The uncertainty of tariff talk within an era of renegotiated trade deals is affecting the retail community and forcing manufacturers to look at alternative ways to offset the potential increase in prices of importing raw materials or goods.
Companies are looking at different strategies, from buying more inventory, passing costs onto consumers, returning manufacturing to the United States, or moving sourcing to an alternate country. Each of these strategies needs to be well thought out to determine if it’s the right direction for your company. Needless to say, any such decisions involve a good amount of research, time and effort. The more informed you are, the more successful you will be with finding the right alternative to your product sourcing.
A logical solution is to seek out other low-cost markets or countries for your sourcing needs. Vietnam, Indonesia, India, Thailand, Myanmar and Bangladesh are all viable options within the region. However, there are many things to consider when evaluating a shift to a new country for your sourcing partner.
The political and economic stability in the country, the business environment and infrastructure available, the language and work culture, the availability and cost of materials, work force, and skilled craftsmanship are all important factors to examine when considering redirecting your production capabilities. Truth is, every country comes with its fair share of challenges, as well as opportunities. The question is: how do you effectively consider an alternate resource?
One way is to find the right local on-ground partner to source the best required product and help minimize the risk, while maximizing the value of the supply chain. On-ground partners like 3S, located in New Delhi, understand the local market and have operated within the global community for more than 15 years. They take the uncertainty out of doing business in a new foreign market. It’s no wonder, then, that India is gaining favor as an alternative sourcing partner for companies concerned about tariffs. With a fairly stable currency, well-defined infrastructure, lower labor and raw material costs, and competencies in design and artistry — particularly in the gift, textiles, furniture, fashion accessories, home décor, houseware, kitchen and carpet categories — India has the necessary capabilities to provide product souring on a larger scale.
And 3S is helping pave the path to this success.
With a large local footprint and the expertise of over 65 employees across 7 cities in India, as well as strong relationships with over 200 manufacturing factories and supply chain partners, 3S offers comprehensive end-to-end services. Led by a strong leadership team with robust technology, processes and systems in place, it is uniquely positioned to bring competencies in both cost and quality, and is the partner of choice for direct imports from India. 3S also has the ability to take over the full risk of managing the entire production process insuring delivery of high quality products at the right price. It’s this expertise in the home, lifestyle, textile, furniture and lighting categories that makes 3S an ideal on-ground partner to help you establish or stabilize your direct sourcing from India.
For more information and to meet with 3S at High Point Market, click here, or email us at Deepak@3sglobal.in
