The Value Chain in T&C The Value Chain in T&C Industries in Domestic and Industries in Domestic and International Markets International Markets The Role of SMEs in the T&C Industries; The Economics and Business of Fashion Presentation by Presentation by Mr. Matthias KNAPPE Mr. Matthias KNAPPE Caserta, Italy 30 November 2005 Caserta, Italy 30 November 2005
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The Value Chain In T&C Industries In Domestic And International Markets
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The Value Chain in T&C The Value Chain in T&C Industries in Domestic and Industries in Domestic and
International MarketsInternational Markets
The Role of SMEs in the T&C Industries; The Economics and Business of Fashion
Presentation by Presentation by
Mr. Matthias KNAPPEMr. Matthias KNAPPE
Caserta, Italy 30 November 2005Caserta, Italy 30 November 2005
Technical cooperation arm of WTO and UNCTAD for Technical cooperation arm of WTO and UNCTAD for operational enterprise-oriented capacity building for operational enterprise-oriented capacity building for
trade promotion and export development.trade promotion and export development.
……for developing countriesfor developing countries
Context:
Global T&C trade: 453 billion $ (clothing 258 bio $)
T&C: 7% of global merchandise trade
LDC share of world clothing trade: 5%
Many DCs & LDCs depend on clothing exports or regard clothing as a future export sector, but not the domestic maket
WTO: T&C is a normal sector
Characteristics of T&C industry in DCs
• Most LDCs have no integrated T&C industry (clothing exports = 8 times textile exports)
• SMEs mainly produce clothing and not textiles
• Poor market diversification• Poor product diversification• Mainly CMT/maquila: « full-package » to be
developed (incl. product dev. & design) • Fashion for the domestic market is minimal
Source: Textile Outlook International No. 116 March-April 2005
EU: Import Price Development for Clothing
Import Prices in EU for Clothing from 1990-2003
14.0
17.1 17.2 17.3 17.1
18.317.4
16.3
14.4
13
14
15
16
17
18
19
1990 1997 1998 1999 2000 2001 2002 2003 2004
Years
Pri
ces
in E
uro
Per
KG
Prices of Clothing
2. Consolidation (at 4 levels): what are the consequences for SMEs?
Likely Post 2004 Sourcing Pattern
0
10
20
3040
50
60
70
Under Quota Year 2005/6 Year 2010
Year
Nu
mb
er o
f C
ou
ntr
ies
Source: US Department of Commerce: Report to the Congressional Textile Caucus on the administration’s efforts on textile issues; Washington, September 2002
3. Move towards a Service Industry: Have SMEs the vision?