Apparel March 2020 Apparel March 2020 issue | Page 57

INDUSTRY INSIGHTS
this shift has been the progressive change in local
politics and democratic values. In this altered
light, despite the challenges internal to the nation,
the global garment retailers view Myanmar as a
major addition in the global production supply
chain for low-end garment, textile and footwear.
However, most investments in this regard are
still cautious and long-term oriented. Given the
ultimate need for a robust infrastructure, skilled
labour and reliable regional supply chain, most
firms remained unlikely to invest high-end value
propositions in the country. But given the results
of the past few years, the nation’s apparel market
has proved its merit by showing continued
rise in exports year over year. In this regard,
the European Union has proven to be a critical
growth market for Myanmar, with textile being
the top product export category and accounting
for over 72 per cent of all EU exports. In fact,
since 2014, exports with the EU have shown a
Compounded Annual Growth Rate (CAGR) of
nearly 70 per cent.
MGMA RECENTLY REPORTED
THAT THEY WERE ON TRACK
TO ACHIEVE USD10 BILLION IN
EXPORTS WHILE INDIA'S APPAREL
EXPORTS HAVE CONTINUED TO
FALL OVER 2018 AND 2019.
continued slowdown in global trade engagement.
For India, the impact will be felt most acutely
in the apparel sector and allow nations like
Myanmar to capitalize on their growth journey.
Whether this is speculation or foresight remains
to be seen, but historical trends give us reason
to believe that Myanmar is a genuine competitor
to Indian apparel interests in the long-term. Even
more so, if the Indian brand isn’t able to recover
in the midst of this global controversy.
COMPETITION WITH INDIA
While in absolute terms, Myanmar’s apparel and
garment industry still pales in comparison to India,
they are growing aggressively and becoming a
noteworthy competitor to Indian exports. Most
recently, the Myanmar Garment Manufacturers
Association reported that they are on track to
achieve USD10 billion in exports, while India’s
apparel exports have continued to fall over 2018
and 2019. Moreover, India is also facing a crisis
of confidence from its FDI partners as numerous
instances of civil and domestic unrest taint India’s
once pristine image. It is a real possibility that the
negative and non-progressive steps taken by the
Government will impact India’s brand in export
markets like North America and Europe.
Given that the apparel industry is highly
sensitive to the temperaments of global
consumers with regards to goods, it can lead to a
APPAREL
I
March 2020
I
55