Economic Environment Opportunity
Clothing and Textile industries represent one of the most significant sectors of economy in the world as well as the European Union (EU). The industry is highly diverse and heterogeneous and covers a wide variety of products ranging from hi-tech synthetic yarns to bed linen, wool fabrics, industrial filter and nappies. This kind of diversity corresponds to several industrial processes, businesses and the structure of the market (Sharpe, 2009). He we highlight on both the economic environment opportunities and threats of Canadian Clothing industry.
Economic environment opportunities
There are several opportunities for the Canadian Textile industry of which include:
- The huge opportunity that the industry needs to capitalize on the idea that the current global trade is likely to triple from the current and training of its employees on new designs in the global market.
- New product development is another opportunity that the Canadian clothing industry needs to focus on in order to move up its value chain and be able to capture a greater global market share. In this area the company needs to look at new specialized products, specialized treatment, and smart fabrics. It also requires faster turnaround times for design samples as well as investing in design centers. The company also has the opportunity of investing in trend forecasting in order to increase its development (Mercedes, 2009).
The Canadian clothing industry needs to keep in mind various potential threats which include: domestic market competition, social and ecological awareness, and regional alliances.
- The industry is likely to experience competition from cheaper imports not only in the export space. This can greatly affect the industry and contribute to increased consolidation.
- Ecological and social awareness is likely to cause increased pressure on the industry to abide by the international labor and environmental laws. Increase consumer consciousness on issues concerning unhealthy working conditions, child labor, and polluting dyes are likely to deteriorate the development. This is a threat that has led to the industry to experience pressure on limiting sourcing from countries.
- Regional alliance is likely to continue to have significant impact on any global garment industry since some countries employ concessional tariffs by virtue of being members of such blocks (Statistics Canada, 2009).
In conclusion, such opportunities and threats are likely to be the next big wave for Canadian economy. It is therefore imperative for various stakeholders within the industry to work towards developing a competitive merit and projecting it to the global market (Heyman, 2008).
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