ONLINE: NOT YET… WHY?
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.