India: Fashion Market Is Booming &Nbsp; International Brand Is Actively Purchasing Garments.

DonnaKaranNewYork (DKNY), Gant, Arrow, Marks&Spencer and other brands also use this way to avoid high import taxes, make products more competitive, and at some point even set up additional purchasing bases for their international operations.

AsheshAmin, President and garment manufacturer of SKNL group, said that brands already knew that the garments priced at $7 to $11 in retail outlets in India would be unreasonable if imported from abroad, because high import taxes would devour profits.

According to the complex formula of calculating tax, some items tax is as high as 50%.

In May this year, SKNL signed a licensing agreement on design, purchase and manufacture, and sold DKNY's full range of men's clothing to the global market outside Japan.

At present, all purchases of India Cheong store are in the country, and the retail price can not exceed 15% of the price in the near rich market, such as Singapore and Dubai.

The increase in retail sales in India is the main driver of this wave of diversion to local purchasing.

Until a few years ago, the vast majority of international brands were not common in India, so sales in India were too small to place orders at home.

According to the India Central Statistical Office (CentralStatisticsOffice), during the fiscal year April 2009 to March 2010, the retail market of textiles and clothing in India grew by 8.5%, though not large.

The joint venture between British brand Marks&Spencer and RelianceRetail in India is an excellent example.

They have 17 stores in India, ranging in price from $2 to $75.

It is estimated that the proportion of local purchases in India will soon increase from 40% to 70%.

During the accounting period from April 2009 to March 2010, the company purchased from 42 suppliers in India up to US $175 million, including goods exported to foreign stores.

Another reason for the rapid increase of the "India style" trend in international brands is the signing of franchise contracts with India partners.

Most of the foreign brands in the lower tier industry are only joint ventures with India manufacturers in the past 2 years. The contracts signed by them require local manufacturers to import completely from abroad in the first two years.

ArvindBrands in India is responsible for marketing many international brands in India, including Gant, Izod and Arrow. During the fiscal year from April 2009 to March 2010, the sales amount amounted to US $120 million a year. At present, a new foreign brand is being discussed. The brand will be purchased in India.

ArvindBrands said that as long as the import tax continued to exist, manufacturers would leave most of their purchases in India, and once the import tax was abolished, manufacturers would be able to choose the best place to purchase.