Financial Times

Small business development
Succeeding in the niche apparel market
Clothing and apparel is a cutthroat industry. For small businesses to survive – and thrive – they need to create products that are emotionalized, authentic and, above all, differentiated. These businesses must be able to differentiate themselves from their direct competitors and establish themselves in customers’ minds.

Abdul Jameel, with his wife Raiza Jameel as the fashion designer, started an apparel business in 1988 with one sewing machine, which later became known as R&J Apparels Pvt Ltd.

Now after 16 years of specializing in ladies wear, they have 150 sewing machines, 250 employees, and most of all, they have brands such as Jezza, She-D, Vatsa and Lisi that are renowned for quality in the fashion market.
Gayathri Jayadevan, Business Development Specialist at the International Labour Organization - SIYB Program, who has been writing this series on small business development, spoke to Abdul Jameel to find out more about how to meet the changing demands in the fashion industry.

The birth of R&J Apparels
When I was a training manager at a textiles shop in Badulla, female customers would request particular designs to be custom made for them in their choice of selected fabrics. This emphasized the existing need to keep up in the fashion industry, and after speaking to 20 or so people, I knew designing my own clothes had a potential.

Start-up challenges and setbacks
Like many other businesses, R&J experienced its own share of setbacks and difficulties. In the start-up phase, the staff expected better benefits which we could not afford, and there was no recognition or incentive from the government for growth-oriented entrepreneurs in the domestic apparel industry.

Due to these reasons in the early days, though we had potential for more variety, our product line was limited. As sales increased, we managed to lower our production costs significantly, increase our margins by 20-25% across the board and expand to a wide range of product line.

Marketing a clothing line
Though difficult it may be for small businesses (limited resources and all) - success comes to those who take risks and are able to communicate that it offers something new, fresh and innovative. Most of all, they must create a brand R&J Apparels, has been successful in establishing itself as a young brand in the ladies wear apparel market with the labels Jezza, She-D, Vatsa and Lisi which are well recognized for office, exclusive and casual wear.

These are now widely available in maor stores such as No Limits, Kandy Tex in Wattala, Tilakawardane Textiles in Kiribathgoda and Prasad Tex in Piliyandala. “The initial reaction of dealers and buyers when it comes to taking on a new brand was very conservative. We got a lot of “NO THANKS”.

Through dogged persistence and perseverance, we worked on carefully reaching our audience using strategies that will not empty out their pockets. We relied heavily on fashion shows, search engine optimization, and word of mouth to create brand awareness.

I participated in the Expand Your Business training of the ILO through Start and Improve Your Business Association. Among many practical outcomes, the situational analysis made me think about where the business was and how to map out future marketing opportunities.

Road ahead
In 2010, R&J is projected to capture 10 per cent of the market share for ladies wear. We want to continue to design quality ladies wear customizing to the taste and needs of lower to middle class Sri Lankan women. By increasing the production capacity and the product range, we are aiming to increase our distribution from 175 dealers at present to 1000 dealers island-wide in 5 years time.

For other growth-oriented entrepreneurs, Jameel shares the following lessons:

* Recruit and work with people who have the ‘can do’ attitude, are passionate, and creative.

* All managers should lead the organization with clear direction in the short term and long run.

* In order to survive in the fashion industry, anticipate about new trends and competitors, be proactive and respond well.
Jameel can be contacted at
abduljam@sltnet.lk (www.jezzafashions.com) while the writer can be contacted at gj@siyblanka.com (www.siyblanka.com).

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