Nothing Ventured, Nothing Gained

The quota regime is ending in a few months time. Are we prepared for the new non-quota era? Many existing quota holders feel unsecured. Non-quota holders may think of penetrating the liberalized markets without knowing the behaviors of the customer whereas the domestic suppliers are finding ways to retain or expand different market segments.  

The ultimate root of the scenario is that we are unable to see and predict the future. We may be pampered by our past success or we lost confidence and reluctant to attempt changes. The process of changes is always full of pain, inconvenience, toughness, problems and difficulties. However, let’s remember the saying “Nothing venture, nothing gained”. Only rough seas and storms can make good sailors. 

“Businessmen fish in trouble waters. When you see trouble on the water, then you should fish there because the big fish underneath are driving the small fish up to the surface…. In every crisis, big fortunes are made.” quoted by Mr. Robert Kuok, the most successful Malaysian businessman.

As we studied the strategies adopted by other countries, we found that there is no short cut, no easy way nor overnight miracles.

The Bangladeshi is aggressively pursuing preferential market access, improves port and customs efficiency, increase capacity building, emphasis on training and seeks supports from banks as well as appeal for import duty and VAT exemption from the government. The ambitious Thai plans to become a regional fashion hub through training of fashion professionals, brand development, fashion design management, supply-chain management and product efficiency. They embrace latest technology and modern management methods.

Subsequently, the Pakistani is advised to improve on quality. They are setting up a series of “Textile Cities” to optimize backward support and supplies. On the other hand, the Sri Lankan focus on setting up fabric base to make up the shortfall of local fabrics.

Looking west, the EU adopted measures to strengthen their competitiveness and dynamism. The areas identified are research and development, education and training. In Australia, the government supports the textile and clothing industry by providing subsidizes and assistant program to create more niche brands.

Looking east, the Japanese adopted a five-pronged approach focusing on technology developments, promotion of merchandising and marketing, brand building, reforms on cost structure and trade systems.

Let’s prepare ourselves into the new post-MFA era with hopes and dreams. With concrete plans and actions. The natural law is that when a door closes, another always opens. The common approaches including develop new products and markets, increase productivity, improve value change management, develop e-applications, emphasis on training to upgrade the skills and performance of human resources, swift from OEM to ODM, brand development, form strategic alliance etc. 

On a macro perspective, the government can assist the industry by expedite trade preferential negotiations, launching of grants and assistant programs with more relax conditions, transparency in trade and foreign labour policies, efficient customs and clearing, simplify all application procedures, control of dumping activities and  exemption on sales tax.

The stiff competition ahead is unavoidable. It’s how we handle them that make the different. Let’s turn trials into triumphs.

  Back to Index of July 2004