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

Jalila Essaïdi working with cow dung to create fabrics. Courtesy: Mike Roelofs

Fashion | On 29th Aug 2016

From dung to fashion

Dutch designer Jalila Essaïdi has developed a new material using cow...

Textiles | On 29th Aug 2016

India to build China’s Keqiao like mega textiles city

NITI Aayog’s proposal to build a mega textile city on the lines of...

Apparel/Garments | On 29th Aug 2016

NRF welcomes release of online sales tax bill draft

The National Retail Federation (NRF), an apex body of US retailers,...

Interviews View All

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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
August 2016

F2F Magazine

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search