'Asia can be a booming apparel market'

TRADE TALK: Rahul Mehta, VP, Asian Apparel Federation

Rahul Mehta, vice-president of the newly-formed Asian Apparel Federation and president of CMAI, talks to Tejal A Deshpande about the role of the Asian Apparel Federation (AAF) in the development of the Indian apparel industry.

What are the objectives behind the formation of the Asian Apparel Federation (AAF)?

Conventionally, Asia is perceived as a manufacturing hub for apparels and western countries are viewed as a market. The primary objective of the federation would be to change that perception and project Asia also as a market. Why cannot Asian countries export apparel to their neighbouring markets? The Asian economies are growing and several leading European retailers are eyeing these markets.

What role will AAF play in the Asian apparel trade?

The AAF comprises 10 strategic Asian markets, India, China, Pakistan, Bangladesh, Sri Lanka, Korea, Hong Kong, Cambodia, Macau and Vietnam. Thailand and Singapore are also likely to join soon.

Each country will be represented by its apex garment associations. The Clothing Manufacturers Association of India (CMAI) is representing India.

The body (AAF) will provide a platform for exchanging ideas, views and market information among the members. It will not lessen competition, but help in opening new avenues of cooperation.

The federation would be organising its first conference in Mumbai in November.

How does the Indian apparel industry stand to benefit from the initiative?

Indian exporters did not look at China as an export market. However, we realised that there was a good potential for Indian brands to compete in the Chinese market. It is believed that China dumps cheap goods in the Indian market.

The federation can act as a catalyst to address the issue by initiating a dialogue with the Chinese exporters. Secondly, as a representative body, CMAI can explore other parallel options to encourage local trade.

For instance, CMAI has already signed an MoU with Sewing Manufacturers Association and would be organising an exhibition of garment manufacturing machinery. It is also planning to organise exchange programmes with Macau, which has well-developed training institutes for fashion and garments.

How is the appreciation of the rupee affecting apparel exports?

It has become a grim situation for Indian apparel exporters. It has almost eroded the exporter's profitability. At the current exchange rate, exports are unviable. There are chances that clients may scout for suppliers in other countries, who can offer similar products at competitive prices.