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Nepal supplier profi lesDetailed profi les of 29 suppliers with verifi ed manufacturing and export credentials

Product gallerySpecifi cations and full-color images of 190 top-selling export products ranging from necklaces to knitted gloves

Industry trendsCoverage of current issues, plus insights into supply centers, products and pricing

April 2013US$150

Fashion AccessoriesEssential sourcing intelligence

Global Sources is off ering this series of Developing Country Sourcing Reports as part of its corporate social responsibility undertakings in partnership with the Hinrich Foundation, a philanthropic development organization whose mission is promoting sustainable global trade.

The aim is to give international buyers new sourcing opportunities from experienced exporters, generating orders and creating lasting jobs in developing economies.

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FASHION ACCESSORIESSupplier capability in Nepal

The fashion accessories industry in Nepal has been showing gradual growth in recent years. It is nonetheless hampered by several difficulties that threaten to slow progress or reverse gains achieved thus far. The sector is largely affected by the same problems troubling the country as a whole. Fragile political and economic environments, inadequate infrastructure, geographical challenges, and dependency on imported raw materials all play a role in keeping development to a minimum. To mitigate the effects of these external factors, manufacturers of fashion accessories rely on solid design expertise rooted in traditional methods and aesthetic elements derived from the local culture. In addition, they provide comparatively lower quotes and have smaller minimum order requirements.

Objective, methodology & scope

1. Suppliers of fashion accessories generally expect to keep prices stable in the next six months in an effort to ensure competitiveness and attract repeat orders. Some companies intend to raise quotes, however, due to the rising cost of raw materials.

2. The strong influence of unionized labor is the most critical challenge facing the sector and Nepal, in general. Work stoppage due to strikes and other reasons regularly occurs in the country. Suppliers implement a number of ways to cope but each has its own drawback that results in undesirable conditions for the company, nonunion workers or the economy at large.

3. Heavy reliance on imported components such as fabrics, metal

Key findings

Executive Summary

In this report• 19 in-depth company profi les• 10 short company profi les• 190 top-selling export products• Supplier demographics• Supplier survey• Industry statistics and charts

and semiprecious stones is the main obstacle specifically facing the industry. With the vast majority of inputs purchased from India, China and the Asia-Pacific region, enterprises are prone to high costs.

4. Product design trends over the next six months will generally be made of less-expensive materials and come in bright hues. These include colorful glass beads for jewelry and embellishments, and pure cotton for fashion bags and purses.

5. Prices are typically determined by the materials used, adornments applied and design complexity. Low-end models are usually plain and small. Midrange and upscale items feature intricate decorations done by hand, high-grade metal or fabric, and are larger.

This Nepal Sourcing Report is part of a series designed to provide buyers with information on new products from export manufacturers in supply markets that specialize in handmade merchandise.

The Developing Country Sourcing Report series is part of Global Sources’ corporate social responsibility initiatives. It is offered in conjunction with the Hinrich Foundation, whose mission is promoting sustainable global trade. One of its objectives is to help create jobs in developing Asia through export promotion.

To produce this report, large, midsize and emerging manufacturers, all with substantial export experience, were surveyed. The selection of suppliers is designed to reflect the composition of the industry in Nepal in terms of geographic location, materials used and range of products offered.

For in-depth profiles, our researchers

visited the facilities of each company and interviewed senior executives who discussed their recent performance and provided forecasts for the next 12 months. All other makers in this report were either visited or contacted by phone.

In each case, companies were required to answer specific questions designed to verify their manufacturing and export credentials, including a breakdown of exports by product type and market. Suppliers also participated in a survey designed to provide insight into the industry.

This report covers different classifications of fashion accessories available in Nepal, including jewelry, fashion bags and wallets, head- and neckwear, and gloves and hosiery. Each product category has its own price guide that describes features of low-end, midrange and high-end models.

The Industry Overview section discusses key issues affecting export manufacturers. It provides insight on the composition of the industry and elaborates on the important supply centers within Nepal.

The Products & Prices section details the features and price ranges of fashion accessories. It also examines the design and manufacturing processes, main materials used, and sourcing centers where components are procured.

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4 Nepal Sourcing Reports

CONTENTS

Disclaimer: Any recommendation contained in this report may not be suitable for all investors or businesses. Moreover, although the information contained in this report is obtained from sources believed to be reasonably reliable, the accuracy or completeness of such information cannot be guaranteed. The author and the publisher of this report (and the publisher’s affi liates, agents, sales representatives and service contractors) do not make any representation or warranty whatsoever (whether express or implied) in relation to any of the contents of this report (including any information, opinion, recommendation or conclusion contained in this report) (collectively, “Contents”), whether as to the accuracy, completeness, quality, fi tness, suitability or reliability of such Contents (or any portion thereof ) or otherwise, and shall not be liable under any circumstances whatsoever for any error, omission, defect or defi ciency in, or for any use of or reliance on, such Contents (or any portion thereof ).

All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. Products that are not the specifi c topics of editorial articles are shown for illustrative and/or demonstrative purposes only. We, our affi liates, and our affi liates’ respective directors, offi cers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof ) which infringe on any intellectual property or other rights of a third party.

Copyright 2013 Trade Media Limited. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Trade Media Holdings Limited and Trade Media Limited is prohibited.

Published by Publishers Representatives Limited (on behalf of Trade Media Limited)4th Floor, Century Yard, Cricket Square, Elgin Avenue, P.O. Box 32322 SMB, George Town, Grand Cayman, Cayman Islandsc/o 22/F Vita Tower, 29 Wong Chuk Hang Road, Aberdeen, Hong Kong

ISBN 978-988-15980-0-4

Contents

EXECUTIVE SUMMARY 3 Key fi ndings Objective, methodology & scope

INDUSTRY OVERVIEW 11 Country facts Export Exports markets

Products & prices 14 Production & export statistics Typical parts & components Price guides

Supplier survey 20 Export prices Export sales Export markets Major challenges R&D focus

SUPPLIER PROFILES 23 Supplier matrix: Comparison of supplier location, sales revenue & export capability Profi les of 29 verifi ed suppliers

PRODUCT GALLERY 75 Jewelry Fashion bags & wallets Headwear & neckwear Gloves & hosiery

CONTACT DETAILS 109

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evenue & export capability ort capabes of 29 verifi ed supplierses of 29 verifi ed suppliers

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Industry Overview

Industry Overview

Although beset by numerous challenges, the fashion accessories industry in Nepal is steadily growing as it continues to bank on its core competency of producing designs derived from ethnic influences.

In spite of the sector’s small size and underdeveloped status, outbound shipments since fiscal year 2007-2008 have been generally on an upward trend, with revenue last year reaching $42 million. An improvement of 33 percent, this is the highest growth rate posted by the segment over that span of time. The industry has expanded by an average of 8 percent from 2007 to 2012 despite recording fluctuations within much of the period and contracting nearly 12 percent in 2009-2010 due to the global economic crisis.

Statistics on export markets are not kept adequately by the government since most goods are undocumented and do not pass through official channels. Trade associations, however, estimate that roughly 70 percent of turnover is sent to member nations of the South Asian Association for Regional Cooperation or SAARC. According to the Federation of Handicraft Associations of Nepal, India is the largest individual foreign destination, accounting for two-thirds of sales. Outside of SAARC, China and the US are the dominant importers.

Fashion accessories are not considered a distinct export line by the government as they fall under any of the officially sanctioned segments such as pashmina, woolen or silk items, or metal, wood or beaded crafts. These are then categorized under the broader textile and nontextile products, which are classified within the handicrafts sector. The fashion accessories industry is nonetheless a major contributor in ensuring sustainable revenue generation and job creation in the country, especially since many

companies employ underprivileged women.

The segment is enjoying unprecedented demand for pashmina shawls and scarves, felt, knitted, cotton, velvet and silk bags and wallets, hats, and jewelry. Traditional designs unique to the local culture are the driving force

behind this development. An ethnically diverse country, Nepal boasts several styling methods not practiced in other supply markets. These processes have been in continuous use for many years as they are handed down through generations of artisans. A number of production stages are commonly subcontracted to craftsmen who have

Country facts

Capital KatmanduArea 147,181sqkm (94th)

Population 30.4 mn (41st)Median age 22.1 yearsLiteracy rates 73% (male) 48% (female)Major languages Nepali (offi cial), Maithali; English frequently used in business and government

Government Federal democratic republicAdministrative divisions 14 zones (Bagmati, Bheri, Dhawalagiri, Gandaki, Janakpur, Karnali, Kosi, Lumbini, Mahakali, Mechi, Narayani, Rapti, Sagarmatha, Seti)

Labor force 18 mnMinimum wage $72 per monthUnemployment rate (2008) 46%Population below poverty 25% line (2011)

GDP $40.5 bn (102nd)GDP per capita $1,300 (202nd)GDP growth 4.6%Infl ation rate 8.3%Economic revenue Services: 47% sources Agriculture: 38% Industry: 15%

Total exports $1 bnKey export industries Garments, pulses, carpets, textiles, juice, pashmina, jute productsTop export markets (2011) India: 57% US: 10% Germany 5%Key nonagricultural Tourism, carpets, textiles; rice, jute, sugar and sectors oilseed mills; cigarettes, cement and brick productionNatural resources Quartz, water, timber, hydropower, lignite, copper, cobalt, iron ore, scenic beauty

Figures in italics denote rank in world. All figures as of 2012 unless otherwise specified. Sources: Nepal Central Bureau of Statistics, CIA The World Factbook, US Dept of State

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24 Nepal Sourcing Reports

Supplier Profiles

SUPPLIER MATRIX

Company Yearestablished

Ownership Head office location

Factorylocation(s)

Full-time employees

Part-time employees

In-depth profiles

Asthamangal 2006 Locallyowned

Katmandu (Bagmati)

Katmandu (Bagmati)

5 150

Celtic Tiger 2002 Locallyowned

Katmandu (Bagmati)

Katmandu (Bagmati)

15

Creative Touch 1999 Locallyowned

Katmandu (Bagmati)

Katmandu (Bagmati)

130

De Souvenir’s 2008 Locallyowned

Katmandu (Bagmati)

Katmandu (Bagmati)

15

Delima 1998 Locallyowned

Katmandu (Bagmati)

Katmandu (Bagmati)

50 150

Gajur 2008 Locallyowned

Katmandu (Bagmati)

Katmandu (Bagmati)

15 85

Handmade Handicraft

2008 Locallyowned

Katmandu (Bagmati)

Katmandu (Bagmati)

5 70

Hobb 2006 Locallyowned

Katmandu (Bagmati)

Katmandu (Bagmati)

25

Human Fit 1982 Locallyowned

Katmandu (Bagmati)

Katmandu (Bagmati)

40

K.L. 1992 Locallyowned

Katmandu (Bagmati)

Katmandu (Bagmati)

20 40

Kalanki Knitwear 1992 Locallyowned

Katmandu (Bagmati)

Katmandu (Bagmati)

13 16

Kayastha Exports 1992 Locallyowned

Katmandu (Bagmati)

Bhaktapur (Bagmati)

45 200

Ma Laxmi 1999 Locallyowned

Katmandu (Bagmati)

Katmandu (Bagmati)

16

Nepal Knitwear 1989 Locallyowned

Katmandu (Bagmati)

Katmandu (Bagmati)

45 185

Nepal Knotcraft 1985 Locallyowned

Lalitpur(Bagmati)

Lalitpur(Bagmati)

7 70

Rejoice 2008 Locallyowned

Katmandu (Bagmati)

Katmandu (Bagmati)

40

Sashi 2005 Locallyowned

Katmandu (Bagmati)

Katmandu (Bagmati)

60

Tana Bana 2010 Locallyowned

Katmandu (Bagmati)

Katmandu (Bagmati)

8

Yala Mandala 1990 Locallyowned

Lalitpur(Bagmati)

Lalitpur(Bagmati)

200 100

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30 Nepal Sourcing Reports

Supplier ProfileSupplier Profiles

Capability

Contact details

Asthamangal Handicrafts

Annual sales $400,000 Share of total sales 57% Annual export sales $400,000 Total monthly capacity 25,000 pieces Average monthly output 12,000 pieces Capacity utilized 48% Average monthly exports 12,000 pieces Export ratio 100% Major export customers Peace Treaty, B-Jaxx (US)

Company facts

Year established 2006 Head offi ce location Katmandu (Bagmati) Ownership Locally owned Factory location(s) Katmandu (Bagmati) Full-time employees 5 Part-time employees 150 Total annual sales (all products) $700,000

Sales & output: Fashion accessories

Materials used Leather ✗

Wood ✗

Fabric ✓

Plastic ✗

Metal ✓

Other natural materials ✓

Exports by product Jewelry 10% Fashion bags & wallets 40% Headwear & neckwear 40% Gloves & hosiery 10%

Exports by market North America 60% EU 20% Europe (non-EU) 10% Asia-Pacific 10% Middle East –Other –

Business contact SHAKYA Ramila

Phone (977-1) 427-1551

Fax (977-1) 427-1551

E-mail asthamangal72@yahoo.com asthamangal@wlink.com.np

URLwww.globalsources.com/ asthamangal.co

Address Bafal, Katmandu, Bagmati, Nepal

Asthamangal was established in 2006. The supplier generates $700,000 in total annual revenue.

The entire output in the line is sent abroad. The US accounts for three-fifths of exports. The EU takes up 20 percent of shipments. The rest is absorbed by Australia, Singapore, South Korea, Taiwan, Russia, and Bosnia and Herzegovina.

The majority of orders are under ODM basis.

Quotes are $2 to $160, depending on the product type, components used, size and design complexity. Woolen winter hats are offered for $2.50. Knitted pullovers are available for $65.

Wool, cotton, fleece, polyester, velvet, rayon, white metal and glass beads are the materials used. They are purchased from mainland China, Mongolia and India.

The owner is the sole designer and creates up to 300 new models every year. Samples are usually provided within three weeks.

Asthamangal operates a 230sqm factory in Katmandu. Most manufacturing processes are subcontracted to local artisans.

The workshop can create 25,000 pieces every month. The average monthly output is 12,000 pieces.

There are five permanent and 150 part-time employees. A three-member QC team checks all finished items.

Polybags and cartons are normally used as packaging. The minimum order requirement is usually 50 pieces.

Asthamangal is a member of the Nepal Chamber of Commerce. The supplier plans to expand its market presence in the US in the year ahead.

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Supplier Profile Executive Sum-Supplier Profiles

Popular export models

Model AMH002MOQ 10 piecesPackaging Polybag, cartonDelivery 45 daysPrice $39Description Necklace; white metal; coral and turquoise trimmings; in various colors and sizes

Model AMH004MOQ 6 piecesPackaging Polybag, cartonDelivery 45 daysPrice $12Description Bracelet; white metal; floral motif; 2.5in diameter

Model AMH003MOQ 10 piecesPackaging Polybag, cartonDelivery 45 daysPrice $39Description Necklace; white metal; coral and turquoise trimmings; in various colors and sizes

Model AMH001MOQ 50 piecesPackaging Polybag, cartonDelivery 45 daysPrice $1.75Description Bangle; plastic beads; in various colors and sizes

Model AMH007MOQ 12 piecesPackaging Polybag, cartonDelivery 45 daysPrice $7Description Necklace; plastic beads; in various colors and sizes

Model AMH005MOQ 12 setsPackaging Polybag, cartonDelivery 45 daysPrice $9.20Description Necklace pendant set; two pieces; white metal; conch shell and turquoise trimmings; 3cm diameter

Sample page only

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eace; white metal; coral metal; coraland turquoise trimmings;quoise trimmings;in various colors and sizesus colors and sizes

Model del AMH003AMHMOQQ 10 piecePackagingging PolyDeliveryDPrice PDesc

For other inquiries E-mail: service@globalsources.comTelephone Hotline: (65) 6547-2800

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