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Industries reworking strategies for survival

01
Dec '08
The ensuing global crisis is making textile and apparel companies rework their strategies towards surviving through the turbulent times. For some it is cutting down on their operating rates for others it is down sizing the strength of their employees.

For instance, export oriented units are now eyeing the lucrative domestic market to stay above the water. Since orders from overseas markets are tapering off, instead of downsizing or closing down, they are concentrating on strategies to penetrate the local markets.

All and sundry sub-sectors from the industry have been affected which includes exporters of garment, carpet, silk, textiles and a host of other products. The silk industry which has been badly affected by the downturn has decided to do away with temporary employed workers and put a freeze on new recruitment.

Among other steps which the silk industry is looking at is focusing on the domestic markets as the flow from their overseas buyers has trickled down. They are also not in favour of participating in trade fairs in the near future as under the present conditions it would be difficult to generate orders.

The need of the hour according to the unit owners is consolidation of all their activities and cut down on as much as unnecessary expenses possible, if they have to survive this recessionary phase.


Fibre2fashion News Desk - India


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