Indian textile companies trying to build ecommerce platform as key growth driver

YarnsandFibers News Bureau 2014-08-27 15:00:00 – Ahmedabad

Textile companies have started to increasingly make use of their own websites for e-commerce platform with online business becoming inevitable these days. Many textile players are looking to build up consumer loyalty by selling on their websites and establish a direct connect with their consumers.

According to industry players, the idea is to replicate the company owned exclusive brick-and-mortar store experience on the Internet. Buoyed by the success of e-commerce players like Jabong and Myntra, textile companies like Arvind Ltd, TT Ltd and Creative Lifestyles, among others are exploring the online market through their own e-commerce platforms.

Arvind Ltd. has begun its own e-commerce initiative through its start-up Arvind Internet Ltd (AIL), TT and Creative Lifestyles too have been selling their products through their own websites.

Companies believe that while initially ready-made garments will grow rapidly on their e-commerce platforms, gradually other textile products may gain traction too. Arvind is also buoyant about its initiative that, according to Kulin Lalbhai, executive director at Arvind Ltd, the company see e-commerce as a key growth driver for the group and they aim to be Rs 1000 crore plus business in 3 years.

According to Sanjay Jain, managing director of TT Ltd, the innerwear, casual wear and garment player, they want their website to act not only as an e-commerce sales tool but also as a branding and marketing tool. So far they were selling through their distributor network. It is only now that they are getting directly in touch with their consumers and getting more efficient due to better feedback from consumers. They will continue to invest in promotion and search engine optimization (SEO).

Rahul Mehta, president of Clothing Manufacturers’ Association of India (CMAI) and managing director of Creative Lifestyles, just as textile companies sold their products through franchisee-run exclusive branded outlets (EBOs), multi branded outlets (MBOs) as well as having your own company owned exclusive stores similar now textile companies are selling their products through other platforms like Jabong and Myntra and gradually beginning to sell on their own websites too.

Footfalls on popular e-commerce platforms like Jabong and Myntra tend to be higher but conversion rates tend to be higher on company-run e-commerce websites. As the company’s loyal consumers will directly come on the company’s website and hence, conversion rates for products will be higher, although, consumer on popular e-commerce platforms may not directly come to the company website.

India has begun the journey of e-commerce and online shopping but for growth of the ecommerce industry the key drivers are new concepts, innovations and setting up appropriate business models.

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