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G S Shrikhande, Chief Operating Officer, Shoppers'
Stop
 There
are two categories of imported apparel - one that comes from the European
countries and are in the premium segment, and the other are the imports
from countries like China, Taiwan, etc.
At present, the import duties in India are quite
high for apparel. So imported apparel even from China works out to be
quite costly, after payment of the duties. As for the branded apparel
coming from Europe, US, etc, these are anyway very high priced, and get
more so after the duties. These products are targetted at a very niche
segment of the Indian market. And there aren't many Indian players here.
However, what is happening is that low priced apparel
from China is coming in through the unofficial route. The volumes are
not too big as yet. And I do not expect this trend to continue as customs
duties are getting lowered. Of course, a number of retailers are also
getting these garments in their stores today. But this has more to do
with the fabrics, styles, etc and not just the price. I believe this trend
may continue, but it would not grow to unmanageable proportions, and swamp
the Indian market. Besides, Indian manufacturers are supplying garments
of better quality at similar prices, there is growing focus on designs,
styles, fabrics, etc. There will remain a market for imported garments,
but it would not harm the Indian industry.
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Rahul Mehta, Director, Creative Outerwear
 I
believe there could be a growing market in India for unbranded apparel
imported from China, Taiwan, etc, and if left unchecked, could psoe a
threat for the Indian industry. The top-of-the-line apparel from renowned
international brands, have a very niche market here. Indian brands are
very strong in the mid-priced segment, both on the price and quality front,
and can give stiff competition to imported labels. Also, the import duties
will ensure that such brands are outpriced when they enter the country.
For instance, Levi's Red Tab jeans did not do well, despite Levi's being
a very strong brand in India. This is because the Red Tab jeans were imported
and were very high priced. Brands like Pierre Cardin, Marks & Spencer
are not very popular in India because they were again importing their
apparel, and were thus very high priced.
As against this, imported unbranded apparel could
find a big market in the country. It is today only a trickle, but if unchecked,
there could be a deluge of such apparel. Moreover, the specific rates
of duties which were protecting the industry could well be on the way
out. The government has already begun considering this. The Clothing Manufacturers
Association of India (CMAI) which had recommended imposition of these
duties, has now suggested that these be gradually phased out. We expect
something in the next budget.
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