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The fact is, the Economic Down-Turn is not over yet. In Europe and USA and particularly in Japan, Consumer Confidence is down. Worst is the situation e.g. in Japan with an index of only 49, Germany with 77 but Indonesia with 118 and India, the positive world-leader, with 148. Unemployment in Europe is on the rise, up to 9.7%. Both USA and Japan are reporting rising figures as well. Unemployment in the Industrialized World will make consumer spending in Garment (and Textile) further decline.

So, garment manufacturers find themselves in a world of change, change is the norm. There also are new value adding technologies growing, often already digitalized. Global competition is getting harder, the power of the Internet and new consumer buying behavior are additional factors to be aware of. Once the Down-Turn really is over, which will still take some time, doing business in the same way as before the Down-Turn will not be possible. In fact the change in the Garment Sector will not just continue. The rate of change will even accelerate, fast. That is why the Garment Industry needs to redefine itself, fast as well! The Industry needs to get far more customer oriented, added value focused, process integrating, cross-functional thinking and strong in the application of new technology tools (ERP, agile manufacturing, process networking, performance managing) combined with serious staff reduction and as serious staff education. All that may make us shivering. But let’s not forget the new Added Value Environments which are already arriving out of the market and supporting smaller and smaller lot sizes per article. Think as examples just of:

• Customization moving fast and technically widely solved (see also our seminars 10.11.06 / 21.10.08 / 30.10.08)
• Trends in Garment Decoration (digital imaging technologies, sublimation, electronic design etc., our Seminar with Prof. Schmalz University Hof / Germany)
• Green fabric solutions (where presently the Netherlands seem to take the lead in a hugely growing market)
• Networking, SC, strategical alliances, change management etc. (see also our workshops and seminars)

But not only technologies and processes are changing, customers, the markets, are changing too. Customer and product growth (demanding value added services) accompanied by smaller lot-sizes seem to be mainly:

• Corporate branding articles
• Trading articles
• Clubs, charities, religious institutions articles
• Professional, recreational, athletic articles
• Schools, colleges articles
• Health care articles
• Hospitality service articles
• Business to consumer articles (new distribution channels)

And those markets losing importance seem to be:

• OEM’s
• Commodity consumers
• Manufacturers
• Hospitality services
• Governments and their institutions
• High end designers

Managing change based on new Business Models to meet what the markets already now but even more so after the Down-Turn require, will be difficult and stressful. That is why New Business Models in Garment have to be brought up now, the sooner the better, to maximize new opportunities. New Business Models, individually developed for each company (as there is no recipe everyone can join in) will help the Garment Manufacturer to shift gears to become a Service Provider, offering a total service package where the “Garment” is just one part of the package. Such solution in one case may be an eco-treated, customized, hazard protection clothing. In another case it may be a digitally imaged sweatshirt for a sporting event. Products are going with their market niches. Selecting such packages will be the toughest job besides training staff and make staff cross-functional understand, think and lead the customer. Big tasks now and ahead! 

If you share our thoughts and value our experience which we have in Change Management, Change Implementation and the Industry, pls do not hesitate to contact us, TTCMSO, via info@ttcmso.com as we have all the competencies and tools required to make CHANGE upstream and downstream, through the total value chain, happen. Together with our International Partners we are able to deliver with you and your staff growth again, however growth of a different nature as before the Down Turn.