Swot Analysis on the Apparel Industry Essay Example

WEAKNESSES:

• Being slightly behind other countries in...
• Not having a supply chain and proper textile infrastructure. Not having dedicated zones that provide utilities, such as electricity, at competitive rates.
• Not having a base for other supply-chain services. No technical and design skills.
• No proper merchandising skills.

OPPORTUNITIES:With pressure on China, lots of buyers, retailers and brands are looking for alternatives to China. Sri Lanka has a tremendous opportunity to position itself as an outstanding alternative in active wear, children’s wear, casual wear and intimate apparel.

THREATS: We have to be careful about being competitive internationally – not only in comparison to countries such as India, Vietnam and Indonesia.

I believe there is another way of looking at this:

• we can’t view ourselves in isolation.
• We have to look at ourselves in relation to the rest of South Asia and see how we can leverage on each other’s strengths to perform well as a region.

If we attempt to play in the huge global arena by ourselves, it will be a daunting challenge. Janaka Boteju – Sri Lanka Apparel exporters association Sri Lanka

Apparel Industry Strengths 

Reputation of being a quality apparel manufacturer for the mass market.

Compliance with International Labour regulations. Relatively disciplined and skilled labour and a trainable work

force.

Reputed International Customer base.

On-time delivery of standard “all- season” products. Weaknesses Isolation from trade partners and heavy dependence on local buying agencies.

Lack of geographical diversification in terms of its overseas markets. In-sufficient international and bi-lateral trade agreements to support the industry. Increasing cost of labour compared with other countries in the south Asian region

Inadequate focus on developing backward integration linkages to support the industry. Non-existence of product design and new product developments. 7. Non-existence of a Sri Lankan brand identity.

Low productivity of labour, inefficient use of machinery and manufacturing processes. The relatively high cost of utilities.

Opportunities

• Sri Lanka to become a total service provider for the global apparel industry.
• Promote Sri Lanka as a socially responible manufacturer of apparels.
• Transition to products that require a high labour content. The positive impact of the government’s peace initiative

Threats 1.

Rapidly changing trends in the retailing industry. The former socialist countries and the East European nation are potential to become major suppliers for the EU Market.

Global formation of bi-lateral and multi-lateral trade blocks. New entrants to the industry. Emergence of efficient international shipping hubs in the Asian region.