Whether it is good or bad, the last economic crisis that hit this planet has cleansed the entire economic system on this planet.The balloons burst all around us, with the super rich in the world taking the most beating and large corporations now re-positioning their business assets and developing new strategies to cope up with dwindling sales of their products. It is already eight months down the road of recovery, and this crisis is redesigning the way we think and operate our businesses. The apparel and clothing markets around the world took a plunge as well. The inevitable has arrived, what we do from here onwards will shape the way the apparel industry runs in the future. This is very exciting moment when a business is pushed against the wall, and it has to make it’s way up again in this uncertainty and most challenging times when money and credit for businesses has dried up.
New Business Order, brands and suppliers becoming ONE single entity. Bravo, suppliers will become more then a supplier and brands owners will be doing far less then they were doing before in their businesses. It is a marriage to last, it is a synopsis to success, it is an opportunity at both ends to succeed and survive in these toughest times. Value for money, is the new buzzword for the consumers all around. Gone are the days when you can retail a pair of jeans for over 300 smackers, a denim is denim is denim nothing more nothing less. Large retailers have to look after so many areas of business, which at the same time incur huge costs. That includes designing of a collection, developing prototypes, sourcing, traveling, logistics, distributions etc. all these business activities incurring huge costs and the merchandise arriving at the stores becomes very expensive. The only way to add value without compromising on the profit intakes is that they will have to share some of this load with their suppliers starting from product development and design stage. At a later stage logistics and may be distribution can also be sub-contracted to reduce expensive activities and less involvement of your money in the system.
In this new business setup, technology will play a pivotal role where information is shared in real time between suppliers and buyers. Suppliers are only producing merchandise that is pre-sold with their buyers. What is not destined for retail floor is not even produced by the supplier. Each one of us on the selling side or supply side will only function in the area where our expertise lies. Innovation, product durability, saving the environment and working in a sustainable environment will become hallmark of global sales and practices.
- Asad Ullah Ahmed President, Denim & Cloth Industry Asada9@yahoo.com
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