China's textile and garment industry is the most developed one in the world. In the first quarter of 2018, the textile and garment exports increased by 10.0% to $96.71 billion. Bangladesh, India, and Sri Lanka are home to some of the largest garment industries in the world. It provides jobs for millions of workers. But these facilities often fall short of providing living wages to employees. One of the most prevalent issues faced by these countries is factory accidents. It's caused by their high-risk working environments.
Today we are going to talk about the garment industry. Focus on aspects of facing challenges, developing situations, and global trends.
What are the garment industries?
What are the garment industries? The garment industry is a global industry. Clothing is manufactured or processed, using textiles and other fabrics. It has expanded over the years. As the global textile industry has expanded and the world population has grown. Approximately 175 countries have at least one garment industry. China, India, Bangladesh, and Pakistan are the four major countries that manufacture clothing. Because of their size and the cheap labor available to them.
Textile and garment industries are always closely related. Fabrics woven are produced by the textile industry. The garment industry has fabrics to choose from. And the clothes designed by fashion designers can be fully displayed. If there is no clothing industry, the woven cloth can not be made into all kinds of beautiful clothes. And we can not show the characteristics of the cloth.
There are three main stages in the garment industry: production, design, and distribution. The typical chain is a step-by-step process. First, the branded apparel companies do some original designs. It is from a fashion show or designers. Then factory do design working processes. Finally, they do massive production based on approved samples.
There are two main stages to the garment industry. The first stage of production involves the actual manufacture of garments (textile). The second stage is the finishing of the garments. This is the final stage of the production process and is the stage that is faced by the majority of workers. And many people work as executives for market sourcing. Wholesales and retailers will also do design, not just distribution.
Biggest challenge: global garment supply chains recession
The global division of labor has diminished since the 1970s. During that time, more highly paid jobs in the service sector were found. It's happening in countries such as the United States. Conversely, low-skilled jobs have been decreasing. in manufacturing and are diminishing in other countries. Thus we have to depend on the global garment supply chains. Thus we can maintain sustainable development.
The supply chain is simple. Such as, big brands of developed countries do the marketing. And developing countries do the manufacturing. There are many important companies that do business around clothing. We can see so many people make living, from manufacturers to retailers.
The growth of the fashion industry in the Los Angeles area is great. It has increased the number of jobs in the Los Angeles area. First, there has been a growth in the marketing of the fashion industry. A recent example of this is the release of the movie "The Devil Wears Prada".
Everything was good and in order. But in 2019 the COVID19 situation happens, the supply chains are proven to be a nightmare. In the 2022 January report, Nike was in trouble. They produce more than half of footwear and one-third of its clothing in Vietnam. The epidemic control measures are difficult. Vietnam has led Nike to cancel the production plan of about 130 million products.
With the development of the industry, traditional markets are eliminated. The trend is also becoming more and more popular. For example, in the West, the demand for traditional clothing is slowly shrinking. Though shrinkage percentage is small:
Clothing and accessory businesses average 1.87 percent shrinkage. Jackets and other types of outerwear have even higher shrinkage -- 2.94 percent. Health and beauty items like cosmetics also experience a higher-than-average loss rate of 2.14 percent, based on the Barometer study.
We'll be suffering for several years because of the pandemic. But the manufacturers in Vietnam have been suffering for the last two years. The following years will be a decision for development. The recovery of the developed countries will be good for the developing countries. We have to deal with the reality of the situation.
Common challenges of global garment industries
the global garment industry is facing challenges, such as:
Rising costs and a crowded market are causing the industry to decrease in size
There was a decline in the global garment industry in 2013. The industry was losing sales and production. Because of its inability to compete with cheaper imports. Manufacturers in countries like China are conducting inexpensive clothing. It has caused the size of the industry to decrease over the years.
New technology and innovations
New technology is being explored to maximize productivity and profits in the industry. The biggest challenge is that technology cannot make the industry more efficient. As long as workers are not making a living wage, this won't really happen.
High-risk environment
The garment industry is comprised of many high-risk surroundings. Some factories in developing countries are often poorly regulated. And they may not have the necessary safety regulations. It can lead to unsafe working conditions. There are uncertain situations. Such as, the workers in these factories are legally allowed to work? Or are being paid enough money to make a living wage? In countries such as Bangladesh, it is legal for the factories to pay workers approximately $1.50 a day. But, these workers are forced to work for 12 hours a day and six days a week, which is not enough time to earn a living wage.
Health and safety
Garment workers are at an elevated risk for poor health and safety. Workplace in the garment should follow many detailed requirements. Such as allowable noise levels depending on the task. As a result, workers will have better conditions, in ethnic neighborhoods. And cut the gender gap.
Migration issues
The migration of labor is a problem that is facing the garment industry. Many workers are migrants. They live in the provinces and are willing to seek employment in the cities, to earn a higher wage. Yet, this can cause rent increases and poor quality of life. There are also dangers in working in the cities. Many workers do not have proper safety equipment, which can cause many accidents.
The industry, yet, has begun to recognize these challenges.
How to deal with challenges:
To maintain competitiveness, garment factory owners should:
Take responsibility to guarantee the smallest wage of garment workers.
You must give incentives to the workforce. Provide help in the form of bonuses and welfare, training, and other benefits. Workers should be provided with health insurance, holiday leave, and other benefits. In the past, many manufacturers paid their workers very little. In some countries, people worked in horrible factories. There they had to pay almost 100% of their income to their bosses. In recent years, there has been an increase in wages in China. Manufacturers are trying to stay competitive. One side is creating innovations and technology to maximize profits. The other side is still paying their workers a decent wage.
Apply TUV, CE certificate as the international buyers requested.
Once you are one of the advanced suppliers, you can get orders only for members on the approved vendor list. This will be a great improvement. Workers will have the right of having favorable working conditions. They are allowed to determine the working time, away from restricted substance lists.
Embrace the development of the new era.
We should invest in advanced production technology. We need efficient sales and marketing, and efficient logistics. Not only facilities should be applied. But also focus on workers' training to get better operation and production.
Work with the government administration department.
To deal with climate change. we take care of power supply and product wastes. There are so many different types of waste. Such as visible wastes, process wastes, or saleable wastes. we have to think about recycling and biodegradable solutions. In China, the government is trying to help. They want to improve the efficiency of power supply and waste treatment. Besides, China also has a new policy of waste treatment and recycling, which is known as the "Three+1" policy. The Three+1 policy is a series of policies that the government of China has adopted.
Follow ISO standards to manage material and tools.
ISO required specifications are great instructions for managing factories. All products machines or devices are having records and getting regular maintenance. For example, all machines or devices are having records on time. We mind the details on distance, pressure, temperature, and so on. These records are checked and used to do effective quality control in factories. In some other aspects, we'll also have standards. Such as, we need to design working processes, pattern construction methods. And also a light on sewing, welding processes reviews.
Join and follow worker unions.
Unions can help to improve wages and working conditions for workers in this industry. Manufacturing conditions can be improved by unionization and communication. In developing countries, inspectors of unionization are important. It can enforce safety regulations and monitoring of factory conditions. Approximately 95% of all US workers are enjoying this. They are neither unionized nor covered by a collective bargaining agreement. Many people think that unions are the main reason that wages in the US rose substantially in the last 5 decades.
Development of textile and garment:
The global garment production supply chain is shifting away from developing countries.
Since the 1980s, textile plants in places closed. For instance, North Carolina, South Carolina, and Georgia had to close their doors. Textile factories were a major part of the US economy. Textile factories in the US started to close in large numbers. And some textile plants even had to close down since 1985. many countries, especially in Asia, have been taking advantage of the decline in the US market. And they continued their rise and produced more. China has taken over the world`s production of textiles, and it has been reducing the cost of production.
In the past decade, however, we have seen a shift in global trade. When the global garment industry was first created, it was in a small country, such as Bangladesh. Yet, the industry began to grow and shift to other countries. First China took over the textile and garment production plants from the US. And other countries, now they are back to wherever has low labor costs and better tax policy.
What affects the development of China's textile and garment industry? There 4 main factors:
1. Production capacity
2. Exports and imports
3. Capital investment and efficiency
4. Technology's development
This will also happen to other developing countries along with the industry shifting.
Bangladesh nation's garment production capital is Dhaka. It is the largest producer of clothing in the world. Now they are also facing a problem: an inventory turnover ratio for the COVID19 situation.
Many governments have adopted a range of policies to promote the industry.
Government policies can help the development of the textile and garment industry. Such as tax breaks, preferential credit, and special quality management.
In developed countries, governments still support the textile and garment industry. To do what is necessary, the US government has issued a series of policies. They established the National Center for Textile Science and Technology in 1993. The center was established to promote the textile and garment industry.
In developing countries, local governments also help their factories in similar ways. Such as, maintaining their global leading positions. In this way, we can expect rapid growth. Both in exporting finished products to traditional customer markets. Here are some examples:
China:
China is the biggest producer of textiles and apparel. Chinese government helps factories with lands, powers, and even workers' employment. For example, in 2013, Yongjia County in the Zhejiang Province of China worked together. They established a textile industrial park. It's with about $1 billion of investments. China's textile industry is fantastic. They are a great role model for many developing countries around the world.
Bangladesh:
Bangladesh has been successful in increasing its textile industry. In the past, Bangladesh was a nation that produced mainly cotton. However, after the end of British rule in the 1950s, the manufacturing sector was closed to the public. The liberalization of the economy happened in the 1990s. They opened up most of the manufacturing sector to the public. The government has also increased incentives for the textile industry. For example, the Bangladesh government has set up a $20 billion fund. It is for new factories in the textile industry. In 2000, Bangladesh launched its "Made in Bangladesh" program. It aims to increase exports from its textile sector.
India
Now Indian government also promoting the "Made In India" program. It is to increase textile and apparel production. There have been many economic reforms in India to promote the textile industry. But there are many problems. The Indian government needs to address to make it more successful. First, India has a large population and the government has had to struggle to create jobs for the people. Second, India has a high demand for clothing, but it has a very low level of literacy. This causes a huge demand for clothing, but a very low level of education. Third, India has a high demand for cotton, but a much smaller supply of cotton.
Future trends and chances: manufacturing automation, local fashion brands
Let's take a look at China. when people's life is getting better and better, two significant change happen. One is fewer workers more automatic machines. And the other is more local fashion brands are competing with international brands. Such as UNIQLO, H&M, Nike, etc.
Automatic Sewing Machine R&D will be the key factor. It will attract the garment industries' capital investment.
More and more factories are going to spend money on updated machines. Such as a pocket setter automatic sewing machine. It can massively reduce the facilities and labor total cost. Now more and more machines can do cutting and sewing both within same machines. All-in-one solutions and user-friendly operations are the principles. We depend on them for handling material and complex products. Such as the snap fasteners, which don't need a technological operation to make it work.
There will be more local fashion brands that meet the specific needs of people.
Local brand names will become more prevalent. Clothing will become more personalized. online retailers will become more of a market force. Global brands will be more likely to target the local market. Local brands can enrich the sewing industry and create more opportunities.
Young people especially the Z generations are obsessed with unique products. They will embroidery their T-shirts, suits, coats, etc. They will customize their clothes. And they will choose their own style. More and more people prefer to have a different style and always keep up with the fashion trends. More and more people avoid the national brands and choose to wear local brands.
How can we take action?
We are having a lot of trouble in the garment industry. Especially during the COVID19 pandemic period. We still have a bright future in it. And we'll take our chances. And we will contribute to sewing machine automation research and development. We'll offer actual help. And what will be your role in this?
