Asia’s Growth Potential as an Apparel Sourcing Base—Discussion Questions from FASH455

IMG_4701.JPG

#1 In 2017, over 75 percent of U.S. apparel imports came from Asia (including around 35 percent from China, 13 percent from Vietnam, and 6 percent from Bangladesh). Based on the readings and our class discussions, why or why not do you think Asia’s market share may continue to rise in the years ahead?

#2 Vietnam is often treated as the “next China” for apparel sourcing. However, some argue that Vietnam’s export potential for apparel could be more limited than we anticipated because of its small population size. What is your evaluation?

#3 It does not seem U.S. companies have a particular role to play in the Asia-based textile and apparel supply chain because of the “flying geese” pattern. What is your view?

#4 If U.S. and China were able to solve the trade dispute by early next year, would sourcing from China become popular again among U.S. fashion brands and apparel retailers? What are the most critical factors that drive China’s competitiveness as an apparel sourcing base in the next five years? Overall, is “Made in China” over?

[For FASH455: 1) Please mention the question number in your comments; 2) Please address at least two questions in your comments]

Author: Sheng Lu

Professor @ University of Delaware

5 thoughts on “Asia’s Growth Potential as an Apparel Sourcing Base—Discussion Questions from FASH455”

  1. #1. I think Asia’s market share will continue to rise in the years ahead. A key factor behind Asia’s rising influence is the size of its economy. Asia has served as a factory source for companies in the West. Asian economies have immensely benefitted from being a part of global chains and that does not seem to be subsiding anytime soon. Due to this, it can be assumed that Asia’s market share will only continue to increase in the future.

    #2. I believe that Vietnam does ultimately offer a lot of export potential and growth in terms of apparel sourcing. I think that because the population in Vietnam is so small and limited, it creates an obstacle for them in regards to labor during the manufacturing process. Exporting apparel to other countries can be a stressful process due to high demand from consumers and the “fast fashion” mindset. Without the ability to acquire a decent sized labor force, the manufacturing process could be slowed down and less efficient.

    1. good thoughts. like you said–Asia’s market share may continue to rise, however, at the same time we know China’s market share is dropping and Vietnam’s export potential is limited too. So which country will be the new engine supporting the growth of Asia’s apparel exports in the next 5 years and why?

  2. 1. I think Asia’s market share may continue to rise in the future because it has a growing economy and its GDP growth is known to be much higher than in areas of Europe and the United States. There is also a growth in Asian consumers. Asia is expected to grow and prosper up until year 2030 making them a competitive market to China and the United States. Asia will continue to be the leader of global growth now and in the future.

    2. Vietnam’s population growth is slowly declining. China’s economy is much larger than Vietnam putting Vietnam lower at stake and in competition. I personally don’t think Vietnam has the potential to grow as large as China’s population considering it is at most 15 times bigger therefore I don’t feel it can become the “next China.” Vietnam may have potential in the future to grow almost the size of China but not as large as it is today and in the future considering their decline.

  3. #1 In 2017, over 75 percent of U.S. apparel imports came from Asia (including around 35 percent from China, 13 percent from Vietnam, and 6 percent from Bangladesh). Due to our readings and class discussions I believe that Asia’s market share will continue to rise in the years ahead because they have a rising economy, and are a need for western countries especially in terms of manufacturing for the apparel industry. Asia will continue to rise in being competitive, a key supplier to western countries, in GDP.

    #2 Vietnam is often treated as the “next China” for apparel sourcing. Vietnam’s export potential for apparel could be more limited than we anticipated because its small population size. Due to China’s large size Vietnam won’t be able to produce the same amount of goods with employees. Vietnam could surpass China with advancing technology because they would be able to produce goods faster than humans. Although there is an opportunity for Vietnam to advance in technology they most likely will not surpass China with this either because they are not as capital intensive as China.

  4. #1 In 2017, over 75 percent of U.S. apparel imports came from Asia (including around 35 percent from China, 13 percent from Vietnam, and 6 percent from Bangladesh).

    Based on the readings and our class discussions, I think Asia’s market share may continue to rise in the years ahead because Asia have a complete set of supply chain. I believe that it will continue to grow as time progress because the “Flying Geese model” in Asia has a dynamic division of labor, which means that what each country is making are constantly developing and changing. With that being said, Asia has a fast changing supply chain. The more advanced economies undertake more capital/ technology intensive production process like Japan, while China and India stepped up and took over the apparel manufacturing roles where Hong Kong and Korea used to be in. With this dynamic pattern, we can predict that in several years later, Asia’s market share will just keep on growing.

    #3 It does not seem U.S. companies have a particular role to play in the Asia-based textile and apparel supply chain because of the “flying geese” pattern. What is your view?

    I agreed! I think Asia already have a well developed set of supply chain model that I don’t necessarily see a spot for the U.S. to play in the Asia-based textile and apparel supply chain. I believe that Asia is a very big continent, and there lots of nuances in countries that they have not yet come into play and develop.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s