New business model to be introduced:

Apparel industry targets additional $1b by 2016

By Sanjeevi Jayasuriya

The apparel industry is set to generate an additional $ 1 b revenue by 2016 with the introduction of a new business model.

“We are confident that with the multi- country consolidation approach as in Hong Kong and Singapore in place, the apparel industry could target an additional one billion dollar income by 2016,” Joint Apparel Association Forum (JAAF) Secretary General, M.P. Tuli Cooray told Sunday Observer Business. “We want the government to come up with a legal framework to create a Hong Kong–China type concept in Sri Lanka.”

“We will harness our strengths and strengths available in the region to perform apparel hub operations.

The country could provide the technology, design, front operations and meet orders to support this initiative,” he said.Industry growth is fuelled by heavy investments over the past years and with the cooperation of the government to reduce transactional costs, its promotional activities in the traditional and emerging markets are ongoing at present.

“We continue to accelerate promotion in traditional markets. Steps will be taken to increase the market share in China, India, Russia and Japan. We call upon the Government to enter into bilateral trade agreements as the apparel industry could reach the next level with the implementation of the strategies to raise industry standards,” he said.

Commenting on the non availability of a level playing field, Cooray said that our competitors such as Bangladesh, Vietnam, Pakistan and India including the ASEAN countries have preferential trade agreements. This makes our costs high. However, with technological investment, advanced manufacturing processors with less human interaction have enabled the industry to move forward.

The local apparel sector is known globally as a quality and reliable supplier. The industry generated a revenue of about $ 3.8 b for the past year and was hopeful that the target set for 2016 could be reached.

The apparel industry has withstood all challenges during the past two decades and is set to become a five billion dollar industry by 2016, Cooray said.