Saturday, 21 May 2016

The Online Solution To Stop Fraud In Textile Market

Fraud In Textile Market,

With more monetary freedom at one’s disposal, global consumerism is on an upswing. For the consumer fraternity, the textile market and apparel industry have been amongst the favorite sectors to shell out the bucks. The shift in demographic preferences can be easily figured out from the emerging market trends highlighting the global demand for apparels and the corresponding market competitions in place. The textile industry is representative of a variegated spectrum of activities ranging from cottage spinning and weaving sector at one end and capital intensive mills at the other.

The decentralized power looms, hosiery industries and knitting form the major bulk of Textile industry. They are further subdivided into organized and unorganized business houses. The unorganized sector areas are less controlled by regulations as most of them are not registered.

Plight Of The Small Scale Textile Manufacturers
The small scale textile houses and the textile cottage industries are often plagued with corrupt practices. As a result, the genuine manufacturers suffer a great deal as they are denied a fair participation in the market.
Especially, the labor-intensive cottage industry for textiles suffers to a larger extent as they do not have access to the mainstream information that is requisite to find a market for their products successfully.
The poor artisan is further subjected to extreme penury, as all his investments go down the gutters due to the lack of market access. The excess goods are subjected to dumping effect and realization of profit is a far cry. The exploitation is given further edge with a dearth of capital inflows.
Due to the lack of target distribution of capitals, policies and benefits fail to permeate the masses. This results in fewer choices in the market and the dawning of a monopolistic pattern of trade. This is detrimental to the free trade practices.
Riding on the back of acute unawareness of internet-based exposure, the unscrupulous elements jeopardize the flow of commodities. Should such things be allowed to persist, the stunted supply of products would unnecessarily helm in inflation juxtaposed with ruthlessness.

Time For Comprehensive Initiatives To Stem The Flow Of Corruption
  • Setting up of comprehensive textile informatics center for skill development and capacity building though the circulation of an e-book, e-gazette, and other dedicated websites.
  • Setting up of Market Intelligence Unit for economic research, integrated research & development, deliberations on competitive prices and dissemination of trade related information.
  • Integrated platform for sharing of ideas, addressing investor queries and provisions for feedback of the laborers and mill owners on the questions of viability and profitability.
  • Standard Operating Protocol to prevent dumping of textile goods and deterring unauthorized hoarding practices.

The Benefits Of E-Commerce Revolution
  • No middlemen involved in selling. It is done directly to the customers through a business to business model of electronic data interchange.
  • Allows communication and real-time transactions irrespective of time and place.
  • Individuals and companies can showcase their items and sell across the globe, thus gaining wider market accessibility.
  • Product specific information along with scope for wholesome research of product spread.

Necessity Of Digital Empowerment
Establishing technological infrastructure is no more a question of avocation but of dire need, when it comes to the issue of prevention of illegal activities to distort trade.

Today, the market is in need of bias-free best practices to be carried out. Ensuring a level playing field for all the players would bolster not only the multiple stakeholders in textiles but also serve greater holistic causes like the generation of employment.


Moreover, investor sentiments would be spiraling downwards for a market plagued by corruptions and fraud. Legalizing manufacturers through widespread registration and streamlining standardization procedures need to be implemented. A more comprehensive online drive would mitigate the shortcomings and lead towards a sustainable future of textile industries.

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