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| Apparel makers may favour Taiwanese fabrics |
| Archana M Prasanna / Chennai/ Bangalore Nov 13, 2009, 00:40 IST |
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Due to the recent economic slump, apparel exporters have tried to cut their production costs by sourcing low-cost fabric from China. This has hit imports from Taiwan, considered superior in functionality fabrics but more expensive than Chinese. However, on the back of the optimism in the market, Taiwanese fabric makers are hopeful that Indian exporters might re-look at Taiwanese fabrics.
Bangalore-based Go Go International which supplies to brands like VF Corporation, Lee and Marks & Spencer used to source nearly 10-15 per cent of its speciality fabrics from Taiwan till a few years ago until it shifted its sourcing to China to avail of the cost advantage. However it is planning to source a speciality fabric from Taiwan this year. “China has the cost advantage but there are some special fabrics which can only be found in Taiwan. We feel that some of our buyers in Europe might benefit from the quality of the Taiwanese fabric so we are thinking of sourcing them this year,” said S S Goenka, chairman of Go Go International.
Trade estimates suggest that on an average Taiwanese fabrics are priced around 10 per cent more than their Chinese fabrics. However, a big difference is that while China’s strength is mass production, Taiwan has stronger functionalities. Taiwanese fabrics are known for their value additions like anti-perspirance, cool fabrics, eco-friendly materials, anti-bacterial socks and high quality fabrics used in sports wear and lingerie.
Taiwanese fabric makers are pitching their speciality fabrics in India with the reasoning that despite the recession, buyers in India are becoming quality conscious and wouldn’t mind spending a little extra for better functionality fabrics.
“We cannot compete with China as far as cost goes. However, our fabrics have certain functionalities which will not be available in other countries since we invest a lot on our R&D. We want to tap the growing Indian apparel market,” said Jennifer Liu, Project Manager, Asia Pacific Affairs Section, Taiwan Textile Federation.
The global sales of Taiwanese fabrics and accessories is pegged to be around $10.3 billion of which India imports a miniscule share. A delegation of Taiwanese textile companies has come to India to promote their fabrics with Indian apparel exporters.
The Karle Group of companies, headquartered in Bangalore, which supplies garments to top sportwear brands like Nike as well as casual brands like Levi’s sources nearly 25 per cent of its fabrics from Taiwan. “A major sports wear client has identified Taiwan as a nominated source for fabrics. Fabrics from Taiwan have advanced fabric technology used in segments like sports wear,” said K S Prasanna, partner, Karle Group of Companies.
He added that with youngsters in India becoming brand-conscious, companies were concentrating on value additions for products.
R Balaji, joint director, Apparel Export Promotion Council (AEPC) said that a few years ago, fabric imports from Taiwan was nearly $100 million and had fallen to just 1ô4th of that figure in recent times. “Despite fall in import over the last few years, new and innovating fabrics from Taiwan like sweat absorption are definitely catching up with Indian buyers,” said Balaji.
Lingerie is another market which Taiwanese fabric makers are looking to tap in India. Gokaldas Intimatewear which sells the lingerie brand ‘Enamor’ in India sources nearly 20 per cent of its trims from Taiwan. “Our focus is on special fabrics which makes Taiwan an ideal market for quality fabrics. Similarly we also source certain fabrics from Korea and Thailand,” said a purchase executive from the company.
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