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European Textile and Apparel Market Condition PDF Print E-mail
Written by editor   
Tuesday, 29 June 2010
Mr. Serge Role
CEO
Testex Switzerland

Few months ago, we met with Mr. Serge Rolle, CEO of Swiss Testex. We had a discussion about market conditions in the textile and garment europe during the financial crisis in global markets until the point of view regarding the market projections in the year 2010. This discussion also discuss about Indonesia's position in global textile and garment market. Here are excerpts.

 

How about global textiles condition in Europe? How the costumer, producer, retailer in 2009?

Difficult time for textiles produce in europe. Textile less production, in the mean time. It’s not to easy for them. They must struggle to survive right now. In medium to short there will be further reduction of a capacity in european country. But we hope that the crisises will be resolved.

While for the retailer it’s not that bad. Because last week Christmas sale example at least in germany and switzerland, very well, good time for recovered. We hope very much it will be better than it was before. But the condition is very critical for most of them. Not affected especially in Swiss.

Ireland, spain, italy, england very much affected. In swiss banks has the biggest problem, they’ve been help by the state so much. In the mean time it’s ok for the bank. Then there is other textile company, like testex we have been profiting by this situation, better than before.

Becausewe believe in one thing. When the market situation is bad then the buyer is very critical. If you buy something, your expexctation for quality is very high. You will think that the others cannot asserted to buy. So you want the best. It’s very critical for the buyer.

The other hand that the producers, we see that everybody claiming at my good. Then you say sometime, so i better served my goods. Then they will must prove the quality is to be ok. Testify. Because the cutomer is always claim.

The other reason is systematic. The buyer is don’t have a lot of money right now. They buy shirt on short term, daily. Because they don’t have cash on hand.

Then when they get your products, maybe they have short of cash. Then they say ok now i plays a claim, then i can postpone the payment. This is what we must realize.

 

So for customers in Europe is different with the US customer. The people is either their customs, but they feel wants high quality.

And today higher and high, I mean today, only the best is good enough, or other wise you’re not hectic. This is very important trend today. You expect much, much more. And even you’re not prepares to pay more. The buyer is expecting much more, than they expect 2 years ago.

If the market runs very well, you have 100 hundred thousand shirts, if you don’t buy. But they are away. Anyway you can sell easily. So you will take the shirt, even if there is a small problem, but you can still take. Because if you don’t take, then somebody else take the shirts. You have no choice, either you take them or release them.

But today is different. Because today you struggle to sell what we produce. So the quality must be perfect or you can’t sell.

 

How about the competition among supplier in europe, how indonesian, chinese?

I think still China has been … They have reduce take for the lock, but still occur is most important market for europe, still China today.But  I’m sure Indonesia is also very important. We know that Indonesia such a huge country, such a huge textile market. This is very important, not only for Europe, but also for America. This is no doubt to … But China of course, we have to admit that they are not to bad, they are able to improve their quality, step by step, they do a lot. Even there’s a … that we can feel can be improve for China, but China is very important textile market, and also will be in the future, we are very sure, and so for the next 10/15 years.

 

There is a new comer, live Vietnam and Bangladesh as they stronger and stronger, how about their market in europe? Because in the US Vietnam is very strong, but not in there.

I think they are behind the expectation. And also Cambodia and Vietnam. We have expect much more, of course, they get some of important. They are still not that important, as you might think. If you look out the average export into Europe, it’s still very low percentage. I don’t know whether they really can produce a huge quantity, which is required for the market. Because the number of a company, who can produce textiles, garment in the needed quality. They are still not there. Of course there are a lot of a Korean, Taiwanese, now also Chinese company expanding or moving to place like that.

But still, it’s not too easy. And many people have been realize that in the past is very critical or difficult to keep the quality level, if you bought from one country to another country. This is a very difficult time.               

 

Maybe we can see the development, or we can see which country has stronger exporter view. If some country so many company in Europe. How about the development of every country,or other country that a exporter important textiles?

I must say that this is very good for us. But you know countries that we are that are South Korea, china, hongkong, Taiwan, Malaysia, Indonesia. And from this country, se always has been increasing. All of them. No decreasing. Of course, the biggest increasing is china. So our officer in shanghai and Beijing, they have a lot of increase, every years. So the increase rate is more than 20% per year.

But also Indonesia of course, we have interest stabliy increasing. 170 company in Indonesia right now, so that they are stably increasing, which start for 2 or 5 years ago. So you see there is a very good increase for Indonesia. And there is no sign that it should stop.

Also the Ecotex Association, we have known for the first time reach more than 10 thousand for … in this year. So also this is a new highlights in ecotex association which started under the 90-92, and then stably increase, and ecotex has been always more important, that still increasing today. So we see no sign of recession, no signs of crisis.

 

I think this is kind of that European market is still promising in the future. What the trend after crisis? Trend of the European economy

We se absolutely no problem at all. We are very positive, of course. And also, I mean, for you that your production country can expect that the consumption in Europe wil still very high. And the people like to have very modern of garment. So this will keep on going on. People like to changes clothes very often. Consumption for textiles, and garment will remain very high in europe. And all the rest of the worlds. The consumption of textiles per head is a… but the consumption of textiles per capita is still increasing. Plenty of opportunity for the textiles industry, also  in the futures is no doubt.

 

The acquisition join standard for area?

We have now collaboration or we have coop activacted, we have both company in ireland. Which is called ASL. This company is founded by the doctor. They have established the standard, especially on Allergy. But not only in textile, because in textile, allergy already covered partly from the eco textiles. That’s why under the medical lead , by medication, they are not certificing textiles product, like pillow, blanket, covers. And top of that, also furniture, paint, air conditioninn systems. And also for air!

So they can control everything, they also have friendly air. Certification programme.

 

Today the healthy is more important for Europe.

That is increasing very much, and the good thing you also see a big improvement is dump. Because now after so many years this is very important issue in Europe. Now also America. They start to changed. I mean you see now, not only President Obama, but also the former of vice president of a USA. So also in USA there is a fight from a changed, going on in this regards. They are very much more environment consciousness. They now realize, we have to do something we can not only spoil environment, and also you take care of our air, water, soil, of everything. Or otherwise very soon we have to say a big problem. So the all of reduction of sustainability, so you see there will be a big involvement in the future. 

 

Your advice for Indonesian company.. for the future, we can see european market trend, or competition among suppliers. How your advice for more competition?

I think the most important things to teach your people very well. You have to educated your employees. So if I give a recommendation to the production here in Indonesia, the better the workers they have, the more skill the workers are, the better product they will able to produces. This is will be able to much more efficient, much more innovative, and much more succesfull in market. It’s always people that count at the end. So the better people you have, the more innovative people, and  the more motivated people that you have, so the better you will do. The owners in Indonesia, they should care about their workers very much. This is may the best investment they can do.

Many textiles company all over Indonesia. The conflict between the owners and the workers. Much better today. I think good chance to do well. By your support. Hahaha.


 
		
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