August 2010 management briefing: Distance to market
In troubled economic times it is safer to order small, often and close to home. Conversely, will the return of relative stability see textile and clothing firms ramp up their sourcing from manufacturers with low labour costs in Asia, no matter the distance to market? just-style's latest management briefing takes a look.
Recessions always shake-up markets, exposing weaknesses and vulnerabilities: the slack go to the wall, and the robust survive. It has always been that way. And so it has been with this most recent deep and traumatic recession. Simply, in troubled times, it is safer to order small, often and close to home.
Looking at performance on a global market positioning basis, rather than geography, the last two years have been challenging for all global textile and clothing producers, as demand waned and customers put off purchasing decisions.
The complex relationship between distance to market issues and other sales boosting factors is also illustrated by the experience of Turkey in the recession.
If any country was likely to be vulnerable to a collapse in sales from a global recession it was export-oriented China. The fact remains, however, that China's textile and clothing industry is still in reasonable shape.
- Li & Fung looks to new frontiers for growth
- SOURCING: Worldwide change in cost competitiveness
- Gap impressed with supply chain improvements
- More licensing and less M&A for Global Brands
- Better Work programme poised to expand
- China minimum wage rises will be tough to handle
- Cambodia garment industry hit with fresh strikes
- Cambodia mass faintings rise to 896 in first-half
- Ralph Lauren unveils high-performance Polo shirt
- Cambodia garment makers condemn strike protests
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details
- Global market review of denim and jeanswear – forecasts to 2020
- Prospects for the Textile and Clothing Industry in Turkey
- Global Database of the Top 1000 Apparel Knitting Mills - Company Names, Financial Performance, Key Executives, and Contact Details
- China - ISA Country Report