Bielefeld (Germany) headquartered Union Knopf, one of the leading button and clothing accessory manufacturers, feels the Indian domestic garment market has evolved as one of the core markets, a top executive said.
Talking to Deccan Herald, Union Knopf (Hong Kong) Managing Director Eberhard Ganns said, “The Indian domestic garment market has evolved as one of our core markets, something which a lot of people did not expect to happen a few years back.”
“Traditionally, we overdelivered to Indian markets. Based on the nomination of western brands, we delivered the goods to garment makers, who then export them under western labels. We have had substantial success in the Indian market. India has evolved as a core market on a global scale,” Ganns said.
The 104-year-old company, engaged in producing all types of hard trims like buttons, buckles, snap/jeans buttons, zipper pullers, cot stoppers and others, services more than 200 western brands, including Burberry, Armani, Adidas, Macy’s, Nordstrom, Hugo Boss, etc. Domestic Indian clients include Madura Group, Arvind Brands, and Raymond, besides others.
The company, which entered India in 2011, has representation in Bengaluru and Mumbai, and has plans to set up a new office in NCR this year. On sales revenues in India, Ganns said, “We are targeting to crack Rs 10 crore this year, compared with Rs 5 crore last year.”
Globally, he said the company achieved a turnover of €50 million last year. Union Knopf has two factories in Germany, but its main production hub is in Turek (Poland). It employs over 700 people. For Union Knopf, Europe is the big market accounting for 70 per cent, followed by Asia with 20 per cent share, and then the US.
On global challenges, Ganns said, “Being the frontrunner, we are constantly being knocked off (copied). We are forced to develop new items very fast in a very short cycle to stay ahead of the crowd as our products are being knocked off in so many countries. We are coming up with close to 2,500 new products every six months which require tremendous investments.”
On the challenges faced in India, Ganns said, “We are still facing a roadblock incorporating ourselves in India for setting up import operations. What we found is that there’s so much of red-tapism...it is so difficult.”
Ganns, who is in-charge of overseas operations outside Europe, said: “We are coming from Hong Kong where incorporating a company takes one afternoon (maximum three hours). In India the paperwork is really demanding...the rules keep changing. With the new government, we are hoping this will improve.”