What is noteworthy though is that even during the quota
regime these countries were very much dependent on raw materials procured from
outside. They managed fine all these years, in terms of prices/ deliveries/
lead times/ quality. And post quota, their prices are even sharper, as there is
no quota cost involved, compared to the Indian factories. This is especially
true for basic product categories - like mens pants. So what's the threat to
them?? They have built relationships with their customers over the years, and
just because of quota phase out, it's unlikely that these customers will stop
buying from them. Most of the buyers still continue to source from their
supplier base in Bangladesh/ Sri Lanka. Well, these suppliers must be doing
something right!
Many of big suppliers in these countries have set up their
fabric sourcing offices in Hong Kong/ Shanghai etc; some even own the fabric
mills in the Far East. They employ Chinese-speaking locals in these offices for
better interaction with the local mills. Few companies have set up fabric
processing units in their home country and are only just importing the greige
from outside-say Pakistan or China.
Sourcing from Bangladesh, Sri Lanka is not going to vanish
so quickly post quota, provided suppliers wake to the need of the hour. Adopt
quick response working, quote competitive prices without going much back and
forth.
Customer Service orientation-winners strategy!
Last but not the least, the biggest challenge for the supply
end of the apparel industry to compete with the looming china threat would be
to inculcate the 'customer service orientation'. They have to acquire
professionalism in their approach, in terms of sticking to committed deadlines-be
it for deliveries or any other development/ production related submits. Thumb
rule is-if you commit a date, stick to it, come what may. To satisfy the end
customer should be their ultimate focus and this needs to percolate right from
the top management levels to the grass root levels. The mindsets need to
change... business is not going to come easy any longer. Only the best will
survive and will deserve to not only survive but also thrive!
About the Author:
Anjuli Gopalakrishna has spent more than a decade in the
apparel industry, having worked with leading companies including J C Penney
Purchasing Corporation, Tommy Hilfiger India Limited and Li & Fung. Her
experience includes apparel marketing and merchandising, sourcing of home
products, apparel, accessories and leather goods. She has extensive experience
sourcing for US and Europe from sourcing destinations including India, Bangladesh, Sri Lanka, Vietnam, Madagascar, Pakistan, Taiwan and China.
She is a
Post Graduate in Fashion Management Studies from the National Institute of
Fashion Technology Delhi (NIFT). She is now an independent consultant and
trainer in supply chain merchandising to buying offices and garment exporters
and also a guest lecturer at NIFT Bangalore.
