Jagdish Furnishings Services New Kind of Indian Customers
April 17, 2000
Dehli, India - Forty years ago, the Khandelwal family began retailing ethnic costume dresses, headgears and fashion accessories to brides and groom. However, in 1982, Jagdish Khandelwal began retailing handloom furnishings. Today, Jagdish stores have been acclaimed as the largest furnishing retail chain stores in Delhi as well as in India. Its three stores in Delhi occupy over 25,000 square feet, stocking furnishing fabrics and accessories from Indian manufacturers as well as from America, the U.K., Belgium, Italy and Spain.
Demand for Western quality furnishings increased as several new multinational companies launched operations in India in the fields of automotive manufacturing, power generation, information technology and others. Foreign embassies located in Delhi and 5-star hotels seeking furnishings and accessories of international quality have also increased demand.
Television has also influenced the market. The individual up-market customer, who is exposed to TV tends to adopt Western lifestyles, the expectation and perception of quality and the price changed substantially.
Even though there is a 74 percent import duty on imported fabrics, they are growing at 20 percent a year. But, according to Jagdish Khandelwal, the import duties will be decreased in next 2-3 years, perhaps to 40 percent and eventually to 20 percent - comparable to other countries.
The result is that while the market for imported fabrics will increase substantially, domestic manufacturers are likely to be hit. ''I import only high-end quality products,'' he said. He also observed that lower import duties could increase price competition and therefore deter growth of Indian manufacturers. ''Consistency in color, new designs, concepts and quality standards are prime expectations from the Indian consumers. Price has become a secondary consideration at this stage,'' he said.
According to sources in retail industry, the total turnover estimates of furnishing fabrics, especially organized brands, is over $150 million a year. The un-branded market, mainly handloom and powerloom fabrics, are multifold, making estimates harder to come by. Because brand-consciousness is minimal among consumers, stores mainly concern themselves with carrying a wide collection of designs and colors. Jagdish estimated that the import of fabrics to India is at least $5 million a year and the other sources in the industry indicate in excess of $8 million. The duties are likely to be slashed downwards in the coming years.
''We are now forced to change our retailing system,'' Jagdish said. ''Not only must we build additional infrastructure, but we have to change the display system, warehousing techniques, sampling and marketing methods.''
Demand for Western quality furnishings increased as several new multinational companies launched operations in India in the fields of automotive manufacturing, power generation, information technology and others. Foreign embassies located in Delhi and 5-star hotels seeking furnishings and accessories of international quality have also increased demand.
Television has also influenced the market. The individual up-market customer, who is exposed to TV tends to adopt Western lifestyles, the expectation and perception of quality and the price changed substantially.
Even though there is a 74 percent import duty on imported fabrics, they are growing at 20 percent a year. But, according to Jagdish Khandelwal, the import duties will be decreased in next 2-3 years, perhaps to 40 percent and eventually to 20 percent - comparable to other countries.
The result is that while the market for imported fabrics will increase substantially, domestic manufacturers are likely to be hit. ''I import only high-end quality products,'' he said. He also observed that lower import duties could increase price competition and therefore deter growth of Indian manufacturers. ''Consistency in color, new designs, concepts and quality standards are prime expectations from the Indian consumers. Price has become a secondary consideration at this stage,'' he said.
According to sources in retail industry, the total turnover estimates of furnishing fabrics, especially organized brands, is over $150 million a year. The un-branded market, mainly handloom and powerloom fabrics, are multifold, making estimates harder to come by. Because brand-consciousness is minimal among consumers, stores mainly concern themselves with carrying a wide collection of designs and colors. Jagdish estimated that the import of fabrics to India is at least $5 million a year and the other sources in the industry indicate in excess of $8 million. The duties are likely to be slashed downwards in the coming years.
''We are now forced to change our retailing system,'' Jagdish said. ''Not only must we build additional infrastructure, but we have to change the display system, warehousing techniques, sampling and marketing methods.''
