jordan internationl investment co
شركة الاردن الدولية للإستثمار
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Far East Garment Industry Overview
Home » Far East Garment Industry Overview

Strengths

• Vertically integrated industry - Experience in both the textile and garment industries
• Modern and innovative - Invested highly in equipment for the garment & textile industries
• Proximity to Arab world - Just-in-time delivery
• Bridge products - Designer & mass market in both basic & fast-moving items
• Coordination Center - Foreign buying and representative offices base

Weaknesses

• FOB prices to US - Cannot compete with Latin America
• Labor prices on the increase &bull Exchange rate with the US$
• Utilities costs
• Local production base - Not yet transnational

Threats

• Priced out of US markets – Quota phase-out makes Asian producers more competitive
• Competitors in US & EU markets – Tsunami countries free-trade with EU (e.g. Indonesia)
• Critical market share in both US and EU – Need to diversify markets

Opportunities

• Expand US market share – Bypass US custom duties through QIZ & FTA.
• Act as a coordination center – Expand buyer relationship by providing alternative source
• Expand presence in Middle East – Jordan’s proximity and free-trade with Arab countries

Consolidation

• Reducing the number of supplying countries: Retailers and importers will seek to reduce overhead costs by reducing the number of countries supplying their products.
• Reducing factory suppliers: Increase competition between factories will raise the expectations of US buyers. Focus will be on full-service manufacturers.

Lean Retailing

• Role of manufacturer changed: Move more risk onto the manufacturer in inventory control and risk.
• Focus on full service providers: More US brand companies are relying on full service providers like Li & Fung that can product development, raw material sourcing, quality assurance, export documentation and shipping consolidation

Compliance

• Labor Compliance: WRAP and other certification of labor compliance.
• Security compliance: Compliance with CTPAT for anti-terrorism issues and customer border checks in the United States.

Full value cost analysis

• Macro Costs: Special trade advantages, infrastructure, logistics, corruption and other related areas of sourcing from a specific country.
• Indirect Costs: Cost savings provided by the factory through special facilities and services they may offer such as pattern-making and sample-making.
• Direct Costs: Traditional garment costs such as CMT, FOB, transport