Sadakalo eyes overseas market
Sunday, 24 October 2010
FE Report
Sadakalo, a leading fashion boutique of the country, eyes overseas market and setting up of new outlets outside the capital in a major expansion plan to cater to the need of fashion lovers.
"We are negotiating with several countries for setting up our outlets there to cater to international and expatriate fashion lovers," said Tahsina Shahin, managing partner and one of the three designers of Sadakalo.
She, however, did not name the countries where these outlets would be set up although she mentioned that the outlets outside Dhaka would be set up mainly in divisional headquarters.
Now Sadakalo has 10 outlets -- two at Bashundhara including one in Deshi Dash, and one each at Dhanmondi, Gulshan, Banani and Uttara and two at Baily Road and one in Chittagong. The only overseas outlet now is in New York.
Talking to the FE, Shahin, one of the top woman entrepreneurs in the country, said the local fashion industry is suffering from various problems including high yarn price, commercial tax and excess VAT on local dresses compared to that on imported ones. "We need to pay 15-16 per cent interest for bank loan and we do not have any ministry to guide or regulate us or any forum where we can talk about our problems except the recently initiated Fashion Udyog," said Tahsina Shahin.
Yarn price has become uncontrollable in our country as there is a syndication and it is the government that only can control them, said Shahin adding "local fashion industry will be in dire straits within next three years if the issue is not addressed now".
She said, earlier the 15 per cent commercial space tax was paid by the building owner, which is now the entrepreneur's responsibility. Also the consumer has to pay 5.0025 per cent VAT on a local dress, which is only two per cent for the imported ones. And this contributes to the excess price of local dresses.
Shahin said, "worldwide there is government subsidies and tax holidays for local industries except in our country and our production cost is four times higher due to lack of support from the government and syndication of local textile mill owners as we are dependent on local fabric".
She said the present market closing time hampers business as no one wants to enter the market after finishing office at 6pm.
"The government has taken the initiative to save electricity but there is hardly any power saving. Besides, the government's weekly holiday plan at different times in different areas is confusing for consumers and the one and half-day holidays practically become two days' off for the business houses as people are not that much informed," said Shahin.
Sadakalo, a leading fashion boutique of the country, eyes overseas market and setting up of new outlets outside the capital in a major expansion plan to cater to the need of fashion lovers.
"We are negotiating with several countries for setting up our outlets there to cater to international and expatriate fashion lovers," said Tahsina Shahin, managing partner and one of the three designers of Sadakalo.
She, however, did not name the countries where these outlets would be set up although she mentioned that the outlets outside Dhaka would be set up mainly in divisional headquarters.
Now Sadakalo has 10 outlets -- two at Bashundhara including one in Deshi Dash, and one each at Dhanmondi, Gulshan, Banani and Uttara and two at Baily Road and one in Chittagong. The only overseas outlet now is in New York.
Talking to the FE, Shahin, one of the top woman entrepreneurs in the country, said the local fashion industry is suffering from various problems including high yarn price, commercial tax and excess VAT on local dresses compared to that on imported ones. "We need to pay 15-16 per cent interest for bank loan and we do not have any ministry to guide or regulate us or any forum where we can talk about our problems except the recently initiated Fashion Udyog," said Tahsina Shahin.
Yarn price has become uncontrollable in our country as there is a syndication and it is the government that only can control them, said Shahin adding "local fashion industry will be in dire straits within next three years if the issue is not addressed now".
She said, earlier the 15 per cent commercial space tax was paid by the building owner, which is now the entrepreneur's responsibility. Also the consumer has to pay 5.0025 per cent VAT on a local dress, which is only two per cent for the imported ones. And this contributes to the excess price of local dresses.
Shahin said, "worldwide there is government subsidies and tax holidays for local industries except in our country and our production cost is four times higher due to lack of support from the government and syndication of local textile mill owners as we are dependent on local fabric".
She said the present market closing time hampers business as no one wants to enter the market after finishing office at 6pm.
"The government has taken the initiative to save electricity but there is hardly any power saving. Besides, the government's weekly holiday plan at different times in different areas is confusing for consumers and the one and half-day holidays practically become two days' off for the business houses as people are not that much informed," said Shahin.