Home / Knowledge / News / Apparel exporters seek diversification of markets
Apparel exporters seek diversification of markets
30
May '11
Considering that over 90 percent of Sri Lankan apparel exports are consigned to just two regions in the world; the US and EU, the industry is trying to make forays in to other markets like China, Brazil, India, Russia and Japan. In order to diversify and make a mark in these overseas markets, the clothing sector is seeking free trade agreements (FTAs) with these countries, which will help the sector boost exports.

For instance, apparel exports stood at US $3.35 billion in 2010, of which shipments to the US scored $1.37 billion and those to the EU marked $1.70 billion, to garner a market share of 40 and 50.6 percent respectively.

“It has been observed that over 90 percent of Sri Lankan apparel exports are dependent on two major markets namely US and the EU and there is a clear need to diversify markets”, says Mr KJ Weerasinghe, Senior Advisor, Joint Apparel Association Forum (JAAF), a body made up of clothing producers, while speaking exclusively to fibre2fashion.

“Secondly while taking measures to increase market share in the current two key markets, analysis of global import data encourages us to look at emerging economies that are on a high economic growth path. These countries while continuing to be manufacturers and exporters of apparel, are themselves apparel importers of certain categories.

“The Sri Lankan apparel industry has set a target to reach US $5 billion in 2015. Diversification of markets is very important to achieve this target. Furthermore, since the internal armed conflict ended in mid-2009, the apparel industry has become a development partner working with the government on its post conflict development effort. Therefore, is the need to have increased market access into new markets to provide employment opportunities to unemployed youth in the disadvantage areas of the country including the north and east of the country.

“It is in this background that the apparel industry will focus on Japan, Russia, China, Brazil, Canada and Indian markets in our diversification effort. In this context increased market access to Indian market is also envisaged.

“Currently under the Indo-Sri Lanka Free Trade Agreement (ISFTA) a quota of three million pieces is available to be exported on duty free basis, which has been fully utilized in 2010. However, the additional quota of five million pieces remains unutilized on account of restrictions that, the five million pieces should be made out of Indian fabric. The apparel industry expects its government to obtain annual quota of 10 million pieces without any restriction on ports, fabric or tariff lines to be exported to India on duty free basis.

“The apparel industry in Sri Lanka with over 30 yeas of experience has grown to be a mature industry and has become a supplier to top international brands. In addition, its high compliance levels, good labour practices, being a socially responsible industry and as an integrated full serviceprovider, it will be able to position itself and undertake promotional activities in new markets it had identified for diversification.

“The benefits accruing to the industry and in particular to its workers from such a market diversification effort is obvious. Such diversification would enable to provide improved worker conditions, accelerate green manufacturing and economic development of less advantaged areas of the country as apparel industry is moving into these regional areas and becoming a development partner working with the government”, he concluded this very informative interview by saying.

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: The White House

Textiles | On 21st May 2018

China, US put trade war on hold

Following weeks of uncertainty over imposition and counter-imposition ...

Equate posts best Q12018 results since inception

Textiles | On 21st May 2018

Equate posts best Q12018 results since inception

Equate Group's first quarter results for 2018 are the best since its...

Over 60% retailers already have IoT platforms: IDC

Apparel/Garments | On 21st May 2018

Over 60% retailers already have IoT platforms: IDC

Retail organisations are adopting IoT platforms and more than 60 per...

Interviews View All

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Top executives
Textile industry, India

The event should be organised every year

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search