ACU OCT- Final Draft

FEATURE
Chandrima Chatterjee
“
Opportunities in the
Indian apparel industry
should have a direct
bearing on the logistic
business in this region. In
this regard, one of the
biggest windows of
opportunity is that
various state
governments are coming
up with special apparel
policies aimed at
attracting investment in
their states, especially in
the remote and
underdeveloped areas.
“
-Chandrima Chatterjee, Advisor,
Apparel Export Promotion Council,
India
lobal trade volumes
Gdramatically increased
in 2017, its highest over
the past six years, reversing a
slowdown in the transport sector
performance, including logistics.
World transport exports grew by
9 percent during the period,
positively impacting the maritime,
air freight and land sectors, which a
year ago saw a double-digit
decline.
China, India and
Singapore were the
leading traders in
commercial services in
2017 with combined
commercial exports
totaling close to US$600
billion in 2017, according
to the World Trade
Organization (WTO).
The healthy global trade exports
fueled growth in the apparel or
garment sector which for two years
had stagnated. India as the 9th
largest player in merchandise
trade, with apparel as an important
component, benefitted significantly
with the development, and
its logistics chain, for that matter.
“Opportunities in the Indian
apparel industry should have a
direct bearing on the logistic
business in this region. In this
regard, one of the biggest windows
of opportunity is that various state
governments are coming up with
special apparel policies aimed at
attracting investment in their
states, especially in the remote and
underdeveloped areas,” says
Chandrima Chatterjee, Advisor,
Apparel Export Promotion Council,
India.
Chatterjee says the states of
Jharkhand, Uttar Pradesh, Odisha,
Telegana, Andhra Pradesh and
several others have come up with
very attractive incentives for
investors to set up garment or
apparel factories within their
localities.
Attractive wage subsidies, plug
and play options for minimizing
risk of new investment, capital and
interest subsidies, as well as
suppor t for development of
common facilities are some of the
benefits that the industry has
offered, Chatterjee adds.
The Indian international apparel
industry is valued at US$17 billion
with domestic market about three
times bigger with its over 1.3 billion
consumers.
Chatterjee said the country's
apparel industry has responded
positively to those incentives and
several new investment plans are
now in the pipeline for expansion
in the said states.
Better logistics for growth
Experts say the ease of moving
garment products in and out of
India will determine the growth of
the industr y with speed and
efficiency considered major factors
in its success.
Changing consumer dynamics
and a very competitive retail
landscape has led to reduced lead
times for new products, thus, time
is of essence in making a profit.
In response to both the changing
fashion calendar and the emphasis
on staying in step with customers'
interest, several brands are
r e l e a s i n g m o r e c o l l e c t i o n s
throughout the year.
Fast-fashion brands like Zara —
which releases new items four to
five times faster than traditional
retail brands, have led to the
shrinking of the overall market lead
times by 30% to 50%, according to