EDB in global apparel breakthrough

November, 25, 2014

For the first time in Sri Lanka’s apparel history, the EDB, Lanka’s apex export facilitator, has directly linked top Lankan apparel suppliers with the world’s largest textile retailer, Spain’s ZARA on 29 October-and the facilitator EDB is stepping up its support for apparel market diversification. “Though Lankan apparel sector caters to many international brands, we have still not been able to manufacture to Zara brand, the world largest fashion retailer. This successful effort directly linked our apparels to Zara for the first time” said Chitranjali Dissanayake (Director-Industrial Products of SLEDB) on 06 November in Colombo.

EDB Director Dissanayake was reporting on the success of first ever Lankan apparel industry delegation to Spain’s Inditex, made on 29 October.  Inditex ranks as the world’s largest textile retailer by sales, and is present in 87 countries. It owns such international retail brands as Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe. Inditex’s consolidated sales in 2013 totaled over $20Bn, recording an impressive growth of 6% over 2012. The Group's brands strive to sell fashionable products (fast fashion) with high quality. Inditex describes its business model as “creativity and quality design together with a rapid response to market demands”.

“Inditex is commonly known by its oldest and biggest brand, Zara. Though Lankan apparel sector caters to many international brands such as Victoria’s Secret, Gap, Nike, Tommy Hilfiger, Marks & Spencer we have still not been able to manufacture to Zara brand, the world largest fashion retailer” said EDB Director Dissanayake, and added: “As a result of the Lankan industry leaders showing a keen interest to develop business contacts with Spain’s Inditex and to manufacture apparel in Sri Lanka for its ZARA Brand, the EDB promptly initiated a dialogue with Spain’s Inditex Inditex for an initial meeting with a Lankan delegation to present the country’s capabilities and invite Inditex SA to source from Sri Lanka. EDB succeeded in getting the meeting, resulting in a good session with Jesus Echevarria Hernandez, General Director of Communication for Inditex SA at their headquarters in Spain. This successful session directly linked our apparels to Zara for the first time. Under the guidance of Rishad Bathiudeen (Minister of industry and Commerce) and support of Bandula Egodage (Chairman & CEO-EDB), EDB is stepping up support to apparel market diversification efforts of Lankan sector.”

Apparels became the leading growth driver in September’s exports (followed by coconut and Food, Beverages and Tobacco). September apparel exports grew by 4.4% to $403.8 Mn in September compared to same period last year.

The pioneering 29 October Lankan delegation to Zara consisted of reps from Brandix Lanka, Timex & Fergasam Garments, Union Apparel and EDB officials. The six member delegation, facilitated by EDB, Sri Lanka’s apex exports body, has held several one-to-one meetings with Heads of sourcing teams of different Inditex product groups to explore manufacturing for Zara brand.

During the  visit the Lankan delegation was provided with a Zara company presentation and a meeting with Jesus Echevarria Hernandez, General Director of Communication for Inditex SA, followed by a  guided tour to their Cutting & Finishing Processes and Logistics departments located in corporate headquarters as well as headquarters of ‘Zara’ and ‘Zara Home’ two of inditex’ brands. A detailed presentation on Sri Lanka’s capabilities on the apparel industry was made by the Sri Lanka delegation which was followed by a discussion.

The Sri Lankan apparel industry is readying to generate US $ 5 Bn export earnings by 2016 and the government’s aim is to position Sri Lanka among the top 10 high quality apparel manufacturing countries in the world by 2020. Sri Lanka is gearing to position itself as a commercial hub and the apparel sector is keen on getting into supply chain management as well.  aloiaua