An Analysis of apparel exporters of Sri Lanka

Abstract

The global apparel industry is currently undergoing a significant process of transformation. The liberalization of the trade regime governing textiles and apparel with the phase out of the Multi-Fiber Arrangement (MFA) under the Agreement on Textiles and Clothing (ATC). has opened up the market for an\ apparel supplying country who remains competitive in the global apparel trade. This has given freed for apparel retailers, to have a choice among the apparel manufacturers. They can source from any country where they can get the best product, which meet their requirements. Therefore global apparel trade has become much competitive in the market./ Although the results of the above transformation are predicted to an increase in global trade, the impact is likely to differ among countries and regions. For each country this represents both an opportunity and a threat. An opportunity for the countries who remains competitive in the apparel trade since markets will no longer be restricted, and a threat for the countries who are not very competitive in the trade of apparel because other apparel manufacturers will no longer be restrained. To get an opportunity form the liberalized apparel market apparel manufacturers should build comparative advantage over the competitors./ The study focuses on Sri Lankan apparel industry and it reviews the most recent market developments in apparel retailer sourcing strategies with the quota removal. The study builds a framework to assess the capabilities of apparel manufacturers, to be successful in the competitive apparel market. It examines the capability of Sri Lankans apparel manufacturers to fulfill the requirements of the apparel retailers in both country level and organizational level. The study applies Porter's Diamond Model in assessing the competitiveness of Sri Lankan apparel manufacturing industry from the data collected under the framework. The study argues that Sri lank which aspires to maintain an export led strategy in textile & clothing need to shift their expertise from basic factors to more value added specialized factors in order to build competitive advantage in the global apparel trade. Also study concludes that Sri Lanka should expand the nation's competitive advantage through internationalization.