inspire| innovate | incubate - dr. darlie o. koshy · bangladesh 4.97% us $ 19 billion t-shirts,...
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Inspire| Innovate | Incubate an approach to collaborative Innovation in Apparel Export Sector
Dr. Darlie Koshy
MBA, Ph.D. (IIT, Delhi)
Director General & CEO
Institute of Apparel Management (IAM) &
Apparel Training & Design Centre (ATDC) Former Director, National Institute of Design (NID) Ahmedabad (2000-2009)
www.darliekoshy.com
Presentation at Sri Lanka Design Festival 2012
Sri Lanka is popularly known as the pearl of the
Indian Ocean. In geology, we see Sri Lanka as
The Gem of Gondwana. In the configuration of
Gondwana, Sri Lanka is situated at the central
portion of the supercontinent. -Masaru Yoshida
THUS IN THE BEGINNING IT WAS SRI LANKA-
THE GEM OF GONDWANA
Its unchanging tropical loveliness, the
mysteriousness of its past, the soft yet excitable
character of its people, its prevalence of strange
animals, birds and flowers all combined to make
life in Ceylon an experience now unequalled
anywhere. -Vinton Liddell Pickens, Serendipity, 1964
Where each old poetic mountain
Inspiration breathed around;
Every shade and hallowed fountain
Murmured deep a solemn sound. -Thomas Gray
© Darlie Koshy, 2012
Photograph from Nihal Fernando’s ‘Sri Lanka- A Personal Odyssey’
INSTANT INNOVATIONS: CRASHING TIME
“ MIND –TO-MARKET”
The Indian retail industry is pegged at US$ 500 billion
and is expected to reach US$ 1.3 trillion by 2020
“ FIBRE –TO-FASHION”
“Imagination is more important than Knowledge”
- Albert Einstein
“ SPEED –TO-MARKET”
Fashion Innovation Lab,
IAM-Gurgaon © Darlie Koshy, 2012
Creating Responsible Competitiveness…
“Sophisticated” Products over Entry level products A “richer” country (in terms of GDP & growth rate) should export more richer or
‘sophisticated* products’. (Professor Ricardo Haussmann of Harvard University)
* Sophisticated-Creative/ Innovative
• Concept of Indian Textile-Apparel Ecosystem”
• Networked & Distributed Approach to Manufacturing
© Darlie Koshy, 2012
“It’s exciting to take
something traditional
and do something
completely unexpected
with it”
-Donna Karan, Chief Creative Director
DKNY
For
Bishnupur
Baluchari Silk
VALUE ADDITION
FASHION RENAISSANCE
© Vogue India, Oct-2012 © Darlie Koshy, 2012
SUSTAINABLE FASHION
In emerging Creative Economy ‘Strategic Design & Innovation’ can still
create Sustainable Competitive Advantage.
'super cleaner'
DENIMS that work
the same way as
catalytic converters
in cars.
© Darlie Koshy, 2012
DESIGN FOR INNOVATION
“Creativity is thinking up new things. Innovation is doing new things.” -T. Levitt © Darlie Koshy, 2012
SOUTH ASIA
People & Youth Population
Low-cost Labour
Large Pool of Skilled workforce
Textile Traditions & Heritage
WE SHARE
Source: UN Comtrade, Technopak-2011
NEEDS TO LOOK BEYOND EXPORTER’S COMFORT ZONE
Country %Share -Apparel
(approx.)
Textile & Apparel
Industry
Major Apparel Export Items
India 3.19% US $ 31 Billion Blouses/Womens Shirts (Woven, Knitted)
T-Shirts
Men's Bottom Wear (Trousers/Shorts/Demins),
Dresses,
Men's Shirts (Woven. Knitted), Knitted Shirts
Baby Garments
Bangladesh 4.97% US $ 19 Billion T-Shirts,
Men's Botton wear (Trousers/Shorts/Demins),
Women's Bottom Wear,
Outerwear,
Lingerie
Pakistan 1.01% US$ 1 Billion Men's Bottom Wear (Trousers/Shorts/Demins),
Women's Bottom Wear,
Lingerie,
T-Shirts,
Outerwear
Sri Lanka 1.00% US $ 3 Billion Lingerie,
Women's Bottom Wear,
Men's Bottom Wear,
T-Shirts,
Outerwear
Total South Asia 10.17% Currently South Asian countries have reasonably high share in Yarn and Fibre however
there is still plenty of scope in increasing share in apparel & fabric exports.
Source: UN Comtrade, Technopak-2011
© Darlie Koshy, 2012
LESSONS FROM CHINA: 2009-2011
• 80 hours per month
• Basic wage increased 3-4 times
• Factories being shifted closer to workers habitat
Permanent Shift
Pointers to South Asia India cannot keep lower
wage structure
and have GDP growth at
8.5%
Chances of a Big
Back lash
sometime or other
Balancing Skills-
with
Socio-Economic realities
© Darlie Koshy, 2012
ADAPT FAST , CHANGE FAST
Approach to increase competitiveness of
Apparel industry
Skill Sets | Mind Sets
Aspirational | Vocational
-Providing for lateral / vertical growth
•1 Million Millionaires in China (source: Capgemini and Merrill Lynch Global Wealth Management )
• Increase in Wages:
- Already the present min. wage is US$ 500 (Areas in China near Hong Kong)
- Projected wage rate to go up by 13-15 % every year (China’s 5-year plan)
- Overtime Doubled
1979- 2009: China became
“Factory to the World”
•China bursts open to the World
•Abundant Labour Force: 1.3 Billion population
•Mobile Women Workforce ready to relocate: leading to individual growth in
coastal areas
•Low Wage Rate / Regulated currency
2009- 2039: China is projected to
become World’s largest
consumption market
China: Approx. % of share (Apparel): 34% | Textile & Apparel Industry (2011): US$ 160-165 Billion
Abundant Workforce | Lingua Franca (Internet)- English |
Availability of Natural Resources | Product Differentiation &
Individualistic Design : India Phase in Fashions around the World
Emerging
Economies
THE “CHINDIA” PHENOMENON
Indian Design Edge Release of ‘Indian Design Edge by Dr. Darlie O Koshy’ by the famous Design Brand strategist Mr. Wally Olins .
© Darlie Koshy, 2012
TAPPING NEW MARKETS
Intra-Country Trade
Inter Regional
(SAARC) trade
to touch
US$ 15 Billion
“Imagination & Speed define the New Age”
The Indian retail
industry is pegged at
US$ 500 billion and is
expected to reach US$
1.3 trillion by 2020
People will trade down on price & will increasingly hunt for affordability
without compromising on Fashion Quotient in future.
-Technopak Study
© Darlie Koshy, 2012
INDIA Present
Apparel Export Items
Future
New Product Categories for
Expansion (Phase I)
Apparel Manufacturing
Clusters
Blouses/Womens Shirts (Woven, Knitted)
T-Shirts
Men's Bottom Wear (Trousers/Shorts/Demins),
Dresses,
Men's Shirts (Woven. Knitted), Knitted Shirts
Baby Garments
Wrinkle Free Shirts
Lingerie | intimate Apparel
Technical Textiles| Wearable Technologies
Chinos |Bottoms (Wrinkle Free)
Denims
Swimwear
Sportswear
APPAREL BUSINESS IN INNOVATIVE ECONOMY?
Inspiration Design | Trends | Fashion-Color Forecasts | Integrated ‘Fibre to Fashion’ Services
Innovation R&D Back Bone | Process | Technology| Manufacturing | Value Addition
Incubation Development of the manufacturing capabilities | New Products to New Markets | New Products to existing markets
IGTM’S (AEPC-IAM) 3 I MODEL FOR INNOVATION
© Darlie Koshy, 2012
3 I MODEL to impart Capability, Capacity & Motivation as to Collaborate, Co-Create & Innovate
• To enable apparel
exporters to diversify
their product base
• To expand existing
markets and also make
inroads into new
markets
Innovation Nodes | Product Speciality Centres to disseminate information by ‘Innovation Diffusion Model’
Information received & processed by manufacturers Incubate the ‘product development effort’ by setting up
New Manufacturing unit/ assembly line
Inspiration Labs with iconic Fabrics | Trims | Accessories | Garments|
Fashion shows | Resource references
Industry| Research Institutes | Education & Training Institutions
Education & Training Institutions | Design HUBS
Industry | Incubation Centre Team
© Darlie Koshy, 2012
COLLABORATIVE INNOVATION
Collaborative Innovation
Globalized Economies
Creative Contributions
Manufacturing Collaboration for Innovation
Supply Chain| Channel
Collaboration (Zara | Mango) Vendor-managed
Inventories
Market –Customer
Collaboration
© Darlie Koshy, 2012
INSPIRATION SOURCES
Inspiration Lab, Bunka Fashion College, Japan Shirley Goodman Resource Centre, FIT New York
Politecnico di milano Fashion Innovation Lab, Institute of Apparel Management, India © Darlie Koshy, 2012
© Dr. Darlie Koshy 2012
INNOVATION DIFFUSION
Inspiration/ Resource Centre at Institute of Apparel
Management (IAM)
Innovation Nodes at ATDC* Network of 25 ATDC Community Colleges & 100 SMART Centres
* ATDC-Apparel Training & Design Centre
Incubation in Apparel Clusters (Differential Creating
Innovations)
Functions: •Research & Benchmarking •Identifying new raw materials of fashion (new fibers/ fabrics) •Knowledge creation & dissemination •Digital library •Subscription services
Funding: Various sources including Govt., Research Institutions, etc.
Functions: •Product Specialty Centres at ATDC Hubs (e.g.. Knit Specialty Centre at Faridabad)
•Acquire new machinery & technology •Capacity building & training jointly by IAM & ATDC
Funding: Capital Grant s from Ministry of Textiles
PPP Industry-AEPC-Govt. Support
Functions: •Technology diffusion & deployment •Industrial development •Creation of innovative Garments
Funding: TUFs of Ministry of Textiles
Dr. Darlie Koshy Design & Fashion Management Strategist
0124- 4659515/14 | www.darliekoshy.com
Thank You
“BEST WAY TO PREDICT THE FUTURE IS TO INVENT IT”