Hameedia to take on the world amidst economic crisis
Sri Lankan apparel brand Hameedia, on the back of its recent expansion to Dubai, is looking to expand to major markets such as Australia, Qatar, and India.
The limitations in the country to expand business such as too many restrictions on imports and other impediments have prompted the company to venture into other markets, Hameedia's Managing Director/ Designer, Fouzul Hameed told the Business Times. The company’s Dubai outlet was recently opened.
The lack of policy has inhibited the growth and the entrepreneurship of the country, he said, noting that he has appealed to the government to understand the concept of local brands to grow out into the world.
"We have the potential to take on the world. The government must identify around 100 top local brands which have the perfect quality products to match the world, and which can bring in millions of dollars to the country and allow them to import raw materials. We do at least 80 to 90 per cent of manufacturing locally and we really need 10 to 20 per cent of imports."
This is because when ‘you’ want to match and pitch to the world, ‘we’ need to compete with other top brands around the world, he added
"We can't manufacture certain products here in Sri Lanka due to high cost and lack of high-end raw material and high-end factories to manufacture shoes, sandals, leather bags, belts, ties, cufflinks etc. Also, we cannot manufacture high-end suiting, shirting,
when ‘you’ want to match and pitch to the world, ‘we’ need to compete with other top brands around the world
accessories, and other raw material. The lead time is too long, and high shipping costs, clearance costs, duty etc are all prohibitive right now. The worst thing is local banks don't have enough foreign currency to import."
He added that the company needs to import certain readymade, then add value and re-export certain quantities.
"Right now, we can move to the world with our new menswear concept which is unique," he said pointing out that many companies are moving to Dubai due to the easy process to do so and the market is open to face healthy competition.