Role Of Marketplace In Exports

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The term “marketplace” is commonly defined as an approved and authorized public gathering of sellers and buyers of commodities meeting at an appointed location at frequent intervals.  

The marketplace is the basic unit required for the export of products. The role of marketplaces varies not only between industries but also between developing and third-world countries. 

A marketplace performs three basic functions of business:

  • Exchange 
  • Import 
  • Export 

Going Digital 

Offline marketplace gives a platform for exports and imports all over the globe. It is the designated place for the business to grow and export their products to several countries. Furthermore, trading exports involves a B2B or Business-to-business model. In B2B models, most exporters tend to lack the oversight of their product’s marketing, price, place of sale. For that, exporters are highly attracted to the assistance of online marketplaces. 

The total apparel export from countries like India, Pakistan, Bangladesh, and Sri Lanka was $22.69 billion in the year 2020, where Bangladesh was the largest apparel exporter to the EU28 followed by India and Pakistan.

Countries like these carry huge importance; hence it contributes to the significant role in exporting goods. However, an approximate 43.81 percent drop was measured in the total apparel exports to the EU28 in April 2020. The unpredictability of the stores re-opening has impacted more than 300 small to medium-sized garment factories that have closed due to many reasons. Going digital provides your industry not only with safety but also with a greater number of customers. 

The Indian Textile Marketplace

India’s textile market is one of the oldest surviving industries in the Indian economy. The industry is extremely varied, with hand-woven and hand-spun textile sectors on one end and mills sector on the other end of the spectrum. The decentralized hosiery, power looms, and knitting sector forms the largest component of the industry. The Indian textiles industry has around 4.5 crore employed workers including 35.22 lakh handloom workers across the country. It has the capacity to produce a wide variety of products suitable for both the different market segments, both within and outside India.

Investments In The Marketplace

Owing to the pandemic, India has shifted gears and made major initiatives to boost its technical textile industry. The demand for technical textiles in the form of PPE equipment and suits is on the rise. The Indian government too is supporting the sector through machinery funding and sponsoring. More and more manufacturers are attaining sustainability in their products by researching and manufacturing textiles made from recyclable materials. 

In conclusion 

The future of export and its role in the marketplace looks promising. With consumerism and income on the rise, the Indian textile industry has experienced rapid growth with the entry of international players like Guess, Marks & Spencer, and Next into the Indian market. All these factors will further increase the demand for products creating an intricate and vast marketplace for exports.

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