HONG KONG — As China’s apparel and textile exports soar, executives at the Interstoff Asia show were focused on finding ways to grow their companies, which have been freed of quota restrictions.
Much of the talk focused on China, with some developing world officials dwelling on how to distinguish their industries from Chinese competitors and others contemplating expanding into the world’s most populous nation.
“Elimination of quotas means anyone is free to do business with anybody,” said Ken Loo, secretary general for the Garment Manufacturers Association in Cambodia. “We want to attract the buyers who are concerned about compliance.”
A World Bank survey said buyers of Cambodian goods ranked compliance among their most important criteria, along with price, quality and speed, he noted.
He said rather than focusing on China, Cambodia regards its main rivals as Bangladesh and Vietnam. The latter is not a World Trade Organization member and still faces quota restrictions.
“Realistically, we don’t need to compete with China,” Loo said.
For the year ended Jan. 31, Cambodia shipped $1.45 billion worth of fabrics and garments to the U.S., less than 10 percent of China’s volume. Loo acknowledged that Cambodia’s industry is going through a “consolidation phase” and has lost about 26,000 garment jobs, representing almost 10 percent of the industry, since the start of the year, when quotas were dropped by WTO members.
From India, Michaeli Mesmer, vice president of marketing for Alok Industries, a $300 million maker of knits, wovens and embroidery, as well as a printer and dyer, said he hopes his nation’s industry will be able to rely on quality, innovation and design. Mesmer said his company can’t compete with Chinese suppliers when it comes to low-priced, high-volume runs, but has advantages in higher-quality goods.
“Indian labor is a more informed, educated labor,” he said.
Alok Industries has five factories near Mumbai. About 70 percent of its sales are to the U.S., with the balance going to Europe. Mesmer said he wants to develop local markets and eventually sell about 10 percent of his products to Indian consumers.
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