A Canadian Approach to the Apparel Global Value Chain
Table of Contents
- The Apparel Global Value Chain
- Canadian Apparel Companies and the Global Value Chain
- Moving from "Mediocre" Across the Global Value Chain to "World-Class"
- Key Challenges in Adapting to New Models
- Appendix A: About the 2007 Apparel Human Resources Council Study 23
- Appendix B: The Canadian Apparel Industry and Specializing within the GVC
- Appendix C: The Key Success Factor Index
The Canadian apparel industry has long been considered a global player. For years, many Canadian companies have been producing offshore and have seized on preferential access to United States (US) markets to export their products. However until recently, the Canadian apparel industry also operated under protectionism that allowed it to thrive within North America.
In recent years, protectionism has given way to globalization. With that change, Canadian apparel companies have had to compete with imports from low wage countries. Retailers, unencumbered by protectionism, have also seized on the opportunity, often choosing to go directly to offshore manufacturers. As retailers become larger and more globally connected, they continue to build global brands marketed around the world. In doing so, they eliminate many Canadian apparel companies from their supply chain. The result has been major market share declines and job losses in the industry.
The realignment of the global value chain is forcing Canadian apparel companies to reinvent themselves. In certain instances, Canadian apparel companies have capitalized on the environment and become large, global players. However, most of the industry continues to consist of small and medium-sized enterprises (SMEs), struggling to deal with globalization. Many of these organizations must shift from being production-driven to being market-driven. They must shift from being mediocre across the entire value chain to being specialists in market niches, product niches and value added service niches.
This report examines the state of the Canadian apparel industry, including its ability to adapt to change to date, its opportunities, examples of success stories and challenges.
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