2024 JULY ISSUE
TEN POINTS OF
CHALLENGES
FOR OUR
INDUSTRY
Written by Andrew Sia
Share this article !
From the Desk of the Publisher
This has been the follow up of the piece we published in our April issue: “Navigating Through The Time Of Challenge.” I picked up all the areas that we have to closely monitor plus the opportunities that we can use to overcome the challenges. The PowerPoint was used in a meeting with our trade association—Hong Kong Intimate Apparel Industries’ Association—and I hope that the contents can be adopted in their daily operation.
Without question that this is a very challenging time, but we can put things in their positive perspectives. I think that we can turn the adverse situation into our benefits.
Opening Remark:
This was presented to our industry’s association during their April meeting in Hong Kong.
Geopolitical Risk – Not to get caught where countries are having their disputes. We can avoid punitive tariffs. We have seen countries in Southeast Asia countries that are favored.
Infrastructure – Most of the manufacturers are equipped with the best infrastructure for manufacturing. For instance the production equipment and the manufacturing facilities. Most are looking into green manufacturing already. Introduction of robotic manufacturing are explored. To develop AI in operation can assure more success.
Supply Chain – It is very broad and we should look upon it from end-to-end. It starts with planning, sourcing, procurement, logistic, manufacture, system, processing, delivering, customer feedback.
Production Locations – We are talking offshoring production which is most common. We need to look into nearshoring which shortens the distance with our market. We have to consider production within the market and allowing us to provide the distribution and replenishment. Bring ourselves more close to the market and change from FOB vendor to LDP (landed-duty-paid) vendor, and eventually wholesaler.
Marketing Campaign – This is to meet the market at trade fairs and exhibitions. We have to organize our own pavilion and organize marketing activities. Also expanding our products to include those related items, such as swimwear, activewear, and lifestyle. To Promote a regional pavilion and become the “talk” of the show to promote our industry.
Overseas Offices – Have the presence in the market to meet the customers in their own turf. This is good for developing products and business. The office can also turn into an office for commercial activities like invoicing and collection. The office will also use locals in order that we can learn from each other the different cultures and practices.
Own Branding – We can use the own branding for expanding the wholesale and distribution. There are many smaller brands for acquisition in the market and also there are licensing agreement for consideration. We have to hire the local marketing staff who knows how to open accounts with the stores in the market.
Succession Plan – We have to look at it in two folds, one at our loyal employees, the other is about our younger generation. This can create leadership and build up the corporate hierarchy. We can use it to build personal objectives, organizational objectives and societal objectives.
Going for IPO – It is the stage that we should all consider. When the business is becoming a niche and there is a good reason to call for capital injection, one of the way to go international and intermingle with financial experts is to go for public. When we look for nearby, we can consider Singapore, but the New York Stock Exchange is not that far either.
Philanthropy – It is always something to look upon. The best partners to work with will be the universities where they have all the scholars and educators. Their roles are teaching and doing researches. To establish an institute within the university can bring win-win result. It is also good for building the corporate image and become the responsible global citizen.
