Finding signs of recovery in Spain and Portugal, Michael Scherpe, President of Messe Frankfurt, hopes to see the European economy getting better soon. Commenting on India’s prospect of generating interest in the European market, Scherpe says, “India can do much better as the country has good products in some ranges but has not capitalised on her strengths. In no way is India inferior to China or Turkey. Texworld and Apparelsourcing Paris can be the platforms. India needs to project herself and be present in many platforms. It is important to have visibility and an image.”
Throwing light on global sourcing scenario Scherpe says, “More and more countries will enter textile sourcing. Everyone knows Vietnam, Cambodia but Myanmar and Ethiopia are set to follow. Africa will assume importance in the next 10 years. Some of the countries will have more to do with their home market. Some countries like China will upgrade but to have more local market.”
Commenting on the slow growth of global consumption of textile, Scherpe feels, price is a problem. No one likes to pay more but it’s not possible to give discounts. “Buyers must realise that the minimum has been reached. It is also true of turnover. Every time you can’t grow 10 or 20 per cent. Growth will come in volumes. Volume of turnover is the other problem. This is a war between different product groups. If someone gives the customer a lower price he will take it. So retaining the customer is a problem,” he explains.
The Messe Frankfurt chief ruled out allegations that fashion industry has not been able to retain customers like other industries have done. He said, “Today customers are brand oriented and brands are concentrated in some companies. If I have a strong buying power I can keep the price down. It is a problem of concentration. There are a handful of brands, a problem of micro economy. The macro economy has to be organized to suit everyone.”
He believes European buying pattern has not changed. “Buyers have to consider the aspirations of European customers. They want sustainable products. They would like to give these at the same prices. At the moment there is something starting in Europe but it’s not strong enough. It is wrong to say Europe is sinking. People live better than in other regions. I think Asia has better living today than 30 years ago.” The European market is the most difficult market. It’s more demanding than the US.
