Global review of value added product ppt

Global review of value added product

International ConferencePresented by

K. Ananda Krishna Kumar

Introduction The Global review of value added product in textile we

mentioned garment manufacturing.

Now days people all are having their values differ from other even their dressing sense also the term value addition is convert raw materials to finished products.

Apparel industry played a leading role in Asia export growth in garments.

EXPORT GROWTH OF INDIA40%

COTTONTEXTILE MAN MADE HANDI CRAFT SILK

GLOBAL VALUE CHAIN VALUE ADDED PRODUCT

International production, trade and investments are increasingly organized within so-called global value chains where the different stages of the production process are located across different countries.

Global value chain in garment manufacturing geographic spread of economic activities across boundaries between two countries and globalization is implying functional integration between international dispersed activities.

Value chain are play two roles namely producer value chain and buyer value chain.

Producer value chain describes about the manufacture of goods they play central role in coordinating production network where profits comes from scale, volumes, technological advances.

Buyer value chain it explains large retailers, marketers, branded manufactures play a vital roles setting up decentralized production network in exporting from different countries typically located in developing countries where profits comes from combination of high value research, sales, design, marketing.

In apparel, the split between manufacturing and marketing that prompted the emergence of “lean retailing”

The value-added chain can be applied under two different assumptions.

The first is that competitors have the same technology, but costs vary because of differences in location sites first assumption costs can be readily estimated by incorporating foreign wage and material rates into the estimates of production costs.

The second assumption allows for differences in technologies, and estimates production costs when competitors may be at an advantage or a disadvantage in terms of firm-specific assets

MEASURING GLOBAL VALUE CHAINS

Three main methodological approaches have been used international trade statistics on parts and components;

customs statistics on processing trade and international trade data

The research on GVCs using firm-level data has emerged more recently, following different methodologies and using both qualitative surveys and international trade data.

There are five GVC governance types

Market Modular Relational CaptiveHierarchy

Customers Lead firm Lead firm Lead firmIntegrated

firm

Suppliers Component Component Captive

&material &material supplier

supplier supplier

PriceFull

package supplier

Relational supplier

CONCEPTUALIZING THE TEXTILES AND APPAREL VALUE CHAIN

Global value chain refers to the production and distribution processes.

Entry barriers to value chains are based on knowledge or skills that are unique and not universally accessible, insulating firms from simple price-based competition.

Control of key functions in apparel

Branding

Designing

Marketing

Instance

Product quality

Production volume capabilities

Lead times

Compliance with different social and environmental standards

There are two upgrading in global value chain

Process upgrading

It means increase the efficiency of production process

Product upgrading

Product upgrading involves a shift into higher value-added product lines

Conclusion

Global value chains (GVCs) have deeply changed the paradigm of world production, affecting international trade and investment, labor market developments and the way policy makers interpret trade policies and external competitiveness.

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