Impact of the deglobalization on the international strategies of textile

industry

1. Introduction
In recent years there was a decline in the speed of globalization or even a
deglobalization that was been motivated by the nationalism and the growing concern
for the ethical concerns (environment and inequality) and even more accentuated with
the coronavirus disease pandemic. This led to the introduction of new challenges in
diverse industries being one of them the textile industry making the need to change its
international strategies.

2. Causes of the slower globalization

One of the mains causes that lead to a slower globalization is the nationalism
that has been raised in various parts of the world, with in some countries creating
barriers to importation and encouraging localization of production for example with
the Brexit that lead to higher prices of importation pushing towards a self-sufficient
economy. The textile industry relies on a globalize supply chain and this trend will
create challenges for firms in this industry.
Another cause for the decline of globalization is ethical concerns, consumers
give more importance about where their products come from and who make them and
are their conditions of labor and the impact of this products on the environment.
The coronavirus pandemic exposed the vulnerability in global supply chains, on
a industries such as textile that relies on the global supply chain there was difficulty in
maintaining its operations due to the constrains in transporting and supplying
materials, showing the importance of a diversified and more regional supply chain.

3. Impacts on the international strategies

In response to these challenges, firms in the textile industries have been
reconsider their international strategies particularly on the ownership strategy and the
establishment strategy.

-Ownership strategy
Due to growing nationalism and protectionist measures, companies were led to
diversify their suppliers focusing on regionalization, exploring opportunities for
reshoring or nearshoring.
Creating collaboration with local partners has become increasingly important, thus
allowing companies to navigate regulatory hurdles and be accepted on foreign
markets.
This approach ensures compliance with local requirements and with the government
promoting national industries and creating barriers to foreign companies.
Growing concerns in the textile sector about worker conditions has led companies to
change their international strategies. For example, Nike despite having 22 000
employes with the majority working in America or Europe 99% of its products are
offshore having around 660 000 employs from other companies that supplies them
working in regions were labor conditions are not the best, having generated a bad
image for the brand, for combating that Nike is trying to have more control over their
suppliers to guarantee better working conditions.
It is become crucial to the companies having a balance between centralized and
decentralized ownership.

-Establishment strategy
The impact of slow globalization on the textile and apparel industry is
pronounced in the textile industry’s shift towards more sustainability and responsible
environment. Firms are searching for more environmentally friendly manufacturing
processes and adopting more ethical sourcing practices, searching certifications to
align with costumer expectations and regulatory requirements. Establishing production
facilities in regions that seek sustainable practices becomes more a strategic
imperative.
To overcome the protectionist measures, companies are adopting more a
regionalization approach, where establish their production plants in key markets to
reduce transportation costs and trade barriers from the government. This permit to
align the principles of nationalism while maintaining an efficient supply chain
management system.

4. Conclusion
The recent decline in the speed of globalization, that was driven by nationalism and
ethical concerns, has profoundly affected the international strategies of firms in the
textile industry. Companies are adapting ownership and establishment strategies to
navigate disruptions in supply chain, embracing more sustainable regions and practices
in order to align with what the consumers are expecting and comply with
environmental regulations. Ownership strategies are adapting to the rise of economic
nationalism through collaboration and joint ventures. Establishing strategies are
focusing on regionalization to overcome protection measures and optimize the supply
chain efficiency as well as finding regions with more sustainable practices.
As industries continue to evolve and the consumer change, firms must remain agile
in responding to these dynamic forces that are impacting the global business
environment.

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