Essay Globalization Effects In Apparel Industry

Essay Globalization Effects In Apparel Industry

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TABLE OF CONTENTS
TABLE OF CONTENTS 1
ABOUT THIS DOCUMENT 1
APPAREL INDUSTRY IN GLOBAL WORLD 1
Apparel Industry Overview 1
Lifestyle Industry Overview 2
Globalization Trends 3
Globalization - Integration of Functional Activities 4
FORECAST & PREDICTIONS 5
5-year Horizon 5
10-year Horizon 5


ABOUT THIS DOCUMENT
The pervasiveness of retailing in the western world leaves the industry open for careful analysis. This document is intended to expertly address global effects onto a single sub-industry of retail - specialty apparel. To do so, I will acquire perspective by considering all recent global developments in the industry.
First, this document captures the current environment of the mall-based lifestyle apparel retail industry and unifies these findings to highlight globalization effects on the industry.
Second, the document projects the future landscape of the industry over 5 - 10 years horizon; and states actual choices firms should embrace to better align with the industry's global environment.
APPAREL INDUSTRY IN GLOBAL WORLD
Apparel Industry Overview
As of 2004, the global apparel industry was valued at $768 billion dollars, and the United States made up $172.8 billion or nearly 22% of the total. The competition for these consumer dollars has accelerated with lifting of import quotas on textiles and apparel from most World Trade Organization (WTO) members in January 2005 . Absence of these quotas enables apparel makers to procure high quality merchandise from most reliable suppliers regardless of their country of origin. Nevertheless, many apparel retailers and their suppliers will probably want to maintain diversity of sourcing to avoid being hurt by so called safe-guard, protectionist agreements (e.g. U...


... middle of paper ...


...terialize, we might see some drastic changes in companies' strategies, where they might start to diversify and buy unrelated business to regain failing sales.
In the longer term, I also anticipate that the industry will move to more efficient, less fragmented sourcing where current quota system does not force firms to pick inefficient supply chains.
Rapid advancement in technology will continue making the world smaller, more competitive, and faster. Therefore, the firms ability to spot, integrate new technology into new business models will be essential.
In the end, I do not see it utopist to have custom-made everyday clothing, where consumer can design clothes with the help of online-technology and get it at affordable prices. Apparel firms will be online shopping stores, commoditize and outsource all of their key activities except marketing and brand management.

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