Indian apparel brands eyeing Chinese mart

After sourcing from China, the Indian apparel brands are set to design a retail road map in the dragon nation.

The brands like Koutons, Lilliput and Spykar are exploring joint venture and inorganic growth opportunities to tap the Chinese market.

The kidswear brand Lilliput is entering China through a newly formed joint venture firm Lilliput Kidswear China.

Sanjeev Narula, managing director, Lilliput said, " The company has identified West Asia and China as focused markets for international expansion. We already source 20 per cent of the merchandise from China and now plans to open 6 stores through the joint venture."

The move is a part of the industry initiative to not only look at China as a sourcing hub but also a potential apparel market.

Rahul Mehta, president, Clothing Manufacturers Association of India (CMAI) said," Indian firms have never thought of China as an export market but we have realised that there is a good scope for Indian brands to compete in the Chinese market. CMAI intends to take a delegation of at least 10-12 brands to China in order to explore the market."

The Indian companies are spotting opportunity in China's vast manufacturing capability and the equally strong purchasing power. For instance, Koutons has hinted at acquiring manufacturing units to gain production scale for its Chinese operations.

D P S Kohli, chairman, Koutons said, "Unlike the common perception of China manufacturing cheap goods, there are some good volume producers as well.

Apart from setting up a sourcing office, the company is also looking for a manufacturing base for cost efficiency and drive synergy between India and China."

While Lilliput will position the brand at a higher retail price than in India. The brand's average retail price in India is $13 (about Rs 520) but it will price Lilliput at $22 (Rs 880) in China.