| |
| |
 |
| |
|
| |
|
| |
|
BANGKOK : Some of the world's leading fashion brands may soon be looking to ASEAN countries to produce their garments.
ASEAN integration has long been a dream for many industrial sectors. But in the garment business, strategic relationships among different parts of the supply chain could make the region a very attractive place to do business.
Major fashion labels like Guess, Marks and Spencer and Polo Ralph Lauren, along with 5 others, account for US$32 billion in global sales.
Last month, they a signed memoranda of understanding in Singapore with Southeast Asian suppliers.
The three-year pilot programme, called SAFSA or Source ASEAN Full Service Alliance, aims to maximise efficiency along the supply chain.
While it is difficult to compete with the price of labour in competitor markets like China, cooperation among ASEAN countries could give the region an edge.
R.J. Gurley, director, ASEAN Competitive Enhancement Project, said: "So the basic concept for integration, and this is very practical and across the all countries, is if we could take a garment factory from Cambodia and partner it with a textile factory from Thailand, we could provide that buyer with at least the basic service of sourcing fabric.
"In this example, the garment factory would not be a customer of the textile factory in Thailand. They would be partners."
Linking different components of the supply chain from different ASEAN countries is a key factor and will take time.
Partnerships between textile mills and garment factories or virtual vertical factories (VVFs) aim to set international standards for production quality, value-added service and speed to market.
Those factors are crucial to buyers, who prefer to establish long-term relationships with suppliers.
Most garment manufacturers are contractors. Companies like Nan Yang Fabric felt it was necessary to offer more to their clients as the industry became more developed.
Charles Yeo, Sales Director, Nan Yang Fabric Company, said: "Traditionally, Singapore, Malaysia and Thailand have a long history of developing and producing apparel for the export market. They have acquired great merchandising expertise.
"However, you know, in countries like Singapore, it's no longer competitive to produce, but they still retain that knowledge and know how. That's where as ASEAN, we can develop products in Thailand, Malaysia and Singapore and produce in lower labour cost markets like Cambodia and Vietnam where the labour cost is a lot cheaper."
Garment manufacturers want to diversify their risk and sources of supply. And building strong relationships within ASEAN could help capture more market share.
- CNA/al
|
