‘Pakistan has to invest in its own brands,’ says head of the International Apparel Federation

BR Research met with Han Bekke, President of the International Apparel Federation in Sialkot last week. Han inaugurated the IAF’s first regional office in the entrepreneurial hub of Pakistan and signed a MoU with the Pakistan Readymade Garments Exporter Association (PRGMEA) to increase cooperation between Dutch and Pakistan apparel manufacturers. Han Bekke is a veteran of the international fashion and textile industry, specializing in textile and cloth marketing, trade policy and public affairs. Mr. Bekke is also the chairman of MODINT, which is the Dutch trade association for fashion, interior and textiles. The conversation revolved around IAFs potential role in enabling Pakistan garment manufacturers and exporters in becoming globally competitive.

Below are edited excerpts of the interview.

BR Research: Please tell us about the history of the International Apparel Federation.

Han Bekke: The IAF was established by leading industrialists from the USA, Japan and Europe in 1972. The founding members were the European Clothing Association in Brussels, the Japan Export Association for Apparel, and the American Apparels Manufacturing Association. The dream was to bring together apparel manufacturers from all over the globe.  Its main aim has been to build bridges between continents by promoting common business interests, encouraging best practices, and providing assistance to apparel manufacturers and marketers worldwide.

BRR: How many members does the organisation currently have?

HB: We have been in existence for 45 years now and in that period; IAF has enlarged the number of countries linked to it. The basic membership is for national associations such as the one awarded to Pakistan Readymade Garments Exporters Association (PRGMEA), or my own association in the Netherlands called MODINT, which is the Dutch trade association for fashion, interior design, carpets and textiles.

IAF’s membership now include apparel associations from more than 40 countries, representing over 150,000 companies who provide products and services to the apparel industry – a membership that represents over 20 million employees. The associate members of IAF are prominent companies or institutes in technology, business services, retailing, logistics, culture and education.

We have memberships over 5 continents now spanning Europe, America, South America and the Far East. Pakistan has been a member since the last eight years. Mr. Ijaz Khokhar visited our conference at that time in Delhi. He joined IAF and has since been a very proactive and an enthusiastic board member.

BRR: You mentioned in your inaugural speech earlier that IAFs office in Sialkot will be its first ever regional office. How did the idea come about?

HB: It was actually Ijaz Khokhar who came up with the idea of opening up a regional office in Sialkot as a pilot to see whether we can help Pakistan members of PRGMEA to connect to the world. The board of the IAF decided to support this idea, and Ijaz has been a really big force in getting it done.

BRR: What are some of the important global trends and issues that apparel manufacturers in Pakistan need to take account of?

HB: There are several issues that are at stake. The development of the production costs is something that needs to be re-evaluated. China is becoming too expensive and production has already shifted to Bangladesh. In a race to become cheaper, production is already being shifted to Myanmar and Ethiopia from Bangladesh. American fashion giants such as Calvin Klein and Tommy Hilfiger are already starting production facilities in Nairobi, Kenya.

Eventually where are we heading to in this race to the bottom to find cheaper production alternatives? It certainly does not seem like a sustainable approach to market development. So market development is one area where the IAF is currently focusing on to try to come up with more sustainable and effective methods.

Another area is online retailing where an increasing number of consumers are buying via the internet. For instance, in the Netherlands, 10 percent of all clothing sales are being done online. So there is an enormous shakeup of the retail industry happening around the globe.  We have to figure out how this will shape up the apparel markets of the future and the ways our current practices need to evolve to become aligned with it.

The third area that I feel is important is innovation. We see that there will be a lot of innovation in textiles. Most textiles should be reinvented. However the future holds the mysteries as to what kind of new textiles will be coming out. For example what will 3D digital printing mean for our industry? These are also some of the areas the IAF is working on to provide its members the knowledge to stay abreast with the latest innovations in the sector.

BRR: As things currently stand, Pakistan lags behind the rest of the world when it comes to the disruption and innovation curve. What kind of assistance could the IAF provide to the local players in helping them bridge this innovation gap?

HB:  Pakistani manufacturers are part of the global market and have to compete with other countries. The main question is whether you go in this price pressure race, or you invest in innovation, creativity, and especially in education. That is something that we talked about with PRGMEA as well.

As to bringing all of IAF’s knowledge and assistance to Pakistan, we have discussed several avenues which include seminars and exchange programs with students from other countries. I strongly believe in the power of young students at fashion academies and textile universities when it comes to shaping the fashion culture.

BRR: One of the biggest problems Pakistan is facing right now is declining exports. Given that textile exports constitute majority of our exports, what strategy in terms of improving value addition should the country develop?

HB: In my opinion you have to invest in your own brands. Look at Hong Kong, which was the low cost hub for many years. But it eventually invested in design, creativity and innovation; and that is in my view the only way to move up the ladder in terms of value addition.

Turkey is also a great example. It used to be a low wage country for the Europeans. The country changed the entire dynamics, again by investing in creativity and design that led them to develop very strong brands with global presence.

BRR: Pakistan is not strong when it comes to producing man-made fibres. How can you help in this regard?

HB: The IAF has a global presence and is aware of the research being undertaken in different parts of the world. For example, we know what research institutes are doing in Taiwan on synthetic fibres. We analyse all the developments that are happening and bring them to our members.

BRR: Do you think that Pakistan is a supplier of choice for buyers in Europe when compared to Bangladesh, India and Vietnam?

HB: There is so much on offer in the world that you have to be very competitive and unique to carve out a market for yourself. I have traveled to many countries and seen many fashion fairs. I always say to my Dutch manufacturers that nobody is waiting for you. You have to be unique. Go to Berlin, London and Paris or any other fashion fair; there are so many companies. It is all about cooperation in the supply chain, which is the backbone of a good enterprise. You have to set up partnerships downstream and upstream to remain competitive.