HOW ARE ICTS CHANGING THE FACE OF THE GLOBAL GARMENTS INDUSTRY
According to a report published by Netscribes, the developing countries are the leading exporters in the global garments industry. With steady import markets such as the United States (U.S.), Japan and the European Union, China has been able to maintain its top position in terms of market share in the supply chain. However, the developing nations, nowadays, are facing a number of challenges owing to the increasing competition set in motion by the implementation of the information and communications technology (ICT).
The adoption of ICT benefits an organization in the garments industry quite significantly. For instance, it becomes easier to integrate customer orders, financial data and other categories of information while standardizing the processes. Additionally, productivity also increases along with the manufacturing speed.
Many countries are now relying on ICT to profit from those arenas that were previously inaccessible to them. There are numerous ways in which the global garments market is undergoing change due to the ICT strategies –
- Markets that were previously untapped by the garments-exporting countries can be targeted more efficiently. Adequate integration of logistics strategies can help the developing countries target those niche markets that they had perhaps overlooked in the beginning.
- It has become easier to create virtual supply chains within the country. Efficient implementation of internal logistics is the key, and this is very vital to ensure a competitive advantage.
- Countries that are bound by the quota system on their exports are less likely to reap the benefits of ICT. Lack of infrastructure, coupled with the absence of a basic comparative advantage would restrict them from expanding their markets. Governments also have an important role when it comes to such provisions, especially when the producers function on a smaller scale as they might require a higher level of financial aid and access to information.
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What impact does this ultimately have on the global garments market?
The requirements for ICTs will vary greatly for various firms across the globe. Different countries will be affected in different ways due to the implementation of ICTs. Areas that have quota restraints are highly doubtful to benefit at all, while most developing countries, such as China and India, would be able to gain access to a more diverse marketplace, thereby increasing their economic stability. Furthermore, it is important for the firms intending to expand with ICT to consider the investments they are willing to make in order to ensure that they maintain their position in the global supply chain.