In my last issue I talked about how the domestic garment industry in India is catching up to the best
practices of export industry. The same is also true for Bangladesh garment industry which is currently
maturing from the point the Indian industry operated during mid 90’s. The only difference is the pace
with which the country is moving forward and taking cautious steps not to repeat the mistakes that
its predecessors did. Since there is no technology lag between developing and developed countries
in garment manufacturing, the industry in South East Asia should take the advantage of low wages to
scale up the production and be prepared for the changes.
As the manufacturing industry is now at the doorstep of two of the world’s most populous nations – India and Bangladesh, the industry should exploit the domestic industry and not just eye exports. It is interesting to note that out of the current top garment producing nations only 4 countries, namely Bangladesh, India, Sri Lanka and Vietnam, are among the top 30 ranked countries in terms of population density. China ranks a distant 57th despite its huge population head count. Interpreted into business, it means there will be more potential for manufacturers to cater to domestic market rather than the exports in these countries.
We should not forget the Ford’s philosophy that mass produced goods should be affordable for the masses. Current approach of export-driven garment industry in the LDCs (Least Developed Countries) like Bangladesh is beneficial in the short-term due to Government’s over-attention and foreign currency earning. In the long-term the economy will grow, wages will rise and industry will migrate like we are witnessing in China. If we look at India’s scenario, where the indifferent attitude of the Government towards garment manufacturing industry is well documented, the writing on the wall is quite clear. You have to be competitive enough to survive and the competition is not only from within the industry, it is also beyond from other industries too. In a matured economy like India, the garment manufacturing industry is competing with other industry sectors like retail and security for its manpower.
To be relevant for the domestic industry, the manufacturing industry should also concentrate on product development rather than only the overall unit’s efficiency. Product development in apparel manufacturing industry is one area where the concept of newness is somehow missing. When new products create the right consumer-connection, they can fetch higher unit value realization, which to a certain extent will ease up the bottomline.
Kolkata is one manufacturing hub, where the export industry co-exists harmoniously with the domestic manufacturers. The nature of the business is very fragmented and few companies can claim to run organized factories. Among the various product categories that the hub works with, workwear has the biggest audience overseas with a majority of the production in the category being exported. Team SW was in Kolkata recently where they met Mallcom (India), JPM Exports and Rama Overseas – all looking to break the conventional manufacturing mindset of Kolkata and consolidate their manufacturing operations, for being more efficient and growth-oriented. A rundown on the current situation of the Workwear segment is presented in the article ‘Kolkata, India’s Workwear Capital all set for a Makeover;\ Reinventing Manufacturing Paradigms’.
The current SW also features the last article under the IE series – ‘Value Engineering’. Through these 12 articles we have presented different aspects to IE, some well known while others relatively new and unexplored areas like ‘Ergonomics’. We would welcome constructive feedback from our readers on how useful this series has been to their operations and understanding of better utilization of the IE department. We would also welcome suggestions on other concepts that you all would like to
know about.
As the manufacturing industry is now at the doorstep of two of the world’s most populous nations – India and Bangladesh, the industry should exploit the domestic industry and not just eye exports. It is interesting to note that out of the current top garment producing nations only 4 countries, namely Bangladesh, India, Sri Lanka and Vietnam, are among the top 30 ranked countries in terms of population density. China ranks a distant 57th despite its huge population head count. Interpreted into business, it means there will be more potential for manufacturers to cater to domestic market rather than the exports in these countries.
We should not forget the Ford’s philosophy that mass produced goods should be affordable for the masses. Current approach of export-driven garment industry in the LDCs (Least Developed Countries) like Bangladesh is beneficial in the short-term due to Government’s over-attention and foreign currency earning. In the long-term the economy will grow, wages will rise and industry will migrate like we are witnessing in China. If we look at India’s scenario, where the indifferent attitude of the Government towards garment manufacturing industry is well documented, the writing on the wall is quite clear. You have to be competitive enough to survive and the competition is not only from within the industry, it is also beyond from other industries too. In a matured economy like India, the garment manufacturing industry is competing with other industry sectors like retail and security for its manpower.
To be relevant for the domestic industry, the manufacturing industry should also concentrate on product development rather than only the overall unit’s efficiency. Product development in apparel manufacturing industry is one area where the concept of newness is somehow missing. When new products create the right consumer-connection, they can fetch higher unit value realization, which to a certain extent will ease up the bottomline.
Kolkata is one manufacturing hub, where the export industry co-exists harmoniously with the domestic manufacturers. The nature of the business is very fragmented and few companies can claim to run organized factories. Among the various product categories that the hub works with, workwear has the biggest audience overseas with a majority of the production in the category being exported. Team SW was in Kolkata recently where they met Mallcom (India), JPM Exports and Rama Overseas – all looking to break the conventional manufacturing mindset of Kolkata and consolidate their manufacturing operations, for being more efficient and growth-oriented. A rundown on the current situation of the Workwear segment is presented in the article ‘Kolkata, India’s Workwear Capital all set for a Makeover;\ Reinventing Manufacturing Paradigms’.
The current SW also features the last article under the IE series – ‘Value Engineering’. Through these 12 articles we have presented different aspects to IE, some well known while others relatively new and unexplored areas like ‘Ergonomics’. We would welcome constructive feedback from our readers on how useful this series has been to their operations and understanding of better utilization of the IE department. We would also welcome suggestions on other concepts that you all would like to
know about.
Thanks for bringing attention to Ergonomics and better utilization of the IE department. I think they are two sides of same coin.
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