2. Presentation Structure Globalization & Changing Scenarios Competitiveness in Textile Trade Competitiveness of Pakistan Textile Industry Issues and Challenges
7. Global Trade is Growing US$ Bn CAGR Textile: 5.8% Apparel: 9.6% 482 Bn 583 Bn 655 Bn Projections of World Textile and Apparel Trade Source: ITC
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15. Buyers are looking for complete Solutions Convenience Compliance Cost Flexibility Speed Innovation Buyer Requirements
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17. Globalization Equally easy access to latest technologies for all players. Capital not technology is the only restricting factor to set up new capacities Fully integrated textile chain becomes a strategic asset Reliability in services and short lead times being THE KEY purchasing factors for buyers initiating partnership and alliances The strategic choice for textile manufacturers is between high volume low cost products or niche products Closures or reduction of textile production capacities in high cost countries, mainly EU, Japan, USA Exchangeability of the products, price becomes major factor of differentiation In a Nutshell the Effects of Globalisation are…..
25. Cost parameter Pakistan India China Bangladesh Indonesia Egypt Average Labour wages including all benefits 39 47 57 27 52 60 Factor Cost - Labour wages including all benefits (US Cents per hour) Source: Country data / Gherzi analysis Factor Costs: Labour wages 29 Vietnam Labour costs still differ greatly in the reference countries and range considerably within the reference countries. Based on industry sources we estimate the hourly average wages as follows: Although labour costs in Pakistan are low, due to a lower labour productivity in many mills, this advantage is neutralized. Pakistan vis-à-vis Bangladesh, Indonesia, Egypt, China, India and Vietnam INDEX 100 120 146 70 133 154 74
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28. Raw Material and Power Costs are the key cost drivers BIG ADVANTAGE AAAA ADVANTAGE AAA MEDIUM ADVANTAGE AA NO ADVANTAGE A Raw material * Power * Wages Key Cost drivers and Pakistan’s position * Key cost drivers Exchange Rate Pakistan vis-à-vis Bangladesh, Indonesia, Egypt, China, India and Vietnam Pakistan Bangladesh Indonesia Egypt China India AAA A AA AA (Long Staple only) AAAA A A AAA A A AAAA AAAA AA AAA AAA AAAA (Short and Long staples) A AAA A AAA AAAA Vietnam AAAA A A AAAA AA A AA
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31. Improve capabilities in key performance areas Use of Technology Collaboration in Product Development Increase Efficiency and Productivity Consistent Manufacturing Standards