Home / Knowledge / News / Textiles / Many textile firms misrepresent identity, suffer financially
Many textile firms misrepresent identity, suffer financially
09
Sep '10
With the fragmentation and globalization of the U.S. textile and apparel industry, business activities and roles have changed, impacting their organizational identity. The evolving organizational identity of these firms has created many questions as to how it affects the businesses financially. Now, a researcher at MU has explored how U.S. textile and apparel firms describe themselves as organizations and how those descriptions compare to U.S. Census Bureau industry classifications.

Jung Ha-Brookshire, an assistant professor in the Textile and Apparel Management department in the College of Human Environmental Sciences at the University of Missouri, found that 67 percent of textile and apparel firms misrepresent themselves to the public. In her study, Ha-Brookshire examined the websites of nearly 800 textile and apparel firms to determine how each firm was identified itself.

She examined four different categories of businesses: textile manufacturers, textile product manufacturers, apparel manufacturers, and textile and apparel wholesalers. While the average misrepresentation for all the firms studied was 67 percent, Ha-Brookshire determined that nearly 80 percent of wholesalers did not define themselves as wholesalers. She says this distortion of identity does not mean these businesses are trying to mislead the public.

“It's not necessarily that these businesses are purposefully misrepresenting themselves,” Ha-Brookshire said. “Often, these businesses simply use different terminology than the U.S. Census Bureau has designated, or they are genuinely confused about how to classify themselves.”

Ha-Brookshire's study also revealed an important economic byproduct of this identity distortion. Her studied concluded that the companies whose identities are congruent with the U.S. Census Bureau are more financially successful than those companies whose identities are incongruent. Ha-Brookshire found that, on average, companies with congruent identities hired more employees, had higher sales, more square footage of production space, and a higher credit score.

“If a textile or apparel manufacturer reports itself to the U.S. Census Bureau as a wholesaler, or a wholesaler reports itself as an apparel manufacturer, all the economic data the government has compiled are wrong,” Ha-Brookshire said. “Also, it makes it much harder for these small businesses to get bank loans specifically designed for certain small businesses if they don't have a good grasp on their own identities.”

Ha-Brookshire says that much of the confusion surrounding the identities of textile and apparel firms stems from outdated U.S. Census Bureau industry classification systems. She believes that the problem could be remedied if the terms were adjusted to reflect the evolving industry.

“The industry has changed so much, but the government's measuring stick remains the same,” Ha-Brookshire said. “The definition of a manufacturer was created in 1810, and that of a wholesaler in 1930. The industry looks very different now than it did then.”

University of Missouri


Must ReadView All

Courtesy: Fancycrave.com from Pexels

Apparel/Garments | On 22nd Jun 2018

EU's retaliatory duty on US apparel takes effect

As part of the three-pronged response outlined by the European...

NCC applauds House passage of farm legislation

Textiles | On 22nd Jun 2018

NCC applauds House passage of farm legislation

The National Cotton Council (NCC) of the US has welcomed the passage...

Courtesy: Roman Pohorecki from Pexels

Apparel/Garments | On 22nd Jun 2018

UK launches inquiry on sustainability of fashion industry

The Environmental Audit Committee of the UK Parliament has launched...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Karan Behal

Karan Behal, founder and chief executive of top-selling brand...

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Eamonn Tighe
Nature Works LLC

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

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

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

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search