The apparel industry has long been one of the most globalized and vital sectors of the world, playing a significant role in the economic transformation of developing countries. From the 1960s and 1970s, when the industry flourished in developed nations like the United States, United Kingdom, and Japan, to the 1980s, when many developing countries in Asia and Africa emerged as global apparel exporters, the industry’s influence has been profound.
This shift has positioned these nations as leading players in the global market, providing millions of jobs, particularly for women, and contributing to poverty reduction and socioeconomic development. However, the global apparel sector is now facing considerable shifts, driven by changes in markets, trade dynamics, and evolving consumer demands. These changes require a renewed focus on competitive performance across the entire value chain—from raw material sourcing to retail businesses.
Asia has long dominated the global apparel industry, with countries like China, India, Bangladesh, and Sri Lanka benefiting from their competitive advantages in low labour costs and outstanding manufacturing infrastructure. Yet, the landscape is changing rapidly, with Africa emerging as a new frontier for apparel production. This shift is driven by a combination of factors, including the search for new markets, more favourable trade agreements, and the untapped potential of African nations. For businesses involved in the apparel supply chain, understanding these global shifts and adapting their strategies accordingly is crucial to sustaining competitive performance.
In addition to the unbearable pressure caused by the crisis, the Sri Lankan apparel industry strives to survive in this highly dynamic and competitive context. In turn, some apparel manufacturing has been shifted to closer proximities. However, the vital concern is how long these strategies would be helpful and what else should be implemented to address the global parameters to navigate the industry with a promising future.
Providing insights for such a vital concern Emmanuel Susitha, P G S Amila Jayarathne, and H.M.R.P Herath have comprehensively investigated supply chain competitiveness in the global apparel market, particularly focusing on the critical elements of supply chain agility and the impact of rapidly advancing digital technologies. The outcome of the study will be published as a research paper titled Supply Chain Competitiveness through Agility and Digital Technology: A Bibliometric Analysis, in Supply Chain Analytics, Volume 7, September 2024.
Insights disclose that while manufacturing remains a crucial part of the apparel industry, the entire supply chain must be considered to understand competitive performance fully. The supply chain includes raw material sourcing, design and development, production, logistics, and retailing, all of which are interconnected. Competitive performance is shaped by how efficiently and effectively a company can manage these stages in a fast-paced, trend-driven industry.
From sourcing high-quality, cost-effective materials to ensuring timely and efficient logistics, every part of the supply chain impacts the overall performance. Companies must redefine the scope of competition when developing cutting-edge strategies to survive in the global apparel supply chain.
To thrive in today’s competitive global market, companies need to focus on several key competitive performance indicators. These indicators are critical for assessing how well a company can outperform its competitors and maintain a strong market position. Cost efficiency remains a fundamental competitive performance indicator across the apparel supply chain.
Companies must constantly strive to reduce costs at every stage, from raw material sourcing to production and distribution, without sacrificing quality. Cost efficiency involves optimizing procurement strategies, minimizing operational expenses, and adopting lean manufacturing techniques to maintain profitability while staying competitive in a price-sensitive market.
Quality management is another critical factor driving competitive performance. Ensuring that products meet high standards is essential for maintaining customer satisfaction and brand loyalty. Companies must implement strict quality control processes across all stages of the supply chain, from material sourcing to the finished product, to ensure that their offerings meet or exceed customer expectations.
High-quality products reduce the risk of returns and improve brand reputation. Making agility and responsiveness is crucial for competitive performance to address the fast fashion demand which is characterised by short product lifecycles and rapidly changing consumer preferences. Companies that can quickly adapt to market shifts, respond to demand fluctuations, and manage supply chain disruptions will have a significant advantage. This requires a flexible supply chain that can adjust production schedules, optimize logistics, and accelerate time-to-market when needed.
Companies that integrate sustainable practices into their supply chains, such as using eco-friendly materials, reducing waste, and ensuring fair labour practices, will enhance their competitive performance. Ethical sourcing and manufacturing practices are also crucial for building brand reputation and consumer trust in today’s market, as consumers and regulators demand greater environmental and social responsibility.
Innovation, particularly in the use of digital technologies, is a key driver of competitive performance in the apparel supply chain. Companies that invest in automation, artificial intelligence, and digital design tools can streamline operations, reduce costs, and improve product quality. Additionally, innovation in product development, such as creating new fabrics or incorporating smart textiles, can help companies differentiate themselves from competitors and attract new customers.
Collaboration across the supply chain is often underutilized but can significantly enhance competitive performance. Companies that establish strong relationships with suppliers, logistics providers, and technology partners can improve supply chain efficiency and reduce costs.
Strategic partnerships also facilitate innovation by enabling knowledge-sharing and joint development initiatives. Companies that pursue collaboration across the supply chain are better positioned to manage challenges and seize new opportunities. Ultimately, customer satisfaction is the defining measure of competitive performance in the apparel industry; however, with a different perspective.
Companies that prioritize customer needs, provide high-quality products, and deliver exceptional service will foster long-term loyalty and brand strength. In today’s digital age, providing a seamless customer experience across online and offline channels is essential. Businesses need to invest in customer relationship management systems, personalized marketing, and efficient order fulfilment processes to maintain high levels of customer satisfaction.
To succeed in this dynamic global market, companies must focus on enhancing competitive performance across all stages of the supply chain—from raw material sourcing to final retail. By prioritizing key performance indicators such as cost efficiency, quality management, agility, sustainability, innovation, collaboration, and customer satisfaction, apparel companies can navigate the complexities of the global market and ensure long-term success. Thus, it provides a lesson and direction for Sri Lankan apparel manufacturers in terms of strategy formulation.
For apparel manufacturers in Sri Lanka, embracing digital transformation, sustainability, and strategic partnerships will be essential to maintaining their competitive edge in the evolving global apparel landscape. Thus, it is the responsibility of all the authorities, and stakeholders, including the government to facilitate such manufacturers to uplift their competencies to navigate the industry in a healthier direction that unleashes the potential to make a better contribution to Mother Sri Lanka in her crucial time of survival in the face of crisis.
By:
Mr. Emmanuel Susitha
Senior Solutions Architect
MAS Holdings
Prof. P G S Amila Jayarathne
Professor in Marketing, University of Sri Jayewardenepura
Prof. H.M.R.P Herath
Professor in Supply Chain Management
Sri Lanka Institute of Information Technology
