APPAREL INDUSTRY
Compiled by Savithri Rodrigo
LIFT THE VEIL OF LABOUR
Janaka Botejue wants a change in perceptions to attract apparel workers
Q: How would you describe the apparel industry within the larger economy?
A: A key source of foreign exchange with a value addition of 40 percent, the industry is stable amid daily challenges posed by economic changes.
Ad hoc government policy changes are the main issue as they lead to macro instability. They do not augur well for any industry and more so for apparel, which is export oriented. We plan seasons ahead so sudden policy changes can be detrimental to sustainable business. Importers too lose confidence in the destination as a reliable supplier.
The industry is one of the largest direct employers with at least 30 percent income generated indirectly. The level of skill development is significant, and the input of innovation and technology is considerable with professionalism permeating all levels.
Q: What is the good, the bad and the ugly of the industry?
A: The ‘good’ is the huge learning curve for youth. As an employment avenue soon after secondary education, the industry offers immense skill development opportunities; opens their minds to the evolving world of fashion and design; and offers knowledge on subjects including 5S, ISO, compliance, maintaining quality and meeting targets.
The ‘bad’ is high employee turnover with movement even from one company to another posing a challenge to the industry. Global competition is also intense with better incentives prompting brain drain.
And the ‘ugly’ is that the monotony of the production floor, constant focus on targets and high demand on quality make for a tough career proposition. Further, despite environmental compliance, the industry can be a ‘high silent polluter’ due to the lack of recycling initiatives for synthetics such as nylon and polyester.
Q: Is Sri Lanka globally competitive in terms of innovation and R&D?
A: Not on price but we have taken a remarkable stand on quality, reliability and compliance, as well as other stringent standards.
Few companies have the capacity for R&D and innovation. As for those that do, their R&D leads the way for others to follow. While this remains an important factor for the industry’s future, smaller players cannot afford the investment in R&D at present.
Q: Should Sri Lanka evolve from being labour-intensive to producing automated and customised clothing?
A: Currently, Sri Lanka cannot opt for full automation although this can be partially implemented. But given our advantages of quality and reliability, we can demand more competitive prices as our products are better and customer service is good.
As an industry, we should collectively move into being a total solutions provider for customers – i.e. from design and development, to sourcing, production, storage and distribution.
Q: How is the industry managing human resources (HR) and brain drain?
A: There is high industry turnover with employees moving from factory to factory – or even opting out of the industry in their quest to find less monotonous and strenuous jobs.
It is imperative that there’s a mindset change in the country as women in the apparel industry are looked upon derogatively and not as respected citizens contributing to the economy.
This pushes prospective workers away, as being employed in the apparel industry is perceived unfavourably.
There has to be an HR plan that embeds a positive communication campaign to counter the negativity, and a move to more incentive driven remuneration based on productivity and quality.
Q: Going forward, what role will smaller apparel manufacturers play?
A: A few large players dominate volumes but smaller companies are the industry’s lifeline as most employees begin their careers in small manufacturing plants, which can be set up anywhere in the country, making employment accessible to everyone. They are also more adaptable to changes in style, operations and systems.
If marketed properly, small importers would prefer to work with smaller manufacturers – because their flexibility, accessibility and service levels cater to customers who require relatively small volumes.
Q: What do you observe in terms of global industry trends?
A: There’s more direct B2C so goods are shipped direct from manufacturers to customers. Worldwide, small shipments to end-customers are duty-free, leading to better pricing for both the customer and manufacturer.
The industry should seek opportunities to tie up with larger importers that form the nucleus for design, marketing and shipping. This would imply shorter timelines overall as the formula is tight-knit with quicker turnaround times.
