What is consignment stock model in Indian wholesale textile trade?

Consignment stock is a supply arrangement where the supplier sends goods to the retailer but retains ownership until the goods are actually sold. The retailer only pays for what they sell — unsold stock is returned to the supplier.

How it works in Indian textile trade:

• Supplier places stock at retailer location
• Retailer sells and reports sales periodically (weekly or monthly)
• Payment made for sold goods only
• Unsold stock returned at agreed intervals

Who offers this: Consignment is uncommon in standard Surat wholesale trade — most suppliers require payment upfront or on delivery. It is more common in:

• Local town-level suppliers with long-standing trusted relationships
• High-value bridal wear (lehenga, sherwani) where per-piece value is high
• Exhibition-style pop-up selling arrangements