Improvement Model for Ready-Made Garment Industry of Pakistan
Improvement Model for Ready-made Garment Industry of Pakistan
Ready made garment industry in Pakistan has to struggle a lot to stand in line with other Asian garment manufacturing markets. For this purpose the following model is introduced which can help in industrial and national development.
SURFACE LEVEL IMPROVEMENT:
To compete with the foreign market garment industry in Pakistan has to strengthen its competencies; at the same time it has to seek changes as opportunities and not a threat. There is severe competition all over the world.
· Basic machinery that is required for performing regular tasks of cutting, stitching, trimming and finishing should be modernized.
· Trends report, buyers manual and trade shows organization in Pakistan and abroad should be done by the garment associated companies.
· Strict quality control should be observed and government or private sector should setup advisory services for the small scale garment industries.
To compete in the local market garment industries should concentrate on the quality of the products because quality is the first thing on the mind of consumers.
Price competitiveness: China and India have been successful in recent years in cutting price ranges for their RMG products to greater extent: the reason is that they can afford buying raw material at cheap rates; they have had enough linkage expansion in their textile and garment industry they do not need to purchase raw material from foreign countries (it cuts the price on the final product).
Another improvement is desired in reducing the lead time required to produce and fulfill the orders placed by foreign companies. One way to decrease the lead time required for producing RMG is to increase domestic linkage expansion in this way we can have deep level improvements in the RMGI too. Lead time refers to the time required for supplying the ordered garment products after the export order has been received. In comparison to other countries like china has 40-50 days lead time, India on the other hand has 50-60 days and Bangladesh has 60-70 days lead time. Lead time can also be reduced by improving the technology used by the industry. Using modern fast and effective machinery can reduce time taken to deliver the order.
DEEP LEVEL IMPROVEMENT:
At this moment we have a fine textile industry at our disposal, an industry which is making finest cloth in the world and is a major exporter of cotton fabrics and yarn. There should have to be a backward linkage expansion i-e; garment industries should work in collaboration with textile industries so that they can have good quality fabric and they do not need to waste time in importing fabrics especially for the orders that have been placed by the foreign buyers. In this way lead time will be reduced and quality of the product will be enhanced. Some of the large textile industries have started doing there own garment business which is a sign of healthy change. For example Gul Ahmed is a network of composite textile mills which manufacture everything from yarn to finished products. Their core competency is their high quality products. They are working on the standards set by the ISO 9000. Previously they concentrated on yarn and fabric but today they are producing high quality trendy women's and men's garments including: gents' kurtas, shirts, pants and ladies couture dresses. They are catering to the elite class in Pakistan and they are also successful in attracting foreign buyers. They are working on the principle of change management, they train there employees every few months to refresh them and they are tracking even the minute change in fashion or technology.
It is true that in Pakistan labor is available at minimum wages and men power is never a limitation or hindrance; but industry have to follow the international code of conduct in recruiting and accommodating employees. Recruiting employees after 18 years of age, maintaining healthy and relaxed environment for the employees, taking practical measures for health and safety, and giving equal opportunities is more important than improving the quality if the product. Today even foreign buyers want to know about the social compliance issues of the company, they are dealing with. Every facility should be provided to the employee so that he/she can work in a positive manner and he/she can utilize all his strengths and creativity for the betterment of the industry and for growth of himself/herself.
Product and market composition:
Upgrading product quality, upgrading product range, targeting diversified markets, targeting markets with greater demand, gaining access to new markets is very important in order to keep pace of the competitive market.
Today the RMGI of Pakistan is producing a limited range of products from t-shirts, cotton and cotton blended shirts and pants to children school uniforms and gents kurtas. Most of these products are developed for indigenous market. In fashion wear RMGI of Pakistan is manufacturing ladies skirts, blouses and maxis for foreign market as well as some shirts shalwars, frocks and gowns for both indigenous and foreign market. Usually the raw material –the fabric- used in fashion wear is not of good quality except for the few big brands who account for 0.1 percent of the total garment industry brands.
Reducing Production and distribution time:
Foreign buyers are interested in knowing how much time the company will take to deliver their order. Due to power failure every on and off, Pakistani garment industry is not able to fulfill the orders in short time on the other hand many other Asian countries are producing the same orders in limited time. Therefore buyers do not take interest in placing orders in Pakistan.
Government of Pakistan should take initiatives for maintaining quota free trade system, reduction of inappropriate taxes and tariffs, improvement in the power supply to the industries, reduction in price fluctuations and strict control over social and environmental issues of the industry. These are only few of the many steps government should take to bring positive changes in the garment industry of Pakistan.
Improvement Model for RMGI Pakistan
Informative books on ready-made garments
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