These facts show that in the Export front, the per capita consumption of USA consumers is in the Driver seat or such consumption pattern which accounts for the increase in international trade.

Since the present financial crisis is countering the spending pattern of US consumers it may definitely hit our Exports. There are reports in the internet that even for apparels there is a decrease in sales for 2.2% this November. The matter is now in the forefront.

How?

1. The sales of consumer goods in USA are mainly based on two seasons'. Spring/.Summer & Autumn/ Winter. That also the Handloom products mostly home furnishings fall under the categories of Christmas sales. This Christmas sales are definitely going to decrease because of the change in spending pattern.
2. In response to this situation, many companies have started declaring discount in prices and this will in turn give pressure on producers for lowering prices.
3. Many of the Exporting units in the country has long term contracts or links with buyers abroad, so they may be a chance not to resort price cut directly. They may intensify their quantity & quality check, or redirect business terms or finding fault with domestic producers in order to delay or decrease the taking up of stocks or replenishments.
4. During the financial crisis, the buying companies may be subjected to taken over by strong players in the field. This will change the company profile, product lines, and supply chains. Due to this our producers will fall into trouble to cop with new situation.

So we have to apprehend that even though the global financial crisis is not directly hitting us, it is going to effect as indirectly. Our industry has to be cautious about and see that bad times have to be seen as on opportunity to tune our performance and quality too strict and healthy in long run. Our Human Assets instead of throwing out; has to be geared and rejuvenated for better performance so that we can look forward for sustainable markets including growing domestic market. We cannot be panic, but conceive it, study it, and counter it.

Courtesy:

1. www.fibre2fashion.com
2. www.hepcindia.com
3. KTEO Kannur

About the Author:

The author is Technical Supdt: (Processing) in Institute of Handloom & Textiles Technology, Kerala, Kannur.