Communication Gap between Nepalese brands and consumers: An issue to be considered

I want to discuss the insight of garment industry of Nepalese economy today. This 'Made In Nepal' campaign has a wide prospect but I want to talk today about clothing and garment culture of Nepal. What I am referring through the phrase 'COMMUNICATION GAP' is the barriers between Nepalese brands & Nepalese consumers & the causes behind, challenges, and the future prospects. What can be the possible reasons they are struggling to find proper market recognition despite great quality and practicability.

Its been a while since I've been following Nepalese brands & entrepreneurship. After completion of my recent exam, I got vacant time. So, I started doing small research work on them, not precisely though. I started surfing & scrolling here & there on social media,websites & internet. This started just as my hobby and utilization of leisure time. But as I went on, I went deeper & deeper through every nook and corner of some business brands. And to my surprise, I bombarded with different facts that amazed as well as shocked me at the same time.

My study was on the garment industry and wearable especially. Because daily consumer goods like groceries and food industry is not that challenging. We know the fact is different, when we do reality check, we are spending billions every year on imports of the same. We are struggling on that too. However this can be overcome by increasing self dependency and sustainability on those sector with little awareness if proper policies and management system are introduced and implemented by the Govt to encourage the local pre-existing food and beverage industries like CG, Dugar and alot more, where co-operation is sought simultaneously from our side too.

Our real lacking is on manufacturing, Garment and Technology where we are almost close to null. Because though there are some random small scale production houses and manufacturers, we are yet to industrialize on these sectors due to varieties of reason.

Lets jump straight to the content...

Here I am not talking about the popular Nepali which are already well established & well known among us like Goldstar, Shikhar shoe, Black Horse footwear etc, which are popular among us [Though they themselves are yet to go long way to reach the actual pinnacle of success they are capable of.] Nepalese consumers still prefer some other foreign brands over them too despite being affordable. The reason is both intrinsic as well as extrinsic. Internal reasons are Lack of innovation and creativity on design works, conventional way of marketing et cetera & quality factor comes along too. Because fashion is something that goes on changing and revolving each now and then which demands consistent hard work & research to get along.

These being the internal lacking, lets talk about the actual situation. There are some great home brands which have great product line, they are really nice, but still struggling for commercial success. Neither they are able to reach target market nor the market knows about them. The most important & foremost reasons being the PRICE FACTOR itself as well as our lack of trust towards domestic products or obsession towards foreign brands, if said other way.

Since childhood what I always believed is; Everything that I wear are manufactured abroad. Not only me, probably its what we all think & is a fact too, to great extent. Except couple of slippers from Shikhar shoe, Magic chappal, Hattichhap, 300 Rs. mandala T-shirt from Thamel or some'मैचा- बौचा ' t-shirt, some College Playboy shoe, there are hardly something I've worn local. We can not even imagine if there exist any genuine local garment products, which are functional and practical for everyday use. Some local Galaincha, impulse buying of couple of Pashminas and expensive Dhaka are just an emotional buying to satisfy our luxury needs which are usually very expensive. So, its obvious we don't even give a second thought whether there is any domestic alternative if we have to shop wardrobe essentials. How are we suppose to hold our head high with pride when we have to depend on foreign brands even for our undergarments. I used to think ' कपडा त के हामीलाई दाल चामल नुन बेसार त बाहिर बाट ल्याउनुपर्छ '. We export ginger and garlic on marginal price and import spices packed with some fancy labeling and brand tags paying way higher than we ever thought. Yes, we are at primitive stage of entrepreneurship, commercialization and business. We are so used to working for others that we harshly discourage if anyone around us ever thinks of those things out of the box.

But Slowly my insight broadened. I want yours to be too. I got to know there exists fine brands.

If you need for any recommendations, I have tried to list Nepali local brands which are good from both quality and price perspectives:

Backpacks: Mheecha, Faithworks, Epic Bags, Today's Telegram.
Leather Jackets and accessories: Latido leathers, white Tara, Human Fit, Rhino leathers.
Footwears: TFT, Dulla Shoes, Caliber, Milano, Goldstar, Docha Shoes.
Gents Clothing Range: Gents Park, Kilometer, LVD Denim, Kapsule9, November, level Jeans, Humble Denim, 365 Vintage Denim.
Travel and Trekking Goods: Sonam Gear, Everest Manufacturers.
Both Ladies and Gents: Sherpa, KTM CTY, Logo Fashion, Juju Wears, Purnaa manufacturers, Origin Wear, Bora studio, Bhoto Nepal, Yala Wears, Yatri Supply.
Dedicated High quality denim clothing: Bikramsambatm.
Music Instruments/ Guitars: Mantra Guitar.
Handicrafts and jewellary: Kayo.
Metal High quality furnitures: Metalwood.
Eyewears: Anthropose, Bishrom.
Watch Brand: Alma Artes. If you want more list for your everyday alternative, there's many more. They are just few examples.

Also, shout out to these group of young enthusiastic people who are working their sweat out to make our dream of self dependency on automobiles by producing motorbikes In-house; Group behind Yatri Bike and Prabal Shaakha from Shaakha group for Gurkha Bike. I know its just a baby step but I salute to your hustle. And there are many more who are really doing incredible in their respective field either it may be through social media or any other digital platforms.

I used to think what are manufactured in Nepal are only some handicrafts, wood and stone crafting, metal engravings, thanka and mandala stuffs, and galaincha; most of them are only luxury goods. If we can not afford 'Nike', we are ready to wear 'Nika' or NLKA stuffs, but we know nothing local alternative. Haha, you got my point right? Those Chinese copy products. This is not what we wish for either. But we are obliged to buy them. If you take an example of Goldstar, Cause its the only well known Nepalese brand so far. One model of shoe, hardly in a decade goes trendy. After that? It does not even consider investing in market research and development. A well established business brand like Goldstar should invest in research & market study on shoe trends, designs & public preferences. Otherwise its just the ''हात्ती छिर्यो, पुच्छर अड्क्यो" thing. If you've already invested enough to setup a company, factory and develop product line, then you should focus on which we call Going Concern in business term. It must have a vision. Focus should not be to reduce loss or increase profit margin but to create genuine market and loyal customer base.

A lot of brands do not consider doing influencer marketing. Because its today's market prospect. Almost everyone has internet access nowadays and there are a lot of people who has public reach. Size or fame don't matter, they have engagements. This factor is really easy, economic, compatible and effective for marketing and publicity. Market is a dynamic factor. This shan't be ignored or we will be ignored in return. It's our duty as well to prioritize domestic product over foreign one, No? We as well as our celebrity figures and influencers are equally to be blamed because we are so proud to wear some cheap copy Gucci shoe than high end Dulla and TFTs.

However this is not my subject matter today. My purpose of writing this article is to let you all know that Finest products are made in Nepal itself. Yes we have alternatives available for almost everything.

First, we are unaware of the fact.

Second, the people who knows, are they using them? The answer is, no they are not, except for some.

If everything is produced in Nepal then why aren't we unaware of it? Why aren't we consuming them? Why do we have to import everything we need from Foreign countries? Well, let me clear it out for you. The answer is because they are expensive.

Yes, finest products are made in Nepal. In fact, all our products are highly admired in abroad by Europeans. But bitter truth, They are exported right after, and we can not even afford them, and foreigners are branding those products as if their own. We have absolutely no idea what we are loosing. The Nepal made products are really expensive, it might be the tactics of foreigners that if you let the Producers sell it at cheap rate, demand of the product goes high & they even might not need to export them anymore. So, knowingly, they offer higher amount for the time being & we in return are being a slave to establish a well known brand for them. We don't even realize what we [The business manufacturers] are actually loosing; a great market with great demand in our own country, a great business brand & a great chance to serve our own people. There are already millions of products we can not afford, and these are one of them too.

A Chinese woolen cap costs us NRs. 200 & similar one manufactured in Nepal, costs USD 44 (Yes I have seen it in reality). Does that make sense? They might justify themselves by saying, "Its the quality that makes the difference." I mean, "like really?"
They practically have almost same functionality. In addition, those Chinese cap came all the way from China, crossing custom, import duties and we on the other hand, produced here under duty-free circumstances where Govt provides with different subsidies to promote Nepalese entrepreneurship & at last your product cost USD 44. Man, whats wrong?

Our these underdog manufacturing houses would already have been a renowned brands if they had given up the idea of earning few more dollars & focused on serving own people like Goldstar did.

Lets consider this simple mathematics;

[ Export @ $44 QTY 10000 at max ] = NRS 44 million approx.
[ Domestic sale @ Rs. 1000 QTY 5 lac people] = NRS 500 million approx.
which is already more than 10X.

They are afraid that it will cost extra money for marketing, and 5 lac people might not wear it.

But you forgot that this is how branding happens. You aren't always served butter. There is 30 million people in this country. Don't underestimate our market. If your product is practically compatible then market is always there to support you. And look at the economies. Your brand value, production range, revenue. Branding makes product expensive. Look at your product now. You would not even need to ask foreign merchandisers to purchase your product. Rather they would come themselves to ask you to sell your product to them. This is how business goes right?

In between, you need patience, hustle and all. They are the other side of the business, which you are doing anyway.

When you try to become a little narcissistic and plans to buy Nepali shoe. The first thing you need to do is you have to find the shop or merchandiser by yourself because they are not easily available. After that, they are going to cost more than 8 or 9 thousand. A similar shoe comes from overseas & are readily available in Nepal for up to 4 thousand easily which is as good as the first one.

Did you get a shock? of course, you did. Because to be honest, our purchasing power is not that high yet when I am talking from general perspective. I know quality demands price but reasonableness matters too.

Wearing Nepali brand garments is like putting gold necklace and chains around, they almost cost the same. Why is that? Do these products really demand such a high price or is it just the profit margin they keep? If its the production cost then You, business people have to reconsider it. And if its the margin you keep, then you still have to reconsider it.

These local brands always say ''BUY LOCAL'' but why don't they make a real effort to reach up to locals? If a foreign brand from overseas can reach up to us at an affordable price then why not you? You neither have to face 300% custom tax nor the shipping and airway costs. We Nepalese will gladly accept you over those foreign products.

As an accounting student, I can understand that these Nepalese businesses lack economies of production, have higher fixed cost, higher production cost, but at least they should make an effort to bring their product up to comparable range. Because they are the ones who are exempted from income tax and customs and all to great extent enjoying different subsidies.

Learn before earn. Reverse never works.

Having said that, my motive is not just to blame producers and business houses only. We consumer are to be blamed equally. We export our organic ginger and garlic for NRS. 10 per KG to India and later import गरम मसला for NRS. 20 for 100 grams packet each which is nothing more than pulverized ginger and garlic with some added ingredients. That is very us.

So, my message to all the consumers and small entrepreneurs is,

Of course, its not as facile as I've portrayed but we need to change. The time demands change now. We have to change our mainstream way of thinking. Let's promote Nepalese brands hand-on-hand, together. Exporting your product for couple of dollar more and letting the foreign products engulf your own market is never a correct entrepreneurship. At least an effort is sought from your end for self sustained and self dependent Nepal and we will not let you down.

Its on you, its on me, its on all of us. Legal sovereignty does not matter when we are living like parasite.Your million range export wont help mitigate the nation's trade deficit when it is importing the same stuffs on billions to fulfill the demand.

So lets build the country together. You produce the product and we will consume them.

You manufacture the good for Local and we will buy local.

You fulfill our necessity we will give you profit and brand.

We should realize that buying is not just the task of deciding what's coming to your life, its also deciding whether you want the wealth of the country to stay within or go oversea.

Lets support ''MADE IN NEPAL'' products not because they are made in Nepal but because they serve a purpose in your life.

Sushil Banshi, CA Aspirant