© International Trade Centre, International Trade Forum
- Issue 3/2005
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Photo: photos.com |
The abolition on 1 January 2005 of the 42-year-old system of
quotas for exports of textiles and clothing has led to the biggest
buyer's market in history.
From a situation where normal market rules of caveat emptor (let
the buyer beware) applied, we have moved to "caveat venditor",
where unwary or unprepared suppliers will find themselves without
clients.
Hard-hit developing countries are struggling to adjust. Under
pressure from buyers, the international clothing industry is moving
towards a service industry. What the buyer - large retail
companies in Europe or North America - used to do yesterday, the
clothing manufacturer has to do today.
The two major services that buyers ask for are sourcing materials
and using electronic means to facilitate trade. The articles in
this section deal with these key services, and help manufacturers
in developing countries understand the new rules of the game and
learn to play it better.
An article on sourcing explains the background to the main service
that buyers now require and the skills manufacturers need to
compete. Two case studies, dealing with major retailers in France
and the United States, explore how information technology is
changing the face of buyer-supplier relations. Finally, a story in
our continuing "Portraits of Trade Development" series shows how a
Kazakh clothing maker upgraded its services and attracted a Swiss
partner.
Contributors: Natalie Domeisen, Matthias Knappe, Prema de Sousa,
ITC; Paul Ress, ITC consultant