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07/28/2010

Added Value competition eliminates Price Competition


Category: General
Posted by: ttcedt
So the STAL-Project is behind us the Textile / Garment Industry Sector remains dramatically competitive and Innovation as well as Added Value Performance is not as sufficiently development as it actually would be wishful to compete in international markets. Widely, it is still thought the door to export markets is more open, when manufacturing of Textile and/or Apparel products is offered cheaply, competing on price. Product Value has not been in as an important subject. Yet, it is the Added Value which makes other Textile / Apparel countries so successful.  

Added Value is about the enhancement added to a product or service by a company. This means nothing else as the increase in worth of a product or service based on a particular activity which upgrades and differentiates the product of competing ones. In fact Added Value Products establish “exclusivity”, mostly in niche markets where Added Value even achieves leadership in. This may happen in the local but without any doubt in international markets as well. Added Value is an “Export Leverage”.

Clearly Companies in the Added Value Business provide additional Added Value in their products as a way to better distinguish from competitors. Added Value in this sense is a means of avoiding commoditization and maintaining much higher profit margins.

Recently, the industry has undergone a great deal of change, particularly with global sourcing and high levels of price competition as mentioned above. In addition, textiles and clothing has market characteristics, such as short product lifecycle, high volatility, low predictability and a high level of unpredictable purchase cycles, making quick response of greatest importance.

Taking all those difficulties in account, Added Value Business in textile and Apparel is expected to become a huge, a trillion US$ business in the coming years. The reason for this is that behind Added Value there are do tremendous technological, economical and ecological benefits serving customers and end-consumers making life more comfortable. 

The direction the International Industry in Textile and Apparel is moving to can be described such as: From functional to smart and intelligent textiles. Textile / Apparel are about to not only fulfill “functions” but also embed processes as heating, cooling, communication, etc. As target groups in the wider marketplace can not be focused at, Textile / Apparel Companies will enter into Niche-Marketing and gain leadership in extremely “special” process applications build into the Textile / Apparel product. This can already now be seen viewing and evaluating practical examples and important trends as well as Research Work done by worldfamous institutes and organizations. Examples where the direction of Added Value is heading to can be named like this:

UV-Protection
Self Cleaning
Sublimation
Chemical Purity
Softness
Durability
Breath Ability
Water Repellency
Fire Resistance
Antimicrobial Resistance

Not only Marketing, Product Development and Innovation will play an important role in “Changing” The textile / Apparel Industry but also new Technology will take a lead, such as Nanotechnology and others. Textile / Apparel is a real “Sun-Rise” Industry, we at TTCMSO like to support your “Sun-Rise”

Want to get more on those subjects? Please contact TTCMSO