Face2Face extends a warm welcome on this talk, Mr Gherzi! How if we start talk with a word from you on Gherzi’s recognition in the world of textile consultants, and its assumed role in sake of industry?
Gherzi has been established since 1929 and is regarded as a provider of integrated and independent advisory services to the textile and clothing industry. As we cater to a much matured and highly globalized industry, it requires an in depth experience and an international perspective to satisfy our clients' expectations. This is especially important when decisions made by our clients have far reaching implications in terms of their financial footprint with long term returns. In the eight decades of our existence we have carried out over 7500 projects and our partners evaluate the issues with a global perspective based on a wealth of experience.
We appreciate the proficiency. So with this wealth of accrued experience and knowledge dealing in industry since years, tell us your purview on current state of the global textile, garment and retail industry?
The prevailing situation can be summarized in key trends that have emerged since 2008,
a) Fall in demand as retail sales in three developed markets viz EU 27, USA and Japan declined or stagnated in 2008-09. Even in India where organized retailing saw remarkable expansion, the sales belied expectations.
b) apparel imports in the US and Japan registered double digit decline in 2008-09.
c) pressure on prices
d) freeze on new investments
e) most textile and clothing exporting countries recorded lower or negative growth in 2008-09. India's textile and garment exports stagnated in 2008-09 while those from China moderated to single digit growth levels. In the second half of 2009, even the surge in exports from emerging countries Bangladesh and Vietnam cooled off and their industry started to feel the impact of global economic and financial slowdown. There is an imminent desire among existing players to discover new markets and segments.
The governments and the industry in these countries responded by announcing several intervention measures to cushion the impact on this important sector of the economy.
Well said! There definitely exists an imminent desire amongst players to discover new markets/segments. And my next question is regarding same; globally, which zones can be segmented as settled, emergent, and budding economies. How would they mould future textile industry? How would you rank the significance of consultants in this future industry?
Obviously the developed countries in Europe and the US and Japan are considered ''settled'' in terms of their consumption levels and textile manufacturing activity. The Indian sub continent is certainly emerging and Bangladesh, Vietnam and Cambodia may be regarded as budding. The remarkable characteristic of our industry is that it’s highly dynamic and ever evolving and reinventing itself. And this is what defines the role and importance of consultants.
And, which all impediments, do you think textile industry has in general tapering off its healthy growth?
We are concerned that infrastructural deficiencies in emerging economies and exchange rate volatility are key challenges facing the global textile and clothing industry. A softer but very important dimension of the textile industry is lack of interest among the present generation of entrepreneurs in this industry due to the challenges and low not relatively unattractive profitability.
Do you think market situation shall change by and large once evil episode of crisis is over? What would be repercussions then?
We remain optimistic about the future of the textile and clothing industry. In near future we expect renewed phase of consolidation, re-investment, restructuring, and relocation. We believe catering to domestic demand in emerging economies would assume importance as consumption levels in the traditional countries plateau.
Lastly and most importantly, what innovations or products do you expect to hold sway over the global textiles and apparel industries in the near future?
Airjet spinning, technical textiles, speciality fibres, inkjet printing are perceived as new frontiers of innovation in the textile and fashion industry where we believe considerable scope for development in coming years.
That was indeed a big deal of information, Mr Gherzi! Thank you so much for your valued comments.
Pleasure for me too.
#######DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
