XSTOK (http://www.xstok.com/) , the online business to business platform aims to provide price transparency in the largely unorganized market involving small dealers as well as garment manufacturers based from Ahmedabad to Guwahati struggle with the challenges involved in sourcing fabrics at a reasonable price.
Regarding the same, Sanjiv Khandelwal, the Founder of XSTOK stated that they are working towards eliminating the in inefficiency that exists in this space. There is a difference created by the margins that are charged by the intermediaries and this is about 65 percent in the offline domain.
Ever since the launch of the e-auction platform meant for the ex-stock and surplus textiles by the makers, this start-up completed 18 auctions that have a transaction value of Rs 1 crore in just two weeks of time. The suppliers for this auction include textile companies such as Bombay Dyeing, Garden Vareli, Welspun, the towel manufacturer and Arvind, the denim manufacturer.
As per Khandelwal, there is a huge demand from the distributors, cutters, dealers and hospitality sector for bulk orders. He incorporated the company along with Mihir Shah, the Former Director of TMT Investment Banking and the Co-Founder of the company in January 2015.
As per the owner of Elite Décor based in Vadodara, Ankit Rungta, a new business has helped in saving time and money to stock the inventory. Pragya Singh, the Associate Vice President at Retail Advisory Firm, Technopak, it is an innovative model that is imperative for the platform in order to maintain a steady concentration of deals from the prominent manufacturers. From the buyers’ perspective, it depends on how tech savvy the retailers are and their awareness level as well.
XSTOK charges the buyers an initial registration fee, while the transaction fee varies between three and five percent on all the successful transactions. The average ticket size of the goods for auction ranges from Rs 1.5 lakh and Rs 10 lakh based on the consignment.
