With the world’s fifth highest per capita income and a population of 2.5 crore, Australia has an apparel market of US $ 5,061 million. And India – the third largest exporter to this country – exported almost US $ 111 million worth of garments last year, about two per cent of total imports by Australia. While it is a common perception that this is a very small market but in reality if one can handle small orders and boutique buyers, it provides good opportunities. The same was felt by Indian participants at the recently concluded Australia International Sourcing Fair (AISF) where more than 200 exhibitors showcased in Melbourne their latest collections.
Most of the exhibitors from India say that buyers were mostly small, having three to seven boutiques and offering small orders of 1,000 or less pieces. Although it was a disappointment for those looking for wholesalers, but a good opportunity for those companies that cater to small orders. “It is a market for SMEs and basically for those who are comfortable with small orders. And it is quite good when you are getting little extra as Australian buyers are good in pricing compared to other countries,” says Aroona Mann, Director, Hausmod, Noida. The company participated for the first time and got five serious buyers.
Most Australian buyers are good in payment terms and working with them is easy as they offer lead time of normally 45 days, which is reasonably good for small orders. “Few buyers will even give you 40 per cent advance and they don’t negotiate much on price. We are working with Australia from last 4 years and have noticed about 20 per cent growth in this market,” says Akshay Sadh, Director of A.K.S Fashions/Essay Fashion, Delhi. Letter of Credit (LC) is not very common, but payments are safe with Australian buyers, according to those working in the market. Being boutique buyers they never create hype about compliance too.
Many of the Indian exhibitors were approaching Australia for the first time and some of them were satisfied with the event as well as market. “It’s our first sincere effort for this market and we are focusing on Melbourne and Sydney as these two cities have a good scope. At the fair we got online buyers that offer very small orders,” informed Devang Sheth, Intime Knits, Mumbai. Anjali Exports, Jaipur is another company that has just started sampling for the same and is hopeful to get orders soon.
There is a divided opinion on how important Australia could be for export growth. “It is very slow market and takes time to build, which is why I don’t see it as a very good market to explore if you are not already doing it,” reasons Akshay. Aroona however differs, saying that it depends on your design and products, as Australian buyers being boutique buyers give priority to new developments. But one has to be very cautious because being a small market most of the buyers know each other and if you don’t fulfil your commitments then the word spreads fast.
Hanish Mehta, Partner, BN Exports, Mumbai has been working with Australian market for the last 10 years and is still not happy because he is unable to find wholesalers. “We participated at the fair in the hope of getting some big wholesalers, but we found only small quantity buyers asking for 300 pieces per colour per style,” said Hanish. Companies exporting garments with FOBs upward of US $ 40 have seen very good growth.” Preeti S Kapoor, Delhi is doing this market from the last two years and has achieved 50 per cent growth. Sukesh Kapoor, MD of this boutique export company says, “For embroidery and embellishments, India is the first choice for any market and Sydney, which has more boutiques than Melbourne, is no different.”
