With global rating agencies declaring that the Indian domestic market is ready for a major jump in size as consumers come of age, many traditional manufacturers and even garment exporters are now increasing their reach and making effort to give ‘quality’ products.
It reminds me of the early days of the garment export industry, around the 80s, when most operated out of garages, barsati floors or from unauthorized areas and were exploring ways to be a preferred supplier. It was only in the 90s that the manufacturers emphasized on machines to improve their quality, and in the early 2000’s the focus shifted to compliance and finally to enhanced productivity and improved systems for better margins.
Today, the domestic market is at the 90s stage, looking to upgrade because of the growing expectation of domestic consumers for quality, and also the neighbouring countries clamouring to enter India. Indian Prime Minister Narendra Modi, during his recent visit to Dhaka, initiated a dialogue to improve trade relations, and the garment industry in the country is now eyeing the Indian domestic retail market as a huge opportunity. Even the push for ‘Make in India’ is attracting global investments in various industries.
The Indian market is already flooded with international retailers/brands like Gap, Zara, M&S and volumes of other retailers. Only today I read that American fashion retailer Aeropostale is also set to enter the fast growing Indian market through a licensee agreement with Arvind Lifestyle. Julian R Geiger, CEO of Aeropostale aptly summed up the interest in India, “India is a truly exciting retail market, driven by its growing economy and vibrant youth culture.” These developments are bound to boost local buying for local sales and only those manufacturers and suppliers will thrive who are capable of global standards.
What the manufacturing industry now needs and is actively looking for is mentors and consultants, people or organizations that can fast track their overhauling. The export industry took two decades to get where it is now… I am confident that the domestic manufacturers will move much faster… It is an opportunity for all technology and knowledge providers to the garment industry.
The weekend workshops that Apparel Resources has initiated is one such platform to explore. Through our very detailed and focused workshops which clearly gives the road map to implement management tools like Lean Sigma, TQM, TPM and other such concepts for optimal utilization of man and machine, companies can upgrade their working while simultaneously investing in technology. As of now it has largely been the garment exporters who have shown interest, but now we are receiving feelers from the domestic manufacturers also…, a good sign indeed!
Interestingly, Kolkata is the only apparel manufacturing hub catering to the export market, where the apparel manufacturing industry is yet to upgrade from being an unorganized sector as even the biggest apparel manufacturers do not have unit bigger than 50 sewing machines. But this is set to change… During my team’s latest trip to the city, we discovered that every leading apparel and workwear supplier has either established a new facility or is in the process of establishing a new facility by centralising all its small-small units under a single roof for future sustenance of business. A review of Exodus Futura Knits’ business strategy and manufacturing operations, featured in detail in this issue, gives a lot of cues to the companies who are looking at such large facilities and a direction to the future of the hub.
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