Auctions – Who needs ’em?

Did you know that India lost USD 470 million in the 2G spectrum scam? That is 30 billion Indian rupees – all of which could be prevented only through the simple method of auction (which the government did implement post the scam). The Indian government lost so much money that they have begun to use electronic auctions as the de-facto method of transaction. 3G auctions in Europe, a few years back, helped governments raise billions in spectrum fees. Could they have done this by the old fashioned method of offer documents and negotiations? Definitely not! An Alibaba spokesperson said that consumers were first introduced to online retail through the C2C (consumer-to-consumer) model almost a decade ago. Over time, independent B2C retail Web sites and B2C platforms have sprung up to cater to a more diverse consumer. In China, B2B bags the largest market share due to the higher volume and…

XSTOK – A First in India

XSTOK is poised to solve problems that are currently plaguing the surplus textile product market. The platform will allow transparency, make price discovery a reality and will be accessible to all the suppliers and the buyers across the country. The entire market will be open for consumption in an e-auction format. XSTOK will provide aggregated real-time stock lot inventories from Apparel, Home Textile, Fabric and Yarn producers to a network of pre-authorized dealer/ distributor network across India on a dynamic bidding platform. Suppliers and buyers will have to register themselves onto the platform. We will be responsible for marketing, creating depth, billing, guaranteeing and managing payments, managing transport and mitigating quality issues. The entire textile market has around 30,000 suppliers in India. The idea is to have the entire chain of suppliers on the platform for the buyers to bid and buy the lots. Currently suppliers have a select universe…

Can Surplus be Profitable?

Roti, Kapda aur Makaan (Food, clothing and shelter) have been classified as the basic need of a human being. The textile industry is one the oldest industry in this world – purely because we can’t live without kapda (cloth/clothing). Textiles have been huge for the last 4-5 decades especially in the Indian subcontinent – particularly in India and China – due to the low production cost these countries provide. Considering the entire Indian subcontinent caters to the global market, it is a huge market to begin with. In India the market is worth on the north of $126 billion, while the total textile output of China is worth more than a $1 trillion. When a market is as big as that, there will be an extensive amount of surplus products. If we look at India, it has grown leaps and bounds with respect to the textile industry in the last…

Excess Stock – Let’s Make It Legal?

If you live in Mumbai, you’ve probably heard of Hill Road and Linking Road in Bandra. The fact that two roads which illegally sell surplus stock of clothes are among the more popular places in the city goes to show just how high the demand for apparel stock lot is. India has its own host of shopaholics (like every other country) and currently the answer to the needs of these shopaholics come from the street stalls and retail shops at Colaba Causeway, Lokhandwala, Linking road, Hill road, Fashion Street and others. A bulk of these include western clothing like jackets, trousers, t-shirts, skirts, capris, jeans and so on. A hefty fraction of these is ‘export surplus’ or stock lot goods. Most of this clothing is designed by popular western brands and usually ordered for tailoring in India. Famous brands like GAP, MNG, Pepe, Sasha, Abercrombie, Zara, Golf Women etc, are…

4 Ways to Make Money on your Excess Stock

Part of running a business is dealing with excess inventory. Overstock materials is nothing more than merchandise from closeouts, inventory overruns, packaging changes or clearances as well as goods from liquidations, bankruptcies, insurance claims and receiverships. It also includes the cost of storing the stuff and the decreasing value of merchandise that’s perishable or becoming dated. Essentially, excess stocklot translates into dead cash. Or does it? Says Rhonda Abrams, “Inventory is money sitting around in a different form.” Below are a few tips to make the most of your excess stock: Put up for sale to an inventory liquidator Instead of letting your excess stocklot sit in a warehouse, an ideal option would be to sell to an inventory liquidator. These guys will purchase your excess inventory and re-sell it, most often at a discount. Do keep in mind certain factors though: Your inventory could be brand sensitive. That must…