Malaysian Fashion Manufacturers Eyeing Western Markets

New York - If in the past it was best known for its palm oil and rubber products, Malaysia is now increasingly perceived as a supplier of sophisticated technical products and solutions.

It is also quietly entering the hitherto neglected haute couture terrain as more and more Malaysian fashion garment manufacturers are discovering, much to their pleasant surprise, that they can still get a slice of the global fashion pie if they offer new designs and high-quality fashion products.

There are a few budding fashion designers from Malaysia such as Erik Cheong and Nazleen Noor, both from Kuala Lumpur, who have exhibited and exported their products in Western markets.

Of course, New York-based Zhang Toi, who hails from Kelantan, has become a force to reckon with in the international fashion world, and his exclusive clientele base consists of not only the rich and famous but also many Hollywood stars.

Small and medium scale Malaysian fashion garment suppliers are now also entering, albeit belatedly, the global arena.

Anita Hiong, managing director of Kuala Lumpur-based Elit Purnama Sdn Bhd, for example, demonstrated her business acumen when she bagged a 100,000 euro contract last October from a French company called Lesther SA France.

This was the first European contract secured by Elit Purnama whose hitherto business efforts were confined to the Asia-Pacific region.

"We are fashion designers with our own manufacturing facilities in Kuala Lumpur. We have 35 employees, including six in-house designers," Hiong said in an interview in New York during her recent visit to the United States.

"Our turnover was around RM6 million in 2007 but this year we expect our turnover to increase to over RM8 million as a result of the French contract last year," she said.

Elit Purnama, which manufactures for external private labels and also sells its own brands, regularly participates in international trade fairs at venues as diverse as Hong Kong, Madrid, London, Paris and Melbourne.

"We use mainly Asian and European fabrics made of viscose, jersey, cotton and eco-friendly fabrics made from bamboo and hemp," said Hiong who was in the US for three weeks.

According to her, the US, the worlds biggest fashion market, offered an excellent platform for business networking.

"Yes, I have visited New Yorks fashion district on Seventh Avenue and also met agents and representatives of fashion stores who have been showing a keen interest in our line of products and are not averse to Malaysian designers as a result of their dealings with other Asian suppliers, notably Indians and Chinese," she said.

But she also acknowledged that Malaysia needed to do more to leave a mark on the worlds fashion scene.

"The impact is not as strong as we would like it to be," she said.

"Tourism Malaysia has promoted some fashion designers to demonstrate the countrys creative abilities in fashion designing, but this has not been done in a commercial manner. I am therefore working closely with the Malaysia External Trade Development Corporation (Matrade) to promote our products," she added.

Hiong maintained that she had made "at least 300 cold calls" to fashion buying houses in the United States.

"I have, finally, landed a good order worth about US$150,000 from a US buyer with the prospect of getting more business," she said, declining to name the buyer "because this would not be appreciated".

"Americans love European styles and fabrics but they are now also buying these styles from Asians because they are much cheaper. Ethnic designs and bohemian (blending of East and West) styles are currently popular in the United States," she added.

Hiong also said that many Americans were not familiar with Asia`s geography and would often pose the "Where`s Malaysia?" question.

"I am not surprised by this question because I expected it at some point of our negotiations. Indeed, I even carry literature about Malaysia and its major industries," she said, recounting her experiences with American company executives.

"This is also the reason why I would like the Malaysian Government to highlight and popularise the Malaysian fashion industry abroad.

This could be done through various channels such as Matrade and Tourism Malaysia so that the public abroad obtains reliable background information about Malaysias potential as a supplier of exquisite fashion garment products," Hiong said.

The Malaysian Official Designers Association and the Malaysian International Fashion Association have made representations to the Malaysian Government to promote Malaysian fashion products, she said.

Hiong also acknowledged that Chinese and Indian fashion garment designers were foraying into the Western markets with success, and thus also providing visibility to their fashion creations and designing capabilities worldwide.

"But I notice that Western buyers are also open to designers from the Asean region. They have been getting exposure to suppliers from Thailand, Indonesia and Singapore where they get official support from their respective government," she said.

"However, I have also seen some positive things about supplies from Malaysia. For example, Wal-Mart, the largest US store, has been buying apparel in Malaysia," she added.

However, Malaysia`s biggest problem is its pricing.

"The cost price is, of course, an issue for buyers. Besides enhancing the value-added attributes of their products, Malaysian suppliers must find ways and means to keep down prices without compromising on quality," Hiong said.

"Another good way to get buyers interested is to provide them a `total solution` which simply means a door-to-door delivery. We work from the very basic stage to the finished delivery phase. We take over completely," she said.

Was it worth her time and money coming to the United States?

"Yes, it was very much so. Despite fierce competition in the fashion arena, the US is still the worlds richest market and offers a place for newcomers," Hiong said.

"You have to be `different` from the rest of the pack and offer value-added attributes. My batik, for example, is different from the routine stuff one gets to see from Malaysia," she said, adding this piece of advice for Malaysian suppliers interested in breaking into the US market. (By Manik Mehta)

Source: www.bernama.com.my (June 04, 2008)
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