Globalisation still dominates apparel production and it is highly unlikely that reshoring or backshoring will bring back many jobs that were lost via offshoring, says the International Apparel Federation IAF President, Han Bekke.
There is still too much pressure for cheaper prices, says pointing at the dominance of big players in the fashion market who have made globalisation more accessible via better IT systems and processes in their supply chain. Most of the apparel production takes place in Asia, Middle and South America and Turkey.
Nevertheless Bekke sees a future for local manufacturing given great challenges the fashion sector is facing. The race to the bottom in terms of prices will not help companies to improve their profitability on a long term. Consumer behavior is changing in a climate of disruptive economical activities. Sustainability (social compliance and environmental compliance) is leading to a growing demand if not pressure for transparency, traceability and accountability.