Apparel Online India Magazine February 1st Issue 2019 | Page 20
AO SURVEY
TO EXHIBIT TO VISIT
Ila Saxena
+91 9810238467
[email protected] Shruti Arora
+91 88000 10134
[email protected]
AO SME EXPORTERS’ SURVEY
GROUND REALITIES OF SME EXPORTERS
STILL REMAINS THE SAME… EFFORT FOR
S U R V I VA L C O N T I N U E S
The apparel industry is perhaps going through one of its most difficult phases and while some openly admit that they
are struggling, many others prefer to downplay the challenges. Last year, the currency devaluation advantage was one
of the biggest factors that supported business, but such temporary boosts are not solutions for long-term sustainable
growth. So, what are the ground realities today and how do companies propose to survive in a highly competitive
environment, where every cent counts? The Apparel Online team conducted a survey in this regard to understand
what even facts and figures cannot unveil.
I
t is often heard that in the long run, either
top players or very small players will survive
as multidirectional challenges are growing day
by day, and the big guys have the resources
and staying power to overcome the same,
while very small ones are flexible and have
less overheads to maintain. Difficulties are
comparatively more for the SMEs who we
generally club as the middle-level exporters,
to grow or even to survive. Though recently
Government has come up with few schemes
which are specific to SME exporters, they are
not enough and there are still some tough days
ahead for such players.
Out of the total apparel exporters that
participated in AO survey, 26 per cent of the
respondents had a turnover of below Rs. 10
crore, while the majority, 58 per cent were in
the bracket of Rs. 10 crore to Rs. 30 crore and
16 per cent had an annual business between
Rs. 30 to Rs. 60 crore. Significantly, 90 per
cent of responses were shared by the owners
while only 10 per cent were the views of senior
professionals. The survey was limited mainly
to the North India-based exporters covering
Delhi-NCR, Jaipur and few other hubs of the
region.
Some of the findings of the survey conducted
on the SME exporters were on expected lines.
Business has definitely stagnated for most and
‘uncertainty and disappointment’ is clearly
reflected in the responses with regard to the
expectations in the next 12 months. Few of the
major findings are highlighted below, with AO
analysis. The percentage of exporters hoping for 10 to
15 per cent growth is 16 per cent and the same
number of exporters believe that it looks hard
to maintain even last year’s (2018) level of
performance.
Last year was not
good for the majority Wish from the Government
It is no surprise that a majority of the
exporters were not happy with last year’s
performance. 42 per cent (maximum)
exporters informed that in the last year (2018),
they had the same level of business as before
while business for 16 per cent dipped even
below the level of 2017. However, 21 per cent
did notice growth of more than 15 per cent and
11 per cent exporters grew between 10-15 per
cent. Out of the total respondents, 10 per cent
players achieved growth below 10 per cent.
Expectations for next 12
months similar to those
in 2018
Predictions or expectations for the next 12
months are almost similar to the performance
registered last year as 42 per cent exporters
are expecting the same level growth. 26
per cent are quite positive as they have
expectations of more than 15 per cent growth.
20 Apparel Online India | FEBRUARY 1-15, 2019 | www.apparelresources.com
Though over the last two years, all kinds of
support/subsidies from Government seem to
have been wiped out, but still the majority of
the SME exporters are hoping and wishing
for an increase in duty drawback rates or
introduction of any other incentive. Apparel
Online asked four options to the respondent to
prioritise as their wish from the Government.
These options were labour law reforms,
increase in duty drawback or any incentives
like FTA with US/EU and ensuring stable yarn/
fabric price. The response on prioritising is
again on the expected lines.
11 per cent of the exporters were in the favour
of FTA with US/EU as top priority, while for
5 per cent, the first wish was to ensure stable
yarn/fabric price. 10 per cent gave equal
importance to both these points. 26 per cent
insisted that the Government should increase
duty drawback or introduce any incentives. 48
per cent respondents stated that all these need
to be done for the survival of apparel trade as
more or less these are equally important.