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Global Sourcing Scenario - Apparel Industry

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Global Sourcing Scenario - Apparel Industry
Global Sourcing Scenario

In Indian Apparel Trade , 90% of Buyers are from US and EU . These two giants had started sourcing from other developing Nations only from post 1970s . Till then they were sourcing domestically . Due to soaring domestic prices and demand for varied sewing skills , buyers at US and UK started shifting to developing Nations.

Evolution of Global Sourcing (Till Mid 1990s)

Till First Half of Twntieth Century - US Retailers procured garments from their owned Factories. During this period of time , Only highly fashionable and Expensive Garments were imported . Linen from Ireland ; Silk and Prints from Italy ; Hi Coutore Fashion from Paris and Milan.Gradually ,Retail Buying Passion took over the Country . This change in the Fashion Scene pushed the focus of the retailers towards advanced production technology and sewing skills . Apparel corporates were formed clubbing the Men’s , Women’s and Kid’s Fashion together under one management. Mass production Facilities were formed at South of US where Rawmaterials were available closer .

In 1960s – Japan grew as an Economic Power and Apparel Production Shifted towards Japan from US / EU . Till that period , US and European Nations were dominating the Apparel production .Brands evolved - Espirit , Liz Claiborne , Calvin Klein and Ralph Lauren Emerged .These Companies required High Production skills at competitive prices .Due to development of They started looking for low cost manufacturing options in other countries .

In early 1970s , Japan experienced Labour shortages and high Domestic Production cost. Japan started looking for investing in Newly Industrialised Economies like :

• Korea • Hongkong • Taiwan

The Above countries were famously called as “ BIG THREE” Apparel Exporters
Hence Sourcing Shifted from Japan to Big Three.
Factors which attracted US Apparel Companies towards the above countries were:

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