What is consignment buying in Indian garment wholesale? Is it common?

Consignment buying means the boutique owner takes goods without paying upfront — paying the supplier only after the goods are sold, and returning unsold items. It is essentially selling on behalf of the supplier.

How common is consignment in India: Genuine consignment is rare in Indian garment wholesale. Surat wholesale operates almost entirely on upfront payment or short credit periods. Reasons:

• Suppliers have no reliable mechanism to verify sales and returns at a distance
• Returns create logistical and quality disputes
• The cash-flow advantage to the supplier comes from upfront payment — consignment removes this

Where consignment-like models do exist:

• Artisan cooperatives and handloom sales often use consignment — government emporiums (Cottage Industries) take handloom on consignment from weavers
• Some local city-level boutique-to-boutique arrangements between trusted parties
• Pop-up event sales — vendors sometimes take goods from nearby boutiques on informal "sell and settle" basis