Sourcing

The existing Foreign Trade Policy of India is outdated by two years, but given the global trade situation—first hit and then exacerbated by the COVID-19 pandemic—is showing no signs of improving, it might be a while before a new FTP sees the light of day. Meanwhile, can India do something to brand itself as an attractive sourcing destination? Buying agents weigh in.

The apparel sourcing experience in India is entirely a function of the kind of product one is procuring, and knowing where to get it from. A mismatch can lead to a total washout of the order, while knowledge and experience could totally alter that exercise.

Oil crisis, rising cotton prices, stagnating growth — too many factors at play now, some interconnected, others having a cascading effect this way or that — all these put buying agents in an unenviable position as they need to deal with two sides of the manufacturer-brand equation, in the backdrop of US sanctions on Russia.

The force majeure cancellations and payment battles that socked Indian exports after the first 2020 lockdown are mostly a thing of the past. But if Indian industry has to rise from the COVID-19 ashes, it will have to boost capacities and need the requisite resources too.

Annual report by Kearney on the extent of reshoring shows little change over the previous year but predicts that a redefinition of reshoring will soon create dramatic change, with companies combining reshoring and nearshoring to create a best cost—rather than a lowest cost—supply chain.

Vietnamese manufacturer Fashion Enterprise could do well during the COVID-19 pandemic—its main buyer Cue not only did not cancel orders, but even paid deposits in advance. Chief Executive Officer Rodney Thanh tells the story of a company where 98% of the workers returned after lockdown.

Première Vision is the go-to event for industry desperate to know about the things to come. The Fashion Director of Première Vision Paris, Desolina Suter, explains what changed because of the pandemic and what trends are already emerging.