Global sportswear manufacturers are preparing to move their suppliers to India and Southeast Asia in response to increasing anti-Chinese sentiment. A significant portion of their raw materials is supplied from the region. Global retailers and brands are willing to secure supplies for goods they sell in India to markets other than China. Because of any obligations and restrictions, the Government can impose, Armor, whose suppliers have worldwide bases, does not anticipate any major effect on the Indian market.
The production of these sportswear companies in India could, however, drive up their costs. Domestic manufacturers have not yet developed scale, which will make it more expensive for brands to move their supplies and production into India. China has a global dimension and makes a global contribution, while India only generates domestic demand, says the managing director of an in-house soccer manufacturer. In the long term, he hopes India will hit a similar point. Brands would have to switch their production from China for at least two years.
A senior manager of a footwear retail chain says a large part of the hundreds of conveyors which arrive on Indian coasts daily are not charged even though the Government is working to increase its duties on products coming from China. For domestic producers, this is counterproductive.