In Shops

International fashion brands might give “Made in India” label a miss

Retail chains such as Zara and H&M might be opening stores in India, but the international apparel brands might give the "Made in India" label a miss. Instead, they might prefer tags like "Made in Bangladesh" or "Made in Vietnam". At present, China accounts for more than one-third of the apparel export market. However, the economic slowdown in China has hit its export growth in the recent past. Yet, this is unlikely to benefit India. New apparel export hubs such as Vietnam and Africa, along with some of the traditional export markets like Bangladesh, might grab the chance, according to exporters.

China’s apparel exports grew by about 4.6 percent (valued at USD173.42 billion in 2014) between the calendar year 2103 and 2014. In contrast, its apparel exports had grown nearly 11.7 percent between 2012 and 2013 (USD165.64 billion in 2013), according to data from UN Comtrade. India’s apparel exports growth remained muted at about five per cent between 2013 and 2014 (valued at USD16.53 billion in 2014).

Though, India’s apparel export growth over the last two years has been marginally higher than that of Bangladesh, the actual numbers are much less than that of Bangladesh. In 2014, Bangladesh’s total apparel export was USD24.58 billion, against India’s export of USD16.53 billion.
 

Follow Retail in Asia on Facebook, Twitter and LinkedIn.

Get our top stories delivered to your inbox:

 

Stay ahead
Subscribe for free!
Register now
Stay ahead