Textile exports

Pakistan's textile exports to Saudi Arabia and Bosnia are well below potential in terms of total textile imports of these countries as well as in terms of our export potential according to a Business Recorder exclusive. Saudi Arabia's total textile imports are estimated at 3.6 billion dollars while Pakistan's share is no more than 51.7 million dollars, while Bosnia's total textile imports are 500 million dollars with Pakistan accounting for no more than 2.6 million dollars.
These statistics tend to belie claims that world textile demand is on the decline due to ongoing global recession which accounts for a decline in our major export item - textiles. The textile industry maintains that there are a number of factors that account for the decline in our textile exports including ongoing massive loadshedding, the law and order problems, and a tariff structure. And their basic recommendation to successive governments, including the incumbent, is to extend subsidies in the form of lower or zero tariffs and to motivate the commercial counsellors of our embassies to proactively seek orders for their products.
While these suggestions no doubt have some merit yet one must also acknowledge that Pakistan's textile industry is heavily reliant on getting orders from foreign brands and few, if any, textile units have developed their own brands for the export market. The Pakistani textile sector in particular must be made aware of the fact that a brand can promote sales; however, it requires a sustained marketing campaign to ensure that brand recognition is developed which, in turn, may build up to a point where it begins to enjoy brand franchise. The successful development of a brand name would ensure that demand remains largely unaffected by global recession as the high end market is considerably less susceptible to a recession. While a number of local brand names have gained prominence in this country, yet there are few in the export market and one would hope that the textile and value-adding units begin to launch their own brands.
The second element in sales that must be acknowledged by our textile industry is that there is a need to first identify demand for a specific product and then determine whether it would be profitable to manufacture it. The demand can be at a global level but also must be assessed at the level of specific countries. Thus in the case of Saudi Arabia research shows that the bulk of the country's textile imports are baby garments, a product that Pakistan does not supply. There is thus a need for textile units to revisit their existing potential for manufacturing baby garments, do a cost benefit analysis and formulate a business plan and if the conditions are deemed to be favourable from the perspective of doing business then proceed to enter the market. In other words, textile units need to proactively seek new markets and try to tailor their output to what the market requirements are.
To conclude, the onus of marketing is not on the government but on individual production units. The textile sector must turn its attention towards developing a brand image as well as identifying possible markets which may require a slightly different product.