EMERGING OPPORTUNITIES IN
FASHION INDUSTRY

Dr. M.MADHAVAN
ASST. PROF. OF ECONOMICS
ARIGNAR ANNA GOVT. ARTS COLLEGE
NAMAKK...
THE FASHION
Consumer acceptance of a
particular style at a particular
period of time

Fashion

Demographics
Psychographics...
FUTURE OF FASHION & TEXTILE INDUSTRY
DEPENDS ON




TECHNOLOGICAL UP GRADATION
ROLE OF GOVERNMENT
EXPLORING NEW MARKETS...
TEXTILES

WOVEN
WOVEN
(bond)

KNITS

NON
( felt )
THE STEPS TOWARDS FREEING INTERNATIONAL
TRADE SO FAR
ATC (Agreement on textiles and clothing – since 1995)
WTO (Member sig...
Who can win?
The person who can produce
quality products at competitive
price
How to achieve?








Productivity improvement
Technological up gradation
Stringent control over quality
Frequent ...
The Indian scenario
OPINION OF TRADE EXPERTS ABOUT INDIAN TRADE
“OUR COUNTRY IS CONSISTENTLY LOSING EVERY OPPORTUNITY TO MEET
THE INTERNATIONA...
GLOBAL COMPARISON
PARAMETER / SECTOR

INDIA

GLOBAL

COTTON CONTAMINATION

30 – 50%

15 – 18%

COTTON PRODUCTIVITY

300 KG...
LABOUR COST COMPARISON
Average cost per operator hour (in cents)
India

0.58

Pakistan 0.37
China

0.69
(COMPLED BY: WEMER...
Man-made Textiles 7.67%
7.67%
Silk Textiles 2.09%
2.09%
Woollen Textiles 2.5%
2.50%
Coir 0.49%
0.49%
Jute 1.22%
1.22%
Man-...
CHINA VS. INDIA TEXTILES – PRESENT STATUS

ΠVERY HIGH DISCIPLINE

VERY AVERAGE DISCIPLINE

ΠLOW POWER COST

HIGHER BY 54...
Undeveloped infrastructure
Low productivity / high absenteeism
Uncooperative labour
Environmental issues
Highly regulated ...
PRODUCTIVITY - YIELD
COTTON
Factor

Unit

Area (‘000)

hectare

China

India

Difference

4,600

8806

+ 4206

Production ...
APPAREL IMPORTS (MILLION US $)
COUNTRY

% of share in world trade apparel

World

198940

USA

66392

33.4

EU

85909

43....
INDIA’S Share of Market Segments
CANADA
5%
CANADA
N.QC

USA
40%

N.QC
16%

EU
USA

EU
39%

Marketwise Analysis
Exports to ...
VOM

CHINA

INDIA

EXPORTS

$ bn

194.8

34.5

IMPORTS

$ bn

165.8

44.46

BOP

$ bn

+ 29.0

-9.96
Source – clothesline ...
SWOT
ANALYSIS
STRENGTH

OPPORTUNITY

FIBRE

THREAT

LABOUR COST

LIBERALISATION

HUMAN RESOURCE

EXHIBITIONS
POLITICAL UND...
EXPORTERS
Attitude

PRESENT SITUATION
To change

Quota

Quality, Delivery,lead time

Subsidies

World class Manufacturing
...
POSITIVE SIDE OF INDUSTRY








HAVING GREAT HOPE WITH EXISTING BUYERS &
STILL MAINTAIN THE GOOD RELATIONS
STARTED T...
THE ROLE OF
GOVERNMENT


THE NATIONAL TEXTILE POLICY





Aim to develop a strong and vibrant
industry that can produc...
THE MAIN OBJECTIVES OF NATIONAL TEXTILE
POLICY

To equip the industry to withstand pressures of
import penetration and mai...
The National Textile Policy2000
The endeavor will be






To achieve the target of textile and apparel exports
from th...
The Highlights of the Policy
Garments






The highly export oriented sector has been taken off
the SSI(small scale in...
Employment generation












In the light of 2004 regime the exporters are showing
much
interest
with
trained
F...
Careers in Fashion Industry












Whole sale Trade
Retail Designing
Opportunities in Fabrics and fashion
...
THANK YOU
manimadhavan@gmail.com
Prepared during 2004-2005
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Future of textile and fashion

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Future of textile and fashion

  1. 1. EMERGING OPPORTUNITIES IN FASHION INDUSTRY Dr. M.MADHAVAN ASST. PROF. OF ECONOMICS ARIGNAR ANNA GOVT. ARTS COLLEGE NAMAKKAL, TAMIL NADU
  2. 2. THE FASHION Consumer acceptance of a particular style at a particular period of time Fashion Demographics Psychographics Sociological Psychological
  3. 3. FUTURE OF FASHION & TEXTILE INDUSTRY DEPENDS ON    TECHNOLOGICAL UP GRADATION ROLE OF GOVERNMENT EXPLORING NEW MARKETS & PRODUCT INNOVATION / DEVELOPMENTS
  4. 4. TEXTILES WOVEN WOVEN (bond) KNITS NON ( felt )
  5. 5. THE STEPS TOWARDS FREEING INTERNATIONAL TRADE SO FAR ATC (Agreement on textiles and clothing – since 1995) WTO (Member signatories removed quotas from Jan 1, 2005) Step Period % to be brought under GATT I 1.1. 1995 to 31.12.1997 16% II 1.1.1998 to 31.12.2001 17% III 1.1.2002 to 31.12.2004 18% IV 1.1.2005 49%
  6. 6. Who can win? The person who can produce quality products at competitive price
  7. 7. How to achieve?       Productivity improvement Technological up gradation Stringent control over quality Frequent training Sourcing new markets and introducing new strategies in marketing Own design & Brand development
  8. 8. The Indian scenario
  9. 9. OPINION OF TRADE EXPERTS ABOUT INDIAN TRADE “OUR COUNTRY IS CONSISTENTLY LOSING EVERY OPPORTUNITY TO MEET THE INTERNATIONAL FRATERNITY, TO IMBIBE GLOBAL WORK PRACTICES, TO ACQUIRE GLOBAL VISION, FORM STRATEGIC ALLIANCE AND JOINT UNITS, TO REACH OUT NEW CUSTOMERS, OR MARKETS, KEEPING ALOOF IN INTERNATIONAL SEMINARS, CONVENTIONS, INDUSTRY FORUM. IN CASE OF GARMENT INDUSTRY WE REPRODUCE THE DESIGNS GIVEN BY THE BUYERS & NOT DEVELOPING OUR OWN STYLES AND DESIGNS.
  10. 10. GLOBAL COMPARISON PARAMETER / SECTOR INDIA GLOBAL COTTON CONTAMINATION 30 – 50% 15 – 18% COTTON PRODUCTIVITY 300 KG / HA SPINNING CAPACITY SHUTTLE LESS LOOM EXPENDITURE ON R & D PROCESSING TECHNOLOGY TESTING OF MATERIALS MANUAL VS. POWER MACHINES ISO 9000 INFRASTRUCTURE WORKERS TRAINING 580 KG / HA 36% 90%ITALY 50% USA 9550 85,800 CHINA 29,000 KOREA 0.2% 1.5 TO 2% MANUAL AND SEMI AUTOMATIC CLIENT ORIENTED 31% : 69% ADVANSED MECHANISED INTEGRAL PART OF THE SYSTEM 0.1% : 99.9% 462 3,673 20 52 AD – HOC SYSTEMATIC AND INDUSTRY COMMITTED
  11. 11. LABOUR COST COMPARISON Average cost per operator hour (in cents) India 0.58 Pakistan 0.37 China 0.69 (COMPLED BY: WEMER, USA)
  12. 12. Man-made Textiles 7.67% 7.67% Silk Textiles 2.09% 2.09% Woollen Textiles 2.5% 2.50% Coir 0.49% 0.49% Jute 1.22% 1.22% Man-made Handicrafts 13.3% 13.30% Textiles 7.67% Cotton Textiles 32.4% 32.40% Readymade Readymade 40.2% Garments Garments 40.2% 40.20% INDIA'S Textile Exports Silk Textiles 2.09% Woollen Textiles 2.5% Coir 0.49% Jute 1.22% Cotton Textiles 32.4% Handicrafts 13.3%
  13. 13. CHINA VS. INDIA TEXTILES РPRESENT STATUS ΠVERY HIGH DISCIPLINE VERY AVERAGE DISCIPLINE ΠLOW POWER COST HIGHER BY 54% ΠLOW INTEREST COST 14.5% TO 18% AS AGAINST 6% ΠHIGH MODERNIZATION SLOW RESPONSE ΠSIMPLE REGULATIONS COMPLEX AND COMPLICATED ΠHIGHLY DEVELOPED INFRA-STRUCTURE POOR INFRA-STRUCTURE ΠEXIT POLICY UNCERTAIN POLICIES ΠSTRONG RE-TRAINING TOTAL ABSENCE OF TRAINING ΠECONOMY OF SCALE UNIT SLOW RESPONSE ΠHIGH QUALITY PRODUCT CASUAL WEARS ΠTARGET 40% OF WORLD SHARE PROVIDING 15% BUT NOT REACHING EVEN 2%
  14. 14. Undeveloped infrastructure Low productivity / high absenteeism Uncooperative labour Environmental issues Highly regulated sector URE FUT N TAI CER UN
  15. 15. PRODUCTIVITY - YIELD COTTON Factor Unit Area (‘000) hectare China India Difference 4,600 8806 + 4206 Production (‘000) tons 4,600 2805 _ 1795 Yield / hectare tons 1,000 318 _ 682
  16. 16. APPAREL IMPORTS (MILLION US $) COUNTRY % of share in world trade apparel World 198940 USA 66392 33.4 EU 85909 43.2 SOURCE WTO STATISTICS
  17. 17. INDIA’S Share of Market Segments CANADA 5% CANADA N.QC USA 40% N.QC 16% EU USA EU 39% Marketwise Analysis Exports to USA have gone down substantially by (-) 12.92% in value, and by (-) 6.01% in quantity terms. Canada has also registered a substantial loss of (-) 15.10% in terms of value and (-) 16.93% in terms of quantity. EU has seen an decrease of (-) 4.87% in terms of value and a increase of 1.55% in terms of quantity. Non-Quota countries have registered a decline of (-) 52.45% in quantity terms and of (-) 57.07% in value terms.
  18. 18. VOM CHINA INDIA EXPORTS $ bn 194.8 34.5 IMPORTS $ bn 165.8 44.46 BOP $ bn + 29.0 -9.96 Source – clothesline Jy / 01
  19. 19. SWOT ANALYSIS STRENGTH OPPORTUNITY FIBRE THREAT LABOUR COST LIBERALISATION HUMAN RESOURCE EXHIBITIONS POLITICAL UNDERSTANDINGS POPULATION NEIBOURING COUNTRIES PHASING OUT OF QUOTA SWOT INTERNATIONAL PRICING SLOW RESPONSE ANALYSIS LACK OF TRAINING CENTRE PHASING OUT QUOTA INCREASING COST REGULAR BUYERS UNSTABLE POLITICAL ENVIRONMENT WEAKNESS QUALITY DELIVERY SCHEDULE ABSENCE OF QUALITY PROFESSIONALISM
  20. 20. EXPORTERS Attitude PRESENT SITUATION To change Quota Quality, Delivery,lead time Subsidies World class Manufacturing Price Customer focus, quality, Agility Transparency Sourcing Sourcing Trust, partnership Delayed delivery speed, service Quality Strategy
  21. 21. POSITIVE SIDE OF INDUSTRY     HAVING GREAT HOPE WITH EXISTING BUYERS & STILL MAINTAIN THE GOOD RELATIONS STARTED TO REALISE THE IMPORTANCE OF TECHNICAL UP GRADATION STARTED TO REALISE THE IMPORTANCE OF TRAINED MAN POWER VERY GOOD QUALITY, ENVIRONMENT & SOCIAL ACCOUNTABILITY AWARENESS(ISO –9000,14000, SA-8000)
  22. 22. THE ROLE OF GOVERNMENT  THE NATIONAL TEXTILE POLICY    Aim to develop a strong and vibrant industry that can produce cloth of good quality at acceptable prices to meet the growing needs of the people. Employment generation Compete with confidence for an increasing share of the global market.
  23. 23. THE MAIN OBJECTIVES OF NATIONAL TEXTILE POLICY To equip the industry to withstand pressures of import penetration and maintain a dominant presence in the domestic market.  Liberalize controls and regulations so that the different segments of the industry are enabled to perform in a greater competitive environment.  Enable the industry to build world class state – of – the – art manufacturing capabilities in conformity with environmental standards. 
  24. 24. The National Textile Policy2000 The endeavor will be    To achieve the target of textile and apparel exports from the present level of 11 billion dollar to $50 billion by 2010 of which the share of garment will be $25 billion. To assist the private sector to set up specialized financial arrangements to fund the diverse needs of the textiles. To set up a venture capital fund for tapping knowledge based entrepreneurs of the industry, facilitate the growth and strengthen HRD institutions like NIFT, NIFT-TEA, NID, etc., on innovation lines.
  25. 25. The Highlights of the Policy Garments    The highly export oriented sector has been taken off the SSI(small scale industries) reservation list, enabling corporates to invest large amounts in garment manufacturing. The deservation also enables free flow of FDI (Foreign Direct Investment) to the extent of 100%. This will prepare Indian garment exporters to face the fierce international competition that is likely to ensure once the export quota regime is dismantled.
  26. 26. Employment generation       In the light of 2004 regime the exporters are showing much interest with trained Fashion designers, Merchandisers, Production managers etc, In the case of fashion designing, so far the industry people are using the design supplied by the buyers. Now the awareness of fashion designing is taken place due to the brand promotion activities. The new domestic brands are showing keen interest in developing new designs. Each and every day the new entrepreneurs are entering in to the field. Since the growth export sector is positive, the growth of the industries which are concentrate the production of accessories are also increasing.
  27. 27. Careers in Fashion Industry            Whole sale Trade Retail Designing Opportunities in Fabrics and fashion Opportunities in Fashion Illustration Opportunities in Fashion Writing Opportunities in Modeling Merchandiser Quality controller Production Manager, Supervisor Fabric Coordinator Sampling Incharge
  28. 28. THANK YOU manimadhavan@gmail.com Prepared during 2004-2005
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