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OAGN Growing business on India’s core strength with strategic sourcing model

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Over the years, there has been a sea change in the attitude of buyers when working with Indian vendors. While earlier there was the inclination to preach and highlight the missing links, now there is an acceptance of what the country as a whole and vendors individually are capable of doing. This transformation has worked to the advantage of both the buyer and the industry, and today both have grown on India’s strength. Among the liaison office that has been in the country from a very long time and has continuously moulded its operations to get the best from its vendors is Hermes-OTTO International (OAGN). Recently, Team Apparel Online met Percy Vasunia, GM – India at the OAGN head office in Mumbai and among the many discussions, Percy shared the transformation of the catalogue business and its integration into online retailing. 

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Francis Wacziarg addressing sourcing bottlenecks.

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Known for its design-driven, cultural potpourri of collections for primarily French buyers, buying office Francis Wacziarg, named after its late owner, reflects the desire of Wacziarg to bring his adopted country India, into the markets of Europe. Yet, a true businessman, the soft spoken Frenchman was intelligent enough to know that India could not offer price-sensitive basic products that are also essential to complete a collection, so Bangladesh became a hunting ground for core programmes from 1979, and in sweaters, as early as
1989-90.

A cultural ambassador, Wacziarg’s affinity for the subcontinent was well known and he tapped into the strength of each country to present the best to buyers in France.

Working

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Capturing the South American Markets with Falabella Buying Office

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ALPANA RAZDAN,GENERAL MANAGER th

The traditional buyer base of Indian apparel exports is witnessing a subtle but impactful change with many exports adding new and hitherto relatively unexplored markets in their portfolio. Not only has this shift taken away the concentration on getting business from the US and Europe, both of which have seen rough times in the past years, but it also gives year round business since most of the new markets are in the southern hemisphere. Among the most important emerging markets today is South America… with a stable economy and rising purchasing power the countries of the region are an attractive alternate to the traditional markets which have stagnated. Steering the industry into this potential market is Falabella India buying office, which represents the largest chain of stores and brands

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Italian Buying Office Studiotex Sourcing Basic Merchandise from Bangladesh

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A journey started in 1990 by Nadia Benedetti, Managing Director, Studiotex Ltd. as an agent from Italy, now exports US $ 35 million per annum, which includes garment manufacturing units and a buying agency, with sourcing accounting for US $ 20 million. For decades, Bangladesh has been a home away from home for Nadia. 

Though Nadia had been sourcing from Bangladesh for some time, it was the bleak economy of 1996 which triggered the search for a more competitive sourcing destinations. Having learned the nuances of sourcing from her father, she took it upon herself to venture to Bangladesh to open her first buying office. “The increasing client base and their demand for more competitively priced products were instrumental in exploring Bangladesh as a sourcing

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TexKom BD harnessing regional strengths of sub-continent to achieve US $ 17 million turnover in one year of operation

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Oliver Raeuchle

Many liaison offices are capitalizing on the product specialization of sourcing bases within the Indian sub-continent, but it is rare to see buying agents strategize in this direction; an exception is TexKom BD which is providing end-to-end solutions to its buyers from apparel manufacturing hubs of Bangladesh, Pakistan and India. The company, established less than a year ago (September 2013) and has already set the bar high with a turnover of US $ 17 million and is driven by the passion and confidence of its German Managing Director, Oliver Raeuchle.

“We are trying to establish a sub-continental business hub for sourcing. That means while we mostly source out of Bangladesh, we also look at India and Pakistan, as and when needed.” It is this feat

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Small quantities more value the mantra for sourcing sweaters at Natex, Denmark

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Deepak Joshi, Country Manager, Natex Bangladesh

Capitalising on the strengthening competence of Bangladesh in sweater manufacturing, Natex Bangladesh Ltd., a liaison office of a Danish company catering to all major retailers in Denmark such as DKC, besides sourcing for some private labels, is also exclusively sourcing sweaters in a wide variety from the country. Having brands like Fransa, Be-on, Coup under its umbrella, Natex also has its own in-house brand ‘Leepu’ which is manufactured in Bangladesh. Deepak Joshi, a part of the core management group at Natex and the person behind the Bangladesh operations, talks about the sweater industry in Bangladesh and how he has developed the value-added business in sweaters...

“Since we do not have big volumes but assure work round the year, we have under our wing

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CJ International TO NOW SOURCE linen, heavy knits and chiffon blouses

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Roshan Withanage, Managing Director, CJ International

A Swedish trading house, C Jahn AB has a unique model of operations in five countries in which it operates. “Simply go into a joint venture partnership with a local person,” says Roshan Withanage, Managing Director, CJ International who has previously worked with the Sri Lankan giant MAS Holdings. C Jahn AB which began as a home furnishings designing and sourcing company in 1940 in Sweden, with time grew to establish offices in Bangladesh, Pakistan, India, China and Hong Kong in partnership with local people. CJ International (CJI) – the Bangladeshi arm of C Jahn AB – is buying apparels worth US $ 50 million while the total buying of C Jahn AB is US $ 150 million.

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Fifth Avenue to increase its sourcing by 50% from Bangladesh

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Fifth Avenue has focused on pigment dyeing which is in high demand for knits and woven tops

When decisive business strategies are becoming increasingly important for a company’s success and failure, india-based fifth avenue’s policy to source only value-added products from bangladesh, has grabbed many eyeballs. established in 2000 and based in chennai, india, fifth avenue – working for brands such as Diesel, GAS, Replay, Teddy Smith, Gaudi and Kiomi – established its Bangladesh office in 2008 by shifting its business from china, to cash in on the duty-free import facility available to exports meant for europe and utilize the steadily improving value addition capabilities of the country.

With an annual turnover of uS $ 70 million, out of which 10% is generated from bangladesh, Fifth Avenue now plans to increase

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Caretex plans it big for future

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An annual turnover of US $ 15 million may not be big for a company in Bangladesh but Knn Linkuowned Caretex is a decade-old garment exporting company from Bangladesh with a rich experience of sourcing variety of products for its clients from across the globe.  The rich experience may have paid higher dividends in terms of turnover and profit but because of an early setback, Linku had to restart his business from scratch with full conviction and determination to resurface again to build a rich clientele. “Currently we are working with Japanese and Korean clients; one amongst them has a chain of around 11,000 stores spread across China and Korea,” maintained Linku

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Delta Sourcing looking for innovative suppliers of scarves

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Delta Sourcing, a Delhi-based buying house, is expanding its product basket into multi directions and expecting 30 per cent growth in the current fiscal. Working with 5 buyers on regular basis in France and Canada, the buying house is mainly sourcing men’s wear, women’s wear and accessories. Currently, the company is looking for such scarf manufacturers who not only have interesting designs, but perfect presentation also. The requirement has come in from its Belgium based buyer that is looking for innovative and unique kinds of designs in scarves in which a single scarf is actually a combination of 4 scarves based on a story and colour coordination.

“I have met some manufacturers and visited few factories,

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Motif International: Looking for creating niche for sustained growth

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Amidst growing presence of big buying and trading houses, and direct offices of major brands, retailers and importers, including Li & Fung, Connor International and Asmara, to mention some, it’s time that the dynamics of smaller business houses undergo change if they are to survive, thrive and grow in the existing scenario. And who better to understand this than Abujore Md Shamaun, Managing Director, Motif International, with his rich experience in the buying side.

Having served UK-based import company, Cherry Field, as Country Manager for six long years since its inception in 2006, Shamaun decided to start his own buying operations and thus founded BS Asia Ltd., in partnership with a Swedish buyer and a native associate. Unfortunately though, this joint venture was

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Buying house ‘Rare Texsource’ starts own manufacturing

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Sunil-Vinod-Sathyan

Rare Texsource, a 4-year-old Chennai-based buying house, recently started its own manufacturing (Raretex Fashions) in Tirupur, with a capacity of 50,000 pieces per month. Sourcing woven shirts, shorts and Tees and having clients in UK and Spain, it overall sources around 1, 50,000 pieces per month and has total of 16 vendors in India.

Having experience of 15 years, Sunil T, MD of the company in a meeting with Apparel Online informed, “We are a growing company and have set up a factory recently. The reason to start a unit despite labour shortage was simple, as we felt there are many such buyers who don’t prefer to work with buying

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Vlerick Kids Fashion NV is looking for premium kidswear manufacturers VLERICK

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Senthilnathan

Belgium-based company Vlerick Kids Fashion NV is looking for exporters of kidswear that can offer premium products and are ahead in PD. Currently having more than 20 vendors in Mumbai, Delhi and Chennai, the company is equally into sourcing of knits and woven products. The buyer sources a variety of products in kidswear as it offers at least 4 to 5 products in one hanger as a complete set, rather than selling just one particular product. Having its offices in Tunisia, Bangladesh, Turkey, Hong Kong and India, the company is 90 per cent into children’s wear and rest is devoted to men’s and women’s wear. 

Senthilnathan S.M., heading the company’s India office in Tirupur and taking care of the entire production in India, in conversation

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Capabilities in sweater manufacturing propelling growth of EWM’s business in Bangladesh

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With over 1,200 stores across the UK, Edinburgh Woollen Mill Group (EWM), one of the biggest retail conglomerates in the UK, owns Peacocks, fashion chain Jane Norman, homeware retailer Ponden Mill, and the Edinburgh Woollen Mill brand, which manages 8 in-house labels. After a very profitable year in 2014 with pre-tax profits growing by 26 per cent, mostly due to the incredible turnaround in performance of the discount clothing chain Peacocks, which the Group rescued in 2012 from administration, EWM has intensified its global sourcing. Both India and Bangladesh are expanding their operations with bigger offices and more manpower to service their client base and grab a larger share in the sourcing pie. With Bangladesh already a major manufacturing base, the retailer is now looking to expand not

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Nine Square: A new buying house in Tirupur

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Despite increasing challenges in apparel export business, it is good news that new players are entering into it. Though most of them are at medium level, they are definitely a support for the industry. Nine Square, a buying house in Tirupur, is also one of them that has just recently completed first year of its establishment. Started by four partners with strong knowledge in sourcing and management, the buying house is working with two chain stores of France and Poland, supplying to them men’s outerwear and kidswear in knitted fabric mainly. Associated with three suppliers of Tirupur, the buying house is also planning to start its own manufacturing in next one year. Leading the team, Saminathan Jayakumar, CEO of the company has experience of working with C&A – Mondial Orient Ltd., TMS International, Dhaka and many other buying offices.

Somu,

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Apparel Global Consulting initiates the use of rPET fabric

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Apparel Global Consulting (AGC), a Tirupur-based buying house having clients in Europe and Australia, has started working on recycled fabric – rPET, and very soon the first shipment of Tees made from this fabric will be dispatched to Australia. The buying house is also looking to use more blends and costly fabrics like linen in its various products in the coming days. “Use of rPET fabric has its limitations, like one can’t have many options in colours and in weights, as the fabric has minimum 190 GSM. Despite that due to its recycle quality we were motivated to offer it to our buyers and thankfully one of our Australian buyers has finalized a shipment of Tees using the fabric. From the cost point of view too

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Texture BD taking the uncharted territory to ensure business growth

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Texture-BD

Established in 2007 as a 100 per cent export-oriented buying house, Dhaka-based Texture BD has tie-ups with more than 30 manufacturing units in the country to produce both knit and woven items with office uniforms and sportswear being the core specialization. Though upbeat of growth potential and despite a marginal improvement in business in the current year, Md. Jasim Uddin, Managing Director – Texture BD rues that there are a host of issues to deal with, and many challenges that slow down the pace of growth. “As buyers, our biggest challenges are poor infrastructure and the existing political scenario in the country,” observes Jasim, who adds that in an industry where ‘time is considered money’, the poor road connectivity is exacting a heavy price on entrepreneurs like him.

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PDS Multinational Group changing the very face of sourcing business in Bangladesh

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The second biggest sourcing office in Bangladesh in terms of volume and business, the US $ 800 million PDS Multinational Group (Norwest) has much in stake in the overall growth and development of the country’s apparel industry, not to mention its leadership role in giving it the correct guidance and direction, more so in the light of safety and compliance issues that have somewhat hamstrung the growth of the world’s preferred garmenting hub.

“After the Rana Plaza and Tazreen incidents, we were a little bit on the back foot, in an awkward situation. However, the overall compliance scenario is improving now; factories are increasingly becoming compliant and even getting more orders... Accord and

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MPL: Sourcing arm of K&L Ruppert, Germany, exonerates Bangladesh on compliance issues

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MPL

Marketing Partners Limited (MPL), the Bangladesh liaison office of K&L Ruppert, Germany, is sourcing Euro 30 million worth of products annually from the country. Besides representing K&L, the buying office also caters to Klingel Germany, a mail order company for whom MPL is responsible for sourcing, testing, price negotiations and purchasing. “As a liaison office we were working exclusively for our parent company, but three years ago when market conditions became tough, K&L allowed us to add few smaller German companies, including Klingel to our portfolio, as we understand the German market and also the strength of Bangladesh,” says Country Manager Abul Hasan. In an interaction with Apparel Online, Abul shares his views on the European economic crisis and issue of compliance that has earned Bangladesh a lot of bad press.

“Accord and Alliance audits have clearly

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Amida 9 Global Sourcing looking for nightwear suppliers

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Vimmi Watts

Noida-based buying house Amida 9 Global Sourcing is looking for nightwear suppliers as the company has recently added a buyer based in France of the same product. The company, exporting bags to Japan, is also looking for bag manufacturers. “In Delhi-NCR, we are not finding suppliers who can offer real creative work as we and our buyers are looking for ‘very different’ types of bags unlike generally being produced by others. There are some suppliers who are associated with us for both the products, but if anyone can impress with his/her collection, we will like to work with them,” informed Vimmi Watts, Founder of the company who has experience of more than 25 years in the industry and handled clients like C&A, Zeeman, Galleries

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