The lure of the large Indian market and its bountiful opportunities is such that global brands in almost all product categories are now eyeing the same as a prospective area for growth. YKK, the Japanese leader in zippers with a reputation that scans every boundary and is the trade mark of quality throughout the world, is expanding its operations in India to gain a bigger share in the evolving local market not only in garments, but in other segments also, like luggage, footwear and even packaging. In conversation with Team Apparel Resources, Noboru Matsumoto, MD and Tatsumi Kojima, General Manager, YKK India Pvt. Ltd., share their plans for India.
With five years of exposure in the Indian market, Noboru firmly believes that its potential for development is huge and YKK still has a lot of ground to cover to be number one in the domestic scenario. “We are a very well-established name in the global scenario and through our nominations and brand value, almost every brand/retailer suggests the use of our products to ensure quality. But the Indian market is very different; and though we have operations in the country since 1995 and a production unit that followed two years afterwards, it is only a in the last few years that the brand value of our zippers has seeped down to the tailor level,” says Noboru.
The proof of the growing stature of YKK in the domestic segment is highlighted by the fact that big retail shops, which are mass market segment players, are now using YKK zippers for their products. One of the biggest reasons for the inroads into the domestic segment has been the upfront approach of the company to understand and mould strategies. “We have a sales network, which is the biggest that any one in our category has. This team not only handles sales calls, but also goes into the market across the country, including the interiors, and talks to the tailors/dealers/retailers on what they want. Only if we understand their needs, can we service them,” reasons Tatsumi.
The result of this intensive exercise has been an increase in the product range to cater to different diverse segments, both from a product category perspective and a market positioning perspective. “We are associated with all luxury brands, but now we are remoulding our offering to suit every segment, even to the tailor sitting in small towns, who needs just a few pieces,” says Tatsumi. Not surprisingly, the company which is the largest manufacturer, has created the flexibility to supply any order size that may be required by a customer. This is made possible by ready stocks available at the warehouse of the branch locations Pan India.
As of today, YKK India has 14 branches, all of which are serving the country with responsive ‘customer care’ philosophy. The fact that Indian brands are now giving long-term projections to counter lead time issues is an additional help.
The company, with its global norms in production, has been recognized time and again by the Government for its environmental and ethical practices. The manufacturing facilities have obtained ISO 14001: 2004 certification from TUV Management Services for the Environmental Management System. The company, since its inception, has advocated the ‘Cycle of Goodness’, the Group’s philosophy conceived by YKK’s Founder Tadao Yoshida who said, “No one prospers without rendering benefit to others.” The cycle reflecting the circulation of benefits begins with innovative ideas and inventions that create value, which in turn leads to business expansion and then greater benefits for the society. The YKK team at all centres firmly believe that through this cycle, companies prosper while contributing to the enrichment of all people.
Consistent quality, huge range of products, ethical manufacturing, and a large sales network and innovations are the core elements that have kept YKK at the top of the game…, and the India operations are no different. To be more relevant to the Indian market, a new R&D centre is coming up in the country to look into the specific needs of the local customers, as well as demands of the international market. In the last one year, the company has introduced 10 new products that no other competitor has. Out of this, trade mark application for two has already been applied. “We thrive on innovations and uniqueness. No other zip manufacturer has the wherewithal to invest in such resources or the expertise to develop such unique products with fresh applications,” says Noboru confidently.
With so much in favour of India operations, it is no wonder that the country is very much important for the growth strategy of the YKK Group. The only real gaps are the ‘price’ points that Indian and Chinese competitors are offering, but now that too is not a real threat. “With the awareness of the YKK brand sinking deeper into the Indian market and consumers recognising a quality product by its inputs, including a YKK zipper, the future is very bright, as retailers also realize that they can upgrade their product by using our zippers, hence balancing out the cost difference,” concludes an optimistic Noboru.
