"YKK, world’s largest zipper manufacturer is bullish about expansion in India. The Japan-based zip manufacturer already has a strong presence in Southeast Asia in countries like Taiwan, Bangladesh, Pakistan, Indonesia, India and Singapore. Although the brand has a strong market in Europe however, the US market has not met expectations."
YKK, world’s largest zipper manufacturer is bullish about expansion in India. The Japan-based zip manufacturer already has a strong presence in Southeast Asia in countries like Taiwan, Bangladesh, Pakistan, Indonesia, India and Singapore. Although the brand has a strong market in Europe however, the US market has not met expectations.
India on its mind, YKK looks at expanding base
With the market for denim and casual wear growing in India, YKK is witnessing a steady year on year growth. From garments to luggage, the brand is targeting every segment of customer. The brand has been offering high quality zippers, machines, and architectural products to Indian market. Apart from zippers, YKK also offers high quality buttons, hooks, loops, buckles. “We are in the high segment however, we have a wide portfolio to target customers across various verticals. In India, we are growing over 25 percent every year,” says Mohit Verma, Regional Head North, Sales and Marketing.
Elaborating on its strategy for market expansion Verma says “We approach both buyers and vendors. We interact about lead times, availability, services. This way we can be closer to customers. The jeans market is growing in India and we have received a good response from jeanswear manufacturers. And we can spread the word about our presence in India. People are fed up of using other products that are faulty. If they use our products the rejection rate is zero or negligible. So we have to manage both price and volumes. But lowering the price won’t affect the quality of the product.”
The brand already has a strong presence in India. Mumbai and Ahmedabad being the hub of denim wear manufacturing, both are core markets for YKK, while in North, markets like Karol Bagh, Tank Road, Gandhi Nagar have been major contributor to sales. “We plan to have a diversified product range to match various price points. We want our product to be used by the biggest of domestic or export brands and the smallest of tailors. In exports too we are growing” adds Verma. Mumbai continues to be an interesting market for the brand inspite of the city’s own set of challenges which include scarcity of land and higher wages. “Mumbai has become the denim capital of India. There are many firms doing mass production of denim. What’s produced in Mumbai is really good even though it may not be a certified factory or a buyer nominated factory. And YKK has a big share in this. The share of the western India has grown in the domestic market,” Verma opines.
The brand’s growing presence in India is supported by a massive backend infrastructure in Bawal. YKK has an equipped infrastructure covering almost 70 acres of land. It also has a strong dealers and distributor network with 14 offices all over India. “We are in places like Kochi, Jaipur, Ludhiana, Ahmedabad and soon planning to have warehouses in Mumbai, Ludhiana, Kolkata,” Verma informs. As a market, India has a huge domestic volume and YKK’s overall business records higher domestic quantities than exports.But in Japan YKK dominates the market.
The brand’s global production line reflects innovation and advanced technology. YKK Japan has a product portfolio that includes fire retardant zippers, water repellent zippers, and specific zippers for scuba diving suits and for suits that astronauts wear. Other than acquiring a larger market share YKK intends to focus more on introducing newer, innovative product in India. “We have a product for trousers called ‘CINC and EZFC, which was developed after studying the market for two years. This is at a price point where even the common tailor and the biggest brand in India can afford. Perhaps our biggest strength is we make products based on customer demand. We are planning to increase the product range. YKK India has a strong R&D department which fulfills the demand of customized Logo sliders, finishes and rubber sliders. According to the fabric base, we have to develop a product that looks like metal. We are increasing our production capacity for regular products. We will do within India what we are now importing,”explains Verma.
Counterfeit pose a major challenge
Unlike in Japan, the highly unorganised market in India poses a major challenge on its way. “In India, we have a lot of competitors from both brands and unorganized segment. There are foreign zipper brands in India as well. There are counterfeits in Ahmedabad and Mumbai which pose problems after washing. Counterfeits and imports from China are a challenge. Counterfeits may come from China or local manufacturers and maybe they are selling more than the original YKK brand. There are still many brands using fake YKK products. We are taking legal action against them,” says Verma.
Apart from legal course of action to stop the fraud , the brand is relying heavily on educating vendors about YKK’s quality and innovation. The brand is aggressively expanding its vendor network and organising training programs to impart knowledge about their USP. YKK also engages in CSR activities from literacy to women’s empowerment and green issues. “YKK has a strong pan India presence while many of our competitors are regional. In volume and value, they are far behind us” sums up Verma. Indeed YKK has set a benchmark of its own which is tough for others to reach.
