Source: Wipro Technologies
GeoMapping Analysis of various local, regional and global events and their direct/indirect impact on the complete value chain of the apparel industry starting from planning and product development to retailing.
Before the global apparel industry has recovered from the economic crisis, it has been struck with another blow. Commodity costs in general and cotton prices in specific have begun to rise. The volatility of cotton prices has affected the global apparel industry. Dark clouds of uncertainty hang over it. Cotton prices, rising labor costs, inflation, the vagaries of natural calamities and a few other factors are wreaking havoc on retail prices and the margins of global players. The increase in cotton prices up to 60% and labor wages in apparel manufacturing hubs like Bangladesh and China which are up by 20% are putting stress across the value chain. It is anticipated that consumers will face the heat in the form of an increase in apparel retail prices by 10% to 15% in next few months of this year. The case in point is that of VF Corporation that has already raised the prices of their jeans in the first half of 2011. Unless product differentiation and consumer insights are followed closely, the brand companies, wholesalers, distributors and even retailers will have to sacrifice margins.
This paper presents and discusses a GeoMapping Analysis of various local, regional and global events and their direct/indirect impact on the complete value chain of the apparel industry starting from planning and product development to retailing. The paper also has recommendations for companies and suggests a re-examination of key strategies such as supply chain efficiencies, product mixing, postponement strategy and technology solutions.
Amit Bhatia is a Practice Lead with Apparel & Footwear Practice as a part of Retail, CPG, Transportation and Distribution vertical of Wipro Technologies. He has several years of work experience across the value chain in apparel & textile industry. His strength lies in deep understanding of the complete value chain starting from conceptualization of the product till involvement of end customer. He has vast exposure to supply chain includes Product Development, Training, Manufacturing, close interaction with retailers, managing vendors, setting up Apparel Factory in East Africa and heading complete R&D operation of one of Indias Largest CPG Conglomerate and various technological solutions for global apparel clients. He holds dual post graduation in Business Administration and Garment Manufacturing & Technology.