J.C. Penney Increases Outsourcing To India
J.C. Penney Co. Inc., one of United States’largest catalogue merchants and department stores,
is heading to India with a $120 million to $130 million shopping list. The company recently
announced that it will increase its apparel sourcing from India to $350 million a year in the next
three to five years.The company currently sources apparel (T-shirts, men’s suits, blouses, denim
bottoms and sports jackets), shoes, home furnishings and diamonds worth around $100 million a year
from India. Key product categories identified by J.C. Penney to be sourced from India in the future
are woven bottoms, knit tops, home furnishings and towels. Apparel and home textiles account for
about 80 percent of the company’s non-pharmaceutical retail sales of $16 billion.
J.C. Penney plans to sourcetowels from India in the future.According to those familiar with
the situation, the company has held talks with major Indian textile manufacturers, such as Arvind
Mills,Vardhaman and Madura.The company said the decision to develop sourcing partners in India is
in line with its strategy to broaden its exposure to priceefficient and politically less-risky
markets.
Summer 2004