 2003-04 31323.12 27098.99 SYNTHETIC & REGENERATED FIBRES 4844.28 4651.97 READYMADE GARMENTS(WOVN & KNIT) 1805.91 3114.03 Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata. Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata. IMPORT OF TEXTILE ITEMS FROM CHINA P RP Description Man-made staple fibre Man-made filament yarn 100% non-cotton yarn Man-made woven fabrics. Knitted or crocheted fabrics (excluding pile fabrics) Articles of apparel and clothing accessories Unit Tonn e Tonn e Tonn e Tonn e Tonn e 2000-2001 Qty Value 570.50 231.98 2000-2002 Qty Value 891.17 444.11 (Value in Rs. Lakh) 2000-2003 Qty Value 557.09 439.25 1284.71 1184.85 4799.20 4775.57 12358.90 13218.71 231.40 349.66 235.05 287.32 1542.93 1769.25 1630.87 2945.75 1921.63 3165.92 8801.23 12061.16 714.42 1155.47 1916.61 2611.94 2820.42 2894.44 2392.09 N.A. 4995.20 N.A. Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata. N.A. 1347.71 IMPORT OF TEXTILE ITEMS FROM TAIWAN Description Man-made staple fibre Man-made filament yarn 100% non-cotton yarn Unit Tonn e Tonn e Tonn e Tonn Man-made woven fabrics. e Knitted or crocheted fabrics Tonn (excluding pile fabrics) e Articles of apparel and clothing accessories 2000-2001 Qty Value 8496.77 3460.68 2000-2002 Qty Value 5400.07 2530.04 (Value in Rs. Lakh) 2000-2003 Qty Value 3734.07 1695.15 13793.93 7924.43 18086.81 10813.70 20424.32 11868.78 219.35 137.73 178.92 641.09 26.47 55.94 2435.53 4426.81 2608.06 3691.63 4371.62 8024.84 3224.73 3592.86 4113.92 4530.94 1640.43 2301.16 N. A. 68.82 Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata. N. A. 858.10 N. A. 108.02 IMPORT OF TEXTILE ITEMS FROM THAILAND Description Man-made staple fibre Man-made filament yarn 100% non-cotton yarn Man-made woven fabrics. Knitted or crocheted fabrics (excluding pile fabrics) Articles of apparel and clothing accessories Unit Tonn e Tonn e Tonn e Tonn e Tonn e 2000-2001 Qty Value 8474.85 3672.05 2000-2002 Qty Value 10173.15 3848.06 (Value in Rs. Lakh) 2000-2003 Qty Value 14252.15 5992.16 8607.94 4734.93 11533.16 6947.29 10889.41 6711.21 153.55 107.89 59.37 32.79 49.37 164.51 361.57 521.33 568.12 721.39 554.93 1030.62 55.47 99.92 131.28 174.50 318.19 623.64 N. A. 541.68 Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata. N. A. 368.21 N. A. 290.44 IMPORT OF TEXTILE ITEMS FROM ALL COUNTRIES Description Man-made staple fibre Man-made filament yarn 100% non-cotton yarn Unit Tonn e Tonn e Tonn e Tonn Man-made woven fabrics. e Knitted or crocheted fabrics Tonn (excluding pile fabrics) e Articles of apparel and clothing accessories 2000-2001 Qty Value 40357.23 17964.10 95317.45 2000-2002 Qty Value 43443.77 19053.15 69092.39 121936.82 (Value in Rs. Lakh) 2000-2003 Qty Value 61516.74 27060.27 95474.88 159435.64 121720.01 4080.38 3523.49 11691.49 8556.22 11838.59 10548.42 18112.46 26004.20 32436.75 33153.19 37015.22 55664.80 6685.23 8198.94 9035.07 11119.67 7125.40 10034.61 N. A. 9893.58 N. A. Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata. 17252.82 N. A. 11593.30 INDIA'S EXPORTS OF TEXTILE PRODUCTS (IN TERMS OF US $) Percentage Change Jan 2002 USA U Arab Emts UK German F Rep France Italy Canada Russia Netherlands Spain Others Apr-Jan 01- Apr-Jan 02Jan 2003 02 03 Between Share in total Apr-Jan 01-02 exports & Apr-Jan 02-03 (Apr-Jan 02-03) (US $ Mill.) (3) (4) (1) (2) 211.45 55.99 60.40 45.97 58.90 39.21 33.71 39.13 32.02 22.41 301.42 240.47 62.98 85.98 36.44 48.92 28.24 30.80 22.86 18.00 26.58 313.94 1623.18 543.20 531.03 384.27 336.71 290.54 231.26 311.81 171.03 145.23 2937.91 900.60 915.21 7506.17 Percentage (5) (6) 1918.61 609.17 594.28 454.00 347.51 287.39 264.48 237.73 194.93 182.45 3091.06 18.20 12.14 11.91 18.15 3.21 -1.09 14.37 -23.76 13.97 25.63 5.21 23.45 7.45 7.26 5.55 4.25 3.51 3.23 2.91 2.38 2.23 37.78 8181.62 9.00 100.00 Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata. INDIA'S EXPORTS OF MANMADE YARN, FABRICS, MADEUPS (IN TERMS OF US $) Percentage Change Jan 2002 U Arab Emts Saudi Arabia Turkey USA UK Singapore Italy Spain Belgium Sri Lanka Others Apr-Jan 01- Apr-Jan 02Jan 2003 02 03 Between Share in total Apr-Jan 01-02 exports & Apr-Jan 02-03 (Apr-Jan 02-03) (US $ Mill.) (3) (4) (1) (2) 20.35 3.05 2.65 3.23 4.40 1.37 2.62 3.64 1.83 1.82 40.32 27.85 6.34 5.72 5.92 3.96 7.12 2.88 5.28 2.69 3.26 48.09 175.82 41.10 21.84 24.57 50.58 20.33 34.18 39.60 20.38 18.88 438.12 85.29 119.10 885.40 Percentage (5) (6) 223.28 59.21 57.71 50.74 49.30 46.34 43.35 40.70 29.10 24.47 454.45 26.99 44.06 164.31 106.48 -2.53 127.97 26.81 2.79 42.81 29.64 3.73 20.70 5.49 5.35 4.70 4.57 4.30 4.02 3.77 2.70 2.27 42.13 1078.67 21.83 100.00 Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata. INDIA'S EXPORTS OF MANMADE FIBRE GARMENTS (IN TERMS OF US $) Percentage Change Jan 2002 USA UK U Arab Emts France German F Rep Canada Saudi Arabia Russia Netherlands Belgium Others Apr-Jan 01- Apr-Jan 02Jan 2003 02 03 (US $ Mill.) (3) (4) (1) (2) 21.38 5.92 6.58 6.39 4.19 2.08 1.53 3.70 3.29 1.89 17.83 30.07 5.89 4.55 5.54 2.68 2.39 1.54 4.13 1.64 0.86 13.40 194.26 47.94 55.30 41.26 36.64 25.07 18.94 46.98 19.37 14.97 166.89 74.78 72.71 667.62 Percentage Between Share in total Apr-Jan 01-02 exports & Apr-Jan 02-03 (Apr-Jan 02-03) (5) (6) 210.45 50.44 47.51 39.42 30.09 23.14 20.02 16.81 15.43 13.94 116.84 8.34 5.22 -14.09 -4.46 -17.88 -7.69 5.67 -64.23 -20.35 -6.85 -29.99 36.03 8.64 8.13 6.75 5.15 3.96 3.43 2.88 2.64 2.39 20.00 584.08 -12.51 100.00 Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata. INDIA'S EXPORTS OF WOOL GARMENTS (IN TERMS OF US $) Percentage Change Jan 2002 USA France UK U Arab Emts Russia Ukraine German F Rep Netherlands Kyrghyzstan Malaysia Others Apr-Jan 01- Apr-Jan 02Jan 2003 02 03 (US $ Mill.) (3) (4) (1) (2) 6.90 1.53 1.31 0.85 1.85 0.79 0.96 0.75 0.39 0.17 3.98 6.64 1.01 1.48 1.91 0.44 0.21 0.48 0.49 0.30 0.27 4.65 73.92 13.04 10.49 15.70 40.38 4.35 6.54 4.47 3.76 3.25 42.63 19.48 17.88 218.52 Percentage Between Share in total Apr-Jan 01-02 exports & Apr-Jan 02-03 (Apr-Jan 02-03) (5) (6) 70.89 14.63 12.55 10.96 10.41 8.26 7.45 4.94 4.79 4.60 41.25 -4.09 12.22 19.65 -30.16 -74.23 89.85 13.93 10.61 27.49 41.57 -3.24 37.17 7.67 6.58 5.75 5.46 4.33 3.91 2.59 2.51 2.41 21.63 190.75 -12.71 100.00 Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata. INDIA'S IMPORTS OF TEXTILE PRODUCTS (IN TERMS OF US $) Percentage Change Percentage Jan 2002 Jan 2003 Apr-Jan 01-02 Apr-Jan 02-03 Between Share in total Apr-Jan 01-02 imports & Apr-Jan 02-03 (Apr-Jan 02-03) (US $ Mill.) (1) (2) (3) (4) (5) (6) China P RP Korea RP Taiwan Indonesia Hong Kong Malaysia Thailand USA Japan Nepal Others 6.89 6.98 8.57 2.97 3.75 2.22 1.65 2.40 2.18 4.85 12.16 14.43 7.07 8.50 7.06 5.56 4.11 2.29 2.81 3.08 0.34 18.23 75.66 85.82 93.05 37.93 21.09 30.28 28.34 27.74 34.14 41.43 123.55 131.26 83.64 83.57 63.98 44.86 38.95 33.95 31.82 31.68 30.49 163.39 73.48 -2.53 -10.18 68.68 112.75 28.62 19.77 14.69 -7.21 -26.41 32.24 17.80 11.34 11.33 8.67 6.08 5.28 4.60 4.31 4.30 4.13 22.15 54.60 73.48 599.03 737.58 23.13 100.00 Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata. INDIA'S IMPORTS OF COTTON YARN & FABRICS FROM MAJOR SHIPPERS (IN TERMS OF US $) Percentage Change Jan 2002 Apr-Jan 01- Apr-Jan 02Jan 2003 02 03 Between Apr-Jan 01-02 & Apr-Jan 02-03 Hong Kong China P RP Switzerland Japan Korea RP Taiwan Indonesia Italy UK Malaysia Others (US $ Mill.) (3) (4) (1) (2) 0.48 0.82 0.31 0.30 0.12 0.32 0.12 0.07 0.03 0.41 1.18 1.91 1.74 1.42 0.83 0.41 0.63 0.47 0.30 1.44 0.18 0.68 4.60 11.92 1.76 0.74 2.06 4.32 0.98 1.44 0.29 2.29 7.82 4.16 10.01 38.23 Percentage Share in total imports (Apr-Jan 0203) (5) (6) 17.39 13.80 7.23 5.61 4.74 4.46 3.04 2.52 1.96 1.75 9.23 277.62 15.79 309.84 659.31 130.68 3.14 208.87 74.98 577.42 -23.29 17.97 24.24 19.25 10.07 7.82 6.61 6.22 4.23 3.52 2.73 2.45 12.87 71.72 87.61 100.00 Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata. INDIA'S IMPORTS OF MAN-MADE FILAMENTS/SPUN YARN (INC. WASTE) FROM MAJOR SHIPPERS (IN TERMS OF US $) Percentage Change Percentage Apr-Jan Apr-Jan Jan 2002 Jan 2003 01-02 02-03 Between Share in total Apr-Jan 01-02 imports & Apr-Jan 02-03 (Apr-Jan 02-03) (US $ Mill.) (1) (2) (3) (4) (5) (6) Indonesia Korea RP China P RP Taiwan Malaysia Japan Nepal Thailand German F Rep Singapore Others 2.15 4.53 0.93 3.21 1.43 1.35 3.26 0.73 0.80 0.41 3.10 6.35 4.48 5.09 2.78 3.71 1.53 0.00 1.23 1.07 0.74 5.37 30.34 39.70 12.15 28.22 24.81 27.80 28.72 14.23 6.53 5.39 31.70 56.93 53.21 45.51 34.32 31.62 19.55 17.35 14.01 9.39 5.98 43.15 87.64 34.02 274.64 21.59 27.46 -29.68 -39.58 -1.54 43.96 10.98 36.12 17.20 16.07 13.75 10.37 9.55 5.91 5.24 4.23 2.84 1.81 13.04 21.91 32.35 249.59 331.03 32.63 100.00 Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata. INDIA'S IMPORTS OF MADEUPS TEXTILE ARTICLES FROM MAJOR SHIPPERS (IN TERMS OF US $) Percentage Change Percentage Apr-Jan 01- Apr-Jan 02Jan 2002 Jan 2003 02 03 Between Share in total Apr-Jan 01-02 imports & Apr-Jan 02-03 (Apr-Jan 02-03) (US $ Mill.) (1) (2) (3) (4) (5) (6) USA Canada China P RP Japan Korea RP Nepal Malaysia U Arab Emts Bangladesh Australia Others 0.70 0.27 0.25 0.10 0.02 0.18 0.02 0.08 0.26 0.17 0.45 0.85 0.59 0.82 0.28 0.28 0.00 0.01 0.05 0.00 0.03 0.63 6.98 2.78 3.62 0.66 0.13 1.63 0.37 1.01 8.79 0.38 4.93 9.90 6.00 5.49 1.92 1.25 1.24 0.99 0.60 0.57 0.54 4.42 41.82 115.94 51.56 190.15 873.74 -23.78 167.08 -40.24 -93.53 43.94 -10.35 30.07 18.22 16.67 5.83 3.79 3.77 3.01 1.83 1.73 1.65 13.43 2.49 3.54 31.28 32.93 5.28 100.00 Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata. INDIA'S IMPORTS OF OTHER TEXTILE YARNS, FABRICS, MADEUP ARTICLES FROM MAJOR SHIPPERS (IN TERMS OF US $) Percentage Change Percentage Apr-Jan 01- Apr-Jan 02Jan 2002 Jan 2003 02 03 Between Share in total Apr-Jan 01-02 imports & Apr-Jan 02-03 (Apr-Jan 02-03) (US $ Mill.) (1) (2) (3) (4) (5) (6) China P RP Taiwan Korea RP Hong Kong Thailand UK USA German F Rep Switzerland Nepal Others 4.82 5.01 2.29 2.78 0.85 1.02 1.37 1.03 0.93 0.89 4.00 6.56 5.08 1.84 2.58 1.03 1.77 1.09 1.31 0.79 0.00 4.01 38.83 58.20 43.56 12.74 12.59 6.32 13.98 8.57 2.22 5.41 45.12 63.95 44.57 24.11 20.92 18.74 17.10 14.88 12.42 10.55 10.30 45.84 64.68 -23.42 -44.65 64.25 48.86 170.77 6.42 44.99 375.71 90.45 1.60 22.57 15.73 8.51 7.38 6.61 6.04 5.25 4.38 3.72 3.63 16.18 25.00 26.06 247.52 283.37 14.49 100.00 Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata. INDIA'S IMPORTS OF READYMADE GARMENTS (WOVEN & KNIT) FROM MAJOR SHIPPERS (IN TERMS OF US $) Percentage Change Percentage Apr-Jan 01- Apr-Jan 02Jan 2002 Jan 2003 02 03 Between Share in total Apr-Jan 01-02 imports & Apr-Jan 02-03 (Apr-Jan 02-03) (US $ Mill.) (1) (2) (3) (4) (5) (6) Malaysia China P RP Bangladesh Nepal Hong Kong UK Philippines Italy Israel Thailand Others 0.23 0.07 0.01 0.35 0.08 0.01 0.00 0.01 0.00 0.06 0.23 0.11 0.22 0.00 0.34 0.17 0.08 0.04 0.08 0.00 0.02 0.45 1.78 9.14 1.59 5.49 1.26 0.48 0.02 0.48 0.01 0.65 11.50 2.81 2.51 1.72 1.59 1.47 1.38 1.35 0.74 0.55 0.47 3.94 58.14 -72.53 8.22 -71.05 16.37 185.10 5626.65 53.57 9714.83 -27.77 -65.77 15.18 13.56 9.30 8.59 7.92 7.42 7.28 3.98 2.98 2.53 21.25 1.05 1.52 32.41 18.53 -42.84 100.00 INDIA'S IMPORTS OF OTHER TEXTILE YARNS, FABRICS, MADEUP ARTICLES FROM MAJOR SHIPPERS (IN TERMS OF US $) Percentage Change Percentage Apr'02-AprApril 2002 April 2003 02 China P RP Taiwan Hong Kong Thailand German F Rep Korea RP USA Indonesia UK Switzerland Others Apr'03Apr'03 (US $ Mill.) (3) (4) (1) (2) 3.73 4.52 1.44 0.79 0.78 2.12 1.40 0.34 0.76 0.45 4.27 5.35 3.62 2.91 2.51 2.20 2.13 0.97 0.88 0.84 0.78 4.57 3.73 4.52 1.44 0.79 0.78 2.12 1.40 0.34 0.76 0.45 4.27 20.59 26.76 20.59 Between Share in total Apr'02-Apr-02 imports & Apr'03-Apr'03 (Apr'03-Apr'03) (5) (6) 5.35 3.62 2.91 2.51 2.20 2.13 0.97 0.88 0.84 0.78 4.57 43.67 -19.93 101.78 219.67 182.99 0.36 -30.19 157.28 10.87 70.87 7.05 20.00 13.53 10.87 9.38 8.22 7.94 3.64 3.29 3.15 2.90 17.07 26.76 29.97 100.00 INDIA'S IMPORTS OF READYMADE GARMENTS (WOVEN & KNIT) FROM MAJOR SHIPPERS (IN TERMS OF US $) Percentage Change Percentage Apr'02-AprApril 2002 April 2003 02 USA China P RP Nepal Hong Kong Malaysia German F Rep Spain Philippines Italy Indonesia Others Apr'03Apr'03 (US $ Mill.) (3) (4) (1) (2) 0.02 0.11 0.10 0.14 0.17 0.09 0.00 0.35 0.05 0.02 0.82 1.60 0.59 0.47 0.35 0.19 0.18 0.09 0.08 0.07 0.06 0.29 0.02 0.11 0.10 0.14 0.17 0.09 0.00 0.35 0.05 0.02 0.82 1.88 3.98 1.88 Between Share in total Apr'02-Apr-02 imports & Apr'03-Apr'03 (Apr'03-Apr'03) (5) (6) 1.60 0.59 0.47 0.35 0.19 0.18 0.09 0.08 0.07 0.06 0.29 6414.97 444.05 387.24 139.72 14.97 91.50 151230.55 -77.00 40.44 258.65 -64.82 40.37 14.73 11.80 8.70 4.83 4.56 2.33 2.04 1.88 1.47 7.29 3.98 111.46 100.00 Popular price perceptions Italy Japan Korea Turkey Taiwan Thailand Indonesia China Popular Quality Perception Japan Italy Korea Taiwan China Indian Import Duty to go Producers of cotton fabrics and garments would also benefit due to lower prices. According to a textile ministry official, the move to remove the import duty is prompted by the higher international prices. Global cotton prices for various varieties currently rule at 40-50% higher than last year. Consumers of yarn, fabrics and garments are likely to support the government’s move. India Customs Tariff with New Import Policies 2003 - 2004 Chapter wise headers • • • • Chapter 52 - Cotton Chapter 54 - Man-Made Filaments Chapter 55 - Man-Made Staple Fibres Chapter 56 - Wedding, Felt and Nonwovens; Special Yarns; Twine, Cordage, Ropes and Cables and Articles thereof • Chapter 57 - Carpets and Other Textile Floor Coverings • Chapter 58 - Special Woven Fabrics; Tufted Textile Fabrics; Lace; Tapestries; Trimmings; Embroidery Contd…. • Chapter 59 - Impregnated, Coated, Covered or Laminated Textile Fabrics; Textile Articles of a kind suitable for Industrial Use • Chapter 60 - Knitted or Crocheted Fabrics • Chapter 6 - Articles of Apparel and Clothing Accessories, Knitted or Crocheted • Chapter 62 - Articles of Apparel and Clothing Accessories, Not Knitted or Crocheted • Chapter 63 - Other Made Up Textile Articles; Sets; Worn Clothing and Worn Textile Articles; Rags Competition In India - Surat Cost effective No Sophistication in designs No Sophistication in Colours Quick turnover Suitable Taiwanese textile items to be marketed in Indian market • Dyed fabrics • Polyester filaments • Blended Synthetic Fabrics How to approach the Indian market? • • • • The mind set of a Buyer How to negotiate with a buyer? How to close a deal? How to find a partner/Distributor? The mind-set of the Indian buyer • Very price conscious • Bargains a lot