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March 27, 1999

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SoftIndia.mailorder.com

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Sudipt Arora in Fuerth, Germany

Quelle Schickedanz AG of Germany, one of Europe's largest mail order companies, said India has tremendous potential to export textiles, readymade garments, carpets and leather products.

The Schickedanz Group of Companies has recently acquired Karstadt, another major mail order company with business interests across Europe. The combined annual turnover of both companies now exceeds DM 40 billion (about Rs 960 billion).

Indian garments command great demand in Europe ''India is a good market for us to buy several products,'' said Thomas Thiel, head of Quelle's import service division. ''There is plenty of scope for expanding the current business volume."

In calendar 1998, the company imported a variety of goods worth DM 160 million (about Rs 3.84 billion) from India. The figure could go up by ten per cent in the current year, Thiel said.

Nearly 80 per cent of Quelle's sourcing from India comprises textiles including readymade garments, curtains, bed linen, home furnishings and related items. Shoes and other leather products, gift items and furniture constitute the rest.

Indian textiles are in demand in Europe ''The customer demands in Europe are rising and we are facing a tough competition in these recessionary times,'' Thiel said. ''Indian exporters must have a better knowledge of global trends to increase their business. They have to know what buyers are looking for.''

On the Internet, Quelle products worth DM 30 million (about Rs 720 million) were sold last year. The company offers 80,000 items through its catalogues to ten million customers in Germany alone. Nearly 30 per cent of its buying is conducted in the Far East, including India.

Besides, it supplies a wide variety of products including household electrical goods to 12 other European countries. Quelle has over 10,000 sales outlets across Europe with 170 stores, 7,000 franchisees and 1,300 photo shops in Germany.

Quelle also maintains 31 purchasing offices worldwide, has marketing representatives in 15 countries and exports to a total of 60 countries.

Thiel said Indian exporters must focus on short lead times, reliable delivery schedules and global quality standards. At the same time, the government must simplify trade procedures so that foreign companies can have open accounts with Indian importers.

Quelle's acquisition of Karstadt globally will have impact on the Indian operations as well. "We hope to synergise the strengths of both outfits in rest of the year,'' Thiel said.

Europe's mail order firms fancy Indian leather products Thiel added that the competition for the Indian fashion and light weight clothing is growing from Turkey and Indonesia. For basic garments, Pakistan, Bangladesh and Sri Lanka are fast emerging as formidable competitors. For leather goods, the Chinese and Turkish could soon surpass Indian exporters.

UNI

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