Archive for August 1, 2008

Fashion giants close Indian sourcing functions

Global apparel brands that are reeling under the impact of weak consumer sentiments worldwide are beginning to pull back their direct sourcing operations from India.

In recent weeks, fashion clothing giant Timberland closed down its India office and handed over sourcing functions to thirdparty management firm Li & Fung. Another American fashion icon Liz Claiborne is believed to be reviewing local sourcing operations as retailers go in for cost cutting to survive a market gloom, sources said. Liz Claiborne’s India sourcing, mainly centred around its Mexx brand, is estimated at $100 million. Timberland’s local sourcing was smaller at around $30 million annually.

Observers said sourcing becomes invariably the first casualty in the restructuring moves of most international fashion houses. UK retailer Next rejigged its local sourcing operations sometime back by pulling shutters on the Bangalore office, but has kept its India presence alive with a hub in New Delhi. The developments mark a reversal in India’s sourcing story that saw unprecedented boom in recent years. Several top deck and even relatively smaller fashion apparel and accessories retailers started direct sourcing from the country.

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August 1, 2008 at 6:24 am Leave a comment

ITC taps Indian frozen food market

ITC Foods has drawn up plans to foray into the nascent frozen foods category in the domestic market within the next six-eight months. The company will extend its Kitchen of India brand to frozen foods, which would include meals packaged in trays and snacks.

ITC recently began exporting frozen vegetarian foods to markets such as the US and Canada, since exporting non-vegetarian foods out of India is restricted. The company is manufacturing the frozen foods range at its Bangalore facility, and will use the same to cater to the domestic market as well, ITC Foods CEO Ravi Naware told ET .

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August 1, 2008 at 5:13 am Leave a comment


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