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Monday, July 27, 1998

Trade fairs, a platform for interaction 

 
Rahul Mehta, former president, CMAI

Trade fairs are more than just a buyer-seller meet. They offer the best alternative for joint participation, which is extremely important in a competitive environment. Where else would one get to interact with over 6,000 dealers, including 100-plus foreign, within a span of just four days and that too under one roof. The cost -- a meagre Rs 50,000!

Garment manufacturers, dealers and bulk traders fail to recognise this vital point while deciding whether or not to participate in trade fairs. It is high time that the industry recognises this fact.

Dealer participation has declined considerably over the past couple of years primarily on three grounds: one, CMAI deliberately played down the importance of trade fairs especially after dealer participation was going beyond manageable limits of the organisers. However, in the hindsight we think it was a mistake.

Two, newcomers are reluctant to participate primarily because of the fate of many who had had to close downtheir operations, due to entry of manybranded and unbranded garments that has made consumers choosy. Three, those who managed to establish their brands in the country, think they don't need to participate in trade fairs.

In the coming days, unless we are able to protect our brands, we will be doomed by foreign labels. Therefore, it is more important for the brand-owners to participate in trade fairs and create newer markets across the country and even outside.

Harakhchand H Shah, CMAI President

This year, CMAI will spend around Rs 10 lakh to market the trade fair, which with infrastructural facilities, the cost could go up to around Rs 22 lakh.Despite this, dealer participation has been lower than expected. Trade patterns in the garment industry have changed drastically over the past few years. This has affected the overall participation in trade fairs. Earlier garment buyers from across the country would give to garment makers a time of 90-100 days before the onset of the festival season. Thishelped the latter to offer their best. However, with overall recession, changing lifestyles, dealers are unable to stock more and therefore prefer to buy ex-stock from manufacturers. Also, participation in trade fairs is considered to be a cost factor rather than a revenue generating exercise.We are trying to convince our members that trade fair participation is the cheapest avenue to market one's goods.

In order to increase the awareness of trade fairs, we intend to organise regional fairs in Pune and Sholapur next month.

Premal Udani, vice president, CMAI

The ongoing economic reforms will see more imports in garments from across the globe. Indian garment makers will have to gear up to meet the challenges. Also, the response time (offered by buyers to the sellers) has reduced considerably, posing more complex challenges of styles, finances, and marketing.

One of the major concerns of the domestic garment industry is the upswing in smuggling from across the borders. We have urged the governmentto minimise, if not stop, this menace that is affecting trade.

The smuggled goods, against those coming through the official channels, are cheaper by around 40-50 per cent than the domestic goods. Further, in order to increase foreign participation in our domestic trade fairs, we must increase our awareness in the foreign markets through campaigns and advertisements in potential markets. We intend to do so, initially in the Gulf countries and then to those countries where there are Indians.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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