Every brand plays with their unique marketing policies and strategies to rule their market. Strategizing to become the leader in your category is not an easy task, and requires years of perseverance and hard work.
What is then a spoiler is of course the entry of newer players in the block. That is also not that of a spoiler until they try to gain easy fame and success through easy avenues. Competition or becoming competitive for your other contemporaries is good, but building up a monopoly by infiltrating the market is not that healthy.
Even though the lingerie industry does not operate through any fixed policies and decorum, but there should definitely be some sort of a rational for business, that should be drawn out keeping a close eye on both the new and the old. A common ground of sorts, which helps the brands to survive and sustain in their own merit by catering to their individual arena.
But unfortunately their is a stark absence of any such standardisation and over the years allowing credit to the retailers and distributors have been an easy way out for many brands to gain quick prominence but what about those brands that has survived on strict principles for decades? Shouldn’t there really be a maximum limit set on the credit system that is a prevailing truth under whose influence the lingerie industry is breathing at the moment?
“There should be standardisation in the market related to credit and discount system”
What started in 1972 as a small lingerie manufacturing set up was later given a modern touch by Dipesh Kubadia. He Joined his family business and since then over the last decade and more have been working industriously as the Director of Shalibhadra and has been eyeing on rapid expansion and has always wanted to cross borders with Sonari’s creation. He has always remained pro actively involved in the design and development for the company and has also foreseen the development of several modern well equipped factory set ups for the brand in and around Mumbai.
Over the decades’, Indian lingerie industry has undergone major shifts. Many brands have took birth, several have followed the exit path. But what has still lived is the practices that these brands have brought with them.
Nothing much has changed in terms of doing business. We still operate within the same boundaries even today, what has however changed is the shift from operating in the market following traditional methods to following more innovative newer policies.
But what is unfortunate is that the more modern we are getting, the faster we are accepting ready shortcuts to make it big in the market. There should definitely be a standardisation within the market and a system should be in place so that whoever enters the market whenever, they are pushed through the same policy tunnel without much alteration.
This will not only help them do business the right way but help players like us, who has been a part of the industry for the last 40 years to still exist through healthy competition. The International names and the players with big pockets are the main reason for the disparity today. They enter with so much capital that they can afford to increase the credit limit for the retailers, which was certainly not possible for the self made lot like us.
While the problem was quite nascent previously, over the last 4-5 years this has really become a nuisance. 100% stock correction also adds to this problem. And brands like us who survive on smooth transparent principles do suffer owing to this lack of a governing body or standardisation. There should definitely be a streamlined mutually accepted policy standards to help the industry and its players perform better and fair!
Every company should be bound by certain principles regarding their credit policy, adhering to the duration and the amount of credit extended.
A marketing MBA from the Nagarjuna University, Vindamuri Giriraj has previously worked with Zodiac Clothing Limited as a branch manager for two years prior to joining Lovable in 2001. Vindamuri Giriraj, presently holds the position of General Manager Sales & Marketing with(Daisy Dee) of Lovable Lingerie Ltd and is quite a popular and favoured name in the lingerie industry. he is extremely proficient about the market and keeps a close eye on the same to foresee what awaits the industry.
His years of exposure and experience with the lingerie industry spans over decades and is measured through his dedication and discipline.
The Indian economy is thriving on the strengths of various business enterprises (stabilized companies and start-ups). Every company or business runs as per certain laid out standards and business principles that are adhered to both by the management and the stake holders per se. One such parameter which has an important bearing on the overall working and progression of a company is the extension of credit in the market.
Thrusting a great deal of importance to business ethics, I personally feel that every company should be bound by certain principles regarding their credit policy, adhering to the duration and the amount of credit extended. This way, companies will be at the receiving end of benefits coming in the form of uninterrupted working capital, enabling the company to invest better towards manpower requirements, research and development and product promotions etc. which will in turn prove to be mutually beneficial to the end customer and business associates. Another suggestion that I would like to come up with, is to focus on providing a better product into the market backed by a USP instead of indulging in such unhealthy trade practices.
Indian or international brands really don’t call as a specific demarcation when it comes to saying who promotes maximum disparity in the credit process.
With over 20 years of familiarity and hands on experience with the lingerie industry. Sanjiv Gulati decided to make way for his own brand, Shivam Sales in 1996.
Well travelled and well versed, he is extremely thorough with the lingerie market all across India and has been extensively operating in Haryana, Rajasthan, Punjab, Uttarakhand, UP, Delhi and Maharashtra. His eye for detail and expert attention has pushed the company to new heights and makes for the success at every corner.
The idea of disparity in the credit allowing system certainly puts the shopkeepers, wholesalers and the retailers at a comfortable position. They are allowed an upper hand and a flexible position within the bigger industry scape.
The immense competition within the market actually pulls the string and gives way to such disparities, where every next player wants to maintain a strong footing in the market and thus they begin to allow unnecessary credits that are not kept under any check or is not standardised based on how much maximum credit should be allowed.
When the retailer bends towards the brands that allow them more flexibility in terms of the credit system, then the medium segment of the industry suffers the most. Indian or International demarcations really don’t fall as a specific demarcation when it comes to saying who promotes maximum disparity in the credit process. Rather it is better to say that for the last 5-6 years the brands with big pockets have exploited and rather in a bullish way treats the retailers and allows them maximum credits so that they push sell their products. At times they are so inducing that they lay out some incentives in terms of the sales the retailers are able to execute for their brands on top of the credit exemptions. These lucrative terms and conditions are so hard to ignore that more and more retailers are falling for this trap and in return are really calling in trouble for the mid range segment players of the lingerie industry.
Its easier to call for standardisation, but much like so much have been articulated for corruption but how much has been achieved so far, such holds true for the policy changes or standardisation for our industry too. So what should be done is one question and what will be done is certainly another.
Standardization can only be possible if all the lingerie brands are making same kind of articles.
A dynamic, determined and enthusiastic personality, founder and Managing Director of the brand ‘Kalyani Innerwear’, Suresh Gulati has always been an innovator setting up new ideologies. With over 25+ years of experience in different fields such as operations, sales & marketing, he is the one responsible for taking up the company to great heights. He has an eye for the changing trends of the market.
And strongly believes in the process of ‘design thinking’ to bring out the best.
He says “Time has more value than anything else” so his goals are time bound and the motivational support he provides to the employees is the key that keeps the company growing!
Today there are ‘n’ numbers of companies competing each other for the same market. The trend that is usually followed includes the credit system for retailers and distributors to increase the chances for the placement of the product.
I think there should not be any standardization in this trend because now a days Customer is well aware of the product and its specifications which he wants to buy and therefore the retailers have to have those products even if he is getting a less margin for that. Standardization can only be possible if all the lingerie brands are making same kind of articles. The companies need to change their terms n conditions from time to time according to market trends, Of course.
Speaking of lingerie, each company has different norms and schemes to offer. The already existing companies need to upgrade their products and the upcoming ones need to come up with better products and services to compete with the already existing. I strongly believe in the “survival of the fittest” theory and hence the companies which continue to provide ‘value’ to their customers are the ones who are going to survive.
