Rahul Mehta: The Global Garment Industry Is Experiencing A Resumption Of Growth.

Rahul Mehta said: "in 2013, the global apparel industry grew by 3%, which is higher than the 2.5% level in 2012. This marks the beginning of the resumption of the garment industry from the global economic recession. From 2008 ~2011, the growth rate of garment industry has been hovering around 1%. And in 2013 ~2015 is the recovery period of garment industry growth.

According to Rahul Mehta, the improvement of the US economy will help promote the overall sales growth of the clothing industry and offset the impact of the European recession. However, the most influential area in the consumer market for the global garment industry is undoubtedly Asia. If consumption growth in developing countries such as China will become more apparent, India's consumption growth rate will reach 17% this year. The rise of other emerging Asian countries, such as Kampuchea and Sri Lanka, should not be overlooked. In addition, as Japan gradually adjusts to the adjusted consumption tax, its consumption power will also be restored. " Rahul Mehta said so.

When asked whether low oil prices will bring growth to the textile industry, Rahul Mehta said: "it is too early to judge, but the continued decline in oil prices will indeed bring some benefits to the textile and garment industry." He also said that women's clothing will continue to grow in Asia and is expected to grow by 22% this year. From a global perspective, although women's clothing will still take the lead in sales, the fastest growth this year should be men's wear and children's wear. In addition, as the developed economies are sluggish, luxury clothing brands, including light luxury and luxury brands, will continue to slide. At the same time, sportswear will also face enormous competition pressure.

Although Asia's consumption power is very impressive, its role is Purchase The position of the source will be shaken. It is reported that about 60% of the world's garments are purchased from Asia, 20% from Latin America, and 20% from Europe. Rahul Mehta expects that the number of clothing products purchased from Asia will gradually decrease in recent years, and that figure will drop to 55% by 2020. Instead, part of the procurement task will be transferred to Europe and the United States. The reason for this change is mainly because the brands from Europe and the United States pay more attention to purchasing places close to the target market and return from Asia to the mainland in order to satisfy consumers' fast and changeable consumption taste.

At present, many textile and apparel industry in Europe and the United States are also accused of these low-cost manufacturers in Asia because of factory accidents. In response, Rahul Mehta said: "despite the partial transfer of procurement sites, Asia is still the source of more than half of the global clothing products. Therefore, it is very necessary to establish a review system for third party suppliers in Asia. This is also a challenge that the global garment industry must face together. Each brand should check and audit its suppliers to ensure that they comply with labor laws and other laws and regulations. " Besides, brand More work must be done to understand the regulatory bodies of the relevant countries and to participate in the review standards and audit plans for garment manufacturing.

"Many times, people in developed countries consider developing countries to be The labor The standard is too low, but from the perspective of developing countries themselves, the wages of their workers are more reasonable, which is in line with the national conditions of the country. Therefore, the solution to workers' wages and other problems can not be generalized. Rahul Mehta said so.

The second challenge facing the global garment industry is shortening delivery time. Because of the continuous prosperity of fast fashion industry, garment manufacturers have to adapt to the increasingly urgent delivery schedule, because many buyers reduce the delivery date from 6 months to 2 months. Although manufacturers have been trying to adapt, it is still difficult to meet the procurement needs. Rahul Mehta said: "buyers demand for product diversification is higher and higher, and manufacturers are still hoping for a single pattern with large orders. In the next 3~5 years, the sales growth of fast fashion products will double. This means that manufacturing enterprises need better technology and more skilled labor force to meet increasingly accelerating consumption tastes.

In addition, raising margins is still the biggest challenge facing global brands and retailers. Especially in developed countries, with the economic growth sluggish, increasingly fierce competition and declining consumption power, brand profit margins have plummeted in recent years. According to statistics, compared with 2011, the profit margin of brand clothing decreased by 25% in 2014. This is also part of the buyer's change strategy to move the "procurement battlefield" from Asia to the US and Europe in order to get closer to the market.