The role of sourcing offices is getting more complex by the day as only a few are able to give full satisfaction to their customers. Goldmark Development Limited is among the few sourcing houses that offer their customers anything and everything connected to apparel industry – from design and sourcing of fabrics to sampling and production. “Our design capabilities are our forte. We do about 300 samples every month for our customers. They just need to tell us what they want and we give them exactly that,” averred Garry Mehta, CEO, Goldmark Development Limited with pride.
With over 27 years of experience in manufacturing best quality knits and woven garments, Goldmark first entered Vietnam in 2005. In little over a decade, the company has become a force to reckon with in the country. “So far the experience in Vietnam has been very good and I must say that the longest we stayed in any country is Vietnam. That speaks volume about the country,” said Garry.
The company today has corporate offices in Vietnam and offices in Bangladesh and Ethiopia as well. In Vietnam, Goldmark is mainly into bottomwear, which accounts for 90 per cent of their business. Of this, about 60 per cent constitutes denim and 35 per cent non-denim (both men and women), while 5 per cent is knit and woven tops. In Bangladesh, the company specializes in developing and manufacturing tops. However, of late, they have ventured into denim as well from Bangladesh. “Most of our premium and cost-effective denim, especially for the Canadian and European markets, takes place in Bangladesh,” confirmed Arusha Mehta, Marketing Director, Goldmark Development Limited.
The company has recently opened its office in Ethiopia; and though at present the business is centred around uniforms, they are highly optimistic of getting business for denims also. In Bangladesh, the company has 4 joint factories with plans to invest in another garment factory that has 48 lines equipped with all latest machines – A factory that will make pants and jeans and be WRAP certified.
In Vietnam, they work with 5 factories – the prominent ones being Demco Vina and Protrade. “What makes Vietnam stand out is not only the excellent connectivity the country has with China and USA but also its ability to deliver consistently and successfully to its full potential. The price has definitely gone up but by and large the industry is growing. It’s amazing that in 2005, we had the mills’ and factories’ count on our finger tips, but today there are so many factories and mills, since everybody has increased their capacities significantly. Also, lot of business has shifted from China because it has got expensive and therefore, immense pressure is there now on Vietnam factories especially in terms of business,” remarked Garry.
However, Garry is quick to express his concern over the increasing labour cost in Vietnam. He feels prices will only get higher in the years to come and that is worrying. This is also the reason that many factories are moving into interiors and rural areas like Zone 3 and Zone 4 where the labour cost is comparatively less. While expressing his discontentment over the fact that in the coming years, Vietnam will not be the place for low- and medium-priced retailers, Garry added, “Though the country is good in terms of quality, infrastructure and importantly education, one must note that the operators and garment workers are today focusing on providing better education to their children and over a period of time, there will be no workers available in the country. This will be a big issue in the years to come.”
Corroborating Garry’s view, Arusha said that “as far as quality is concerned, Vietnam can never falter in the eyes of the customers, but today price is becoming a big concern.”
With a production capacity of 3,00,000 pieces per month from Vietnam, Goldmark Development Limited today boasts of clients like Perry Ellis, Next, London Fog, Jaytex Group, among several others. Interestingly, some of these clients like Perry Ellis have been associated with the company ever since the company’s inception – nothing better to justify the company’s commitment to excellence.
Denim has today become synonymous with the company and this is evident from the fact that the production capacity ratio of denim and non-denim is 60:40. “With Perry Ellis, we got slotted into denim and couldn’t actually venture into other products. That’s why now in Bangladesh we are pushing all the other products like blouses and shirts, though we have started with denim too there,” said Garry, while reasoning why denim is the face of Goldmark. The company today has more than 40 fabric suppliers from China, Brazil, Vietnam, Turkey, India, Pakistan and Bangladesh among others who provide excellent quality fabric in less turnaround time.
Will low-cost countries thaw Vietnam growth…?
Garry shrugs off the apprehension that countries like Cambodia, Myanmar and Ethiopia an thwart the growth of Vietnam. He opined that Ethiopia does have good potential. In addition to having good infrastructure and supportive Government, the nation also has its own cotton. He says, by 2020, the emphasis on African Cotton Initiative will be very high and soon Africa may become the next sourcing destination. This makes Ethiopia the next big thing. However, it’s still not good enough to give Vietnam sleepless nights. “Ethiopia is duty-free, safe haven and a long-term investment and not to forget that it is politically stable and democratic. However, I must say that it will take at least 10-15 years for Ethiopia to match Vietnam,” mentioned Garry. In the meanwhile, the company plans to source local raw materials in Ethiopia, which will also enhance the economy.
Cambodia too has a long way to reach anywhere close to Vietnam. The nation still has lots of holidays, besides not to mention the labour unrest and strikes that occur in the country frequently. This is unlike Vietnam. “In Vietnam, people respect their jobs. They are not misused or forced to do things. They are paid on time; and when people are paid on time, they will be happy…, and as rightly said, ‘Happiness breeds better performance’. So it’s good here. If you ask me I would say that Vietnam today has competition only from Bangladesh and no other country,” reasoned Garry.
Core strengths of Goldmark…
People constitute the strength of the company, and Goldmark not only ensures that people are paid well and stay happy, but also runs welfare schemes and programmes for them. Considering that many people have been working with the company for several years, is testimony to the fact that Goldmark cares – and cares well – for its employees.
Goldmark Development Limited today has a wide network of garment manufacturers and suppliers who help them in accomplishing the orders of their customers in 60 to 90 days from the factories – all of which are socially compliant. With excellent design teams, product development teams, strong network of fabric and trim suppliers, highly facilitated sampling rooms and importantly the commitment to deliver quality service, Goldmark Development Limited is all set to grow its base in this country and in Bangladesh and Ethiopia as well.
