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Neckermann, Europe's largest mail order house, to source garments from India

Sudipt Arora in Frankfurt

Neckermann Versand AG, reputed to be Europe's largest mail order house, has identified India as one of the most reliable and cost-effective base for sourcing textiles and readymade garments.

In calender 1998, the German giant imported goods worth 11 million deutsche marks (about Rs 260 million) from India. The selection included ladies-wear, men's-wear and children-wear, shoes and other leather items, household linen, consumer goods like stationery and gift items besides leisure ranges.

''We hope to increase this volume of business by about 20 per cent in the next two years,'' said Dieter Muller, Neckermann's import director. ''India is a very important supplier of good quality products at competitive rates. The prices are among the lowest.''

Muller, however, added that competition for Indian exporters is fast increasing from countries like Indonesia, Thailand, Pakistan, Romania and Bulgaria. China, of course, remains a formidable competitor.

''Suppliers must place adequate importance on timely deliveries because if a company has orders but not merchandise, it has to close the office and warehouse as well,'' he said.

Nearly 40 per cent of 110,000 items Neckermann advertises through its catalogues are imported.

Muller added that Indian businesspersons must participate in international fairs and exhibitions to incorporate global trends in their products.

The 3.2 billion DM Neckermann Versand is a wholly-owned subsidiary of the Karstadt AG since 1984. At its headquarters in Frankfurt, it employs nearly 5,000 people. In India, it established two offices about two years ago -- one in New Delhi and the other in Tirupur.

Karstadt's turnover exceeded 26 billion DM last year.

Muller said the European economic recession was hitting consumer spending in Germany. Neckermann will continue to focus on middle- and low-price range of products unlike its competitors like Quelle and Otto.

Besides Germany, it operates through it subsidiaries in the Netherlands, Belgium, France, Austria, Scandinavia and eastern Europe. The company executes about 20 million orders annually.

At Neckermann, Muller said, environmental protection aspects are a central factor in all activities -- from textiles inspection to receipts of orders or dispatch of goods. ''By introducing an eco-pass for all products on offer, we have laid the foundation for comprehensive ecological product evaluation and improvement.''

UNI

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