There’s a positive shift in how global brands perceive India, according to Nohar Nath, Executive Director at Kishco Group, a four-generation old business house with an extensive network of suppliers and buyers worldwide, dealing in diverse textile products. There has been an increasing buzz about India because of its economic growth, political stability and its rapidly growing youth population. Its economy is set to grow by 6.5 per cent in 2024 and 2025 as per IMF. This growth rate is more than double the global average and positions India comfortably ahead of China. Nohar, boasting over 21 years of experience in the textile industry, stresses that this is India’s moment to shine.
In an off-the-cuff interview with Apparel Resources, Nohar sheds light on crucial industry aspects, including the growing importance of specialisation in buying houses, the necessity to bridge the gap between brands and manufacturers on sustainability, the significant potential that Middle East holds for India and more.
AR: Do you agree with the notion that due to the advancement in technology, the role of buying houses will significantly reduce by 90 per cent in the future?
NN: I think first and foremost how we define buying houses needs to change before we talk about their future. If we segment buying houses into two categories, there are those small, intermediary entities—often resembling more of brokers or agents—that have faced considerable challenges over the past two decades or so due to advancements in technology.
Looking ahead, it’s evident that these smaller entities may face further diminishment. Many have already vanished in the wake of these changes. However, the larger, more robust buying houses are poised to endure and even thrive. Their value proposition extends beyond mere coordination between buyers and suppliers. They bring substantial added value to the table.
However, to continue to stay relevant, the big buying houses must focus on two key aspects. First and foremost is leveraging available technology. The last decade has witnessed a dramatic shift which makes it essential to stay at the forefront of technological advancements. Secondly, expertise is a critical factor. Unlike earlier years when merchandisers served as intermediaries with limited knowledge, today’s buying houses need to offer more. Expertise in areas like design and forecasting is indispensable. The days of being mere conduits between two parties are over; value addition through knowledge and specialised skills is the new currency.
AR: What is the structure of a typical buying house in terms of teams and departments?
NN: A typical buying house can have departments such as design and product development; technical team (pattern making and fit approval); merchandising team; quality assurance team; textile testing lab; sourcing of fabric and trims; factory compliance audit team; shipping and documentation; and other administrative departments. However, buying houses also break themselves further according to the products they manage, given that they handle a diverse range, each requiring specific expertise. For example, you can’t expect the same team to deal with a US $ 1 promotional T-shirt and a US $ 30 value-added luxury item for a brand – it’s just too diverse. So, having expertise in different product categories is essential to give you an edge in the long run. Another example is like having one team of experts for woven products and another for knitted products. The days when everybody in a buying house set-up were doing everything are over; specialisation is the way forward.
AR: Are domestic and international brands showing an inclination to increase their sourcing activities from India?
NN: I see a welcome change as to how India is viewed politically and economically. There’s a positive perception of our country. This is crucial for brands looking to diversify their supply chains. Even if we are slightly pricier compared to other countries, our reliability and trustworthiness matter to these brands. Brands don’t want stress (political instability, economic uncertainties, supply chain disruptions) and there’s a lot of stress they’ve been facing in other regions of the world for various reasons. Many brands have bought the idea that India is moving in the right direction and offers a stable supply base. Of late, India has experienced a resurgence, as there was a time around five years ago when business was moving to countries like China, Bangladesh and other regions in South America and the Middle East, taking away a substantial portion of our business. We are now reclaiming a lot of our business.
| I’ve observed a significant rise in demand for products involving recycled fibres. However, integrating recycled fibre into yarn and various end products involves a careful selection process. You can’t simply recycle fibre into every product without compromising quality. Nohar Nath Executive Director, Kishco Group |
AR: How has your buying house adapted to meet the increasing demand for eco-friendly and ethically produced clothing?
NN: I can tell you that sustainability is much more than just a buzzword these days. In the past, sustainability initiatives made up a small percentage, maybe around 1 per cent to 3 per cent of what a brand aimed to achieve. However, looking ahead, sustainability will likely constitute around 50 per cent of a brand’s focus by 2040. While ethical considerations such as fair wages and benefits have always been present, the sustainability aspect, including responsible water usage and recycled materials, has gained prominence in recent times. Better buying houses have identified this need and have actively engaged with brands and manufacturers to address these concerns and find sustainable solutions. It becomes crucial because brands are often disconnected from what is happening on the manufacturing side, unaware of the harsh realities under which manufacturers operate. Therefore, the idea is to bridge the gap and figure out what sustainability efforts or tasks are practical to achieve. Once you identify them, put them into action, set timelines and consider the associated costs. After that, you move forward with the plan.
AR: How do you address the unique requirements and expectations of clients in different regions, considering the diverse cultural, regulatory and market dynamics?
NN: Stepping into different markets is like entering a whole new ballgame, each with its unique quirks and styles. To navigate that, you need a good understanding and expertise. Sure, tech lets us have virtual team meetings, but there’s no beating the good old face-to-face interactions. Sharing a table with customers – that’s where the real magic happens. Every market has its vibe and it’s not just about the geography; it’s about the brands too. Companies in the same country can be worlds apart in their cultures – one might be all hustle, while another takes it slow. Understanding our clients goes beyond the balance sheets; it’s about what they want from the relationship. Are they all about the bottom line or are they gunning for the title to be the world’s most sustainable brand? Therefore, as I mentioned before, it boils down to having team members who are experts in that specific market and making sure they spend as much time on the ground in those areas as they can.
AR: Please mention specific product categories and materials that have witnessed a surge in demand from both domestic and international brands.
NN: I’ve observed a significant rise in demand for products involving recycled fibres. However, integrating recycled fibres into yarn and various end products involves a careful selection process. You can’t simply recycle fibre into every product without compromising quality. The key is identifying suitable products like jeans, T-shirts and sweaters where recycled fibre enhances sustainability without sacrificing quality. Clients then evaluate the percentage of recycled content we can incorporate. We aim to perfect the integration of recycled fibres into working products, creating patterns almost indistinguishable from those made with 100 per cent virgin materials. But brands have long grappled with a dilemma – how to set prices for recycled products. The logical inclination has been to price them lower due to the sustainable nature of recycled production. However, on the flip side, most brands make a case for re-pricing this higher because of the niche aspect as well as the sustainability narrative associated with these products. It’s a dilemma that brands have found themselves battling over an extended period.
AR: Which emerging markets do you believe hold significant potential and why?
NN: For me, the Middle East is a big upcoming market. People usually talk a lot about European and North American markets and brands; that’s where the buzz and big numbers are. However, I’ve noticed a significant change happening in the Middle East. It’s not just the UAE; other places like Jordan, Lebanon, Qatar, Oman etc., are opening up to fashion like never before. With its proximity and cordial relations with these countries, India holds a lot of potential for their supply chain. I believe paying attention to these regions has become important. These markets offer growth in different types of products such as abayas and kaftans for women and thobes for men in addition to the usual westernwear products for both men and women.
