Random Thoughts

Who needs imported goods any more?

"Gosh…if I could buy a tailored suit from Bond Street", I told my brother-in-law anxiously before leaving for a short trip to London. A charcoal black slim-fit suit from the Mecca of fashion was on my mind ever since my college days when I had first read about the place.

"Are you crazy?" he snapped at me pretending to look for nut and bolt that I might have dropped of my brain before making such a wish. "The smart Londoners themselves no more shop on Bond Street. It's hell lot of expensive there. Ask the executives in my UK office. Whenever they visit India, they pack a few suits tailored from Colaba (the south part of Mumbai famous for its posh appeal). It's much cheaper that way without sacrificing style", he added giving another try to find the lost parts of my intellect.

Is it reverse globalisation or is it optimum utilization of resources? Give it any name but the obsession of whatever is 'vilayati' or 'foren' has completed a full circle. I still remember the days when we kids used to feel highly obliged to accept an imported T-shirt or a chocolate offered by our foreign returned relatives.

The appeal of the imported goods is however deteriorating gradually thanks to the advent of globalisation. We have come a long way from an age where self-reliance was the mission of almost every developing and developed nation. In a sharp contrast, today belongs to an era where both demand and competition are no more local. This has necessitated organizations to scout for the cheapest resources irrespective of their country of origin to stay competitive on a global stage. No wonder then that most of the manufacturing and production has been steadily shifting from the western world to low cost destinations like China and India to mention a few.

For instance, four out of every five undergarments sold in the world today are manufactured in China. And, the dominance of Asian manufacturers is not limited only to basic commoditised products. There are several garment producers in countries such as China, India, Pakistan and Bangladesh that can manufacture clothes according to the designs approved by the studios of big American and European brands. House of Pearls Fashions and Gokaldas Exports are prominent names in India who supply garments to bigger retailers in the western world.

I remember one of my colleagues who traveled to the US with a big shopping list of clothes of international brands which she always craved to buy. However, she could not really shop till she could drop. “Kya kare? (what to do?)”, she exclaimed. “All the garment stores there are flooded with clothes that carry the tag ‘Made in China’ or ‘Made in India’!”

Indeed, the game of low cost production or cost arbitrage as it is known in the business parlance has marred the sheen of imported goods. Next time, whenever you shop abroad, just check --- you might end up buying something manufactured in your own backyard!

Labels: Knowledge-wise

posted by Ranjit @ 10/28/2008 12:46:00 pm