Apparel July 2019 Apparel July 2019 issue | Page 170

FEATURE
THE PROCESS INVOLVES VARIOUS
STAKEHOLDERS, AND PURCHASE
MANAGERS RARELY MAKE AN
INDEPENDENT BUYING DECISION.
NOW TRENDING
B2B platforms such as Meesho and GlowRoad
have seen sizeable growth only due to their ability
to make global trends accessible to Indian sellers.
Additionally, Meesho has received a funding of
US$25 million from Facebook. “B2B apparel
portals work according to the latest fashion trends
prevailing in the industry and are also based on
consumers’ requirements. Some of the trends
are seen in forms of ruffles, frills, asymmetrical
designs, capes, layers, one-shoulders, pastel
shades, zardozi, Kashmiri handwork, gota
work, lightweight embellishments, and intricate
embroidery,” opines Bhotika. In fact, one of India’s
largest textile conglomerates, Raymond, is said to
enter a B2B e-commerce stint with the intention
to connect over 2,500 retailers across India; it will
be making an extensive use of artificial intelligence
(AI) as well.
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I APPAREL I
July 2019
OVERCOMING CHALLENGES
The biggest challenge when it comes to the
current scenario is that the Indian apparel industry
is largely unorganised, with more than 50 per
cent of the players in the unorganised sector.
Conversion to an organised sector, though
possible, is time-consuming. Other challenges
include lack of maturity in the market and
problems involved in the initial stage of B2B.
Quite some work is required in areas like provision
of credit facility, quality authentication, and
government policies that include a complicated
tax structure. “In spite of the advantages reaped
by apparel businesses in the country, there are
various challenges faced by them on the B2B
front. The first and most important challenge
being, the difficulty of accurately accessing
products through images, as pivotal aspects
such as colour, touch, feel, etc. are difficult to be
communicated online, thus affecting the decision-
making process of the buyer. Another issue
is the difficulty in describing the product since
the web is flooded with industry experts and
reviews based on individual experiences. Thirdly,
the process involves various stakeholders, and
purchase managers rarely make an independent
buying decision, which leads to delays. Lastly, the
impulse buying factor is missing in B2B platforms,
as organisations purchase products based on
the needs of their buyers,” says Bhotika. India’s
domestic apparel market size is projected to grow
at 11–12 per cent compound annual growth rate
(CAGR) and reach about US$160 billion by 2025.
B2B platforms are certainly helping in fuelling this
demand, further pushing the industry to reach
these numbers.