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.
- What the EU-Vietnam trade deal means for duties
- Ultimate frontier Myanmar uplifts Bogart Lingerie
- US apparel retailers' January 2016 sales roundup
- US apparel import growth led by Bangladesh
- Esquel backs Chinese Sea Island cotton production
- Sears looks to lift apparel via sourcing changes
- Direct sourcing helps M&S narrow the gap with Next
- Eco-friendly garment factory opens in Bangladesh
- Clothing and sports chains in activewear battle
- Nike accelerates digital strategy with new hire
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Wearable technology: The future market potential for smart garments and e-textiles
- Global market review of denim and jeanswear – forecasts to 2021
- Practical Price Negotiation
- Wearable Technology Market by Product, Application, Type, & Geography - Global Forecast to 2020