Home / Knowledge / News / Apparel/Garments / 'Pattern of global garment industry will change forever'
'Pattern of global garment industry will change forever'
29
Jan '14
As major ecommerce retailers enter into strategic partnerships with transnational factory groups, the global garment industry would change forever, says consultant David Birnbaum in his latest monthly newsletter ‘The Birnbaum Report’, written for international garment industry professionals.
 
The 2013 Holiday sales saw in-stores sales taking a beating, while there was a substantial increase in e-business.
 
Today, almost all brick-and-mortar store retailers have gone omni-channel, i.e. store + Internet, and they have also seen substantial increases in e-sales. However, the omni-channel retailers still find it difficult to compete with single channel e-retailers like e-bay, Amazon, etc. due to some fundamental reasons.
 
People are finding more choice and lower prices online, as an Internet retailer can avoid substantial costs like high initial capital outlay, high rentals, high cost of decoration and maintenance and large inventory, says Mr. Birnbaum.
 
On the other hand, a traditional retail store is geographically bounded and its customers are limited to those willing to travel to the store. So, the more special a product, the more limited customer base a store is likely to have.
 
The virtual store is not geographically bounded and can offer the same quality clothing at half the price of a retail store. And, as the niche customer becomes the mainstream customer, the traditional store would be increasingly less able to meet customers’ needs, according to Mr. Birnbaum.
 
Looking forward, 2014 is expected to bring continued increases to single channel e-retailers at the expense of the store or the omnichannel (store + Internet) retailers, predicts Mr. Birnbaum.
 
The newsletter also makes three distant predictions about the global garment industry. It says, in the long run, the clothing retailer with 5000 stores, like the dinosaur will become extinct. Secondly, in the long run, the world’s largest clothing retailers will be Amazon, e-bay, etc.
 
Finally, in the long run, “when the major e-retailers form strategic relationships with transnational factory groups, the global industry will be changed forever, offering more original, higher quality, at substantially lower prices but much higher profit.”
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 28th Mar 2017

India may impose duty on elastomeric filament yarn

The Government of India is likely to impose anti-dumping duty on...

Courtesy: Lee Cooper

Apparel/Garments | On 28th Mar 2017

CCI clears FLFL proposal to divest Lee Cooper

The Competition Commission (CCI) of India has approved the proposal...

Textiles | On 28th Mar 2017

Bardoli CEFC to benefit south Gujarat MSMEs

India’s first common engineering facility centre (CEFC) at Bardoli,...

Interviews View All

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search