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We are looking at being closer to our customers
Interview with Mr. Elgar Straub - Managing Director, German Garment & Leather Technology Association (VDMA).
The German Garment and Leather Technology Association, popularly known as VDMA was present with their members at the German pavillion at CISMA 2009.

GARKNIT World caught with Elgar Straub - Managing Director, German Garment and Leather Technology Association (VDMA). Despite his busy schedule he shared with us information regarding their strategy behind participation and their gameplan towards Bangaldesh market and the rationale behind their association with TEX PROCESS. Here is an except from the interview :

GW : What is the focus of the VDMA delegation participating in this show?

A : VDMA has been organizing participation through our pavillion at Cisma since 2001. China is of course the most important garment market all over the world. CISMA is the most important show in the Chinese market. Germany is very well known for high tech machinery which help the customers to be cost efficient, to reach high technological standards, to get very productive production lines and flexible production. This is what VDMA is doing in the Chinese market for many years. We are present here to show to the Chinese customer, the best in technology that is available and we are very successful with this.

Q : Can you highlight some of the new innovations at VDMA pavillion?

A : All German companies have for years by and large concentrated on products that are eco-friendly, cost efficient and those which consume less energy etc., We think the direction of the industry also will be in these areas in the coming years.

Especially in markets like Bangaldesh, India, Columbia, China the cheaper production lines will get into problems.

Energy efficiency is a critical area to focus on, with costs going up as well as supply being erratic. For such markets we feel we have the right products or solutions. It is a package of high productivity, high quality, higher technology and lower energy combination is what our members offer.

GW : In the wake of intense competition from low cost production countries like China, what is the surival strategy of your member companies?

A : We do not to compete in the mass, price sensitive low end sector as the local products fare better. We want to show to the customer that our products are much more value for money where the over all gains are more, though the initial costs could be higher. At the same time it also depends on what you are producing. If it is single product produced in volume with low complexity then our machines may not have a role to play.

However at the same time if you are looking moving up the value chain whether in the export market or domestic market then one has to invest in technology.

It is tougher competition between suppliers of garments and the competition will grow only tougher. Another trend that is being noticed as told by one of our German buyers is that they are setting up their own factories in China and Bangladesh as they no longer are statisfied with what is being produced currently.This is the trend. Flexibility, Cost Efficiency, productivity and short reaction time with the buyers is becoming very important. In such a scenario we have a definite role to play.

GW : What are the methods through which VDMA is reaching to the end customers in important production centres like China, India, Bangladesh etc.,?

A : One method is thru pavillions at important shows in these countries. Another method is to have our shows in Europe like in future it will be the Texprocess in Frankfurt which will be the leading technology show in the world in future. We have to be stronger and closer and show everyone that we are there.

GW : Don't you think you are better off to be within reach in markets like Bangaldesh and India where your expertise can make a difference to middle level companies who are on the upwards spiral?

A : Yeah, we agree that we need to be closer to these markets. For example in Indian market we have been present at tradefairs several times. But in India the tradeshow market is becoming cluttered. We are aware that Bangladesh is a very important market which needs our attention. We will start soon going to the market in Bangaldesh

What has happened in the last 7-8 years there has been far too much focus on the Chinese market where one is realising that the other emerging markets have been ignore. Bangladesh is one such market which keeps cropping along with indonesia and Vietnam as the most important markets to focus on which we shall do very soon.

GW : What is your involvement and association with Texprocess?

A : We are officially now associated with Messe Frankfurt through Texprocess.

GW : What is the idea behind Texprocess and how is this different?

A : Texprocess will combine a much broader range of products and visitorsthan IMB was ever able to do. Because Messe Frankfurt has got the biggest network of Textile related shows in the world. There have nearly 30 textiles related shows, therefore we have the real possibility to penetrate markets and be present everywhere and promote Texprocess

There is one big idea, especially for the Bangladesh market. We will have one section within the show for sourcing. For example apparel companies from Bangladesh can be present in this section but not displaying the apparel products they are making but display their technical capacities.

They can exhibit their capabilities in terms of the technical infrastructure they have. This will be a forum which will attract the buyers from Europe and from all over the world to go and meet these countries from various production centres and understand them better.

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