BUY NOW Fashion Accessories April 2013 US$150 Essential sourcing intelligence Nepal supplier profiles Detailed profiles of 29 suppliers with verified manufacturing and export credentials Product gallery Specifications and full-color images of 190 top-selling export products ranging from necklaces to knitted gloves Industry trends Coverage of current issues, plus insights into supply centers, products and pricing Sample NEPAL India China page o y Bangladesh 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. 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 To mitigate the effects of these occurs in the country. Suppliers external factors, manufacturers of implement a number of ways to fashion accessories rely on solid design cope but each has its own drawback expertise rooted in traditional methods that results in undesirable conditions and aesthetic elements derived from for the company, nonunion workers the local culture. In addition, they or the economy omy at large. provide comparatively lower quotes and have smaller minimum order 3. Heavy reliance on imported requirements. components such as fabrics, metal Objective, methodology scopeple & scope This Nepal Sourcing Report is part of a series designed to provide buyers with information on new products from export manufacturers in supply markets that specialize in handmade merchandise. The Developing Country Sourcing Report series is part of Global Sources corporate social responsibility initiatives. It is offered din 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 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. 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. 4. Product design trends over the next six months will generally be made of less-expensive sive materials als and come in bright hues. These e include colorful orful glass beads for jewelry and embellishments, and pure cotton for fashion 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. 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 3 Key findings Objective, methodology & scope INDUSTRY OVERVIEW 11 Country facts Export Exports markets Products & prices 14 Production & export statistics Typical parts & components Price guides Supplier survey 20 Export prices Export sales Export markets Major challenges R&D focus SUPPLIER PROFILES 23 Supplier matrix: Comparison of supplier location, sales revenue & export capability Profiles of 29 verified suppliers PRODUCT GALLERY 75 Jewelry Fashion bags & wallets Headwear & neckwear Gloves & hosiery CONTACT DETAILS 109 Sample e page only Copyright 2013 Trade Media Limited. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Trade Media Holdings Limited and Trade Media Limited is prohibited. Published by Publishers Representatives Limited (on behalf of Trade Media Limited) 4th Floor, Century Yard, Cricket Square, Elgin Avenue, P.O. Box 32322 SMB, George Town, Grand Cayman, Cayman Islands c/o 22/F Vita Tower, 29 Wong Chuk Hang Road, Aberdeen, Hong Kong 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 to any of the contents of this report (including any information, opinion, recommendation or conclusion contained in this report) (collectively, Contents ), whether as to the accuracy, completeness, quality, fitness, suitability or reliability of such Contents (or any portion thereof ) or otherwise, and shall not be liable under any circumstances whatsoever for any error, omission, defect or deficiency in, or for any use of or reliance on, such Contents (or any portion thereof ). 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 affiliates respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof ) which infringe on any intellectual property or other rights of a third party. 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 2009-2010 due to the global economic crisis. 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, estimate that roughly 70 percent of turnover is sent to member nations of the South Asian Association for Regional Cooperation operation on or SAARC. According to the Federation of Handicraft Associations of Nepal, India is the largest individual foreign destination, accounting for two-thirds of sales. s. Outside of SAARC, China and the US are the 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 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 Country facts Nepal Capital Area Population Median age Literacy rates Major languages Government Administrative divisions 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 commonly subcontracted to craftsmen who have 147,181sqkm (94th) Labor force 18 mn Minimum wage $72 per month Unemployment rate (2008) 46% Population below poverty 25% line (2011) GDP $40.5 bn (102nd) GDP per capita $1,300 (202nd) GDP growth 4.6% Inflation rate 8.3% Economic revenue Services: 47% sources Agriculture: 38% Industry: 15% Total exports Key export industries Top export markets (2011) India: 57% US: 10% Germany 5% 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 30.4 mn (41st) 22.1 years 73% (male) 48% (female) Nepali (official), Maithali; English frequently used in business and government Federal democratic republic 14 zones (Bagmati, Bheri, Dhawalagiri, Gandaki, Janakpur, Karnali, Kosi, Lumbini, Mahakali, Mechi, Narayani, Rapti, Sagarmatha, Seti) Sample page only $1 bn Garments, pulses, carpets, textiles, juice, pashmina, jute products 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 www.chinasourcingreports.com 11
Supplier Profiles SUPPLIER MATRIX Company Year established Ownership Head office location Factory location(s) Full-time employees Part-time employees In-depth profiles Asthamangal 2006 Locally Celtic Tiger 2002 Locally Creative Touch 1999 Locally De Souvenir s 2008 Locally Delima 1998 Locally Gajur 2008 Locally Handmade Handicraft 2008 Locally Hobb 2006 Locally Human Fit 1982 Locally K.L. 1992 92 Locally Kalanki Knitwear 1992 Locally Kayastha Exports 1992 Locally Ma Laxmi 1999 Locally Nepal Knitwear 1989 Locally Nepal Knotcraft 1985 Locally Rejoice 2008 Locally Sashi 2005 Locally Tana Bana 2010 Locally Yala Mandala 1990 Locally Bhaktapur 5 150 15 130 15 50 150 15 85 5 70 25 40 20 40 13 16 45 200 Sample epage only ony 16 45 185 40 60 7 70 8 200 100 24 Nepal Sourcing Reports
Supplier Profiles 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 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. Company facts Year established ed 2006 Head office location Ownership Locally Factory location(s) Full-time employees 5 Part-time employees 150 Total annual sales (all products) $700,000 Sales & output: Fashion accessories 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. Most manufacturing processes are subcontracted to local artisans. 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 used as packaging. The minimum mum order requirement is usually 50 pieces. Asthamangal is a member of the Nepal Chamber of Commerce. The supplier plans to expand its market presence in the US in the year ahead. Annual sales $400,000 Share of total sales 57% Annual export sales $400,000 Total monthly capacity 25,000 pieces Average monthly output 12,000 pieces Capacity utilized 48% Average monthly exports 12,000 pieces Export ratio 100% Major export customers Peace Treaty, B-Jaxx (US) Capability Materials used Leather Wood Fabric Plastic Metal Other natural materials Contact details Exports by product Jewelry 10% Fashion bags & wallets 40% Headwear & neckwear 40% Gloves & hosiery 10% Exports by market North America 60% EU 20% Europe (non-eu) 10% Asia-Pacific 10% Middle East Other Business contact SHAKYA Ramila Phone (977-1) 427-1551 Fax (977-1) 427-1551 E-mail asthamangal72@yahoo.com asthamangal@wlink.com.np URL www.globalsources.com/ asthamangal.co Address Bafal,, Bagmati, Nepal Sample page e only y 30 Nepal Sourcing Reports
Executive Supplier Profiles Sum- Popular export models Model AMH001 MOQ 50 pieces Price $1.75 Description Bangle; plastic beads; in various colors and sizes Model AMH002 MOQ 10 pieces Price $39 Description Necklace; white metal; coral and turquoise trimmings; in various colors and sizes Model AMH003 MOQ 10 pieces Packaging Polybag, carton Delivery 45 days Price $39 Description Necklace; white metal; coral and turquoise trimmings; in various colors and sizes S mple page e only Model AMH004 MOQ 6 pieces Price $12 Description Bracelet; white metal; floral motif; 2.5in diameter Model AMH005 MOQ 12 sets Price $9.20 Description Necklace pendant set; two pieces; white metal; conch shell and turquoise trimmings; 3cm diameter Model AMH007 MOQ 12 pieces Price $7 Description Necklace; plastic beads; in various colors and sizes www.chinasourcingreports.com 31
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