TJD International Holding Company Performs Analysis on the Apparel Manufacturing Industry

The largest company is Boutique Knitting. In Canada, the major Sweater manufactures are located in Ontario Quebec and Manitoba and in 1996, the Sweater sales was totally about 500 million USD. Current competition is Coopers Knitting, San

The clothing industry in the US entails more than 100,000 stores with combined revenues of over 150 billions dollars a year. The giants within this industry include Abercrombie & Fitch, GAP, Urban Outfitters, and TJX Companies, which I shall be concentrating on

Although the Chinese apparel manufacturers would lose profitability due to rising cotton prices and competition from emerging countries, they stand to gain the most from the removal of U.S. quotas and tariffs. According to the author, in 2007, 95% of the 20 billion garments Americans made were purchased overseas. Due to U.S. trade barriers, China’s share of the U.S. apparel import was only 30%. Once these barriers were removed, Chinese apparel would flood the American market due to their low cost and dominance in garment manufacturing. Experts predict that China could eventually supply 85% of U.S. apparel. As they increase their market share in the

2. Richard M. Johns (2006). The Apparel Industry. 2nd ed. UK, London: Blackwell Publishing Ltd.. 1-124.

The clothing manufacturing abilities and skills are really advanced and are still fairly cheaper than the United States fashion labels. With China’s production cost now starting to go up, American brands are starting to investigate other possibilities such as Vietnam, India, Indonesia and the United States also. Companies do offshore production because they believe that it is cheaper to make things in poorer countries. They feel that if you want lower prices you go overseas were they use cheap labor and if you want garments made of better quality, you should stay in the United States. But this is not entirely true, there’s certain kinds of clothing that are made in the U.S. of good quality at a very reasonable price and there’s other clothing that’s not.

First, MIT’s Observatory of Economic Complexity 2015 China export visualization also shows that garments account for 16% of the goods imported by Americans.

SUPPLIER POWER – MEDIUM: Many producers of textiles, raw materials for apparel, large apparel companies would catch their attention. However some apparel in this industry is

By the 1990’s, even though a somewhat large percentage of clothing was still being produced domestically, famous companies such as J.C Penney and Gap Inc., started to slowly decrease the number of clothes being made by them in the U.S. They’d still design and market their own clothes but they decided to outsourced production to factories overseas where their clothes were being made at a fraction of the cost (Vatz, 2013). Companies see offshore production as an opportunity to make their business more profitable. Manufacturing offshore offers the ability to produce huge amounts of orders significantly reducing the cost of production. Hence, the reason why a lot of factories have moved to places where laborers get paid almost nothing for their work and the government doesn’t have laws or regulations to protect workers. For companies, it basically means cheap labor and materials and more money in their pockets; for consumers, this means low retail prices for pieces of clothing of questionable quality; and for the United States, it means a decrease in local-garment making industry and less apparel manufacturing

The research of the external environment for American Apparel should have notes about each one of these factors political, economic, social, and technological. These factors will have influence over the

Manufacturing. The manufacturing process is labor-intensive. The manufacturing process is relatively simple, and firms source their apparel from Asia, which has low wages.

In order to have higher profit margin, one of the most effective ways is to cut down production costs. In view of the low labor cost in developing countries, global sourcing seems to be a good choice to reduce costs. With the development of global production networks and the increasing competition, fast all fashion clothing firms have shifted their manufacturing operations to low lost locations over the past decades.

The clothing industry in South Africa has always been an industry where there is intense rivalry between the companies. There are main companies in the industry namely Edgars, Woolworths Truworths, but there are smaller retail companies that enter the market that can satisfy the demand of the consumer’s better.

There are segmented clothing and retail industries around the world. Therefore, there are provisions for a smaller number of firms in the industry. Although Creación has direct competitors like Jovian and

Faruqui, M. (2014, July). Nobody can beat Bangladesh in price and quality. Retrieved from http://www.textiletoday.com.bd/magazine/873

The world’s leading brand in the ready-to-wear sector has been the Inditex Group with Spanish origin and 23 billion 74 million dollar turnovers. The Inditex Group has been ranked 43th on the world’s retail list. Hennes and Mauritz (H&M) from Sweden, followed Inditex with 21 billion 678 million dollars and H&M was ranked 47th on the list. If we consider the developments between 1998-2002, Inditex, the world’s fastest growing apparel company with