The clothing industry globally is expected to grow to a value of $2.

25 trillion by 2025, from the

current value of $1.5 trillion (Shahbandeh, 2021). The clothing industry has developed

expeditiously with the growth of technology as increasingly innovative machinery became

available from time to time. The growth can also be attributed to some other factors, which

include a change in consumer behaviour and shopping trends, an increase in incomes, and the

overwhelming rise in the number of high-fashion brands providing variety and diversification.

Clothing, which was initially a basic need only, now has turned into a demand; people now

desire specific products which are in line with their yardstick of fashion rather than using clothes

as a general requirement. Many developing countries are hugely dependent upon the clothing

industry for revenue generation as global sourcing has made everything more accessible, and

these countries with cheap labor provide competitive prices for their goods. Between 1990 and

2019, the global apparel export has seen an approximately 140% positive increase from $108

billion in 1990 to $492 billion in 2019 (Sheng Lu, 2020). The clothing industry is more labor-

intensive than capital-intensive, so Asian countries with cheap and abundant labor contribute

more than 50% towards the total global exports. The decentralized network setup by retailers in

different exporting countries makes the clothing industry buyer-driven; Nike and Walmart are

prime examples that do not produce their own products but are only involved in the design and

marketing of their goods.

Technological advancements have allowed automation in various production processes, resulting

in greater flexibility and lower costs, which helps companies gain a competitive advantage if

they make the most out of the available resources. Firstly Big Data is available, which provides

key insights about the customer's likes and dislikes and their shopping patterns that any company

can use to understand their buyers and make better decisions regarding production and exporting.
Companies can employ Direct-to-consumer (D2C) sales methods using E-commerce that provide

unlimited reach in the global market and allow the collection of the customers' personal data.

Technology has enabled companies to produce goods in lesser time and better cater to the needs

of consumers around the world simultaneously.

Although gradually, but clothing industry can shift to being more capital intensive than labor-

intensive using the new manufacturing technologies such as laser-cutting machines, sewing

robots, and employing artificial intelligence in the production and design of clothing. This can

lead to localization of production in the clothing industry and would hurt the global trade, and

would lead to loss of employment, especially in developing countries that produce goods for the

Western markets.

In the clothing industry, consumer behaviour influences the fashion trends and hence the

decision-making process in the production as well. Customers’ motivation factors and sense of

vogue are always changing, so companies need to be flexible in their affairs in order to stay

competitive and relevant in the long term. The short lifecycle of products, impulse purchase

decisions, and uncertain market trends make the clothing industry extremely volatile.

Clothing is often the most apparent representation of a person or even a society. The trends in

fashion in different places are closely knit with the social and cultural values of the community.

Consumer buying behaviour is shaped by several sociological (family, status, social class,

culture), demographical and personal factors (age, gender, occupation, economic circumstances).

In today’s time, there are various discovery-based social media applications where people from

different regions can learn about each other’s fashion and lifestyle. This increases consumer

awareness and thus results in fashion trends traveling across boundaries. Asian fashion trends,

for example, have for long been admired by the Wests, whether be it the colourful designs, tricky
embroideries, and dresses with a mix of prints. Gucci is one of the prominent global brands that

honours the Asian elements on their products, such as tigers, dragons, and koi fish. The

relationship goes two-way, and Western wear also seeps into the Asian market, as a result, be it

in the form of long coats, jackets, or trendy sneakers. The influence is far more on countries such

as China which serves as the manufacturing hub for many European brands. The increased

consumer awareness helps the clothing industry in its efforts to function globally.

However, at times, the consumption trends also hinder the global growth of industry and

encourage localization. For example, in Saudia Arabia, most women prefer wearing Abaya and

men choose to wear long thobes. In such countries, it would be difficult to successfully import

Western trends since it goes against the region's customs. In order to make sales in these parts,

companies might have to reintroduce themselves with a revised identity and outlook, which only

the most flexible ones can do.

In the last 25 years, the geographical distribution of manufacturing and production in the

clothing industry has moved from the developed Europe and America to developing Asian

countries. This shift was a result of Global Labor Arbitrage; the restrictions in international trade

have been minimized over the years, so companies moved to places where the labor wages were

cheap and less importance was given to the working condition. For western countries, the

clothes are now much affordable due to the low manufacturing costs, and the developing

countries are enjoying employment opportunities and revenue generation. The clothing industry,

as a result, is primarily buyer-driven, where prominent, significant market players control the

operations in the industry. The inexpensive, outsourced labor helps brands to increase their reach

globally and offer variety for their customers at affordable prices for different income groups.
But the ultimate victims in this situation are the factory workers who work for long hours for

wages that are a bare minimum, just to cut costs for the products.

Although the benefit seems great in terms of global perspective, but this also brings a bad

reputation to the clothing industry since workers and human rights activists persistently protest

against the clothing giants who dictate conditions to the factory workers and refuse to increase

wages or to monitor working conditions. In some countries, trade unions are also banned,

making it even difficult for workers to stand up for their rights. In 2013, Rana Plaza, a garment

factory, in Bangladesh collapsed, taking over 1000 lives of laborers working in the factory. This

disastrous incident moved over 2000 European brands to sign an accord with Bangladesh to

increase the safety measures in the workplace and carry out regular inspections.

Citations

Shahbandeh, M., 2021. Topic: Apparel Market Worldwide. [online] Statista. Available at:

<https://www.statista.com/topics/5091/apparel-market-worldwide/#dossierSummary> [Accessed

16 May 2021].

Sheng Lu, D., 2020. August 3, 2020 – FASH455 Global Apparel & Textile Trade and Sourcing.

[online] FASH455 Global Apparel & Textile Trade and Sourcing. Available at:

<https://shenglufashion.com/2020/08/03/> [Accessed 16 May 2021].