B2B fashion supply chain in India

Abstract

The biggest obstacles that apparel business faces is to maintain the supply chain and this problem is exaggerated when there is a business to business transaction due to bulk ordering & stringent penalty requirements. We would like to analyse the B2B Fashion supply chain to analyze the pain points of the players present in this domain & to provide fruitful solutions to them which should result in a Win-Win situation for both the parties. The global fashion industry is worth around $3 Trillion while 97% of the profit is made by top 20 companies while other companies are still in race for increasing the razor thin margin. India’s apparel market will be around $60 Billion making it sixth largest in the world. Also, the disposable income of the targeted consumers are expected to triple in the next 4 years. Given the amount of growth opportunities, around 300 new fashion brands are expected open in the coming year. The Indian market remains complex and largely unorganized, with formal retail contributing to only 35% of the sales which is a relatively low proportion. The growth in the Apparel industry is also influenced by the technological changes available. Artificial intelligence has given an opportunity to provide curated & personalized solutions to customer problems. The presence of E-commerce platform has further improvised this effect. Thus, private consumption which is driven by economic growth for a huge population of 1.3 billion with varied diversity still pose as an opportunity to the outside players to harness.