Challenges of Garment Industrial in the Future

The raising fashion industry increases the demand for garments. Fashion trends that keep changing give a major contribution to the development of the garment industry not only in Asia but around the globe. But the factory owners should realize the future challenge of this industry such as the increase of industrial sewing machine price, or the increase of labor cost.

Knowing the potential challenges is important so the owners can make strategic plans and take actions to anticipate the obstacles. It is also essential to strive in the industry with strict competitions. Figure out five most potential obstacles and challenges in the garment industry below!

Future Obstacles of Apparel Industry

The potential obstacles encountered by each garment manufacturer may vary depending on the market and scale. The following challenges are made to be general, allowing you to see from a broader point of view. Here are several obstacles of garment industry you may encounter in the future:

Increasing utility cost

The price of an industrial sewing machine and other utility is increasing. For small industries, this becomes a major obstacle as their revenues might be insufficient to cover the costs. In addition to the sewing machine, the cost of electricity, water, and steam should be taken into account.

Higher demand for special products

Manufacturers that export their products to the US or Europe must encounter a greater challenge. The fact that they live a higher living standard, the consumers require products with higher quality standards. The demand for specialized apparel is also higher compared to developed countries in Asia. In addition to the quality, the brand name is also necessary to attract consumers’ attention.

Increasing labor cost

Utility cost is not the only obstacle for the garment industry. Sewing machine operators demand a higher wage which can add financial burden to the factory. This challenge is inevitable and this happens throughout the world, mostly in China and India. Some large manufacturers decide to open factories in countries with lower labor costs to reduce the burden.

Strict competition

The rising fashion industry seems promising for some people. They start to develop another sewing industry with their own strategy. This, of course, develops a strict competition among manufacturers. As with other competitions, the stronger will be the winner. The owners must be able to strive for the competition by doing innovation, analyzing the market, and using attractive marketing strategies.

Economic instability

Economic instability is among the main obstacles not only for the sewing industry but also for other sectors. The world economy and region economy take a major contribution to provide a friendly climate for the entrepreneurs to run the business. Garment factory owners must be able to read the situation to minimize the loss caused by economic and political instability.

Running a business in the garment industry is not without challenge, despite the raising fashion trend around the globe. The brand’s owners should know the potential obstacles that are possibly encountered by the factory, helping them take the right action and develop strategic plans to strive in the business. The obstacles vary, ranging from utility cost to economic instability.

The Services and Stategies of Manufacturing Consulting Myanmar

Manufacturing strategy consulting Myanmar in general is a service that give many suggestions to company management in order to have a new strategy to develop their company. The suggested strategy will generate many benefits for the future of the company.

Services of manufacturing strategy consulting Myanmar assisted in assisting the company will view staffing recruitment. As a professional strategy consultant, they will choose the best graduates from a superior university that can be appointed as an employee. Continue reading “The Services and Stategies of Manufacturing Consulting Myanmar”

This is the Strategic Action Taken By Market Research In Abu Dhabi

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Identifying the problems to be studied is the objective of the market research Abu Dhabi service designated by the merk owner. Some things that need to be done on the riset is at the time of determining the problem to be studied. There are many ways to do that. Continue reading “This is the Strategic Action Taken By Market Research In Abu Dhabi”

The Areas Of The Management Consulting In Saudi

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The company of the management consultancy can help your business to grow up and ensure by applying the good integrated business solutions. Each management consultancy has aimed to be trusted partner in Saudi. Continue reading “The Areas Of The Management Consulting In Saudi”

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Market Research Dubai: Crisis Looms

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Hong Kong Falls Behind in E-commerce Space

As one of the fastest growing country in Asia and the 7th largest trading economy, Hong Kong yet falls behind in the development of a digital marketplace despite its tech-savvy and connected population, high smartphone penetration rate (73.73%) and internet penetration rate (87%). The city has a staggering 5 million active participants in digital commerce, which is set to acquire another one million active users by 2021. Even then, Hong Kong’s position in the Global Innovation Benchmark has fallen behind other countries, such as Singapore and South Korea, due to several factors, including high cost of customer acquisition and its relatively small market size.

ecommerce hongkong
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According to our latest report, “Top E-commerce Cities in Asia”, Hong Kong is one of the top e-commerce cities in Asia, along with other cities, such as Jakarta, Ho Chi Minh City, Shanghai, and many more, The report points out the  significance of e-commerce landscape in Asia and its abrupt adaptation to global trends. The report defines “e-commerce city” as an urban city with interconnected infrastructure that makes up an e-commerce ecosystem that helps it to flourish.

Little incentive from the incumbent conglomerates also hinders the development of digital commerce. Moreover, e-commerce players in Hong Kong also face problems when it comes to home delivery service, as the working hour in the city is relatively long. To add to that, convenience-store pickup point model is also not the most feasible alternate option either due to space scarcity in Hong Kong. With a cultural preference by consumers towards e-commerce, this has led to slower digital adoption by small and medium-sized local businesses. However, this has urged smaller and traditional retailers to explore novel means to revamp their e-commerce strategy.

Characterized by low taxation and minimal government intervention, Hong Kong is the first entry point of a large fraction of foreign investment entering the region, spurring the unprecedented growth in various industries. As the property and stock market began to cool off, modernization of traditional commerce has been gamering attention from both industry players and the general public in Hong Kong. The e-commerce sales in the city will continue to represent a healthy portion of total retail spending, with electronics and media currently the leading product category, followed by fashion.

The e-commerce industry has perceived exponential growth around the world, with an astounding USD 2.86 trillion achievement in 2018 which is estimated to grow further to USD 6 trillion in 2022. Notably the Asia Pacific region market that had a 35% economic growth rate in 2018 with USD 1.8 trillion retail e-commerce sales, setting the region as a clear leader in achieving one-fourth of global e-commerce share by 2023.

The report also recommend a framework for Hong Kong and other global cities to improve their e-commerce ecosystem, providing 5 key building blocks, such as: stable and predictable regulatory environments; adequate talent; market readiness and robust infrastructure; funding to scale up the business, and global culture to empower innovative ideas, for startup ecosystem in the cities to reach its full potential.

Download the full report on E-Commerce Cities in Asia.

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However, it cannot be denied that this market has decline period, particularly from 2014 when the growth was as high as 20 percent. Of $2.8 billion of total management consulting market revenue from GCC regions, Saudi Arabia was the major contributor as its revenue reached $1.3 billion at rate of 8%. This value is far higher than UEA, Qatar, Bahrain, and Kuwait. Continue reading “Saudi Business Consulting—Set for Double-Digit Growth”

Brand Affect Buyers Decision in Kazakhstan

Brand Affect – Market research Kazakhstan main goal is to gather information about what consumer wants from a certain product. It also shows how a consumer in Kazakhstan will respond for a product that you will sell in their country. Without a market research, you won’t get the maximum achievement. You will maximize your sale if you use the data from a market research. A survey and an interview is the common market research method. Continue reading “Brand Affect Buyers Decision in Kazakhstan”