Perfect Sourcing - - Reflections -

Rather than rem­i­nisc­ing about 2017, I would like to high­light some of the note­wor­thy fig­ures re­vealed after a re­cent sur­vey con­ducted for the ap­parel and tex­tile in­dus­try by the well-known con­sul­tancy, Wazir Ad­vi­sors. I do so pri­mar­ily be­cause ini­tial in­di­ca­tions seem some­what para­dox­i­cal, in that there is a spark of light at the other end of this dark tun­nel most of us are un­happy about.

73 per cent of the re­spon­dents to the sur­vey said that de­mand as well as profit in the tex­tile and ap­parel in­dus­try had de­creased dur­ing the ini­tial months of of GST im­ple­men­ta­tion, while al­most two-thirds re­ported an in­crease in un­em­ploy­ment. Man­u­fac­tur­ers re­port­ing lower de­mand thus in­di­cate a de­ple­tion of stocks in the sup­ply chain. The im­pact of GST on in­put cost did not have a clear-cut trend as 33 per cent said the in­put costs had de­creased while 47 per cent said that they had in­creased. The find­ings of the sur­vey point out that In­dian tex­tile and ap­parel in­dus­try is at an in­flec­tion point to­day. While on the one hand the firms are feel­ing a lot of pain be­cause of re­cent pol­icy changes, on the other they are ex­tremely hope­ful of a turn­around. There is a ray of hope also as the next six months seem to be pos­i­tive for the en­tire tex­tile and ap­parel in­dus­try’s per­for­mance. In­dus­try’s re­sponse to im­pact of GST was neg­a­tive in terms of de­mand, prof­its and em­ploy­ment and the cur­rent per­for­mance was re­ported ma­jorly neu­tral to neg­a­tive but a ma­jor­ity of re­spon­dents in­di­cated higher or­der book vol­umes.

What does this in­di­cate? I believe that it shows that the year which was full of tur­moil, chal­lenges and new changes that kept ev­ery­one on their toes is about to end and we, as an in­dus­try, can now look for­ward to some­thing pos­i­tive in the com­ing years.

In this is­sue, we have high­lighted some of the top trends in var­i­ous ar­eas like re­tail, in­ter­na­tional mar­kets, the top ex­porters of the coun­try and their strengths, the In­dian mar­ket and new poli­cies that were the big­gest news­mak­ers of 2017. It is a flash­back of what hap­pened over the last one year, the lessons we can ex­tract and the op­por­tu­ni­ties we can look for­ward to.

I would like to men­tion here that ev­ery tough phase teaches us some­thing new. In a swings and round­abouts sce­nario, we will lose some but we will also gain a lot. Though we’ve tra­versed a year where there were some bar­ri­ers, some new be­gin­nings were also seen as most States in In­dia re­vived the tex­tile pol­icy and have iden­ti­fied ar­eas where they will pro­vide sup­port to gar­ment ex­porters in im­prov­ing, up­dat­ing and ex­pand­ing their busi­ness.

Our next is­sue will tell you about the jour­ney of the top ex­porters of In­dia and will bring you up to date on the lat­est tech­nolo­gies that will be on dis­play at the up­com­ing GTE ex­hi­bi­tion in Delhi.

I shall sign off on this note and hope that you will en­joy read­ing this is­sue of Per­fect Sourc­ing and will share your feed­back as well.

Wish­ing you a very happy and pros­per­ous new year with a lot of good busi­ness and cheer.

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