Notes on Garment Export

CA Satish Badve , Last updated: 05 November 2011
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Ever expanding trade between the countries and competition between the producers of the garment in the same market segment of a country, It is very essential to find out the correct market for the product all over the world.

In case of Garments particularly Children ware, the analysis and study of some following parameters ( basics ) are very essential to ascertain the right kind of market and specific requirement of that market.

Export-Import Policy of the Country of Export:

This will help to ascertain the support available for export in the country, and the quantification of the benefits will help in competitive pricing given for the exports.

Export-Import Policy of the Country of Import:

The analysis will help to understand the tariff structure of the country of import as well as various preferential tariff for specific country under various Regional Trading Agreements ( RTA), Free Trading Agreements ( FTA).

Climate conditions of a particular country:

This will help in ascertain the product requirements, quality, trend as well as periodicity of the seasons in the market segment.

Age Structure of the Population of a particular country:

To ascertain available potential of the market of a particular country. This will also help in deciding the product mix in total requirement of a market of particular country.

Household Income and Consumption structure:

This parameter will help to understand the tendency of the population as well as purchasing power to spend on the requirement like cloth, housing consumer durables etc. The maximum consumption , minimum consumption, as well as average consumption should be studied to ascertain the capacity of the people to spend on house hold items like garments.

Industry Structure of a country:

The parameter will help to understand whether the industry is already producing the garments for the local requirements or also exporting additional idle capacity outside the country. In case there are no local production, it will be observed how the executing requirements are served. In case of local production, It will be seen the quality, trend, produced by them.

Whether Import Children Garments:

It is also required to ascertain whether the particular country under study is presently importing the garments, consumer durables etc. If yes, It is essential to analyse the source being your competitor , and his product details and the feed back of the consumers.

The most developed structure for source of earning:

It is observed that, where service sector has developed to a mix. Extend and the major source of earning of the population, the choose of the best products will be definitely exercised and have a right potential for the quality products.

Conclusion:

An in-depth analysis of the required parameters applicable to specific product in advance will help in ascertain the particular market segment in the
world market.

The example of analysis is enclosed for right direction.

EXAMPLE OF ANALYSIS: The examples of some of the countries for Children ware garments analysisis given as under. (It may be possible that the data is approx. or old however,the latest, and reliable data can be obtained for right analysis).
Country		Australia		China		Algeria		Argentina		Austria
Parameters

Age-Structure of		20.40%		24.30%		32.80%		26.54%		Not
Population		Male	Female	Male	Female	Male	Female	Male	Female	Available.
00-14 yrs.	(lacs)	20.46/td>	19.49	1638.21	1488.55	54.85	52.85	50.78	48.47

Household Income		Lowest	Highest	Lowest	Highest	Lowest	Highest	Lowest	Highest	Not
or Consumption by										Available.
% share		10%:02%	10%:25%	10%:02%	10%:30%	10%:03%	10%:27%	Not Available.

Average		10%:14%		10%:18%		10%:15%

Industries		No textile & Appl.		Text. & Appl.		No Text.& Appl.		Consumer & Text.		No T&A.

Whether import		No		No		Yes Consumer		No		No.
Garments						goods.

Highest sector		73% Service		49.3% Industries		60% Industries		62% service		67.4% service

The Potential		Average		Better		Better.		Good		Average
											&
Favourable signs		Service sector		Higher Age -St.		Higher Age -St.		Service sector.		Service sector.
				Higher Avg.Con.		Higher Avg.Con.

Product Potential		Quality product.		Mass use Avg. Qua.		Avg. Quality		Good Quality		Good Quality.