Fashion Forward: Zara is trying to go global

Can fast fashion go global? Does the business model which heavily rely on local supply fit for global operation? As mentioned in the article, 70% of Zara’s sale in 2001 came from the EU, although it has opened 179 new stores in Asia in 2011, 156 of them in China.

To do business in emerging markets may incur many unique barriers and challenges. For example, the article reported that China’s consumer watchdog attacked Zara for poor quality in 2011. Often time we see much heavier invovlement of government in economic activities. And many emerging markets are very segmented (due to regional economic development gap) than in the US/west. Europe.

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Outlook for the US Textile Inudstry in 2012

An annual report prepared by the Textile World on the outlook of the U.S. textile industry in the year ahead. The report covers topics ranging from the industry output, market evaluation, price, international trade, job market and policy enviorment.

As noted by the report “Despite declines in employment, job prospects for skilled workers, engineers and merchandisers should be tolerably good as the industry evolves into one that primarily requires people with good communication skills, creativity, and who are skilled enough to operate today’s high-technology, computer-operated machines.”

To read the fulltext of the report, click here

Global Apparel Value Chain Trade and Crisis

Gereffi, G. & Frederick, S. (2010). The Global Apparel Value Chain, Trade and the Crisis: Challenges and Opportunities for Developing Countries. The World Bank.: Washington DC

One recent work of Dr. Gary Gereffi, a well-known expert on value chain studies, on the impacts of the financial crisis on the global apparel industry. It is suggested that the developing countries will gradually move up in the value chain and undertake more value-added functions such as design and product development. This is a two-edge sword to T&A industries in the developed countries. It could mean more resources to take advantage of and more intensified compeitition at the same time. Although Dr. Gary uses the concepts of OEM, ODM and OBM to describe evolution of the apparel chain, the major conlusions are compatable with the famous stages of development theory suggested by Toney (1986).

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