Blog: Leonie BarrieEconomies of scale

Leonie Barrie | 20 August 2003

For several years now, international clothing industry consultant and just-style.com contributor David Birnbaum has been prophesying that post-2005 the garment industry will be dominated by a small number of huge trans-national suppliers who will control 70 per cent of world apparel exports. Many of these, he believes, will be based in the Far East, because US and European governments, banks and other institutions do not consider the garment industry to be important or even viable.

Speaking at the World Apparel Markets conference in Brussels in 2001 he explained: “In the (near) future, you have 3 choices – get bought by Li & Fung, get as big as Li & Fung or get subsidised by your government so you don’t have to worry about Li & Fung.” His predictions now seem to be taking shape. This week sourcing giant Li & Fung signed a deal to sell its own Levi's-branded tops directly to US retailers, taking it into value added services such as design, marketing and distribution for the jeans giant.

Levi’s might be the first to outsource parts of its supply chain to specialists with faster and more flexible production…but it certainly won’t be the last. Remember you read it here first!

Life after quota


BLOG

Trump and Brexit generate more confusion

Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...

BLOG

Bangladesh works to resolve labour activist issues

The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...

BLOG

US border tax a contentious issue

Fresh from their disappointment at seeing the Trans-Pacific Partnership (TPP) free trade deal abandoned last month with an executive order by President Donald Trump, the US apparel and footwear sector...

BLOG

Primark's sustainable cotton programme takes shape

With the ultimate aim of ensuring all the cotton in its products is sourced sustainably, value clothing retailer Primark is adamant that having a business model focused on offering the lowest prices o...

just-style homepage



Forgot your password?