Category Archives: Editorials

“Moralization” or “Re-moralization” of Globalization?

GDJASUJA

The World Economic Forum Annual Meeting is being held from 22—25 January 2019 in Davos-Klosters, Switzerland. The 2019 event will focus on the theme, ‘Globalization 4.0: Shaping a Global Architecture in the Age of the Fourth Industrial Revolution’. The stated mission of the World Economic Forum is to improve the state of the world. I came across a statement of Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, in which he says a “re-moralization” of globalization is needed. He said globalization produced many “winners” over the last generation or so. “But now we have to look after the losers, after those who have been left behind.” The intensity of this revealing statement drove me to write this piece and its title in the form of a question is equally revealing. This question needs to be earnestly answered if any meaningful dialogue has to happen for the required course correction.

East Africa: Potential Opportunities for Investments in Textile & Clothing Sector

GDJASUJA

For East African countries, duty-free incentives for exports to the US under the African Growth and Opportunity Act (AGOA) provide an immense opportunity to integrate the currently fragmented cotton-textile-apparel value chain and bring remarkable trade and economic growth to the region. The existing value chain is underdeveloped and incomplete despite the fact that the region has a potentially growing cotton sector and a vibrant export-oriented apparel industry. The sector has largely remained underdeveloped. It is reported that seventy percent of cotton produced in the region is exported, while export-oriented apparel factories in East Africa have to rely on imports instead of local supplies. Key textile inputs, accessories, and machine parts also have to be imported. This has resulted in higher costs, long delivery times, outdated technology, shortage of skilled manpower, and overall inefficiency in the sector which is characterised by the high-volume, low-margin market segment. Within the East African region, Kenya and Ethiopia are believed to be the top sourcing destinations of greatest interest to global buyers. Hence, they have the highest potential to achieve regional integration of the cotton textile apparel value chain. Kenya and Ethiopia have a rapidly growing garment sector with companies focussed on exporting to the US.

Time to shift into the reverse gear?

GDJASUJAIn good old days, Direct mail used to be a tool to generate sales, and now it’s moving customers from their desk top or mobile into stores. Stores remain a key part of the customer experience. Even now, consumers are more comfortable shopping clothes in stores and they can perhaps motivate Amazon to open up its own fashion apparel stores, featuring Amazon private labels. Or, Amazon might just buy an already existing chain of retail stores. The journey from Brick-and-mortar —-> Online —-> Online + brick-and-mortar….Amazon's Great Indian Sale 2018 Continue reading Time to shift into the reverse gear?

Exploring Safer Chemistry for Textile Industry

GDJASUJA

Thanks to the EU’s tough policies with regard to the use of hazardous chemical substances in textiles, consumers of textiles and clothing in advanced countries have a pretty good idea about the complex chemistry embedded in their clothes involving chemicals detrimental to the health and the environment. The EU’s REACH regulations have successfully created global awareness about the need of using safer chemicals in the industry. These laws enacted by the EU have now become almost mandatory for textile and apparel manufacturers the world over who wish to export their products to these countries and those who aim at achieving high reputation.

The Global Village is Breaking Up

GDJASUJA

The liberalization, privatization and globalization (LPG), as we know today, was the brainchild of some of the most developed countries aimed at tremendously enhancing their market reach. The advancements in technology as a result of extensive research and development helped them to invent novel new products and services that could have huge potential globally. So, the idea of free market was floated in a way that would sound as a path towards prosperity for most countries around the world – a win-win for all. The market restrictions prevented them to scale up their businesses beyond their borders but slowly, other countries started easing up in the hope of selling their own products also to the developed world at lucrative prices.

Our Core Mentality Of ‘Chalta Hai’ Continues In Digital India

GDJASUJA

The Hindi word ‘Jugad’ perhaps got international acceptance when it came to be recognized that Indians had got this unique ability to manage almost all kinds of tricky situations and problems by finding ways and means – fair, not-so-fair, fairly unfair, un/conventional, funny, and at times even foolish. Mostly, we have taken this in a good sense and as a compliment to the problem solving skills of Indians in all kind of adversities. We even feel proud of it when any foreign expert describes it as one of the known characteristics of most Indians, in general.

The Complex World of Intellectual Property Rights

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We quite often come across the term ‘Intellectual Property Right or IPR’ when reading some article about the liberal trade practices being followed by developing countries including China and India when it comes to protecting the rights of the IP holders. These articles written by foreign trade experts specifically warn technically advanced companies mostly in the US and the EU to take the necessary steps to protect their IPRs when considering doing business with countries like China, India and others. China has the presence of world’s most advanced companies in almost all the sectors where IPRs are supposed to be the key elements of the countless goods being made in factories located in China. For example, Apple’s iPhone to Nike’s apparel or footwear. This has also resulted in the maximum abuse of IPRs in China. There are people in China who can copy any design or product and sell you at a much cheaper rate.

No “wait and see” approach, please!

GDJASUJA

We are living in what is being termed as “The Age of Disruption.” Fast changes are taking place on various fronts – the technogical, social (labour), political as well as climatic etc. The disruption leads to uncertainties, dislocation, anxieties, disparities. It affects the way we live and conduct our business. A new World Order is taking shape which, at the first glance, appears to be a disorder. Whether this disorder will become the new World Order, or we are destined to a better World Order, is nearly impossible to predict at the moment.

The Global Village Stares at the First World Trade War

GDJASUJA

The US trade policy under the Trump Administration has become the hottest topic of discussion in the global business world. Industry leaders in the textile and clothing sector everywhere are busy in evaluating the possible impact of the US-China trade war which involves imposition of tariffs on each other’s imports. The US has released a list of 1300 products from China that will attract tariffs as high as 25 percent. Imports of apparel, footwear, and travel goods from China have been spared from any tariffs but the list includes items of machinery for: textile printing, carding, spinning, weaving, knitting, embroidery and sewing machines—and many of the parts that go into operating those machines. Imports of these machines from China would attract tariffs of 25 percent.

Let’s Have the New ’10-Page’ Textile Policy

GDJASUJA

There appears to be a race among various states in the country for attracting new investments in various sectors including textile and clothing. Textile and clothing because these sectors are quite labour intensive and the country has a good track record of productive functioning of SMEs in these sectors. In this respect, the intensity with which the Gujarat Model of arranging Vibrant Gujarat type events can be seen in almost every state from Chhattisgarh to Karnataka. The number of MoUs and their total project cost are the main indicators of the success of these events. The first and foremost step being taken by states is to announce a new policy document for the industry.