Fashion Marketing: Contemporary Issues, Second edition - Pr School

Globalization: global markets and global supplies 25
As a consequence of this trend some major retailers and brand names have
already announced a drastic reduction in the number of their supplying countries
and partners. For example, Gap, which sources in 50 countries, have also
indicated that in the future they will be able to choose their suppliers more
freely and more carefully and to develop partnerships with them, focusing in
particular on the improvement of labour practices (ILO, 2005).
Summary
This chapter has given the reader an overview of some of the complexities and
insights into the interconnectedness of your local high street retail stores with
the global economy. It began by defining fashion markets and fashion marketing.
It discussed the relative importance of textile and clothing manufacture
in the context of the world economy. Importance measured by size of regional
and country trade flows, employment and individual country earnings from
exports and the cost of imports. It moved on to examine the impact of China
with its phenomenal capacity to produce textiles and clothing. China’s growth
rate as the leading exporter is a cause for concern for many other manufacturing
countries that were previously protected under quotas but now the gloves
are off, in the battle for markets worldwide. India too is of great importance in
this market place. The demise of the controlled market under WTO rules was
discussed in some detail and an example was given to illustrate how rules,
in any case, are often circumvented. Globalization as a phenomenon was discussed
in detail and illustrated the different perspectives that various commentators
have towards a concept of globalization. Interconnectedness of the
global to the local domestic economy of the UK retail sector was then examined.
Particular trends were discernable which have come into being since
the first edition of the book such as the rise of supermarket fashion and its
growing importance. Finally the connection was made to global sourcing and
the trend towards developing global production networks. Importantly these
networks are increasingly managed by ‘full package sourcing’ organizations
external to the purchasing organization (it is an outsourced function). The
next chapter moves on to discuss supply chain strategies, structures and relationships
in this connected world.
References
Barber, W. J. (1967). A History of Economic Thought. Harmondsworth: Penguin.
Beynon, J. and Dunkerley, D. (2000). The Reader. London: Athlone Press.
Cairncross, F. (1998). The Death of Distance. London: Orion Business Books.
Central Bank of Sri Lanka (2001). Central Bank Report. Colombo: Sri Lanka.
Dicken, P. (1998). Global Shift. London: Paul Chapman.
DTI (1998). The UK Clothing, Footwear and Textile Industry An Overview. London:
Department of Trade and Industry.