Global Value Chain for Apparel Sold at Target

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A global view in mind means more career opportunities: except material production and cut and sew, other well-paid jobs in the apparel value chain stay in the United States.

Source: Moongate Association (2017). Analyzing the Value Chain for Apparel Designed in the United States and Manufactured Overseas

Global Trade of Used Clothing (Updated: October 2015)

Please also check the updated study: Why is the used clothing trade such a hot-button issue?

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GlobalMapUSedClothing

United States

  • Generates 1.4 million tons of used clothing annually
  • Exports 800,000 tons of used clothing annually
  • 20% of used clothing sold domestically in thrift stores
  • Non-wearable material of used clothing is reprocessed into fibers for upholstery, insulation, soundproofing, carpet padding, building and other materials.

 Central and South America

  • Very large used clothing market in most countries
  • Imports of used clothing mostly come from the United States
  • Cotton wipers made from used clothing are exported back to the United States

Europe

  • Generates 1.5-2 million tons of used clothing annually
  • Large used clothing sorting centers located in Western and Eastern Europe
  • 10-12% used clothing (only those top quality) sold in local secondhand shops

Africa

  • One of the largest used clothing markets in the world
  • 80% of population wear secondhand clothes
  • Most used clothing imported from the United States, Europe, India and Pakistan

East Asia

  • Most used clothing is collected in Japan, South Korea and Taiwan
  • Countries in the region also import used clothing from the United States, Europe, India and Pakistan
  • Some large used clothing sorting centers are located in Malaysia and Philippines.

India and Pakistan

  • Residual used clothing are imported and sorted by grading companies
  • Wearable used clothing is extracted from “mixed rags” and sold locally or shipped to Africa
  • Recycled yarns are used to make new sweaters
  • Cotton wipers made from used clothing are exported to the United States

Australia

  • Used clothing is collected and sold through local shops and exported

Source: Planet Aid (http://www.planetaid.org); UNComtrade (2015)

International Trade and Global Supply Chain

Questions to think about:

Why supply chain matters in the 21st century global economy?

What benefits a global supply chain can bring to us?

 What unique risks are involved in a global supply chain?

What role the government and policies can play in facilitating the global supply chain?

Are you prepared to embrace the concept of “made in the world”?

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).

To read the fulltext, click here

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