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INDUSTRY ANALYSIS-SWOT

INDUSTRY
STRENGTHS
Raw
Material
Raw
Material
Base
Base

High self
self
High
sufficiency
sufficiency
particularly
particularly
natural fibres
fibres
natural
World s
s third
third
World
largest cotton
cotton
largest
producer
producer
Labour

Domestic Demand
Demand
Domestic
Natural demand
demand drivers
drivers including:
including:
Natural
rising income
income levels
levels
rising
increasing urbanisation
urbanisation
increasing
growth of
of the
the purchasing
purchasing population
population
growth

Labour

Inexpensive labour
labour and
and
Inexpensive
strong
strong
Entrepreneurial skills
skills
Entrepreneurial

Flexibility
Flexibility
Small sized
sized
Small
manufacturing units
units
manufacturing
allow for
for greater
greater
allow
flexibility to
to service
service
flexibility
smaller and
and specialized
specialized
smaller
orders
orders

Rich Heritage
Heritage
Rich
Cultural diversity
diversity
Cultural
and rich
rich heritage
heritage
and
of the
the country
country
of
offers good
good
offers
inspiration base
base
inspiration
for designers
designers
for

Government Support
Support for
for
Government
Textile
Textile

Sector Indian
Indian Government
Government has
has
Sector
initiated schemes
schemes to
to support
support
initiated
textile sector
sector
textile
Some of
of these
these schemes
schemes are:
are:
Some
a. Scheme
Scheme for
for Integrated
Integrated Textile
Textile
a.
Parks (SITP)
(SITP)
Parks
b. Restructured
Restructured Technological
Technological
b.
Upgradation Fund
Fund Scheme
Scheme
Upgradation
(RR TUFS)
TUFS)
(RR
c. Integrated
Integrated Skill
Skill Development
Development
c.
Scheme (ISDS)
(ISDS)
Scheme
d. Swarnajayanti
Swarnajayanti Gram
Gram
d.
Swarozgar Yojana
Yojana (SGSY)
(SGSY)
Swarozgar

INDUSTRY ANALYSIS-SWOT
INDUSTRY
WEAKNESS
Lower efficiency
efficiency
Lower
Productivity levels
levels in
in India
India are
are low
low
Productivity
compared to
to peers
peers including
including China,
China,
compared
Bangladesh, Turkey,
Turkey, etc.
etc.
Bangladesh,

Unorganized
Unorganized
fabric
fabric
manufacturing
manufacturing
and processing
processing
and
sector
sector
Unorganized
Unorganized
sector units
units suffer
suffer
sector
from lack
lack of
of
from
capacity and
and
capacity
many of
of them
them use
use
many
old technologies
technologies
old
Scale as
as well
well as
as
Scale
quality are
are key
key
quality
areas of
of concern
concern
areas
for the
the
for
unorganized
unorganized
sector units.
units.
sector

Low focus
focus on
on product
product &
&
Low
process development
development
process
Spending on
on research
research &
&
Spending
development by
by Indian
Indian
development
textile and
and apparel
apparel firms
firms very
very
textile
low
low
Only few
few have
have actually
actually good
good
Only
product development
development centres
centres
product

INDUSTRY ANALYSIS-SWOT
INDUSTRY
Emergence of
of retail
retail Industry
Industry
Emergence
OPPORTUNITIES
Opportunity
in High
High
Opportunity
in
Value Items
Items
Value
India has
has the
the
India
opportunity to
to
opportunity
increase its
its UVRs
UVRs
increase
(Unit Value
Value
(Unit
Realization) through
through
Realization)
moving up
up the
the value
value
moving
chain by
by producing
producing
chain
value added
added products
products
value
and by
by producing
producing
and
more and
and more
more
more
technologically
technologically
superior products.
products.
superior

Development of
of various
various malls
malls
Development
provide huge
huge opportunities
opportunities for
for the
the
provide
apparel segments
segments
apparel
Integration of
of Information
Information
Integration
technology
technology
Supply Chain
Chain Management
Management and
and
Supply
Information Technology,
Technology, Availability
Availability
Information
of EDI
EDI (Electronic
(Electronic Data
Data Interchange)
Interchange)
of
has made
made communication
communication fast,
fast, easy,
easy,
has
transparent and
and reduces
reduces duplication
duplication
transparent

Market access
access through
through bilateral
bilateral negotiation
negotiation
Market
Trade is
is growing
growing between
between regional
regional trade
trade blocs
blocs due
due to
to
Trade
bilateral agreements
agreements between
between participating
participating countries
countries
bilateral

China vacating
vacating space
space in
in
China
International trade
trade
International
Per capita
capita spend
spend on
on
Per
apparel in
in China
China is
is
apparel
expected to
to grow
grow from
from US$
US$
expected
122 in
in 2013
2013 to
to US$
US$ 377
377 by
by
122
2025
2025
On supply
supply side,
side, China
China is
is
On
facing few
few challenges
challenges
facing
which will
will make
make it
it less
less
which
competitive in
in
competitive
international trade
trade
international
Overall Chinas
Chinas share
share in
in
Overall
global trade
trade is
is expected
expected to
to
global
reduce from
from current
current 40%
40%
reduce
level to
to 35%
35% by
by 2025.
2025.
level

INDUSTRY ANALYSIS-SWOT
INDUSTRY
THREATS
Competition from
from other
other
Competition
exporting countries
countries Competitors
Competitors
exporting
like China,
China, Bangladesh,
Bangladesh, Turkey,
Turkey, Sri
Sri
like
Lanka, Germany,
Germany, Italy,
Italy, Vietnam
Vietnam etc.
etc.
Lanka,
have developed
developed their
their core
core strengths
strengths
have
and established
established USPs
USPs in
in the
the global
global
and
market
market

Phasing out
out of
of Quotas
Quotas
Phasing
India will
will have
have to
to open
open its
its protected
protected domestic
domestic market
market
India
for foreign
foreign players
players thus
thus domestic
domestic market
market will
will suffer
suffer
for
Pricing pressures
pressures due
due to
to removal
removal of
of US
US and
and EU
EU quotas
quotas
Pricing
on imports
imports from
from China
China
on
Fluctuations in
in the
the demand
demand in
in exports
exports due
due to
to the
the
Fluctuations
elimination of
of quota
quota regime
regime
elimination
Formation of
of Trading
Trading
Formation
Blocks
Blocks
Formation of
of trading
trading
Formation
blocks like
like NAFTA,
NAFTA, SAPTA,
SAPTA,
blocks
etc; has
has resulted
resulted in
in aa
etc;
change in
in the
the world
world trade
trade
change
scenario. Existence
Existence of
of
scenario.
bilateral agreements
agreements
bilateral
would result
result in
in significant
significant
would
disadvantage for
for Indian
Indian
disadvantage
exports
exports

Higher borrowing
borrowing cost
cost
Higher
which affects
affects the
the
which
profitability of
of the
the
profitability
small and
and medium
medium
small
firms
firms

APPAREL INDUSTRY-WAY FORWARD


From an overall perspective Indian textile and apparel sector is in a position of good advantage. To
buyers looking for alternate, large supply bases India offers a credible alternate.
Indias economic growth is also expected to be higher for next few years which will result in
higher demand for textile and apparel products in domestic front too
Challenges. Our lack of focus on synthetic value chain, manpower challenge and duty
disadvantage in major markets
compared to our competing nations are main threats that can
mar the anticipated growth at country level
Need for Flexibility For manufacturers to take benefit of the domestic market growth story,
the requirement will be to be flexible enough to tap opportunities appearing in various market
segments. On one hand the manufacturers will need to cater large international brands and
retailers, who will prefer sourcing locally; while there will be fast growing Indian brands too.
Growing beyond Tier I and Tier II cities. Need of brands and retailers to develop lower cost
business models will be key to enhance their presence in cities beyond Tier I and II. For this, ecommerce will become more important
Strategic tie ups between such manufacturers and buyers will happen which will enhance
stability and efficiency in the overall sector. For exports, establishment of larger, integrated setups will be required. It will also be important for Indian textile exporters to have business tie-ups

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