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Developments, determinants and strategies of the apparel manufacturing industry :

The apparel manufacturing industry is one of the oldest and most global industries in the world. The industry is characterised by labour intensive, high volatility, low predictability, and relatively low barriers of entry. Over the last fifty years, globalisation and restructuring of the apparel manufacturing industry has been carried out in various parts of the world. Due to its labour intensive nature, this industry has been considered a sunset industry for many high labour cost countries. Thus, the relentless shift of the production base, seeking for the ever-lower labour cost has dominated the strategies of apparel manufacturers. / In the Malaysian context, the apparel trade is one of the main sources of the Malaysian economy over the last two decades. However since its peak in 2000, the export value has decreased considerably. Increasing labour cost, emergence of low labour cost countries and the liberalization of the apparel trade have all contributed to the decline of the industry. However, evidence from the EU and US suggests that with the right strategy, apparel manufacturing can still survive in high labour cost countries. Researchers have also claimed that even though labour cost has been a crucial factor, it is not always sufficient factor in determining competitiveness. Flexibility, lead-time, quality, trade, labour and environment regulations, and government policy are all critical factors in affecting competitiveness. / By conducting an exploratory survey based on the apparel manufacturing industry in Malaysia, this paper attempts to ascertain the manufacturing capabilities affecting the competitiveness; the main obstacles the industry is facing and identifies the strategies adopted for survival. To further strengthen the findings and understanding of the Malaysian apparel industry, a case study was conducted on a successful apparel manufacturer, linking it more explicitly to the recent developments and the strategy adopted in remaining competitive. / The results reveal that Malaysian apparel manufacturers are losing out on the two most lucrative aspects of the global apparel commodity chain: marketing and designing. The findings also indicated that achieving high quality standard is the most inportant factor to remain competitive while pricing, shortages of skilled labour, and quota restriction are the typical problems besetting the industry. The survey also reveals that majority of the respondents believe that Malaysia is still a feasible apparel manufacturing base and partial relocation strategy is their most preferred strategy. Conversely, the findings from the case study reveal that adopting a unique combination strategy and meticulous implementation of the strategy is the key to the success of the case company. Future directions and challenges for the industries are suggested. / Thesis (DBA(DoctorateofBusinessAdministration))--University of South Australia, 2004.

Identiferoai:union.ndltd.org:ADTP/267589
CreatorsChin, Kuen Liang.
Source SetsAustraliasian Digital Theses Program
LanguageEnglish
Detected LanguageEnglish
Rightscopyright under review

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