Problems and Opportunities in the Textile and Apparel Industry:

Korean and U.S. textile and apparel manufacturers were surveyed to determine what were their perceptions of major industry problems and opportunities in their respective countries. Findings suggest that Korean manufacturers differed significantly from U.S. manufacturers in their perceptions of technology, government policies, and trends in industry concentration as major problems confronting their industry. The two groups also differed on their perceptions of product quality, production and efficiency, flexibility in production, and product lines as posing major opportunities for the future. These results are discussed in light of the changing situation within the international market for textile and apparel products.     

CONSUMERS’ VIEWS ON RESTRICTING IMPORTED APPAREL

The United States and most developed countries have experienced a dramatic influx of imported apparel, usually from low-wage, developing countries. In the U.S., industry representatives, retailers, economists, and others have been vocal in expressing their views to influence trade negotiations aimed at orderly trade in this commodity area. Consumers are affected by trade agreements but appear never to have been consulted previously regarding the restriction of imported apparel. This paper gives results of a telephone survey of 408 consumers in 10 areas of the eastern U.S. to ascertain their views toward apparel imports. Overall, respondents expressed strong preference for domestically produced apparel. A majority of the consumers perceived a trade deficit in apparel, saw imports as damaging to the domestic industry, felt that stronger laws should be passed to further restrict imported apparel, and said their clothing purchases were influenced by their views toward limiting imports. Chi-square tests determined relationships among the variables. A noteworthy contradiction was present in the findings. If further restrictions on imports were to become a reality, as the consumers said they would prefer, this means that respondents expressed loyalty to the domestic industry at the expense of being able to make choices which might be most advantageous to them as consumers.     

EFFECT OF TEXTILE QUOTA RESTRICTIONS ON U.S. COTTON TEXTILE IMPORTS BETWEEN 1964 AND 1973

The objective of this study was to investigate the effect of U.S. cotton textile quotas on cotton textiles imported into the U.S. between 1964 and 1973. The findings showed that cotton imports requiring more processing stages had significantly greater 10-year average prices than other groups. Changes in the dollar value of imported cotton textiles during the decade have mainly occurred because of an increase in the average prices rather than resulting from a redistribution of imports from low to high average price groups. The weakening correlation between changes in the dollar value and in the quantity of high unit value groups indicated that the control on quantity has not precluded increases in total dollar value of imports in higher processing stages, especially since 1970. Since fabrics with a relatively stable average price accounted for the major importation of cotton textiles during the 1964–1973 period, the overall control by quantity in this decade was still quite good, even though average prices of apparel were rising.     

Student preferences for domestic-made or imported apparel as influenced by shopping habits

Information regarding consumer awareness of imports has been an ongoing concern of the textile and apparel industries. This study was undertaken to provide additional information about attitudes of apparel imports from the viewpoints of college students. The results support those of earlier studies for the most part. Data analysis, in contrast to other studies, showed no clear preference toward either domestic or imported apparel. However, there was concern and strong support for the U.S. textile and apparel industries. Most students indicated that they would purchase domestic apparel over imported apparel to help the U.S. economy.     

Stakeholder Forces of Socially Responsible Supply Chain Management Orientation

This project investigates salient stakeholder forces of socially responsible supply chain orientation (SRSCO) in the apparel and footwear sector focusing on fair labor management issues. SRSCO was conceptualized as a composite of internal organizational direction and external partnership for a creation and continuation of fair labor conditions throughout the supply chain. Primary stakeholders identified were consumers, regulation, industry, and media. A total of 209 mail survey responses from sourcing managers of U.S. apparel and footwear companies were analyzed. Two dimensions of SRSCO were confirmed: internal direction and external partnership. Consumer and industry peer pressures were found significantly related to internal direction, while industry peers and media were significantly related to the external partnership. Regulation was not significantly related to either internal direction or external partnerships. Lack of regulation forces to govern labor issues and roles of consumers, industry peers, and media in promoting fair labor management are discussed in this article.     

High-tech R&D subsidies Estimating the effects of Sematech

Sparked by concerns about their shrinking market share, 14 leading U.S. semiconductor producers, with the financial assistance of the U.S. government in the form of $100 million in annual subsidies, formed a joint R&D consortium — Sematech — in 1987. Using Compustat data on all U.S. semiconductor firms, we estimate the effects of Sematech on members' R&D spending, profitability, investment, and productivity. In so doing we examine two hypotheses: the ‘commitment’ hypothesis that Sematech obligates member firms to spend more on high-spillover R&D, and the ‘sharing’ hypothesis that Sematech reduces duplication of member R&D spending. Whereas the commitment hypothesis provides a rationale for the government subsidies, the sharing hypothesis does not. We find that Sematech induced members to cut their overall R&D spending on the order of $300 million per year, providing support for the sharing hypothesis.     

China's Import and Export of Textiles and Apparel in the Q1

China's textile and apparel industry suffered an unprecedented cold market for exports in the first quarter this year,the result of a few factors including: the appreciating RMB, decreasing export rebate rate,expanding influence of the U.S. subprime crisis, increasing costs of production and rising labor cost.     

The optimal tax on antebellum US cotton exports

The US produced about 80% of the world’s cotton in the decades prior to the Civil War. How much monopoly power did the US possess in the world cotton market and what would have been the effect of an optimal export tax? This paper estimates the elasticity of foreign demand for US cotton exports and uses the elasticity in a simple partial equilibrium model to calculate the optimal export tax and its effect on prices, trade, and welfare. The results indicate that the export demand elasticity for US cotton was about −1.7 and that the optimal export tax of about 50% would have raised US welfare by about $10 million, about 0.3% of US GDP or about 1% of the South’s GDP.     

Colombian consumers’ outshopping of apparel in the U.S.

Outshopping is defined as purchasing goods outside of consumers’ trading areas. Despite threatening local economies, outshopping generates opportunities for the new trading areas in which it occurs. Studies on outshopping have reported contradictory results and academics suggest further research, especially in relation to consumers’ micro-level characteristics. Moreover, few studies have focused on the U.S. as the trading area and apparel as the traded product. Based on the theory of reasoned action, this quantitative study explores how attitudes toward international outshopping and subjective norm influence purchase intention of apparel goods among international outshoppers in the U.S. by focusing on four characteristics of international outshoppers – self-control in terms of spending, the desire for unique products, age, and gender – as antecedents of attitudes toward outshopping. Colombian consumers (South America) were chosen as respondents because market reports indicate that the U.S. is their top favorite international tourist destination. Findings suggest that more positive attitudes toward outshopping apparel in the U.S. were found among female consumers with higher self-control over their expenditures. Respondents were also influenced by the opinion of others; while age and desire for unique products were found non-significant. By understanding international outshoppers, marketers can develop unique market strategies for attracting global consumers.     

The Global Engineering Consultancy Market

The purpose of this paper is to assess and analyze the size and characteristics of the engineering consultancy market in select Western nations and worldwide. A secondary goal is two-fold: to look briefly at the training required for careers in this field and to evaluate the strategies of the participating firms. This sector has grown in the past half-century to about U.S.$550 billion revenue globally, with nearly 3 million establishments and about 500,000 employees. There are giant, multinational firms that span across regions; but the sector is still highly fragmented, and the top 10 firms have less than 15 percent of the global market share. The typical firm in the industry in most major countries consists of around five or six professional associates. The data problems in analyzing this sector are formidable. The paper offers guidelines to using these statistics. It also describes steps necessary for effective marketing.     

提升中国棉花产业国际竞争力的路径选择

中国是世界第一大棉花生产和消费国,从业农民近两亿,棉花产业还涉及纺织和服装行业的上千万员工就业。然而近年来,我国已成为世界最大的棉花进口国,主要棉花出口国通过大量补贴向国际市场销售棉花,对我国棉花产业形成挑战。本文对我国棉花产业的现状、问题以及面临的新国际环境进行了分析,提出了提升我国棉花产业国际竞争力的路径选择建议。     

The Economic Benefits of Nutrition Labeling: A Case Study for Fresh Meat and Poultry Products

New rules issued by the U.S. Department of Agriculture requiring provision of nutrition information on raw meat and poultry products may encourage consumers to make healthier food choices. Reduced intake of fat and cholesterol may prevent future cases of stroke, heart disease, and cancer. The benefits of these rules are estimated to be $62 to $125 million annually.     

A Note on the Incidence and Possible Cost of “Critical Circumstances” Penalties in U.S. Antidumping Enforcement

This article examines the incidence and possible cost of “Critical Circumstances” penalties in U.S. antidumping enforcement. Critical Circumstances penalties are surprisingly common. Of the 297 foreign firms that were assessed antidumping duties greater than 25% during the period 1980–1995, 89 (or 30%) were also assessed a Critical Circumstances penalty. The volume of imports affected by these Critical Circumstances penalties was approximately $991 million over the 15 year period (or about $66 million per year). The average level of the Critical Circumstances penalties was about 79% of the value of the relevant commerce, assessed for a period of up to 90 days, or as much as $13 million per year. The economic cost to the United States from Critical Circumstances penalties comes largely from the reduction in export levels (increase in prices) that foreign firms may make in the expectation that a Critical Circumstances penalty may be assessed. The article presents evidence that foreign firms have restricted their exports to the United States to avoid or minimize Critical Circumstances penalties, and discusses a simple model that may illustrate how foreign firms react to the possibility of such penalties.     

Trade Statistics: Cotton Yarn & Fabric in Feb.

Cotton is the single most important textile fiber in the world,accounting for nearly 40 percent of total world fiber production.While some 80 countries from around the globe produce cotton,the United States,China,and India together provide over half the world's cotton.This monthly update provides official CNTAC (China National Textile & Apparel Council ) data on China import and export of cotton yarn and cotton fabric,to show a general profile of China's foreign trade in current textile industry.     

Expanding opportunities in fashion merchandizing: a successful internship programme through an innovative collaboration with The National NeedleArts Association

Internships are an important part of education in an applied field such as consumer sciences. Within consumer sciences, coursework typical of a fashion merchandizing programme exposes students, often for the first time, to issues of fibre, yarn and textile structure as well as colour and design. While these topics expand student knowledge beyond apparel, students find it difficult to imagine careers outside of the typical fashion merchandizing framework, thus limiting their internship choices to apparel retailing. Most students are unaware of the art and craft markets, specifically the needlearts of knitting, crocheting, needlepoint, cross‐stitching and embroidery. In the United States and Canada alone, this market, which includes fibre and yarn designers and producers, suppliers and retailers, constitutes an $8.5 billion industry. In summer 2006, the University of Akron and The National NeedleArts Association (TNNA), a trade association, initiated a joint venture, coined Pathways into Professional Needlearts (PiPN), to familiarize and train students in the needlearts. During the pilot programme, 10 fashion merchandizing students attended TNNA's trade show, spent 2 weeks in intense needlearts training and completed 10‐week‐long internships. TNNA appealed to its members for internship positions, which were subsequently matched with students’ abilities and expectations. The positions, scattered throughout the United States and Canada, ranged from a summer camp for school‐aged children, a design house for specialty knits, a needlepoint boutique and design business, yarn designers and distributors, to a web site and e‐business to retail boutiques. Both hosts and students benefited from new, and ongoing, business relationships. The enthusiasm for PiPN prompted TNNA to sponsor a second class in 2007. The students reported that they easily transferred their traditional fashion course concepts to their new areas of interest. They were able to apply their knowledge of textile materials, construction techniques, fashion trends, market research and consumer behaviour to both their needlearts course and subsequent internship. Students not only learned the fundamentals of the needlearts, they also gained a new perspective on the possibilities of future careers. Equally important, they experienced the personal fulfilment of self‐expression through artistic media previously not attempted and the relevance of building a community through the needlearts. They also learned that in applying the traditional content of fashion merchandizing to a related industry, they could expand consumer choice by providing a different market perspective.     

中美纺织品与服装贸易:从MFA到ATC——基于总量、价格和质量的分析

本文力图通过描述性统计和构建评价指数的方法,分别从贸易总量、进口价格和贸易品质量的角度,考察《纺织品与服装协议》在过渡期内对中美纺织品与服装贸易的影响。结论认为,2002年协议第三阶段的实施是两国纺织与服装产品贸易发展的分水岭;全面取消配额导致了进口价格和贸易品质量不同程度的下降。对此,文章有针对性地提出了今后合理应对中美纺织品贸易争端的若干政策建议。     

Export Growth Slows Down

In November of 2005, China and the U.S. signed a bilateral agreement on textiles, launching the three-year quota control for 21 sorts of textile products. In 2007, the second year for the implementation of the agreement, China＇s textile export to the U.S. underwent several changes.     

Examining the impact of celebrity endorsements across consumer segments: an empirical study of Tiger Woods’ endorsement effect on golf equipment

This paper empirically examines whether endorsement effects differ across consumer types–expert vs. novice. The study uses aggregate sales data from the golf equipment industry covering two unique retail channels (on-course and off-course) to estimate endorsement effects for Tiger Woods. The study finds that Tiger Woods’ endorsement of Titleist woods had a greater effect in the off-course retail channel frequented by novice golfers than the on-course channel frequented by experts. I determine that such an effect led to over 28 thousand more Titleist woods being sold and an additional $9.2 million in revenue for the 9 months prior to Tiger Woods switching to endorse Nike apparel and equipment. I also determine that Tiger Woods’ endorsement led to over $500,000 in additional profit for each of the last 5 months of his endorsement contract with Titleist, which provided a 49% Return on Investment from US sales of Titleist woods, putters, and irons. Lastly, I present preliminary evidence to explain a possible reason why the observed endorsement effects varied by consumer types—Tiger Woods’ endorsements were informative to consumers. Specifically, I find support indicating Tiger Woods’ endorsement was more informative to novice golfers than experts.     

From quantity to quality: understanding slow fashion consumers for sustainability and consumer education

There is a growing interest in slow fashion, a production method which emphasizes quality as a way of achieving sustainability in the fashion industry. In order to develop a sophisticated and targeted marketing strategy, this study aimed to identify potential slow fashion consumer segments and understand their characteristics. The final 221 completed responses from a sample of nationwide U.S. consumers were analyzed by cluster analysis. Based on consumer orientation to slow fashion, four consumer groups were identified: Highly‐involved in slow fashion group, Conventional group, Exclusivity oriented group and Low‐involved in slow fashion group. The characteristics of each group were profiled according to personal values, apparel consumption behaviours and demographics. With distinctive profiles of each group, different marketing strategies were suggested to address the needs of each group effectively. This study extends academic understanding of slow fashion in consumer perspectives, and provides important perspectives for consumer education on apparel consumption.