HIVOS, Equity Bank and the Association ò Fashion Designers of Kenya (AFAD) released on Tuesday, 21^st, June 2016 finding of research of Kenya´s fashion and textile industry. The study focused the role of fashion designers and small tailors in the fiber to fashion value chain and provided the circumstances of local fashion sector and the barriers needed to get over to boost Kenya´s economy. Here are some bullet points from the presentation and the 100 page of document.

As we have known so far, Kenya is the pool of fashion designers and small tailors. It gives this country a potential to serve the global, domestic and regional markets with variety of products. Kenya is predicted to be a pathway to industrialization because of its incredible economics potential. That said, the T&C sector, only contributed 0.6 percent to the GDP and accounted for only six percent of the manufacturing sector. According to the report, after a rich history spanning 100 years, the players currently in the Fibre to Fashion (F2F) value-chain include, ‘22 large foreign owned companies operating in the Export Processing Zones (EPZs), 170 medium and large companies, eight ginneries, eight spinners, 15 weaving and knitting companies, nine accessories manufacturers and over 75,000 micro and small companies, including fashion designers and tailoring units.’

Executive Summary: Domestic Market

Current products of Kenya offering in the T&C sector relies on Cut, Make and Trim (CMT). However, the study recommends a shift into Full Package Service Provider (FPSP)  and Original Design Manufacturing (ODM). This shift will lead to job creation, income generation and investment attraction, the promotion of entrepreneurship as well as technology adoption. Futhermore, Kenyan T&C Industry also pointed out the challenges facing local fashion designers and small tailoring houses to develop and integrate the Clothing to Fashion Value Chain.

Here are some challenges.

• Lack of policy coherence and institutional alignment;
• Low level of value addition and a disconnect between the apparel sector and the rest of the value chain segments;
• Supply side constraints with regards to quality and price of fabrics, with focus on afro-centric cloth and garments;
• Weak business environment;
• High cost of production and built-in systemic inefficiencies, such as utilities, administration, inefficiencies, and cost of finance;
• Lack of market readiness;
• High cost and difficulties to access credit and finance;
• Predominance of SMEs operating in the informal sector;
• Lack of visibility of the Kenya’s design capabilities and absence on the formal retail platform;
• Illicit imports and negative impact of second hand clothing;
• Lack of a clear national policy on textile and apparel;
• The machinery and equipment are old and inefficient;
• Scarcity of skilled and trained labour (engineers, merchandisers, supervisors, top management.);
• Lack of appropriate industrial infrastructure for MSMEs;
• Kenya is a sophisticated market for fashion wear (highly westernized) with limited ethnic and traditional wear;
• Most of the MSMEs operate in the informal sector;
• Absence of an appropriate platform to showcase designers’ savoir-faire;
• Local designs are of good quality, however garment making needs improvements;
• Too many trade support institutions catering for the MSME sector, without proper alignment;
• Lack of policy coherence;
• Lack of a clear strategy to promote local designers to enter the domestic, regional and international markets; and
• The tourist industry remains inadequately catered for.

Executive Summary: Global Market

According to the report, in order for Kenyan companies to successfully access global markets, they will need to:

1. Updating the demand of international markets and trends that are changing the global apparel landscape.
2. Using the particular advantages of Kenya which is better than the near competitor as Ethiopia.
3. The sourcing risks is the main concerns of Western brands so make sure to eliminate the risks
4. Pursuing several high-priority investments and opportunities that will best position Kenyan clothing designers, textile producers, and manufacturers to build a defensible strategic advantage in this very competitive market.

While fast fashion has become a major trend shaping the global consumer landscape, it may not be the right route for Kenya to pursue. For starters, the distance between the U.S (Kenya’s main destination for exports) isn’t favourable for the turnover time required for fast fashion. However, the report suggests that the second major global trend, conscious consumerism, a valid avenue for Kenya to pursue.

Three priority areas they’ve identified that do need immediate attention to grow the industry are:

1. Keeping long – term investing in the transportation and electricy infrastructure, subsidizing power in the short run for exporter.
2. In need a governmental or non governmental apparel industry organization that can do the marketing and designer and manufacturer support on training and coordination.
3. Take  a move to develop the social and environment compliance element to ensure the benefit comes along with environmental friendly, appealing sourcing destination for global brands.

The report goes further to discuss the apparel market demand both globally and domestically, in detail, as well as, the background of the apparel industry.

Source http://tdsblog.com/kenyan-fashion-industry-report/