The Textile and Clothing Industries Under the Fifth Kondratieff Wave: Some Insights from the Case of Hong Kong

This paper proposes that the world's textile and clothing industries have become increasing vertically disintegrated with a few flexible production regions (the “cream” portion) engaging in creative, innovative, dynamic and high value-added activities, and an expanding number and spatial extent of regions (the “cake” portion) taking part in low value-added activities. In-between is an “artificial” layer protected by the international regulatory framework. This layer has characteristics of both the “cream” and “cake” layers. On the one hand, the labor force in this layer suffers from low job mobility and low-paid blue-collar work of the “cake portion” and is dominated by female semi-skilled workers. On the other hand, industrialists and governments in this layer enjoy the profits and high export values of the “cream” portion. Under the Fifth Kondratieff wave, the textile and clothing industries have become increasingly coordinated and controlled by a thinner “cream” layer. Over time, regions in the “cake” portion will find it increasingly difficult to transform themselves into “cream” because of deep-seated structural and geographic differences.