Armani Exchange, Superdry, Calvin Klein, Tommy Hilfiger, and US Polo Association are reportedly running out of local shoe inventory because the government requires the Bureau of Indian Standards (BIS) certification of the factories where their shoes are manufactured. The majority of these plants are located in China, Vietnam, Thailand, and Malaysia; no foreign shoe manufacturing have received certification from BIS. According to Skechers global CFO John Vandemore, the sector has been impacted by India’s regulatory environment because of the country’s limited production capacity.
Industry experts stated that a large number of the firms have been compelled to remove footwear from their shelves, both online and offline, or to provide a considerably reduced selection of outdated merchandise. The BIS Quality Control Order (QCO) requires companies producing the finished product and a few crucial components—like rubber, PVC, or polyurethane heels and soles—to obtain mandatory certification. For leather shoes, the QCO went into force in July of last year; however, it was scheduled to take effect in January of this year for sports shoes, sandals, clogs, and slippers.
The deadline was further extended in March to August, but according to the companies, supply chain planning is hampered by these haphazard extensions. According to analysts, there is a risk that the goods would not reach their stores on time because it takes five to six months from production to customs clearance. Email inquiries were not answered by Reliance Brands, which runs Superdry and Armani Exchange in India, or Arvind Fashions, which offers Calvin Klein, Tommy Hilfiger, and US Polo Association products. Executives predict that the regulation will force businesses to establish production facilities in India.
BIS officials will need to visit foreign factories in order to grant licences, but observers speculate that this may not happen quickly in the case of Chinese-owned or Chinese-owned industries because the Chinese Government is trying to cut back on imports due to border tensions.
