Winds of change sweeping across apparel industry
Winds of change are blowing across the apparel industry in the world and Sri Lanka also needs to adapt to these reforms fast.
Emeritus Prof Lakdas D Fernando, Chairman, Sri Lanka Apparel Institute, making this comment recently also noted that the apparel industry is thriving in the country.
He was making the introductory remarks at last week’s inauguration of the ‘The Apparel Industry Suppliers Exhibition (AISEX) and Fabric and Accessories Suppliers Exhibition ( FASE) 2018 that was held at the BMICH. The exhibitions held biannually was the 8th edition this year and for the first time a Conference themed “Helping local brands and manufactures compete in the South Asian Region” was held parallel to the exhibitions.
Prof. Fernando said: “Earlier we used to say export or perish. Later we said, innovate or perish but all of them are included in the ‘Digitalisation’. Now we have to say digitalise or perish.”
He said new technologies are fast adapted to every sphere of activity and this year also saw some of the Vesak pandals in Colombo using digital technology.
He said while the industry has been talking about GSP + to Europe and GSP to the US for some time, it is necessary to also focus on how to maximise the benefits from these regained opportunities.
To meet the challenges of the changing scenarios, the government too cannot be happy by saying they got GSP + as a lot needs to be done to get the best out of these concessions.
All industry associations, he said, have a huge role to play at this juncture to support the industry and give the correct direction. A wind of change is blowing across the world of industry and its effects are very much evident in the apparel industry. In every sphere the way the business is conducted is fast changing and the apparel industry is no exception.
Prof Fernando wanted the entire industry to digitalize and gradually get on the digital platform. Digitalization is the linking together of all digital information and automation to do the business. Continuation of old traditional methods is a waste of time and money which gives no visible improvements in the overall weak areas of the industry, he pointed out.
Rishad Bathiudeen, Minister of Industries and Commerce, said that after regaining GSP + Sri Lanka’s apparel exports have increased with the hope that it would surpass the US$5 billion this year compared to $4.8 billion in 2017 and said that this trend is reflected considering the first quarter of 2018 apparel export performances.
He pointed out that to move to the next level they should resolve the issues that confronts the industry. He said that Europe is a key market but the market is undergoing changes due to increasing unemployment and policy uncertainties after Brexit.
Tuli Cooray, Secretary General, Joint Apparel Association Forum, said that Sri Lanka is at a critical stage as the country is on a reform agenda and observed that new export strategies, new facilitations, and new maritime changes are brought in to eradicate poverty.
He said that in this process various industry sectors play a key role. Mr. Cooray pointed out that a majority of the labour force is in the apparel industry and is a major contributor to the GDP, but indicated that GSP + relief would offer benefits for a limited period.
Dr. Ashan Amarasinghe, Chief Executive Officer, Centre of Excellence f or Ro b o t i c Application, making a presentation said that in terms of key challenges when they come down to the apparel sector and look at what the key challenges of most of the manufacturers, whether they are SMEs or large organizations; there are five - labour shortage, high labour turnover, higher cost of labour and high mix and low volume.