Sri Lanka’s once-tailor shop garment sector now makes its own brands
Sri Lankan brands are quietly entering the global platform to compete with internationally renowned apparel wear with the latest being plans by Emerald to enter the African continent next year. A company that has completed 60 years in specializing in men’s wear, Emerald will be entering Kenya and South Africa mid next year, Group Managing Director A.F.M. Ikram told the Business Times on Thursday on the sidelines of a media briefing held to announce its promotional plans to mark its anniversary celebrations this year. Two other local brands that have already entered the international market are Hameedia’s Envoy and LeBond that are competing against Next and other popular European brands when it ventured into the UK in 2005 and prior to that into India.
Hameedia also markets to Australia and South Africa as well. Amante, a brand of MAS Holdings, is being marketed in India since 2007 and when it entered the market it was set against international labels like Triumph, Etam and La Senza. Emerald is entering a market where leading European brands are selling a shirt for US$100 alongside the mass Chinese products that have also ventured into this region. The company is now looking at increasing its current production of 150,000 units per month by 25 per cent from its existing three factories once it enters this new market under the Emerald label for the first time. Emerald is already stitching men’s clothes for labels like Austin Reed in the UK, Louis Philippe in India and Marcs in Australia.
But today the company is venturing out to go global under its own label to capture a market based on the fact that it is a new brand with high quality products. Mr. Ikram is convinced that they could sell in the African continent since it too was a former British colony whose workforce continues to be dressed in suits as a result of which the market is “easier to penetrate.” Emerald would be signing up with dealers in Kenya and South African in this regard to market their product with a sufficient marketing campaign set to be launched when it ventures into this continent. During the 1990s the company ventured into the UK to market its label but failed to succeed.
However today Mr. Ikram believes they are ready to penetrate a new market after having first consolidated the Sri Lankan base. With few companies in the clothing industry in Africa it is likely to bring in more opportunities as it is an “expanding economy” on the lookout for formal and casual men’s wear. Speaking on the formal and casual wear in itself, Mr. Ikram noted that they have observed based on today’s lifestyles that the difference between these two clothing lines is “thinning.” The company is planning on producing denims under its own brand and improving on providing more casual wear as there is a shift in demand towards this trend as opposed to formal suits with consumers wanting a larger range in apparels, it was stated.
The company has a local dealer network of about 500 and would be looking at working in this same format in Africa since the cost of opening its own shops would be high, Mr. Ikram said. Meanwhile company CEO Hansri Bahaudeen, asked at the media briefing whether the company would list on the Colombo stock exchange (which helps firms to raise funds apart from other benefits), said that as of now Emerald believes it could manage its future expansion plans (without public funding).