The Flanarant
By: Mike Flanagan
A forthright take on the follies the world’s apparel buying community has to deal with, from Mike Flanagan, CEO of Clothesource – and his suggestions for putting them right.
The Flanarant: Apparel 'slumpflation' is all-round confusing
10 January 2012
The biggest problem the world apparel industry faces at the start of 2012 is the ongoing combination of rising product costs and falling sales. The 'Great Apparel Slumpflation of winter 2011/2012,' as he calls it, is confusing everyone, everywhere, according to Mike Flanagan.
The Flanarant: Debunking the garment industry myths of 2011
22 December 2011
There's been a huge amount of confusion recently about the competitiveness of Chinese textiles and apparel. While China's not offering the prices Western apparel buyers would like, it is cheaper in relative terms than it was a year ago, according to Mike Flanagan. Here he debunks a few other garment industry myths that rose to the fore in 2011.
THE FLANARANT: Is own label about to collapse?
16 November 2011
With more and more own label apparel retailers eyeing growth in Asia and Latin America to make up for shortfalls in their domestic markets, Mike Flanagan asks whether a business formula that's running out of steam at home will now work abroad. Especially if it's fuelled by designers who have little connection to those foreign customers.
THE FLANARANT: Local knowledge is key to retail success
25 October 2011
With western retailers increasingly optimistic about business in emerging markets, does it also hold true that the industry will soon "be sourcing everywhere and selling everywhere"? Not according to Mike Flanagan, who believes most developing markets will stay small for a long time, and that locally-owned retailers will be the long-term beneficiaries.
THE FLANARANT: Apparel sourcing rules start to unravel
30 September 2011
Did the underlying principles of apparel sourcing completely change at the beginning of this month? Two events, happening more or less simultaneously in the US and Bangladesh, may well signal a complete reversal of how sourcing works, suggests Mike Flanagan.
THE FLANARANT: Is supplier liquidity the next sourcing challenge?
11 August 2011
For many in the global garment supply chain the recession that 's been hanging over the West has scarcely caused a dent in most Asian countries' growth. But it now looks as if many in Asia are about to be hit by a new problem - a serious liquidity crisis among many textile and garment businesses.
THE FLANARANT: Textile investments keep China's cutting edge
19 July 2011
China accounts for between 65% and 80% of the world's spinning and weaving capacity - and its textile technology investment in 2010 was higher than at any time in the past decade. So while buyers can shift garment production to cheaper locations, the reality is that they'll still be sourcing their fabric and yarn from Chinese factories, as Mike Flanagan explains.
THE FLANARANT: Is a Chinese productivity revolution next?
8 June 2011
It's no secret that wages are rising in China; indeed, a hike of at least 80% by 2015 is official government policy. But so too is increased productivity, with plans to double apparel output over the next five years. So while buyers need to think about their sourcing portfolio as China gets pricier, the country also has plenty of room to maintain its manufacturing strengths, says Mike Flanagan.
THE FLANARANT: A new retail model to cut clothing costs
16 May 2011
Most people agree the garment industry has reached the end of the road as far as continuously falling clothing production prices are concerned. But could the internet offer apparel retailers the next big opportunity to take costs out of the supply chain? asks Mike Flanagan.
THE FLANARANT: Are apparel factory owners the new Luddites?
11 April 2011
19th century Luddites had no way of knowing that mechanisation would ultimately lead to better productivity. But today's apparel factory owners have no excuse for failing to grasp that productivity improvements can often offset the cost of higher wages, writes Mike Flanagan.
THE FLANARANT: Arab unrest and its impact on the apparel industry
8 March 2011
When the Berlin Wall fell in 1989 it triggered events which indirectly led to garment and textile manufacture leaving rich countries. Is the current unrest in the Middle East likely to create anything so transforming? The answer may well be "yes," says Mike Flanagan, but not in the same way.
THE FLANARANT: Is RFID in apparel finally coming of age?
8 February 2011
With apparel retailers and brands looking for new ways to bring down their buying-in prices, could now be the time for Radio Frequency Identification (RFID) to finally come into its own? Mike Flanagan certainly thinks so, pointing out that costs are coming down, suppliers are beginning to collaborate, and benefits could include better management in garment factories.
THE FLANARANT: A change of focus is key for apparel firms
11 January 2011
Western apparel brands and retailers invest an inordinate amount of time on ambitious and elaborate programmes to tackle ethical problems - but on the issues that probably matter most, their performance seems to decline annually. Mike Flanagan suggests that "concentrate on what you can influence" should be the 2011 New Year's resolution for the garment trade.
THE FLANARANT: Strategies to cope with the end of cheap clothes
8 November 2010
Instead of bemoaning the end of cheap clothing, Mike Flanagan is challenging retailers and buyers to drive prices down again through creative new practices. They must work harder to offer their customers better value, he says, and put pressure on different parts of the supply chain to manage the factors that influence prices.
THE FLANARANT: Is India serious about garment making?
4 October 2010
If it's going to regain its share of the world apparel market, India's government needs to help its businesses regain credibility, argues Mike Flanagan. It can do this by announcing expansion programmes that materialise, by encouraging job creation, by eliminating pointless random expulsions of garment workers, and putting an end to the culture of denial of child labour.
THE FLANARANT: Uncertainty the latest threat to Pakistan makers
7 September 2010
Already hurt by a reputation for uncertainty, Pakistan's apparel industry has been hit again by the fall-out from the recent floods. The solution, according to Mike Flanagan, is to keep buying from the country, and to make sure Western aid is used to build an infrastructure that works.
THE FLANARANT: What's going on in Bangladesh?
10 August 2010
Mike Flanagan compares and contrasts government policy in China and Bangladesh and suggests it has a major role to play in the difference between the health of the two countries' garment industries.
THE FLANARANT: 'Made in China' continues to make sense
19 July 2010
It's impossible to predict how China's competitiveness will emerge from the four key forces of wage inflation, raw material scarcity, currency fluctuations and growing compliance needs. But it's hard to see any evidence of mass bankruptcies, as local media claims, according to Mike Flanagan.
THE FLANARANT: Government cuts set to hit EU clothing sales
1 June 2010
Unlike their US counterparts, many apparel retailers in Europe have seen sales remain surprisingly healthy throughout the recession. But this could all be about to change, believes Mike Flanagan, as moves by several European governments to slash their debts via tax hikes and public spending cuts start to curb the region's clothing business. For suppliers, the likely slowdown in demand coincides with rising costs.
THE FLANARANT: Indian cotton ban masks higher input costs
4 May 2010
The Indian government's recent decision to halt cotton exports has led to claims from textile-producing countries like Bangladesh and Pakistan that upcoming manufacturing deadlines will be missed. Mike Flanagan believes their claims are just a smokescreen that masks a more widespread rise in input costs as the economic recovery gains momentum.
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