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Marketing Garments The Right Way

Bibek Debroy BSCAL

Textiles and garments figure prominently in Indias export basket and this sector is also important for employment generation. The imminent phase-out of the multi-fibre arrangement (MFA) by 2005 means that industry has to react and adapt. Yet, a rather uninspiring export performance during the recent past has added to the woes. Increased competition, erosion of margins, lack of expertise in global sourcing, pressures on lead-time and quality have begun to affect the prospects of growth and profitability. The Industry as a whole has not yet come to terms with the need for a paradigm shift in attitude, concepts, concerns and product-market strategies. When the quotas disappear in 2005, they will also take away the cushion of a protected market.

 

Thus, liberalisation not only represents opportunities, but also threats. Darlie Koshys SWOT analysis is predicated on the assumption that while textiles and garments can become an engine of export growth, a sense of urgency is yet missing. Consequently, a 10 per cent market share in world exports by 2010 is still a mirage. Following Koshys earlier book Effective Export Marketing of Apparel to the US, EU and Japan, this one focuses on sensible transition (till 2005) and long-term winning strategies.

Consider the following longish quote, which excellently describes the problem. The Indian garment export industry is viewed by the layman as a highly disparate group of small scale units, located mainly in major metropolitan and a few other cities, with outdated technology and production systems. This small-scale industry is again dependent on the disorganized powerloom sector for the supply of fabrics, the main raw material of fashion. The processing of fabrics and washing of garments and such other significant activities are carried out in several small units with obsolete technology. Many other value-added activities like embroidery, appliqu

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First Published: Oct 09 1997 | 12:00 AM IST

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