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Category: Business and Industry
Date Submitted: 07/03/2014 06:16 AM
Section B: Welspun India
Industry Analysis – Textile Industry on Global Scale
The global apparel and fashion trade is expected to grow to USD1 trillion by 2020. However with growth slowing down in developed markets, the dynamics of the global fashion market are expected to change dramatically. Emerging economies will fuel most of the growth in the fashion market. Brazil, Russian, India & China (BRIC) along with few other South-East Asian countries are seen as the major growth drivers.
In addition to this, global apparel markets in the recent past have shown a paradigm shift, moving towards increased product differentiation, and catering to a diverse, aware, and demanding customer base. Retailers have thus gravitated toward demographic shifts, societal influences, economic influence, and environmental concerns.
With growth in developed economics cooling, retailers are facing pressure due to restricted consumer spending. Under such conditions the global apparel value chain has shown a distinct shift both at the front- and supply-end.
Recent Global Trends in Textile Sector
* Increase in textiles and clothing global trade from US$ 355 billion in 2000 to US$ 602 billion in 2010
* Expected to reach US$ 1 trillion by 2020, CAGR of 5% pa.
* China, India, Pakistan, Bangladesh, Thailand, Indonesia are leading suppliers and further expanding their capacities.
* Established markets (North America, Western Europe) continue to show traction
* Emerging markets in Asia and Middle East shall provide strong growth opportunities.
Emerging Economies developing as Low-Cost Manufacturing Hubs
China enjoyed a dominant position in apparel and household textiles manufacturing for several years, as makers of these items located in developed nations such as the U.S. and Canada suffered a long period of decline. However, recent increases in the value of the Chinese currency, combined with rapidly rising labour costs, have put Chinese manufacturers in...