Companies in the field of textile production have grown exponentially within an informal market where they have obtained an evolution and development that exceeded all expectations, becoming a commercial dynamism that has not been accompanied by a strategic business development. On the contrary, these companies are empirically guided by entrepreneurs who developed their skills on a day-to-day basis, based on experience and education. Also, since global markets have different demands and these at the same time are extremely changing, diversity must be achieved and the demands produced by the new and flexible markets must be met.
The textile industry in the world
The garment industry is an important element in the economy of developing countries. Entrepreneurs from developed countries have invested in countries where unemployment is high, thus exporting garments of competitive prices; however, once these countries reached a degree of development, prices ceased to be competitive.
For any production process, the beginning is fundamental. Product design is the start for textile and apparel processes; therefore, the fundamental key lies in the design and development of the product. Product design and development, in these times of globalization and significant changes, becomes more relevant for all types of business organization in the textile sector: if before it was important, now it is more so.
Reasons for new product launches
The main reasons for launching new products have to do with:
(a) adapt to changes in the environment;
(b) the capacity of the undertaking;
(c) technological developments;
(d) the possibility of generating higher monetary flows;
(e) the extension of market share; and
(f) improving the image of the undertaking.
Today’s market is highly competitive, as consumers are more informed than ever and demanding more and more. To be competitive you need to constantly develop new products to differentiate yourself in the market.
The credit line is aimed at SMEs in all economic sectors, except energy mining. Exporting companies in the textile and clothing sector will be one of the biggest beneficiaries of this line of credit, since they currently have a high indebtedness in pesos but their competitors internationally do so in dollars. The difference in rate is substantial.
He also added that each micro, small or medium enterprise can use this line for up to 1 million dollars (approximately 3 billion pesos), with a term offer of up to 1 year.
Advantages of borrowing in dollars
Reduce your financing costs and have greater flexibility when negotiating the payment terms of your exports, extending the terms to your customers or improving sales prices.
Pre-financing and financing of exports, which allows companies to use the resources of the line to make imports of raw materials and inputs for the production of their products.
The resources may be used in the acquisition of the certifications required in the destination countries, and other expenses that contribute to consolidate the export business.
Companies will be able to replace their current debts in pesos with dollars. This option will allow them to make a more efficient management of their borrowing costs.
How to improve in the textile business?
- Solving a gap
- Be aware of the latest trends
- Know the target audience
- Diversify geographically
- Use technology to our advantage
- Betting on quality
Solving a gap
Innovation is the main weapon that entrepreneurs must include in their business plan to rival the giant and succeed in the textile sector. But in fashion it is useless to develop new concepts without ton or son. Everything must be worth something.
Because of this, the first step to making innovation useful is to identify the problems and demands of the public in the textile and footwear business. Only in this way can we aspire to differentiate and stand out.
A good example in this regard is the Geox string. This Italian firm is currently a giant. But none of that would have been possible if he hadn’t discovered a membrane that allowed shoes to «breathe.» With this she solved the problem of sweating of the feet, which led her to success.
Be aware of the latest trends
For a David to succeed in a world surrounded by Goliath, he must dare to experiment and continuously improve the collections he puts on the market. It is not enough to solve a lack, although this is essential to start, it is necessary to evolve at the same time as customers do.
Good examples in this regard would be those of shoe manufacturers such as Nike or Adidas that, year after year, present in society more comfortable and specialized shoes in each sport. It is clear that an entrepreneur cannot cover everything but if he excels in, for example, young fashion he must strive to monitor trends and adapt his garments to them. Only in this way will you ensure that the customer does not lose interest in your catalog.
Another good example is the Desigual chain, which dared to use original and very avant-garde designs when no one did. Thanks to this he was able to grow. In addition, its owners have not settled for the initial success and have been evolving in the products to adapt to what the customer expects from that brand.
Know the target audience and potential customers
Specialization is perhaps the great competitive advantage that a small business has to succeed in the textile sector compared to the already consolidated giants. But for this you must know your target audience and adapt your products to the tastes of local people. It is not the same to sell in Asturias than in Almeria, where the weather is not so cold. All these details must be taken into account when launching a business in the textile environment.
Sizing is also very important and should be taken into account. It has nothing to do with the size that is used in markets such as those in the Middle East or the East (smaller) than the one that governs in the West.
It is true that specialization is a weapon that the entrepreneur must exploit. But that does not mean that once it has managed to gain a market niche it should not explore other spectrums of society. It is not that it is mandatory to extend the collections to other garments or footwear that have little or nothing to do with the target audience. The idea is to expand and diversify from a geographical point of view. This will increase revenues and make the brand known to a greater part of the population.
Use technology to our advantage
Technology is linked to the idea of innovation that every business that has just started must present. And the fact that it is developed in the textile field is no exception. On the contrary, the company should always try to take advantage of the tools that exist to improve in aspects such as logistics or in its commercial plan. In addition, it would be an unforgivable mistake not to take advantage of the existence of the digital channel to sell the collections. This exponentially expands the customer base, and you get a greater knowledge of their tastes and needs.
Betting on quality
A firm like Primark sells at prices so low just because of its size, which allows it to negotiate downwards with suppliers. An entrepreneur doesn’t have that advantage. Hence, it is essential for its future in the textile world to bet on quality as a differentiating factor. In addition, if what has been put on the market is an innovative product you have to pay for it. Only then will the income statement be positive