Fashion Accessories Essential sourcing intelligence Nepal supplier profi les

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Fashion Accessories
Essential sourcing intelligence
April 2013
US$150
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Nepal supplier
profiles
Detailed profiles of 29
suppliers with verified
manufacturing and export
credentials
China
Product gallery
NEPAL
PAL
Specifications and full-color
images of 190 top-selling
export products ranging
from necklaces to knitted
gloves
Katmandu
Lalitpur
La
India
Bangladesh
Industry trends
nds
Coverage
age of current issues,
plus
us insights into supp
supply
centers, products and pricing
Global Sources is offering this series of Developing Country Sourcing
Reports as part of its corporate social responsibility undertakings
in partnership with the Hinrich Foundation, a philanthropic
development organization whose mission is promoting
sustainable global trade.
The aim is to give international buyers new sourcing opportunities
from experienced exporters, generating orders and creating lasting
jobs in developing economies.
www.ChinaSourcingReports.com
Executive Summary
Supplier capability in Nepal
FASHION ACCESSORIES
The fashion accessories industry in
Nepal has been showing gradual
growth in recent years. It is nonetheless
hampered by several difficulties that
threaten to slow progress or reverse
gains achieved thus far.
The sector is largely affected by the
same problems troubling the country
as a whole. Fragile political and
economic environments, inadequate
infrastructure, geographical challenges,
and dependency on imported raw
materials all play a role in keeping
development to a minimum.
To mitigate the effects of these
external factors, manufacturers of
fashion accessories rely on solid design
expertise rooted in traditional methods
and aesthetic elements derived from
the local culture. In addition, they
provide comparatively lower quotes
and have smaller minimum order
requirements.
Key findings
1. Suppliers of fashion accessories
generally expect to keep prices
stable in the next six months in an
effort to ensure competitiveness
and attract repeat orders. Some
companies intend to raise quotes,
however, due to the rising cost of
raw materials.
2. The strong influence of unionized
labor is the most critical challenge
facing the sector and Nepal, in
general. Work stoppage due to
strikes and other reasons regularly
occurs in the country. Suppliers
implement a number of wayss to
cope but each has its own
n drawback
that results in undesirable
rable conditions
condition
for the company, nonunion workers
or the economy
omy at large.
e
l
p
3. Heavy reliance
iance on imported
imp
components such as fabrics, metal
and semiprecious stones is the
main obstacle specifically facing
the industry. With the vast majority
of inputs purchased from India,
China and the Asia-Pacific region,
enterprises are prone to high costs.
rends over th
4. Product design trends
the next
m
six months will generally be made
sive materials and
of less-expensive
come in bright hues. These incl
include
colorful
orful glass beads for jewelry
jewelr and
embellishments,
mbellishments, and pure cotton for
fashion
hion bags and purses.
5. Prices are typically determined by the
materials used, adornments applied
and design complexity. Low-end
models are usually plain and small.
Midrange and upscale items feature
intricate decorations done by hand,
high-grade metal or fabric, and are
larger.
Objective, methodology
dology
gy & scope
This Nepal Sourcing
ing Report
port is part of a
series designed
ned to provide
ovide buyers with
information
tion on new products from export
expo
manufacturers
that
nufacturers in supply mar
markets th
specialize
merchandise.
pecialize
cialize in handmade m
mercha
Country Sourcing
The
he Developing Countr
C
Reportt series is part of Global Sources’
corporate
initiatives.
te social responsibility
re
It is offered
d in conjunction with the
Hinrich Foundation, whose mission is
promoting sustainable global trade.
One of its objectives is to help create
jobs in developing Asia through export
promotion.
To produce this report, large, midsize
and emerging manufacturers, all with
substantial export experience, were
surveyed. The selection of suppliers is
designed to reflect the composition
of the industry in Nepal in terms of
geographic location, materials used and
range of products offered.
For in-depth profiles, our researchers
visited the facilities of each company
visi
and interviewed senior executives who
discussed their recent performance and
provided forecasts for the next 12 months.
All other makers in this report were either
visited or contacted by phone.
In each case, companies were required
to answer specific questions designed
to verify their manufacturing and export
credentials, including a breakdown of
exports by product type and market.
Suppliers also participated in a survey
designed to provide insight into the
industry.
This report covers different
classifications of fashion accessories
available in Nepal, including jewelry,
fashion bags and wallets, head- and
neckwear, and gloves and hosiery. Each
product category has its own price
guide that describes features of low-end,
midrange and high-end models.
In this report
• 19 in-depth company profiles
• 10 short company profiles
• 190 top-selling export products
• Supplier demographics
• Supplier survey
• Industry statistics and charts
The Industry Overview section
discusses key issues affecting export
manufacturers. It provides insight on
the composition of the industry and
elaborates on the important supply
centers within Nepal.
The Products & Prices section details
the features and price ranges of fashion
accessories. It also examines the design
and manufacturing processes, main
materials used, and sourcing centers
where components are procured.
www.ChinaSourcingReports.com 3
Contents
CONTENTS
EXECUTIVE SUMMARY
Key findings
Objective, methodology & scope
3
INDUSTRY OVERVIEW
Country facts
Export
Exports markets
11
Products & prices
Production & export statistics
Typical parts & components
Price guides
14
Supplier survey
Export prices
Export sales
Export markets
Major challenges
R&D focus
200
SUPPLIER PROFILES
ES
Supplier matrix:
ix: Comparison
parison of suppli
supplier loca
location,
sales revenue
evenue & export
ort capability
capab
Profiles
es of 29 verified suppliers
23
PRODUCT
ODUCT GALLERY
Jewelry
Fashion bag
bags & wa
wallets
Headwear & n
Headwe
neckwear
Gloves & h
hosiery
75
C
CONTACT DETAILS
109
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Copyright 2013 Trade Media Limited. All rights reserved. Reproduction in whole or in part in any form or medium
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ISBN 978-988-15980-0-4
Disclaimer: Any recommendation contained in this report may not be suitable for all investors or businesses. Moreover, although the information contained in this report is
obtained from sources believed to be reasonably reliable, the accuracy or completeness of such information cannot be guaranteed. The author and the publisher of this report
(and the publisher’s affiliates, agents, sales representatives and service contractors) do not make any representation or warranty whatsoever (whether express or implied) in relation
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All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or
logos are not intended for sale. Products that are not the specific topics of editorial articles are shown for illustrative and/or demonstrative purposes only. We, our affiliates, and our
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4 Nepal Sourcing Reports
Industry Overview
Industry Overview
Although beset by numerous
challenges, the fashion accessories
industry in Nepal is steadily growing
as it continues to bank on its core
competency of producing designs
derived from ethnic influences.
In spite of the sector’s small size and
underdeveloped status, outbound
shipments since fiscal year 2007-2008
have been generally on an upward
trend, with revenue last year reaching
$42 million. An improvement of 33
percent, this is the highest growth rate
posted by the segment over that span
of time. The industry has expanded by
an average of 8 percent from 2007 to
2012 despite recording fluctuations
within much of the period and
contracting nearly 12 percent in 20092010 due to the global economic crisis.
companies employ underprivileged
women.
The segment is enjoying
unprecedented demand for pashmina
shawls and scarves, felt, knitted, cotton,
velvet and silk bags and wallets, hats,
and jewelry. Traditional designs unique
to the local culture are the driving force
behind this development. An ethnically
diverse country, Nepal boasts several
styling methods not practiced in other
supply markets. These processes have
been in continuous use for many years
as they are handed down through
generations of artisans. A number
of production stages are com
commonly
tsmen w
subcontracted to craftsmen
who have
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Statistics on export markets are not
kept adequately by the government
since most goods are undocumented
and do not pass through official
channels. Trade associations, however,
ver,
estimate that roughly 70 percentt of
turnover is sent to member
ember nations
n Association
ociation for
of the South Asian
operation
on or SAARC.
Regional Cooperation
ng to the Federation of
According
ndicraft
dicraft Associations of Nepal,
N
Handicraft
dia
ia is the largest indiv
individual fforeign
India
tination, accoun
accounting fo
destination,
for two-thirds
es.
s. Outsid
Outside of SA
of sales.
SAARC, China and
the US are the do
dominant importers.
Fashion accessories are not considered
a distinct export line by the
government as they fall under any of
the officially sanctioned segments such
as pashmina, woolen or silk items, or
metal, wood or beaded crafts. These
are then categorized under the broader
textile and nontextile products, which
are classified within the handicrafts
sector. The fashion accessories
industry is nonetheless a major
contributor in ensuring sustainable
revenue generation and job creation
in the country, especially since many
Country facts
Nepal
Capital
Area
Katmandu
147,181sqkm (94
(94th)
Population
Median age
Literacy rates
30.4 mn (41st)
(
22.1 years
73% (male
(male)
48% (fe
(female)
Nep (official), Maithali; English frequently used in
Nepali
bus
business and government
Major languages
Government
ment
Administrative divisi
divisions
Federal democratic republic
14 zones (Bagmati, Bheri, Dhawalagiri, Gandaki,
Janakpur, Karnali, Kosi, Lumbini, Mahakali, Mechi,
Narayani, Rapti, Sagarmatha, Seti)
Labor force
Minimum wage
Unemployment rate (2008)
Population below poverty
line (2011)
18 mn
$72 per month
46%
25%
GDP
GDP per capita
GDP growth
Inflation rate
Economic revenue
sources
$40.5 bn (102nd)
$1,300 (202nd)
4.6%
8.3%
Services: 47%
Agriculture: 38%
Industry: 15%
Total exports
Key export industries
$1 bn
Garments, pulses, carpets, textiles, juice, pashmina,
jute products
India: 57%
US: 10%
Germany 5%
Tourism, carpets, textiles; rice, jute, sugar and
oilseed mills; cigarettes, cement and brick
production
Quartz, water, timber, hydropower, lignite, copper,
cobalt, iron ore, scenic beauty
Top export markets (2011)
Key nonagricultural
sectors
Natural resources
Figures in italics denote rank in world. All figures as of 2012 unless otherwise specified.
Sources: Nepal Central Bureau of Statistics, CIA The World Factbook, US Dept of State
www.ChinaSourcingReports.com 11
Supplier Profiles
SUPPLIER MATRIX
Company
Year
established
Ownership
Head office
location
Factory
location(s)
Full-time
employees
Part-time
employees
Asthamangal
2006
Locally
owned
Katmandu
(Bagmati)
Katmandu
(Bagmati)
5
150
Celtic Tiger
2002
Locally
owned
Katmandu
(Bagmati)
Katmandu
(Bagmati)
155
Creative Touch
1999
Locally
owned
Katmandu
(Bagmati)
Katmandu
(Bagmati)
130
De Souvenir’s
2008
Locally
owned
Katmandu
(Bagmati)
Katmandu
du
(Bagmati)
Bagmati)
15
Delima
1998
Locally
owned
Katmandu
(Bagmati)
Katmandu
mand
(Bagmati)
Bagmati)
50
150
2008
Locally
owned
Katmandu
ndu
(Bagmati)
Bagmati)
Katmandu
(Bagmati)
(Bagmat
15
85
Handmade
Handicraft
2008
Locally
owned
Katmandu
mandu
(Bagmati)
Katmandu
Katm
Katmand
(Bagmati)
(Bag
5
70
Hobb
2006
Locally
cally
owned
Katmandu
atmandu
(Bagmati)
(Bagm
Katmandu
(Bagmati)
25
Human Fit
1982
Locally
owned
Katmandu
Katm
Katmand
(Bagmati)
(Ba
Ba
Katmandu
(Bagmati)
40
K.L.
1992
92
Locally
owned
own
Katmandu
(Bagmati)
Katmandu
(Bagmati)
20
40
Kalanki Knitwear
1992
Locally
Locall
owned
Katmandu
(Bagmati)
Katmandu
(Bagmati)
13
16
Kayastha Exports
ts
1992
992
Locally
owned
Katmandu
(Bagmati)
Bhaktapur
(Bagmati)
45
200
Maa Laxmi
1999
199
Locally
owned
Katmandu
(Bagmati)
Katmandu
(Bagmati)
16
Nepal
al Knitwear
1989
Locally
owned
Katmandu
(Bagmati)
Katmandu
(Bagmati)
45
185
Nepal Knotcraft
t
1985
Locally
owned
Lalitpur
(Bagmati)
Lalitpur
(Bagmati)
7
70
Rejoice
2008
Locally
owned
Katmandu
(Bagmati)
Katmandu
(Bagmati)
40
Sashi
2005
Locally
owned
Katmandu
(Bagmati)
Katmandu
(Bagmati)
60
Tana Bana
2010
Locally
owned
Katmandu
(Bagmati)
Katmandu
(Bagmati)
8
Yala Mandala
1990
Locally
owned
Lalitpur
(Bagmati)
Lalitpur
(Bagmati)
200
In-depth profiles
Gajur
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24 Nepal Sourcing Reports
100
Supplier Profiles
Supplier
Profile
Asthamangal Handicrafts
INQUIRE NOW
Asthamangal was established in 2006.
The supplier generates $700,000 in
total annual revenue.
The entire output in the line is sent
abroad. The US accounts for threefifths of exports. The EU takes up
20 percent of shipments. The rest is
absorbed by Australia, Singapore, South
Korea, Taiwan, Russia, and Bosnia and
Herzegovina.
The owner is the sole designer and
creates up to 300 new models every
year. Samples are usually provided
within three weeks.
Asthamangal operates a 230sqm
factory in Katmandu. Most
manufacturing processes are
subcontracted to local artisans.
Capability
Materials used
Leather
Wood
Fabric
Plastic
Metal
Other natural materials
✗
✗
✓
✗
✓
✓
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The majority of orders are under ODM
basis.
Quotes are $2 to $160, depending on
the product type, components used,
size and design complexity. Woolen
winter hats are offered for $2.50.
Knitted pullovers are available for $65.
Wool, cotton, fleece, polyester, velvet,
rayon, white metal and glass beads are
the materials used. They are purchased
from mainland China, Mongolia and
India.
The workshop can create 25,000 pieces
every month. The average monthly
output is 12,000 pieces.
There are five permanent and 150 parttime employees. A three-member QC
team checks all finished items.
Polybags and cartons are normally
ormally
used as packaging. The minimum
mum order
requirement is usually
ally 50 pieces.
ces
10
10%
4
40%
40
40%
10
10%
Exports by market
mar
North Americ
America
EU
U
Europe (no
(non-EU)
Asia-Pa
Asia-Pacific
M
Middle East
Other
60%
20%
10%
10%
–
–
Asthamangal
gal is a member of the Nepal
Chamber
ber of Commerce. The supplier
plans
presence in
ans to expand
and its market prese
the US in the year ahea
ahead.
Company facts
Year established
ablished
ed
Head
ad offi
ffice
ce location
Ownership
Factory location(s)
Full-time employees
emp
Part-time employees
Part-tim
emplo
Total aannua
annual sales (all products)
ct
Exports by product
Jewelry
ags & wallets
Fashion bags
wear & neckwear
Headwear
Gloves & hosiery
Contact details
20
2006
Katmandu (Bagmati)
Locally owned
Katmandu (Bagmati)
5
150
$700,000
Business contact
SHAKYA Ramila
Phone
(977-1) 427-1551
Fax
(977-1) 427-1551
E-mail
[email protected]
[email protected]
Sales & output: Fashion accessories
Annual sales
Share of total sales
Annual export sales
Total monthly capacity
Average monthly output
Capacity utilized
Average monthly exports
Export ratio
Major export customers
30 Nepal Sourcing Reports
$400,000
57%
$400,000
25,000 pieces
12,000 pieces
48%
12,000 pieces
100%
Peace Treaty, B-Jaxx (US)
URL
www.globalsources.com/
asthamangal.co
Address
Bafal, Katmandu, Bagmati, Nepal
Supplier Profiles
Executive
SumSupplier
Profile
Popular export models
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Model
MOQ
Packaging
Delivery
Price
Description
AMH001
50 pieces
Polybag, carton
45 days
$1.75
Bangle; plastic beads;
in various colors and sizes
Model
MOQ
Packaging
Delivery
Price
Description
AMH002
10 pieces
Polybag, carton
45 days
$39
Necklace;
ace; white metal; coral
and turquoise
quoise trimmings;
in various
us colors and sizes
Model
del
MOQ
Q
Packaging
ging
Delivery
D
Price
P
Description
Desc
AMH003
AMH
10 pieces
piece
Polybag,
carton
Poly
45 days
$39
Necklace; white metal; coral
and turquoise trimmings;
in various colors and sizes
Model
MOQ
Packaging
Delivery
Price
Description
AMH004
6 pieces
Polybag, carton
45 days
$12
Bracelet; white metal; floral
motif; 2.5in diameter
Model
MOQ
Packaging
Delivery
Price
Description
AMH005
12 sets
Polybag, carton
45 days
$9.20
Necklace pendant set;
two pieces; white metal;
conch shell and turquoise
trimmings; 3cm diameter
Model
MOQ
Packaging
Delivery
Price
Description
AMH007
12 pieces
Polybag, carton
45 days
$7
Necklace; plastic beads;
in various colors and sizes
www.ChinaSourcingReports.com 31
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