Q&A sessions at the forums

Q: Are you thinking of producing your own bands? What is Sri Lanka going to be next?

MAS Holdings Chairman Mahesh Amalean: The industry has gone through different stages of maturity and some companies in the industry have begun to embark on that journey.

Timex just mentioned it has established brand and retail outfits; at MAS we have done the same thing but we chose a different route. We decided to establish ‘Intimate Apparel,’ a brand was established first in India, before it was introduced to Sri Lanka. We are in 340 outlets in India.

The reason for being a brand rather than a retailer was because we had the lead from manufacturing which was fairly long and the cost of retail is extremely expensive. It has proved to be a very successful brand and has been well received. We see the brand developing and growing in the next few years. Some are beginning to look at that aspect.

Q: Regarding design, what stage is Sri Lanka at, at the moment?

SLDF Founder Linda Speldewinde: The industry is currently getting organised to be positioned as a hub. While the industry is getting organised, design has an important part to play. When we look at industry per se, we can’t look at design without looking at industry. We have an industry at the doorstep, look at the technology the industry offers and try and leverage it in design. Design is fairly new, but has evolved. It is now that we see the kinds of design that the industry wants coming out. We have gotten the Government to understand the important of design and the industry too now.

Q: Sri Lanka needs to have specialism. What would you believe is Sri Lanka’s unique selling point and specialisation in the region?

MAS Holdings Chairman Mahesh Amalean: The industry is one that initially supported value brands and specialised brands and as we developed and other manufacturing locations came up in the world, the product shifted. Initially we started jeans and so on and we gradually formed our niche on children’s wear, sportswear, casual wear and lingerie. On core product categories, we were able to distinguish and differentiate ourselves from the rest of the locations. Besides that, the industry also realises the value of ensuring a look at sustainability in terms of labour and health and safety, environment, etc.

Q: While people in the industry know and appreciate the ethical movement of Sri Lankan apparel, why not communicate it to the rest of the world? How about prices for ethical products?

Brandix CEO Ashroff Omar: It is a good message to communicate to the world, and yes, we have not been that good in doing that. From the community everyone knows, but the general consumer isn’t aware. We have work to do there.

On price, it is always a debate on can whether we can command a higher price just because we are green. I think the market forces will ultimately decide and influence the final price. Today we cannot; you have to fight with a very tough market place and just because someone is green you won’t get 10% more unless the consumer is willing to pay more.

I know they expect the green plants to get much more than the normal plant. However, my request was differentiate. I don’t see the differentiation today. Paschal said that buyers have been told to go with Plan A, my request would be a bit more aggressive or robust mechanism where if the price is equal, reward by volume rather than price, because price we can shout about, but it’s not going to happen.

Q: Would you make a green factory again?

Brandix CEO Ashroff Omar: We are in the process of adding two more to our portfolio. There is always this argument of why should we be green; the other thing is we should be green because it is the right thing to do. In long-term sustainability, look at the slightly different accounting formats. It’s much more viable. Though we did one completely green platinum, there are many learnings we have used in others.

Q: Sri Lanka in the fast market – everyone acknowledged there are many seasons, which means more production and stock. How can we guarantee you are not just adding to the market by producing more stock?

M&S Head of Technology Lingerie and Childrenswear Paschal Little: This is one approach to fast production; it is a simplified approach to product development, delivering in a shorter period. It’s more of a sustainable way of business.

Q: Since green factories are run on low energy, water usage and waste, why does it cost more to run?

Brandix CEO Ashroff Omar: Because the initial capital cost and return on investment is high. Cost is higher because your return on investment is longer.