ON­LINE: NOT YET… WHY?

Apparel Online - - Opportunities E-Retail -

Less mar­gins:

Less mar­gins is def­i­nitely a chal­lenge in over­all on­line seg­ment. Ex­porters work­ing for var­i­ous plat­form la­bels are of the view that lo­cal sourc­ing staff, be­sides over­all price pres­sure and very high num­ber of sup­pli­ers, are some of the rea­sons of less mar­gin spe­cially com­pared to ex­port. Some man­u­fac­tur­ers shared that few well­known plat­forms ask for 30 to 40 per cent com­mis­sion to sell their brand/ la­bel which is too much and not vi­able. To of­fer prod­uct with such high per­cent­age in com­mis­sion, one has to play with the prod­uct’s qual­ity which will again spoil the busi­ness. Some ex­porters do share that even pay­ment terms were not clear by some of the web­sites and they have a com­pli­cated MoU. Most of the web­sites pre­fer to work with small ven­dors only.

Fair bal­ance between ex­port and do­mes­tic stores:

Many ex­porters that are hav­ing ex­cess ca­pac­ity, in­sist that a bal­ance between ex­port and do­mes­tic stores, rather than work­ing for on­line is bet­ter as they are not used to this busi­ness model and don’t see any ben­e­fit, at least for the next few years. Their prime con­cern is that ma­chines should not stop work­ing with do­mes­tic stores which is a bet­ter op­tion com­pared to On­line stores.

Niche col­lec­tion; dif­fer­ent teams:

As most of the ex­porters are do­ing value-added gar­ments, which are of high price too, it is not vi­able to keep enough stock of these gar­ments. Also, it is dif­fi­cult for these ex­porters to have ex­tra or dif­fer­ent staff for PD and man­ag­ing over­all ac­tiv­i­ties for on­line. They do not want to mix it up with their ex­ist­ing team. Some ex­porters shared that they will pre­fer hav­ing their own web­site so that they can get proper feed­back also.

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