The document discusses the apparel industry in Sri Lanka. It provides a brief history of the industry and analyzes factors that have contributed to its growth such as skilled labor force and government policies supporting infrastructure. However, the industry now faces challenges from foreign rivals like India, China and Bangladesh that have lower production costs. The industry needs to find solutions such as developing a reputation for quality and compliance with labor laws to overcome threats like higher costs and new market entrants.

1. 1
Supper Balcony Team
IHRA/UoC/2013

2. Institute of Human Resource Advancement
University of Colombo
2
Group Assignment
PGDSM 01

3. 3

4. Mr. Thushara Dabare IHRA /MSc/SM(E)/01/10
Mr. Dileka Gunawardena IHRA /MSc/SM(E)/01/42
Ms. Sarasi Katulanda IHRA/MSc/SMgt(E)/01/45
Mr. Pathum Vaas
Ms. Subodanie Abeywickrama
Mr. Ravi Kumudesh IHRA/MSc/SMgt(E)/01/46
Mr. Vajith Ranavithanthri IHRA /MSc/SM(E)/01/23
4

5. 5
Apparel Industry in Sri Lanka
History

6. 6

7. 7

8. 8

9. 9

10. 10
Caught up in Y2K!
Truce & Short term Boom!
Tsunami!
Change of Leadership
End of Quota!

11. 11
Apparel Industry in Sri Lanka
Prospects and Challengers

12. 12
Factors Moving
Towards the Growth
 Human Resources
 Skilled Labor
 Motivation
 Abundant labor force
 Infrastructure
 Government policies
 Custom procedures
 International agreements

13.  Increased Production Cost
 High Lead Time
 Emerging Market
13

14. 14
Export of Apparel 2007 - 2012

15. 15
 Foreign Rivals
India
China
Bangladesh
Vietnam

16. Gradual
deduction of
GDP
contribution
Reflection of GDP
Less domestic
value added as
65% of material
inputs are
imported.
16


17. 17
Potential Competitors
 China
 Low production cost with quality and speed
 High backward and forward linkages
 Establishes as global supplier
 Bangladesh / Vietnam / Turkey
 Low labor cost
 Low utility cost

18. 18
Apparel Industry in Sri Lanka
Solutions

19. 19
1. High industry attractiveness
2. Effective Multi Fiber agreements
3. Emerging economies of Eastern countries
4. Strategic location and connectivity

20. 20
Threats
1. Cheap labor in competitive countries
2. European Economic recession
3. New entrants within supplier/distributors’
countries
4. Rapid development in retail industry
5. Removal of GSP

21. 21
1. Reputation in industry
2. Compliance with international labor laws
3. Supportive government policies
4. Educated, adaptable workforce
5. Fast developing infrastructure

22. 22
1. Increasing labor cost
2. Lack of geographical diversification
3. Absence of prominent local brands
4. Higher utility cost
5. Social perception
6. Labor turnover and absenteeism
Weaknesses

23. 23

24. 24