Interviews
4th ITAC 2006 seeks India as supply base
27 Mar '06
3 min read
International Textile and Apparel Congress 2006 (ITAC) announces that the world trade in textile and apparel has undergone a number of changes since the abolishment of textile and apparel quotas in January 2005.
While the abolishment of quotas has presented buyers with an option to source from the most efficient and cost effective vendors and countries, for the suppliers it has opened a Pandora's box: stiff global competition driven by low costs and new legislation.
International Textile and Apparel Congress 2006 from April 20-21,06 at The Hilton Towers, Mumbai, India
The first year of quota free trading has already seen a number of changes taking place in the apparel and textile trade: a shift in supply bases, a decline in sourcing prices & a re-orientation of the buyer-supplier relationship.
While phase out of quotas has seen clear emergence of supplier regions (China and South Asia), it hasn't wiped out the vulnerable countries. Although new patterns in the world trade have emerged, it would be some time before the significant trade shifts take place.
Prices in the post quota era have seen a downward trend particularly in apparel categories. Apparel import prices have declined by 3 percent in US market and by 6 percent in EU market. Technopak estimates that the supplying community lost an estimated US$ 3 Billion due to price drop in the first 6 months of 2005 alone.
Increasing competition and falling prices have driven suppliers to re-think their strategies & develop additional capabilities.
While the abolishment of quotas has presented buyers with an option to source from the most efficient and cost effective vendors and countries, for the suppliers it has opened a Pandora's box: stiff global competition driven by low costs and new legislation.
International Textile and Apparel Congress 2006 from April 20-21,06 at The Hilton Towers, Mumbai, India
The first year of quota free trading has already seen a number of changes taking place in the apparel and textile trade: a shift in supply bases, a decline in sourcing prices & a re-orientation of the buyer-supplier relationship.
While phase out of quotas has seen clear emergence of supplier regions (China and South Asia), it hasn't wiped out the vulnerable countries. Although new patterns in the world trade have emerged, it would be some time before the significant trade shifts take place.
Prices in the post quota era have seen a downward trend particularly in apparel categories. Apparel import prices have declined by 3 percent in US market and by 6 percent in EU market. Technopak estimates that the supplying community lost an estimated US$ 3 Billion due to price drop in the first 6 months of 2005 alone.
Increasing competition and falling prices have driven suppliers to re-think their strategies & develop additional capabilities.
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