Nepal Special Report: Export highlights is a special report focusing on quality suppliers of fashion accessories, footwear, home decor, and gifts and premiums. The following enterprises featured in this report already have export experience: Ekadesma, Hamro Product Enterprises, Namaste Fair Trade, Natural Fiber, Nepalese Women Handicrafts and Nirnjana Garment & Handicraft Shop. The following companies do not have export experience but has the capability: Garden Dhaka and Pashmina Industries, Modern Handicraft Nepal and Namuna Creation.
Industry overviewThe natural fiber and textile industry of Nepal is facing production challenges due to its geographical location.
Although there is an abundance of plant-based components in the country, all other materials, including wood and metals are imported from India. This means that shipments have to be delivered by air or by land, which is significantly more expensive than sea transport. The municipality of Birgunj in Narayani zone is a major entry and exit point, and becomes congested during the peak season.
A study conducted by the United Nations Economic and Social Commission for Asia and the Pacific in 2011 shows that cargo from Calcutta, India to Kathmandu via Birgunj takes 14 days by road. This adds to the production delays.
Nepal suppliers face the same problem when shipping items overseas.
|Nepal export highlights exports||Competitive advantages||Challenges||Industry composition|
|Gifts & premiums|
In the fiscal year 2013-14, export of textile items jump from $20 million the previous period to $24 million. The nontextile segment also increased from $23 million to $25 million. This development is the result of acquiring more clients from emerging destinations, including Russia, Chile, Ecuador, Guatemala, Argentina and Honduras. Large retailers, including Walmart and K-mart are also ordering more local handicrafts.
Domestic makers plan to target more emerging destinations in Africa and South America over the next 12 months.
One of the sector’s strengths is a high level of craftsmanship, particularly in metalwork, and weaving and embroidery. This can be clearly seen in fashion jewelry, footwear, lampshades, keychain and other home products.
Another factor that propels the industry forward is abundance of raw materials, particularly plant-based fibers. Aside from evergreen and hemp, the country also has jute and various types of hardwood.
The industry’s progress is hindered by a number of challenges, chief of which is an unstable political environment that often disrupts productivity. Political parties also hold much control over trade groups which result in factory shutdowns and increase in prices of fuel and raw materials.
Power shortage is another difficulty. During winter, the blackouts can last up to 18 hours. To sustain manufacturing, the suppliers have to invest in expensive generators or hire more workers.
As a result of this unstable business environment, most young laborers opt to seek work abroad as construction workers. It is estimated that about 2,000 Nepal workers leave the country every day.
Another challenge faced by the sector is intense competition from its neighbors India and China. Most local suppliers are SMEs that do not have the resources to invest in upgraded equipment, and research and development.
There are no available data for handicraft manufacturers in the country. The Federation of Handicraft Association in Nepal, however, has about 600 members.
Small makers are typically staffed by 5 to 50 personnel and have total export sales of about $20,000.
Midsize manufacturers have up to 200 workers. Foreign revenue can reach $500,000.
Large companies are very rare and employ more than 200 workers. Overseas sales can exceed $500,000.
Most companies are based in Kathmandu because of its developed infrastructure.
|Design & manufacturing||Pricing|
DesignsWith the increasing popularity of environment-friendly items, Nepal suppliers of models made from natural fibers and textiles are incorporating more plant-based inputs in their lines.
The four major categories for this sector are footwear, fashion accessories, home decor, and gifts and premiums. Aside from featuring the cultural heritage of the country, these groups also highlight endemic components, including various kinds of hemp, evergreen, and allo or Girardinia diversifolia.
Hemp and allo are plants that thrive in high elevations. They are proven to be resistant to abrasion and rotting, and are twice as durable as cotton. Evergreen shrubs are processed to become lokta paper, which is used for frames, stationery, boxes and fashion jewelry.
Large buyers from traditional markets such as the US and the EU are becoming more interested in Nepal home products because of their distinct designs and textures. For example, keychains and other souvenir items made of allo feature tribal patterns and icons. Footwear is normally made of wool or felt because of the country’s cold weather.
These trends will continue to be the priority of designers over the next six months.
PricingQuotes of natural fiber and textile items are generally influenced by design complexity and materials used. Aside from these factors, power cuts and shipping rates affect pricing because they add to the production costs. The low end is normally composed of small items in basic designs. Keychains, lanterns and bracelets fall under this category. Prices start at $1.
Midrange versions often employ two or more materials or colors. Hats, shawls and footwear made of hemp, jute or felt belong to this category. Quotes begin at $6.
High-end models adopt similar materials with midrange releases but feature embroidery or metalwork. Fashion jewelry has carvings and semiprecious stones. Shawls feature intricate embroidery. Shoes are sometimes made of cowhide.
|Price Guide: Fashion accessories|
Jewelry, hat, scarf, friendship band, purses, wrist warmer, fashion brooches; allo, hemp, cotton, polyester, rayon, silk, macramé
Necklace, caps, neck warmer, shoulder bags, scarves, stole; allo, hemp, cotton, polyester, rayon, silk, macramé
|More than $15
Necklace, neck warmer, shoulder bags, scarves, stole; allo, hemp, cotton, polyester, rayon, silk, macramé
|Price Guide: Footwear|
|$2 – $6
Slipper with simple leather sole; allo, hemp, cotton
Shoes and slippers with rubber and PP leather sole; Shoes and slippers with rubber and PP leather sole
|More than $12
Shoes with PP sole imported from China;
|Price Guide: Home decor|
|$2 to $5
Cushion cover, photo frame, lamp shade, placemat, table tops; allo, hemp, cotton, polyester, rayon, silk
Rug, carpet, duvet cover, bed cover, wall hanging, table runner, table tops; allo, hemp, cotton, polyester, rayon, silk
|More than $15
Curtain, ragrug, carpet, duvet cover, bed cover, wall hanging, table runner; allo, hemp, cotton, polyester, rayon, silk
|Price Guide: Footwear|
Key rings, table tops, dolls, purses, jewelry box, photo frame; allo, hemp, cotton, polyester, rayon, silk
t-shirts, fashion wear, bags, mats, carpets; allo, hemp, cotton, polyester, rayon, silk
|More than $15
Souvenir temple, wall hanging, carpet, t-shirts, fashion wear; allo, hemp, cotton, polyester, rayon, silk
Nepal suppliers with export experience
Ekadesma was established in 1995. It manufactures home decor, fashion accessories, and gifts and premiums. The company has exported to North America, the EU and the Asia-Pacific region.
Hamro Product Enterprises
The company was founded in 2005. It produces fashion accessories, home decor, footwear, and gifts and premiums. The enterprise has sent shipments to the Asia-Pacific.
Hemp House was established in 2004. It offers fashion accessories, home decor, footwear, and gifts and premiums. They have exported to North America, the EU and the Asia-Pacific.
Namaste Fair Trade
Namaste Fair Trade was founded in 2003. It manufactures home decor, fashion accessories, and gifts and premiums. The company has sent shipments to the Asia-Pacific.
Natural Fiber was established in 2005. It produces fashion accessories, home decor, footwear, and gifts and premiums. It has exported to the EU and North America.
Nepalese Women Handicrafts
Nepalese Women Handicrafts was established in 2007. It creates fashion accessories, home decor, footwear, and gifts and premiums. It has sent shipments to North America.
Nirnjana Garment & Handicraft Shop
Nirnjana Garment & Handicraft Shop was established in 1999. It specializes in fashion accessories. The company has exported to the EU and the Asia-Pacific.
Nepal suppliers without export experience
Garden Dhaka and Pashmina Industries
Garden Dhaka and Pashmina Industries was founded in 1999. It manufactures home products, fashion accessories, and gifts and premiums.
Modern Handicraft Nepal
Modern Handicraft Nepal was founded in 2013. It produces home products, fashion accessories, and gifts and premiums.
Namuna Creation was established in 2003. It specializes in home decor and fashion accessories.
Supplier locations map
Trade and Export Promotion Center
|Trade and Export Promotion Center of Nepal Contact Details|
On behalf of the Trade and Export Promotion Center of Nepal, I would like to thank you for your interest in sourcing quality products from Nepal.
We were founded as a national trade promotion organization with the objective of encouraging our local suppliers to export to international buyers.
I would like to express my gratitude to the Hinrich Foundation and Global Sources for producing Nepal Sourcing Reports: Home & garden decor. This will help in making quality Nepal handmade crafts more accessible to overseas clients. The websites on Global Sources online will effectively link our enterprises with worldwide customers and help create more jobs in the process.
Mahendra Nath Bhattarai
BHATTARAI Mahendra Nath
(977-1) 552-5348, 552-5898
Na Tole, Pulchowk, Lalitpur,
Nepal export highlights suppliers
To contact these companies, please email our export consultants in Nepal here with the specific company names and products you are interested in.
|Company||Supplier status||Fashion accessories||Footwear||Home decor||Gifts & premiums|
|Garden Dhaka and Pashmina Industries||Listing||✓||✓||✓|
|Hamro Product Enterprises||Listing||✓||✓||✓||✓|
|Modern Handicraft Nepal||Listing||✓||✓||✓|
|Namaste Fair Trade||Listing||✓||✓||✓|
|Nepalese Women Handicrafts||Listing||✓||✓||✓||✓|
|Nirnjana Garment & Handicraft Shop||Listing||✓|
|Kakani Himalayan Natural Dyes||Listing||✓||✓|
|Women’s Skill Development Center||Listing||✓||✓||✓||✓|
|Eco Craft Nepal||Listing||✓||✓||✓|
|Newa Paper Craft||Listing||✓||✓||✓|
|The Paper Park||Listing||✓||✓||✓|
|Bindu Radi Pakhi Udhyog||Listing||✓||✓||✓|