If 2009 was a year of struggle for the global clothing and textile industry, as manufacturers and retailers alike battled to cope with the depth and severity of the worldwide recession, then what lies ahead in 2010? Sourcing winners and losers, trade agreements, customs reform, emerging retail trends and the outlook for retailers and consumers are just some of the topics discussed in the latest briefing from just-style.

Searching for those elusive "green shoots" of recovery following the economic turmoil of 2009 will certainly top the agenda for the apparel sourcing community this year.

But of course they'll also be doing this against a backdrop that is very different to the one they were working in just 12 months ago. 

Then, the main challenge was to simply stay in business after the depth and severity of the worldwide recession left many clothing and textile companies reeling.

In developed markets, the financial sector froze, giving companies a hard time in getting access to funding. Inventories piled up while shoppers kept a tight hold on their purse strings as the so-called 'credit crunch' and fears of unemployment took hold. And suppliers around the world went out of business as orders dried up.

2009 hangover
For the apparel sourcing community, the "2009 hangover" is how Josh Green, founder and CEO of Panjiva, the New York based firm that provides information for retailers and importers seeking new sources of production, describes the new sourcing landscape.

And the most important legacy he identifies is that "everybody has downsized so most teams are smaller than they were before.

"But the challenges of global sourcing have not got smaller; quite the opposite, in fact. Sourcing departments have in most cases been tasked with doing more than ever before but with fewer resources."

So even if the economy recovers in 2010, he warns, "companies are going to be hesitant to scale teams up again, meaning that sourcing departments will need to continue doing more with less."

Risk management, too, will also move to the top agenda Green believes, as companies switch from focusing on reducing sourcing costs to managing sourcing risks - ranging from the likelihood of suppliers going bankrupt or not having the necessary capacity, to the dilemma of which country to source from.

Re-visit sourcing strategies
Given the major shifts and changes that have happened over the last 18 months, firms are advised to re-visit their sourcing strategies and look again at where they're sourcing and what they're doing.

Mike Flanagan, chief executive of Clothesource Sourcing Intelligence, points out that for the first time the apparel sourcing community is facing the "post post-quota world" after the US and EU finally lifted all restrictions against garment imports from China and Vietnam in 2009.

These "last shackles on China and Vietnam" had sheltered the rest of the world "from the full force of their competition," he notes, adding that successful garment exporters in the year ahead "will be those that adjust to the reality of the post post-quota world."

There's no doubt the struggles of the past year have forced retailers to examine their businesses more closely too, with most cutting costs to counter dwindling consumer spending, right-sizing inventory to hold steady on prices, and gaining a greater understanding of their customers.

In truth, most of these changes were long overdue - and the companies who have survived have in many cases emerged all the stronger for it.

Look ahead with caution
But even as they bask in the glow of better-than-expected Holiday sales, experts warn that trade is unlikely to continue at this pace since household incomes remain depressed and tax rises are on the horizon as Western governments attempt to settle the bill for the banking crisis.

On the sourcing front this will translate into a push for small runs from suppliers who are spread across multiple countries.

But speed is going to be key too, with retailers not only holding smaller inventories but also seeking the ability to restock quickly on those products that sell well.

There are also a number of possible changes in duty-free arrangements looming on the horizon, coupled with ongoing worries about renewed protectionism on clothing imports into the US and EU - all of which have the potential to impact future clothing manufacturing, importing and retailing decisions.

While many of these may not pan out in 2010, the industry's long lead times, which sometimes see orders placed up to a year in advance, make it imperative that firms keep a close eye on developments.

Also on the radar again are product safety issues and social responsibility, both of which assumed a lower profile in 2009 as companies focused on survival. But as the economy stabilises they are likely to rise to the fore once more.

And opportunities remain for fast fashion, value and multi-channel retailers, while the popularity of social networking is also likely to provide an enthusiastic audience for marketers in 2010.

Click here for more information on 'Apparel industry issues to watch in 2010,' the latest management briefing from just-style.