Yarn quality & consistency are crucial
The Yarn Bazaar, founded in 2019, is revolutionising the textile industry by providing transparent and efficient solutions for buying and selling yarn. Its mission is to organise the unorganised sector and empower small yarn buyers and suppliers through innovative approaches and technology. Speaking to Fibre2Fashion, Founder and CEO Pratik Gadia discusses how his company is transforming yarn procurement pan-India.
With the growing emphasis on e-commerce and digital platforms, how do you see the future of the textile industry evolving?
With the rise of e-commerce and digital platforms, I see a big shift happening in the textile industry. It is not just changing how we buy textiles; it is transforming the whole supply chain, influencing how manufacturers and retailers do business. The emergence of AI (artificial intelligence) and the augmented utilisation of data analytics are playing key roles, enriching our insights into market dynamics and customer behaviours, optimising production processes, and enabling intelligent decision-making.
Could you share your insights into changing consumer preferences in the textile industry, especially about eco-friendly and ethically sourced products?
There is a rising global and domestic appetite for sustainable yarns, driven by both international buyers and local brands. Notably, we have also experienced a shift in demand from some of our customers from, conventional cotton yarns to more eco-friendly alternatives, including BCI, organic, GRS, and recycled yarns. The polyester segment is witnessing substantial investments in expanding capacities for recycled yarn.
To meet this surge in demand, spinners are embracing advancements in technology, enhancing supply chain efficiency, and prioritising traceability. They are diligently sourcing the right raw materials to align with buyer preferences. This shift necessitates spinners to restructure supply chains and production processes, sometimes requiring investments in new capital equipment.
Furthermore, we have taken concrete steps towards responsible sourcing. The Yarn Bazaar holds certifications from globally recognised standards, including GOTS (Global Organic Textile Standard), OCS (Organic Content Standard), RCS (Recycled Claim Standard), and GRS (Global Recycled Standard). These certifications serve as a testament to our unwavering commitment to sustainable and responsible practices in the textile industry. Through these measures, we aim to contribute positively to environmental conservation and ethical sourcing, setting a benchmark for sustainable excellence in the yarn sector.
Can you elaborate on the importance of collaboration within the textile industry and how it can benefit the companies?
Looking at yarn sellers, mainly yarn manufacturers in the Indian textile industry, we see a landscape dominated by around 55 million spindles, with a significant concentration in the south. However, beyond these larger players, there is a multitude of smaller suppliers representing MSMEs or SMEs. The challenge they face is two-fold.
Firstly, their distribution is limited, confined to local areas with sales relying heavily on middlemen and regional channel partners. Expanding their distribution could significantly boost sales. Secondly, there is a notable lack of branding, preventing them from commanding higher prices.
Additionally, smaller manufacturers struggle with low factory utilisation and operational efficiency, operating at reduced capacity, leading to wastage and quality inconsistencies.
The Yarn Bazaar addresses these issues by providing a pan-India distribution network, offering access to a broader market. We assist in brand establishment and ensure fair prices through consistent quality standards. We focus on enhancing market reach, brand establishment, quality standards, and operational efficiency.
Our advice is clear. Manufacturers should strive for pan-India distribution, ensuring competitiveness in every product category. Quality and consistency are crucial, especially for smaller players who should focus on a few SKUs. Improving factory efficiency and minimising wastage impact the bottom line significantly. At The Yarn Bazaar, we recognised and worked on this, collaborating with SMEs to empower and create a more inclusive ecosystem. This initiative aligns with our mission since inception.
In a highly competitive marketplace, what strategies do you believe are essential for companies to thrive and remain relevant in the textile industry?
The textile industry is a challenging landscape and fiercely competitive. We recognise the imperative for companies to navigate smart strategies for not just survival but to lead the pack. At the core of these strategies lies a profound integration of digital technology, all while keeping customer centricity in sharp focus. As our industry undergoes a transformative journey into the digital realm, companies that warmly embrace these technologies stand to amplify efficiency, curtail costs, and fortify their competitive standing.
Adding to this, we firmly believe that brands that prioritise customers and create exceptional experiences are the ones that thrive. Customer-centricity, for us, transcends beyond delivering great products; it is about understanding and anticipating our customer’s needs, preferences, and expectations. Through personalised, relevant, and meaningful interactions at every touchpoint of their journey, we strive to create lasting connections.
How does The Yarn Bazaar support small and medium-sized enterprises (SMEs) in the textile industry in terms of market access and competitiveness?
As a managed B2B marketplace, we excel in understanding the key concerns of buyers, including obtaining the correct quality, competitive pricing, and timely delivery. Our extensive supplier network, surpassing that of traditional offline traders, allows us to align supplier capabilities with a diverse range of buyer demands, empowering them with an optimal blend of Quality, Cost, and Delivery (QCD).
Recognising that small suppliers seek quick sales, prompt payments, and a steady flow of orders, we work directly with them to ensure consistent demand for their yarn. To enhance their cash flow, we offer upfront payments. Furthermore, we provide valuable market insights and advisory services, aiding them in forecasting demand and improving factory efficiency.
Additionally, our strategic partnerships with supply chain financing entities enable SMEs to finance entire transactions, ensuring that the suppliers receive advance payments promptly. This not only fortifies their financial stability but also significantly enhances their competitiveness in the dynamic textile market.
In the textile industry, supply chain disruptions have been a significant concern in recent times. How has The Yarn Bazaar managed to maintain a stable and reliable supply chain for its users?
The Yarn Bazaar is transforming yarn procurement with a comprehensive suite of services—yarn discovery, quality control, transactions, fulfilment, financing, advisory, and market intelligence. Our streamlined approach eliminates complexities, ensuring a seamless experience from pre-sales to post-sales. Recognising industry challenges, we match buyer and supplier needs in our managed B2B marketplace, empowering users with an optimal blend of QCD.
Buyers benefit from our extensive supplier network, surpassing traditional traders, for high-quality, competitively priced yarn with reliable, timely delivery. For suppliers, we ensure swift sales, prompt payments, and a consistent order flow. Our proactive measures, including upfront payments, support cash flow, while market insights and advisory services optimise efficiency.
In essence, The Yarn Bazaar fortifies the supply chain, offering stability amid textile industry disruptions.
How has The Yarn Bazaar furthered its commitment to sustainability, and what initiatives are in place to promote eco-friendly practices among users?
The Yarn Bazaar is dedicated to sustainability, holding certifications such as GOTS, OCS, RCS, and GRS, internationally recognised standards for responsible practices in the textile industry. Our commitment is evident in the high-quality sustainable yarns we offer, reflecting responsible sourcing.
In collaboration with Wazir Advisors, The Yarn Bazaar conducted the Sustainability Survey Report 2023 on World Environment Day. This initiative sheds light on the Indian textile industry’s sustainability potential and recognises key stakeholders of the Indian textile industry contributing significantly to sustainable practices.
How has The Yarn Bazaar adapted to meet the changing needs and preferences of its customers in the textile industry?
We have established a modern, efficient, and transparently managed marketplace for yarns. Our platform allows yarn buyers and sellers to discover real-time yarn prices, information, and market trends, addressing the need for transparency and efficiency in the industry. Additionally, we have launched the BANDHU programme, offering expert guidance to navigate our platform, guaranteeing a seamless and efficient business experience for our users. Through these initiatives, we have empowered SME spinners and yarn manufacturers, extending their market reach beyond local boundaries. This not only provides them with access to a broader market but also ensures premium prices for their high-quality yarn.
What role does technology play in enhancing the operations and services offered by The Yarn Bazaar?
Technology plays a pivotal role in elevating the operations and services offered by The Yarn Bazaar. We are actively developing The Yarn Bazaar Bandhu, a cutting-edge recommendation engine. This engine leverages various factors, including specifications, machinery, and budget considerations, to comprehensively assess the unique needs of our users. Adopting an advisory-first approach, our team of experts thoroughly understands the buyer’s requirements before making tailored recommendations. This ensures that our buyers receive the best-suited yarn for their business.
Furthermore, we are spearheading the digital transformation of the Indian yarn industry through a SaaS platform. This platform aims to revolutionise the yarn buying and selling experience by reducing time and effort while enhancing overall efficiency. Drawing inspiration from well-organised textile companies globally and other industries, our platform is designed to cover the entire yarn supply chain, from procurement to payment. This comprehensive approach makes the yarn industry more efficient, transparent, and accessible for all stakeholders involved.
What new initiatives or strategies has The Yarn Bazaar implemented to further empower small yarn buyers and suppliers?
Unfortunately, customer satisfaction and experience are often overlooked in the Indian textile industry, with post-sales service receiving little attention. Our vision is to change this by introducing an advisory-first approach through our Bandhu programme.
Bandhu will offer recommendations, predictions, and prevention strategies for both our buyers and suppliers, ultimately delivering a superior customer experience. This includes comprehensive order tracking, traceability, live monitoring, and increased operational efficiency, all aimed at streamlining the entire sourcing and sales experience.
Can you provide an overview of your experiences and milestones in 2023?
In our strategic pursuit to grow our team, enrich our product offerings, and unveil cutting-edge technological innovations, we decided to relocate from Mumbai to Bengaluru.
In 2023, The Yarn Bazaar achieved a significant milestone by successfully concluding a pre-Series A funding round. This accomplishment injected substantial funding into our operations, propelling us with renewed momentum for future growth. Our strategic focus remains unwaveringly centred on the yarn segment within the Indian market, emphasising a commitment to specialisation rather than diversification into areas like fibre, apparel, or fabrics.
In addition, we have made significant strides in our journey toward digitisation, a pivotal aspect of our growth strategy. Furthermore, we are gearing up to launch new verticals, marking this year as a transformative period for The Yarn Bazaar.
What upcoming features or verticals can users of The Yarn Bazaar look forward to in the coming year?
In the upcoming year, users of The Yarn Bazaar can anticipate an array of exciting features and verticals. We are placing a strong emphasis on supply chain finance and logistics, aiming to streamline and enhance the overall procurement process. Our focus extends to assisting users in sourcing a variety of yarns, including not just cotton but also versatile blends. This ensures a diverse and comprehensive selection to meet the evolving needs of our valued users.
How do you anticipate that ‘Bharat Tex 2024’ to be organised by the Government of India will contribute to the promotion of the Indian textile industry?
I am absolutely thrilled about Bharat Tex 2024! It is anticipated to be the world’s largest textile event. It is set to spotlight India’s entire textile value chain, from fashion to traditional crafts and sustainability initiatives. It is going to be a monumental moment for the entire Indian textile industry.
Beyond showcasing our offerings, this event will be a key player in forming global connections, fostering collaborations, and emphasising our dedication to sustainability.
In my view, it is not just a showcase; it is an opportunity to drive the Indian textile industry forward, highlighting our competitive edge, showcasing capabilities, and scripting a new chapter of success. Cannot wait for the curtains to rise on this exciting journey!
