Clothing is one of the largest purchased category in online retail
Harminder Sahni, Founder-MD, Wazir Advisors, talks about the current scenario in the Indian textile industry and its emergence as an investment destination in an interview with Fibre2Fashion. Synopsis: Wazir Advisors Pvt. Ltd. is a reputed consulting firm in India. Strategy formulation to help Indian and international companies to compete and succeed in the market is the main business for Wazir Advisors. Its clientele includes some of the best names in the global textile industry. Excerpts:
To start with, can you tell us something about Wazir Advisors Pvt. Ltd. as a company and its aspirations for the near future?
Wazir Advisors is a management consulting firm focused on consumer-centric businesses like fashion, food, entertainment, financial services, auto etc. We offer strategic advice, implementation assistance and facilitate alliances for both Indian and global clients who are interested in the Indian consumer market. We also work with various government departments and industry associations in creating policy frameworks and industry platforms to ensure faster growth of the overall industry. Our vision is to expand Wazir's network by bringing in experienced professional partners and also by collaborating with expert firms to offer an array of services.
Why is Indian textile and apparel industry an attractive destination for foreign investors?
Indian textile industry has hardly seen any interest but apparel branding and retail has seen lot of activity and investment. The interest in apparel sector is mainly due to rising incomes and younger population. International players see lot of potential in Indian market wherein younger, richer and urbanizing Indians will aspire to wear fashion same as their counterparts in developed world.
Do you think government support in facilitating foreign investment in the textile and apparel industry in India at present is satisfactory? How can government help in facilitating foreign investment?
Indian Government has always supported textile and apparel industry with favorable policies and interventions. However I feel that Government can do much more to attract FDI in this sector. Some of the challenges like land acquisition and labor laws are common to all sectors but specifically in case of textile and apparel, labor laws need to be looked at more critically due to seasonal nature of demand.
What makes you support online retailing in the textile and apparel business in India? Don't you suppose that textile and apparel business has its own limitations when it comes to online retailing (size and touch-and-feel factor)?
I believe in supporting innovation and new ideas. I am also a big supporter of use of technology to offer better choices and more convenience to consumers while keeping costs in check and also earning decent return for investors. In this context, I have been a supporter of modernising Indian retail and online retail is just another step in that process. Clothing is one of the largest purchased category in online retail and it proves that not all consumers wish to "touch and feel" all clothing items all the time. I believe that people trust brands and have also started to trust select online retailers and are willing to shop online even for expensive clothing with an assurance that there won't be any.
What do you think about Amazon's expansion plans in India? Would it be fruitful for the Indian textile and apparel industry in whole?
Yes, not only Amazon's plans but any additional investment in modernising retail, whether online or offline, will increase the reach and penetration of textile and apparel products and brands. Current consumers will shop more due to convenience and new customers who don't have access today will start shopping due to availability.
If you had to compare the Indian textile policies with textile policies of other major textile exporting countries like China, Vietnam, Bangladesh, Turkey, etc., how would you rate the Indian textile policy? Please elaborate.
I would rate Indian policy in textile and apparel as quite competitive and supportive but overall industrial environment in India has been vitiated over last few years and that needs to be sorted out before we can see large scale investments and exponential growth in exports.
How do you find the textile industry in Africa? Is it growing fast? How do you see its future?
It is still in its infancy but I see lot of potential in countries like Kenya and Ethiopia.
Would you support FDI in retailing in India? If yes, then to what extent? If no, then why? Please elaborate.
I support investment into modernising retail from any source. The quantum of investment required to modernise antiquated Indian retail networks is so large that we should welcome FDI to support the domestic efforts so that the goal of modernisation can be achieved faster.
What are the major flaws and shortcomings that you find in the management of textile industries in India?
One of major flaws is that the industry is not seen as a sunrise and attractive industry by professionals. Thus the industry fails to attract good talent and has largely remained promoter/family managed and it has its constraints in terms of innovation and growth.
The other major shortcoming is that most of the industry owners diversify too soon to other lucrative industries instead of continuing to invest and grow their textile and apparel businesses. That's the reason we don't have many billion dollar businesses and still have a very fragmented industry.
What are the major drawbacks of the India as an investment destination for textile and apparel industry? Is it infrastructure, rising labor prices, or something more than these?
It is all of these but still industry continues to grow though at a slower place. It only proves that of these hurdles are removed the textile and apparel sector can lead India’s industrial revolution as it did of Western world almost 100 years ago.
Published on: 14/08/2014
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
