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The Textile Magazine
APRIL 2012
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35
tering the market. They have been
attracted by the country’s massive
potential and are all vying for mar-
ket share. Also, several Chinese
companies are looking to explore
opportunities in their domestic
market, given that future export
growth is likely to be curtailed by
economic uncertainty in Western
developed countries.
In India, a growing middle class
of about 300 million
people with a pur-
chasing power par-
ity of $30,000 a year
are seeking access to
world class products.
This group of people
is adopting interna-
tional trends much
faster than initially
expected, and con-
sumption is moving
beyond big cities such
as Delhi to smaller
cities.
Furthermore, this
trend is expected to accelerate fol-
lowing a recent easing of the rules
governing foreign ownership of sin-
gle brand retailing in the country.
In fact, the designer wear market in
India is predicted to grow at an av-
erage rate of 40 per cent per annum
between 2012 and 2020 compared
with a global average growth rate
of 12 per cent.
In Indonesia, much of the growth
in retail demand is likely to be
fuelled by cheaper imports. Under
the Asean-China Free Trade Agree-
ment (ACFTA) there has been a
lowering of tariffs on imports into
Indonesia, and this has led to a
steep decline in Chinese prices. As
a result, a number of domestic pro-
ducers have been forced to cease
operations.
In Turkey, several international
brands have entered the market in
recent years in the hope of taking
advantage of the country’s growing
young and fashion conscious pop-
ulation. Indeed, Turkish imports
grew by 32 per cent in 2011, which
represented the eighth double-digit
increase in imports in nine years.
But much of the expected growth
in the market over the five years
to 2016 could be provided domes-
tically. The Turkish Government
has approved the implementation
of additional customs duties on im-
ports of woven fabrics and ready-
made garments from countries with
which it does not have free trade
agreements. The aim of the duties
is to protect Turkish manufacturers
from losing market share as a result
of rising low cost imports.
In Brazil, imports shot up by 52.5
per cent in 2011 after increasing
at double digit rates in seven of
the previous eight years, reflecting
strong growth in retail demand in
the country.
To combat the sharp rise in im-
ports, the Brazilian Government
announced plans in December 2011
to replace its current tariff system,
which imposes duties on a price-
based mechanism, with a system
which imposes duties on a per item
basis. The purpose of the new sys-
tem is to safeguard the interests of
domestic manufacturers, who are
facing increasingly tough interna-
tional competition as a result of low
import prices.
Despite the new initiative, import
growth is expected to continue at
a significant rate over the coming
years as retail demand continues to
outstrip domestic supply. Indeed,
consumption of fibres per head in
Brazil is expected to double be-
tween 2005 and 2015, from 10 kg
to 20 kg.
w
garments