China a bustling economy of the world represents around 20%of world population, almost everything ready to manufacture from needle toshipyards at the cheapest ever price offered by any where around the world. Acommunist country has nerve to achieve growth at the cost of its own societyand the whole world.


Chinahas always played a strategic role in continent as a big brother for countrieslike India and Asian pacific nations. Its geographical background makes it moreconvenient to score in Asian continent. 30-40% long sea line, open economy forglobal business, strong presence of Hong Kong in Offshore and outsourcingbusinesses, make this country a lion share holder for Asia & across theworld.


Here we need to light on the facts of Indian economy and theirbehavior for their long-term perspectives. Indian market is changing now frommanufacturers and supplier market to giant retail consumers market. Almost onebillion population and around 25-30% middle class and other 10 % higher classmakes the strongest ever consumer market around the globe. People are aware ofthe products available in best consumers market of the world-New York, Tokyo, London, Berlin etc. Since the market is bursting and demand is on peak for newproducts and competitive prices. China is there to take advantage of thissituation to offer cheapest rates to Indian suppliers and bend the curve intheir favor, Demand of India and Supply of China. Really makes no sense.When the Indian products offer world-class qualities, reasonable prices, ontime deliveries, fine transportation and logistics system, why we need choicesin terms of other market players.


Let us come to the main discussion of Chinas role in Apparel and other export industry, how it is gripping the pulse of Indianindustry. Almost 60% of world trade for Apparels and textiles are from China. India pertains only 10% of global or 17% of Chinas Exports


There are two impediments for Indian industries growth tocompete with China.


  1. External - Threat from China
  2. Internal - Govt. policies, Own Customers, Chinese Lucrative offers to Indian Suppliers


Lets us discuss one by one.


Threat from China


Chinas prices are known for their lowest nature throughout the world.Communist country knows how to get the best at the lowest ever cost. Countriesbook the order with buyers, who are more concerned with conditions ofworkstations, safety norms, standards and compliances. No, matter what they arepaid as compensation to survive. What Conditions they are up to surviving.However, it is another project for foreign buyers to get involved in theirinternal structures and wage norms.


Reasons


  • Chinese govt. not interested in improving life of their labor but country as a whole.
  • Prices offered by Chinese suppliers are almost 15-30% cheaper then Indian prices.
  • Innovations of fabrics and accessories are threatening the Indian Suppliers to buy the raw material form China.
  • Quick approach to work and strictly following the timelines makes them more reliable. Since this is a communist country, get full support from govt. for Exports-in terms of Logistics, Transportations, Roads, duty drawbacks, setting lower prices for raw material and labor.
  • Rigid approach to acceptance for variations and changes in any design or fabric detailing. No matter who the customer is, no matter what the quantity.
  • Their approach to lure the Sub-continent customers from pins to toys, utensils to laptop makes our market vulnerable.
  • Offering competitive prices
  • Sales/stock offers at cheapest rate.
  • Easy access to Indian market due to lack of strong norms by the Indian govt.
  • Well known for their cheap products and copying the original

 

Internal Govt. Policies, Own Customers, Chinese Lucrative offers to Indian Suppliers


  • No restrictions on imports, there must be strict norms for imports where we either have no industries of specific product or go in scarcity of supply. However, supplier look for cheaper options- China is there, to support them and steal the chance to make money for Indian farmers and manufacturers.
  • No help form govt. for Small and medium size industries, Indian manufacturers need to pay same taxes and duties and no support for raw material prices no matter where supplier is satisfying the scarcity of supply or exporting it.
  • Govt. need to curb importing by all resorts for those products which can kill the share of established domestic industry, e.g. Apparel and textiles have strong presence in Indian market-prices, quality, fabric innovations, cheap labor, international standards for factory setups and quality bench marks and delivery parameters. Importing clothing form China is threat to our domestic industry and soon we will be in situation of wrapping up the factories.
  • Quality of Indian products-Apparel, Denim, Textiles enjoy the status of excellent quality and standards. There are few products never been manufactured or impossible to manufacture due to their costing, no availability of raw material, modern mechanization, They are still to be given a chance to import however Govt, authorities need to check the demand for those products in Indian domestic market before proceeding for commitments.
  • Raising duties for imports, pretty much required to curb the barbarians of domestic industry.
  • Strong recommendations for research and development in fabrics, machinations, accessories are required to add on with our textiles institutes-NIFT, NID or IITs.


Rest this is every Indian citizens job and responsibility to support India; their industry to keep these lucrative offers away from short term profits, Days are not far of, when these Chinese industries shall jump into every nook and corner of our countries and ruin the existing empires of our indigenous and established products.


Though nowadays prices of yarns and labor expenses been hiked altogether everywhere and giving us an money making opportunities in the sense, to let the whole world know- Indian products are the best products in terms of quality, innovation, finish and standards.


Only thing, left with us-support India in every sense to see a bright future of our generations.

The author is Sr. Merchandiser (Import Buying) in Style- Kraft Sportswear

Views presented here are those of the author.