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Indian scarves manufacturers and exporters have never had it so good. While the domestic market is growing, albeit at a slow pace, the export market is booming, says Reena Mital

India has emerged an important supplier of scarves, stoles, pareos, bandanas, sarongs, over the last five years mainly. Exports at present are to the tune of Rs 2,500 crore, and growing at a rate of 20-25 per cent. The country today has an approximate share of 18-20 per cent of the world market. China enjoys the largest share of 30-35 per cent, Korea 10-15 per cent, Italy 30-40 per cent, and the remaining countries enjoy the rest of the pie.

According to Mr Bimal Mawandia, chairman, Indian Silk Export Promotion Council (ISEPC), “Almost every shop worldwide has a separate section for accessories including scarves, and these four countries’ scarves are found in just about every shop in the world. And quota removals have not had much of an impact on this sector, as scarves and stoles were already free of quotas for many years.”

While the US and Europe are the major markets for scarves, Japan is also an important consumer. And the Middle East is fast emerging as a big market. Says Mr Munish Anand, managing director, Anand International, among the top scarves manufacturer and exporter in the country, “In the west, a scarf is a daily wear item, unlike in India. And the Middle East, over the last 2-3 years is also emerging a big market, more because of cultural reasons. Today, the women there are moving away from the long robes, and using head scarves to a very large extent. The orders from here are very good, and the market is expected to grow fast in the next 2-3 years.”

The strong growth in this sector has attracted a number of exporters. Says Mr Mawandia, “Till five to ten years ago, there were only around 100-200 scarves and stoles exporters in the country. This has today grown to 3000-4000 exporters.”

This has unfortunately led to very stiff competition within the country itself. According to exporter Tiya Kapur of Tiya’s Linen, “Exporters are resorting to price undercutting, and designs and styles are copied in a jiffy. This has led the serious companies to focus on designs, styling, etc, to stay ahead of competition.”

Says Mr Anand, “Embellishments such as sequins, stones, etc are the trend now. India is mainly into silk, polyester and viscose scarves and stoles. And while some of us are in the middle to upper segments of the market, India is mainly known to be a supplier in the lower end of the market, catering to promotional and discount orders.”

Says Mr Mawandia, “India, on average is in the middle segment of the world market. However, of the 3000 or so exporters, 20-30 per cent operate only in the high end of the market. China is also in the middle and lower segments of the market.”

And in this segment, China is a major player, especially in silks and polyester scarves. “However, in embellished products, India is much better than China,” claims Mr Anand.

Pashmina, silk, polyester, viscose, velvette are the preferred fabrics for the coming season. Embellishments for formal wear and eveningwear scarves are the trend, and for office wear, it is prints. Says Mr Anand, “The fashion element in scarves is very high. In fact, scarves tell the fashion much earlier than apparel, and the cycles are much shorter in scarves. More designs are needed in this.”

The main fabrics used are wool, cotton, linen, viscose, silk, polyester. “India is probably the only country that uses all the textile fibres for scarf manufacturing. Cotton and viscose are the most widely used fibres in this segment, followed by polyester. Silk is in fourth place,” says Mr Mawandia.

According to him, the growth could be much higher if certain problems of the industry are addressed. “Fabrics for the scarves manufacturers are not easily available, as in apparel. There are very few mills today supplying special fabrics for scarves, like fabrics with proper borders and prints, etc. The basic fabrics we can get easily from the market. Besides, we have to import silk from China, and the Indian government is now planning to impose anti-dumping duties on the same. This will make silk scarf exports from the country uncompetitive.”

According to Mr D M Joshi, director, Dishi International, manufacturer of fabrics for scarves, and also a scarves exporter, “The fast growth in scarves and stoles exports has led to huge demand for the fabric, and delivery time of the same is 60-75 days. Fabric price has also increased by around Rs 15-20 over the last few months. For instance, raw grey velvet fabric which used to cost around Rs 55-60 a metre till some months back, is today priced at Rs 75-80 a metre. Dyed fabric was 95-100, which is now 110-15. And poly-rayon 44” which was Rs 110-115 is now Rs 130-135.”

This is leading exporters to import their fabric requirements - silk from China, velvets from Korea, and in some cases polyesters from Taiwan.

Dishi International supplies velvet fabrics to the scarf exporters in the country. The company can supply upto 1.5 lakh metres of processed fabric per month. Says Mr Joshi, “We are witnessing very good demand in scarves too, which we supply to countries like Italy, France, Chile, Singapore, Bangkok. We mainly supply polyester, velvet, PV, PC, silk scarves. Velvets are in this season. Buyers send the designs, etc which we then get reproduced here.”

As against this, the domestic market for scarves is still not a very big one. Says Mr Anand, “Women’s western wear is not very popular still, and even those who regularly wear western garments, do not use scarves. This is not an item of daily wear in India. Definitely, the market is growing, but at a very slow pace, of maybe five per cent or so per annum. I do not see a very big growth in India.”

According to him, “While scarves per se are not in demand to a very large extent, we are seeing a lot of store labels innovating with the Indian dupatta, contemporarising it to make it more versatile, so it can be used in both Indian wear and western wear.”

In India, the stoles are more popular, as also the bandanas, but not the scarves. Sarongs, pareos, which are normally clubbed with scarves, also do not have a market in the country. And the industry does not expect these products to have any substantial demand growth in the years to come.