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An Analytical Study on the Impact of Key Global Buyers on Export Sales at Creative Garments Pvt Ltd
Shreya Kamlaprasad Yadav, Post Graduate Academic Scholar, Department of Fashion Management Studies, National Institute of Fashion Technology, Ministry of Textiles, Govt of India, Daman Campus.
Dr. Rahul Kushwaha, Assistant Professor, Department of Fashion Management Studies, National Institute of Fashion Technology, Ministry of Textiles, Govt of India, Daman Campus.
Abstract
The export performance of apparel manufacturing firms is significantly influenced by their relationship with global buyers. The performance of company is crucial factor in any manufacturing industry.This research paper aims to analyse the impact of key international buyers on the export sales performance of buyer and garment exporters is require to assess how this linkage influence export sales performance. With the collected data, the studyassesses sales quantity, and category-wise exports among chosen buyers for the SS 2024 and 2025 seasons. A comparative analysis is carried out on observable variables, such as price, sales volume for specific buyers to emphasize the strategic significance of keeping important customers and coordinating product development with their preferences. The result indicate that the company’s export sales are heavily influenced by a small number of key buyers, highlighting the need for consistent communication, customised offerings and on-time delivery.To quantify the company’s dependency on specific buyer, a buyer concentration was assessed using the Herfindahl-Hirschman Index (HHI).Therefore, the purpose of this study is to understand which customer order have the most impact on company’s sales.
Keywords:Key buyers, Sales analysis, Creative Garment Pvt Ltd,Export sales
Introduction
International garment exports function in a competitive model that responds to evolving market requirements of buying entities along with short-lived retail seasons and cost-conscious industry elements. As the market evolves export houses function as essential entities to deliver timely fashion products of quality standards and trend accuracy to international purchasing brands and retailers. Export houses link manufacturers directly with the fashion brands industry.
Creative Garments Pvt Ltd (CGPL) functions as an export-oriented business alongside numerous other similar manufacturers because they maintain relationships with chosen key buyers whose frequent substantial orders each season represent a dominant proportion of their total business sales. The company’s performance shows considerable influence from these buyers because their preferences determine product development direction and set merchandising speeds and production structure priorities. The chosen group of key buyers significantly influences the company’s performance measures. The research focuses on determining how much impact key buyers create on export sales at Creative Garments Pvt Ltd. The research evaluates sales trends and factors by analyzing company data which includes buyer-wise sales contributions together with order frequency and volume alongside seasonal buying patterns and preferred product categories and pricing patterns. The study seeks to identify specific customers that generate maximum impact on all company operations including total sales.
This research stresses that effective buyer management serves as a strategic business priority within the export market. The development of enduring partnerships depends on building trust together with steady quality and delivery standards while keeping communication open between both parties and aligning activities with long-term buying objectives. The depth of understanding customer relationships along with proper relationship management secures immediate market stability in addition to achieving lasting business success in the competitive global marketplace which demands significant effort to maintain client loyalty. The study demonstrates the financial significance of essential buyers while delivering strategic guidance for export firms to enhance market domination through its analysis of these factors at Creative Garments Pvt Ltd.
Objective of the Study
- To identify the contribution of major international buyers to the export sales of Creative Garments Pvt Ltd.
- To identify which buyers, bring high order values by evaluating the product categories or styles that perform best per buyer.
- To assess the level of buyer concentration risk and the potential impact of over-dependence on a few major buyers.
Literature Review
Understanding the dynamic between international buyer and garment exporters is require to assess how this linkage influence export sales performance. In this context, one of India’s leading vertically integrated clothing manufacturers is Creative Garments Pvt Ltd (CGPL), which was founded in 1974. CGPL caters to renowned global brands such as Zara, Calvin Klein, and DKNY etc, significant amount of CGPL’s comes from export activities. This literature review intent to investigate or explore the current research on the dynamic between international buyer and export performance in the garment industry.
Gereffi (1999) highlighted how the large international buyers control the standards, the product flow and information across the chain by introducing the concept of global value chains (GVCs). This control frequently leads to power asymmetry, when suppliers are under pressure to meet stringent compliance, pricing, and delivery requirement. The studies emphasize the buyer- supplier relationships in the apparel industry, have since confirmed that strong buyer ties mean relationships can increase order volumes and reduce market volatility (Tokatli, 2007), but they can also decrease supplier autonomy and bargaining power (Ponte & Ewert, 2009). Humphrey and Schmitz (2002) emphasize the impact of buyer dependency on export performance. According to a study while dealing with global buyer it gives access to foreign market and reliable demand, excessive dependency on a small number of buyers might leave supplier vulnerable to sudden changes in price negotiation and order volumes. During the period of economic downturn or changes in buyer strategy, the business with high buyer concentration faces greater risk. Porter’s (1985) competitive strategy framework emphasizes the significance of difference and diversity. Export firm are urge to expand their buyer base and multiple market to reduce risk and increase the profitability. A study by Kaplinsky and Morris (2000) supports this, stating that the firms with consistent global buyer tend to show better margin, higher export volume and long-term growth. In a recent study, Fernie and Perry (2011) investigated the sourcing practices of clothes by fashion retailers from the countries like India and Bangladesh. Their result highlight that long term partnership with international buyers leads to improved forecasting, streamlined product development cycles and on time order placement, all of which contribute positively to enhance export sales.
Therefore, it is clear from the literature review that international buyer have a significant impact in shaping the export dynamics of apparel firms, influencing not just sales quantities but also operational strategies, legal framework and long-term sustainability.
Research Methodology
The methodology of the study is followed under this research. Objectives were made according to the research neededto evaluate the impact of key buyers in influencing export sales at Creative Garments Pvt Ltd. The research is based on company’s accurate data, particularly focusing on the sales performance during the spring/summer 2024 and 2025 seasons.The data analysis is undertaken in this research with collected data from department. The primary study done by observation and having discussion with merchandising manager. secondary data collected from the internal records of Creative Garments PvtLtd and used to conduct quantitative analysis and generate visual charts to support and enhance the analysis.
The objective was to examine overall export sales performance of key buyers by gathering information such as buyer name,total quantity ordered, price per unit, and total value in USD. The percentage contribution of each buyer to total sales was calculated in order to identify the major buyer. To quantify the company’s dependency on specific buyer, a buyer concentration was assessed using the Herfindahl-Hirschman Index (HHI).
Data Analysis& Interpretation
Data Analysis & Interpretation
1.The analysis is based on buyer wise export orders, considering unit prices, total quantities ordered, and total order values in USD to understand the export sales performance of SS season 2024 -2025. The table below presents the consolidated sales data:
| BUYER NAME | UNIT PRICE ($) | TOTAL QTY | TOTAL VALUE ($) |
| K Mart | $4.50 | 1000000 | 4500000 |
| Tendam | $4.80 | 50000 | 240000 |
| $4.50 | 150000 | 675000 | |
| $5.00 | 100000 | 500000 | |
| Saints Burry | $6.00 | 50000 | 300000 |
| Nautica/Tommy | $6.00 | 350000 | 2100000 |
| DKNY | $4.50 | 86000 | 387000 |
| LEE | $4.00 | 70000 | 280000 |
| Ben Sherman | $4.70 | 108000 | 507600 |
| Chaps | $4.45 | 180000 | 801000 |
| $5.15 | 450000 | 2317500 | |
| TOTAL | 2594000 | 12608100 |
| BUYER NAME | TOTAL VALUE ($) | % OF TOTAL SALES |
| K Mart | 4500000 | 35.69% |
| Tendam | 240000 | 11.22% |
| 675000 | ||
| 500000 | ||
| Saints Burry | 300000 | 2.38% |
| Nautica/Tommy | 2100000 | 16.66% |
| DKNY | 387000 | 3.07% |
| LEE | 280000 | 2.22% |
| Ben Sherman | 507600 | 4.02% |
| Chaps | 801000 | 24.72% |
| 2317500 | ||
| TOTAL | 12608100 | 100% |
Table 1. Showing buyer wise total order value in ($)
Table 2. Showing the contribution of each buyerto the total sales in percentage (%)
Calculate % of Total Sales
Fg.1 Graph showing total sales by buyer in ($)
The above bar graph clearly illustrates the total sales value contributed by each buyer in USD. It shows that K Mart is the leading buyer with the highest sales value of $4,500,000, followed by Chaps at $3,118,500 and Nautica/Tommy at $2,100,000. The minor buyer segment including Tendam and Ben Sherman as well as DKNY, LEE, and Saints Burry supplies funds between $280,000 and $1,415,000.
The above bar graph clearly illustrates the total sales value contributed by each buyer in USD. It shows that K Mart is the leading buyer with the highest sales value of $4,500,000, followed by Chaps at $3,118,500 and Nautica/Tommy at $2,100,000.The minor buyer segment including Tendam and Ben Sherman as well as DKNY, LEE and Saints Burry supplies funds between $280,000 and $1,415,000.
The following pie chart illustrates the contribution of each buyer to the total sales, further highlighting the dominance of K Mart and Chaps:
Fg.2 Buyer wise % of total export sale
Most Ordered Product Categories by Buyer:
| BUYER | MEN SHIRT | MENS SHORTS | MEN BOTTOM | LADIES TOP/DRESS | LADIES BOTTOM |
| K mart | 1000000 | 0 | 0 | 0 | 0 |
| Tendam | 150000 | 0 | 500000 | 100000 | 0 |
| saints burry | 50000 | 0 | 0 | 0 | 0 |
| Nautica / Tommy Hilfiger | 0 | 0 | 150000 | 0 | 200000 |
| DKNY | 86000 | 0 | 0 | 0 | 0 |
| LEE | 70000 | 0 | 0 | 0 | 0 |
| Ben Shreman | 108000 | 0 | 0 | 0 | 0 |
| Chaps | 180000 | 450000 | 0 | 0 | 0 |
| TOTAL | 1644000 | 450000 | 650000 | 100000 | 200000 |
Table 3. Showing performance of most ordered product category
It is observed based on sales data analysis, the top performing category at CGPL company is men’s shirt as it is account for approximately 63.38% of the total quantity ordered.
- Buyer Concentration Analysis using Herfindahl-Hirschman Index (HHI):
When a company like Creative Garments Pvt Ltd works with international buyers (like K Mart, Chaps, etc.), some buyers may place much larger orders than others. This leads to buyer concentration, where a few buyers account for a large share of the company’s total sales.If the company is too dependent on a few buyers, it becomes risky.The Herfindahl-Hirschman Index (HHI) is a technique used to measure this buyer concentration using actual sales data.
An HHI of less than 1,500 is considered a competitive marketplace, an HHI of 1,500 to 2,500 is moderately concentrated, and an HHI of 2,500 or greater is highly concentrated.
Formula:
where:
Sn =the market share percentage of firm n expressed as a whole number, not a decimal
To assess the dependency on a few buyers, the Herfindahl-Hirschman Index (HHI) is used:
| BUYER NAME | % OF TOTAL SALES |
| K Mart | 35.69% |
| Tendam | 11.22% |
| Saints Burry | 2.38% |
| Nautica/Tommy | 16.66% |
| DKNY | 3.07% |
| LEE | 2.22% |
| Ben Sherman | 4.02% |
| Chaps | 24.72% |
| TOTAL | 100% |
Table 4. Showing % of total sales for (HHI)
Therefore,
Buyer Concentration Analysis (HHI) in tabular form:
| Buyer | % of Sales | Square (%) |
| K Mart | 35.69 | 1273.98 |
| Chaps | 24.72 | 611.04 |
| Nautica/Tommy | 16.66 | 277.75 |
| Tendam | 11.22 | 125.87 |
| Ben Sherman | 4.02 | 16.16 |
| DKNY | 3.07 | 9.42 |
| Saints Burry | 2.38 | 5.66 |
| LEE | 2.22 | 4.93 |
| Total HHI | 100% | 2324.81 |
Table 5: Buyer Sales Share for HHI Calculation
The Herfindahl-Hirschman Index (HHI) calculated for Creative Garments Pvt Ltd based on sales data from key buyers is 2324.81, which falls in the moderate to high concentration range (between 1,500–2,500).This indicates that the company has significant reliance on a few major buyers, particularly K Mart and Chaps, who together contribute over 60% of total export sales.From a strategic standpoint, this level of concentration presents a risk. if either of the top buyers reduces or withdraws orders, the impact on total sales will be considerable. Therefore, diversifying the buyer base is advisable to reduce business vulnerability and ensure more stable export performance.
Findings &Recommendation
The Herfindahl-Hirschman Index (HHI) of 2324.81 demonstrates that the company heavily depends on major international buyers for its business operations.
- Total export sales generated by the buyers K Mart and Chaps reach above 60% of the total sales volume.
- K Mart stands as the leading buyer since they represent 35.69% of the sales value.
- The existing product line consists mostly of men’s shirts which reduces the range of available products for customers.
- Four key international buyers namely DKNY, LEE, Saints Burry, and Ben Sherman constitute less than 5% of the total sales.
- Female clothing items including ladies’ tops and bottoms show minimal penetration which represents unexploited market potential.
Suggestions
- Total sales suffer when men’s shirts represent more than 63% of the order volume therefore product innovation and market expansion are constrained.
- The company should enter womenswear categories because this expansion will create additional product variety while speeding up trend cycles and improving retail profits.
- CGPL needs to focus its business strategies on high-end and specialized retailers such as Saints Burry and Nautica.
- The management should conduct regular monitoring of Herfindahl-Hirschman Index (HHI) metrics on a quarterly basis to minimize dependency on specific suppliers.
- The investment into women’s clothing products will help CGPL develop its status as an inclusive exporter of trendy and brand-congruent products for both genders.
Conclusion
The research results demonstrate Creative Garments Pvt Ltd (CGPL) depends heavily on two leading international buyers K Mart and Chaps because these customers comprise more than 60% of total export sales. The company faces moderate risk based on a Herfindahl-Hirschman Index of 2324.81 which indicates heavy dependence on a few important clients. Strong dependability on major customers allows CGPL to maintain business stability through regular order execution while exposing the organization to significant performance instability in case of reduced orders from primary customers. Available evidence indicates current clients primarily consume men’s shirts which suggests new opportunities for product supplier diversity in current client portfolios.Strategic expansion of the customer base stands as a necessary step toward future business growth and decreased company exposure.
CGPL needs to invest in overseas market growth by targeting mid-level customers while expanding their product selection. A joint effort between CGPL and existing major buyers to develop unique collection designs jointly will strengthen customer retention and minimize buyer concentration dangers.CGPL requires perfect balance between reliance on buyers and strategic product expansion and diversified customer base development to remain successful in global clothing exports.
References
Gereffi, G. (1999). International trade and industrial upgrading in the apparel commodity chain. Journal of international economics, 48(1), 37-70.
Tokatli, N. (2007). Networks, firms and upgrading within the blue‐jeans industry: evidence from Turkey. Global Networks, 7(1), 51-68.
Ponte, S., & Ewert, J. (2009). Which way is “up” in upgrading? Trajectories of change in the value chain for South African wine. World development, 37(10), 1637-1650.
Humphrey, J., & Schmitz, H. (2002). How does insertion in global value chains affect upgrading in industrial clusters?. Regional studies, 36(9), 1017-1027.
Porter, M. E., & Advantage, C. (1985). Creating and sustaining superior performance. Competitive advantage, 167, 167-206.
Kaplinsky, R., & Morris, M. (2000). A handbook for value chain research (Vol. 113). Brighton: University of Sussex, Institute of Development Studies.
Fernie, J., & Perry, P. (2011). The international fashion retail supply chain. Fallstudienzum Internationalen Management: Grundlagen–Praxiserfahrungen–Perspektiven, 271-290.
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