Globalisation in the Textiles Industry

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2. Briefly describe the following current issues that affect the industry: a. Globalisation – design, manufacture, distribution and marketing

-Increasing worldwide connection, integration and inter-relationships in the economic, social, technological, cultural, political and ecological spheres. -Advances and development of technology create links between people of all cultures and integrating whole earth one global system. * Globalisation in Design:

* Global migration, global trade, global culture and global communication all contributed to expansive marketplace opportunities for designers. * Increases global networking (internet)

* Increased ‘culture exchange rate
* Allowed designers to operate on a rapidly increased multicultural/global level * Globalistion in Manufacture:
* Australia companies often select to manufacture their goods overseas due to high cost of labour and manufacturing in Australia. * Cost of labour, wages and facilities are cheaper overseas * Allows companies to manufacture their goods at a labour cost and ship them back to Australia at cheaper rate * Can also give companies access to various government assistance packages * Extended Overseas Assembly Provisions (EOAP)

* Enables companies to assemble clothing in low-cost labour countries from garment pieces that are pre-made in Australia and import them through customs duty-free. * Eg. Bonds products used to be manufactured in Australia but due to the low cost of labour and wages overseas, Bonds now manufactures their products in China. The problem is many consumers still think that they are 100% made in Australia. * Globalisation in Distribution:

* New drivers
* Interaction between information and communication technologies in association with increased distribution * E-commerce business
* Business can reach new markets, receive electronic orders with 24-hour access, pay online, network with allied business and reduce time, money, travel and marketing costs. * Example: Fashion label Oneteaspoon

* Jamie Blakey sough out and took advantage of international distribution networks to increase the profile of her business * Jamie draws from eclectic design inspirations and transcending trends * She increased the profile of her business by allowing local and international customers shop online. The online store is convenient with its currency exchanger and quite user-friendly. The result of her success in using international distribution is that oneteaspoon has now stocked in 32 countries worldwide. * Globalisation in Marketing

* ATCFAI seeking new market place opportunities due to continual changes caused by globalization * Responding to change
* Understand marketplace activity
* Trends and opportunities
* Appropriating stragtegies
* Ensure that Australia will continues to gain access to overseas markets * Development of strong exports markets, essential for Australia to remain competitive on a global scale * Austrade

* Assist Australian companies to export their goods and services * Administers Export Market Development Grants scheme * Australians succeed in export and international business by providing advice, market intelligence and support to Australian companies to reduce the time, cost and risk involved * Example:

* Catalogue marketing: HIGH TEA WITH MRS WOO from ‘Seven Sundays’ collection * HIGH TEA WITH MRS WOO won the Austrade-Powerhouse Market Development Award at the 2005 NSW Mercedes Benz Start-Up Awards *

b. Imports/exports
Industry struggles with foreign competition
* Developing countries have seen the export of apparel products as a major pathway of economic growth. * China is expected to become the “supplier of choice”...
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