Value Chain And TNG

• The enormous surplus of labor in China imperils workers worldwide as international competition puts incessant downward pressure on wages and working conditions, leading the apparel and textile industries to favor the cheapest and most Draconian producers.

The high demand for clothing meant that the textile industry had to increase production. Its output increased from 40 million to 2 billion in 65

The relevance of this book can be measured by its ability to speak to the everyday individual, who may or may not know anything about economics, and plant the seed toward global economic education. It provides a keen social awareness to people who may or may not ordinarily care about international economics and can have an eye-opening effect toward what really happens in the textile industry.

Over the course of little more than a decade, Vietnam has become a significant exporter of garments to the EU and Japan, and now to the Australia too. Textiles are a vital component of Vietnam, presently accounting for nearly half of the country’s manufactured exports. As clothing is some of the most synchronized operated sectors in the world, it accounted for 16.5% of the total earnings in the year 2002(Nadvi et al. 2004).

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

Nike, Victoria’s Secret, GAP, Levis, Nordstrom, Calvin Klein. Other than their status as large fashion retailers, they all have one thing in common: the International Textile Garment and Leather Workers’ Federation condemns their use of overseas sweatshops. Goods manufactured in Sri Lanka, Indonesia, and many other Asian and African countries are often made in less-than-ideal conditions for low wages. While opponents of overseas labor champion stricter trading laws, this form of supply-and-demand economics remains a vital part of the global economy, as it enables prices to remain low in developed countries and employs many individuals in distant, poorer areas.

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

Rivalry among existing competitors: The apparel industry is highly competitive with a great number of both local and global competitors. As the market is mature, its growth is small. Accelerated growth and expansion to new markets are not easy goals to achieve. The barrier to get out of the industry is quite low for distributors, but high for producers. Most fashion manufacturers moved their production base to low-cost countries like China as wage and raw materials in developed markets like Western Europe are high. Besides, there is no great discrepancy in terms of quality of products, so customers make their purchase choices based on price and brand recognition.

According to the data, the total volume of textiles exported from China has started a continuous rapid growth since 2001 (the year of China’s accession to the WTO) as shown in the first graph above, which roughly

The clothing industry, as one of the most globalized industries in the world (Bonacich et al 1994), is currently undergoing a restructuring, especially the fast fashion sector. Fashion markets are synonymous with rapid changes and short product life cycles. Therefore, changes in consumer demand for newness and fashion trend force the emergence of ‘fast fashion’ strategy in retailers like Zara and H&M and shifts in the focus of competitive advantage from price towards quick response. That is to say, clothing firms, which are adopting global or offshore sourcing strategy, are not considered to have more competitive advantages as before.

"Napoleon said of China "Let China sleep, for when she wakes, she will shake the world." This assumption turned out to be true, particularly these two last decades. As a matter of fact, China has undergone two restructuring processes: the industrialization and the transition from a centrally planned to a market economy since the early 1980 's. Thus, Chinese government has been implementing an economic reform to reinforce its rapid growth. China is now awake and is already a major actor of the world economy, widely open to the world. It has reduced its trade barriers and has managed to attract huge foreign direct investments thanks to which China could improve its

The world has become fascinated towards the fashion. The first thing need to be considered is Fashion; it can be behavior, implementing new ideas on clothing’s, hairstyle, decorations and so on which are automatically linked to our day to day activities. In today’s context, fast fashion has become a trend to a fashion industry patterns yet delivered utilizing less costly materials to guarantee a low cost tag. Many companies have been successful and unsuccessful to earn a trust from their customer. For the matter of success level it depends on how innovativeness they are and also applies the principle of supply chain and logistic management activities for the growth of their

Nuruzzaman Department of Marketing, University of Rajshahi, Bangladesh Ahasanul Haque Department of business Administration, International Islamic University Malaysia, Box No. 10, 50728 Kuala Lumpur, Malaysia Abstract Bangladesh has emerged as an important supplier of quality readymade garments in the global market. The spectacular growth of garment sector in Bangladesh in recent years has dramatically changed the landscape of export composition of the country. Once heavily dependent on

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

The United States is currently the largest importer of merchandise in the world. During the 1950’s American clothing companies manufactured much of their garments here in the United States. As time progressed, manufacturers began to move their factories outside of the United States looking for the most profitable methods to produce and sell clothing. Most of the companies went to developing countries where there