Tuesday, September 11, 2012

Editor Blog
Why the international single brand retailers, especially the 'fashion brands', would have an objection to the Government stipulation of 30% mandatory sourcing from local SMEs in the case of 100% foreign investment, is beyond me… when in fact many of these retailers are already sourcing a chunk of their products from Indian manufacturers.
Take the case of Gap, which is doing around US $ 1 billion buying from India, which would be between 20 to 25% of its total sourcing… why would then it be difficult for them to increase the buying and achieve the target? Even other single brand retailers like Zara, H&M, M&S, Esprit and many others are actively sourcing from India in huge quantities.
Of course, it would help retailers if their buying for both their international operations and Indian operations is clubbed together to comply with the 30% mandatory local sourcing norm as set by the Government.
This will have some distinct advantages for the country besides easing the pressure on the retailers… the most obvious will mean more FDI in the country, which will help in achieving the target of 25% share of manufacturing in the GDP by the year 2022 and simultaneously generate better employment opportunities since the garment industry is labour intensive, in addition it will also mean greater opportunity for the exporters already working with the brands.
Since these retailers would be complying with the international norms of quality and compliances, both social and environmental, it would help the local industry to mature from being an unorganized setup to an organized industry. It will also help them scale up their operations, build operational efficiencies and improve capital and human productivity.
Madura is a true benchmark company and strives for excellence in all its endeavours… A visit to the suit manufacturing unit of the company was an eye opener for the StitchWorld team. In this issue we highlight its manufacturing and management practices that set it apart.
This monthly also previews the technology that will be on display at the upcoming JIAM fair. The focus is on automated machines to cater to the mature market where labour saving is a priority, not that these technologies are not popular in developing economies.
With most consultants in the market claiming to be Lean experts… choosing the right consultant is almost as critical as implementing Lean for success. The article “How to Choose a Lean Consultant?” has some useful tips from Lean professionals in the field.
 

1 comment:

  1. Interesting Post, it has good points to justify international fashion industry to enter India.
    Only thing is SME should be utilized with local merchant benefiting from the 30% sourcing and if possible review of % from time to time to increase or decrease to be taken up by the GOI.

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