GLOBALIZATION AND THE COMPETITIVENESS OF THE EUROPEAN TEXTILE AND CLOTHING INDUSTRY

Girneata Adriana () and Dobrin Cosmin ()
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Girneata Adriana: The Bucharest University of Economic Studies, Bucharest, Romania, Management Department, Faculty of Management
Dobrin Cosmin: The Bucharest University of Economic Studies, Bucharest, Romania, Management Department, Faculty of Management
Authors registered in the RePEc Author Service: Adriana Dima (Girneata)

Annals of Faculty of Economics, 2015, vol. 1, issue 1, 1102-1108

Abstract: The aim of the paper is to analyze the competitiveness of the European textile and clothing industry under the influence of globalization and recent economic crisis. The textile and clothing industry is an important part of the European manufacturing industry, playing a vital role in the economy and social welfare in many regions of Europe. The European textile and clothing industry has undergone significant changes in recent decades due to the technological advances, developments in production costs, the emergence major international competitors and the elimination import quotas after 2005. In response to the competitive challenges, this sector of activity has undertaken a lengthy process of restructuring and modernization. Globalization and technological progress have led to rethinking the strategy of the companies in the industry. In a competitive global market, European organizations producing textiles and garments have as main competitive advantage research and continuous innovation. Using methods of qualitative research, this paper analyses the evolution of the main financial indicators concerning this sector of activity in the period 2007 – 2013, including domestic consumption, turnover, number of employees, number of companies, imports and exports. The globalization of markets, international outsourcing and development of the Internet had a major impact on the structure and dynamics of the textile and clothing industry in Europe, and in particular on small and medium enterprises. Also, relocation, subcontracting and outsourcing of large brands in this domain have contributed significantly to the increase of imports from low-cost countries. A growing number of apparel retailers have emerged on the market, organizing supply chains globally. At the same time, producers have transferred part of their activities to low-cost countries in order to maintain market competitiveness. This was determined by the major differences in salaries across the global labour markets and high profits obtained from trade. Based on the results of the analysis undertaken, the paper suggests that in recent years, the competitiveness of the textile and clothing sector fell significantly, causing restructuring and downsizing.

Keywords: textile and clothing industry; competitiveness; European garment sector; globalization (search for similar items in EconPapers)
JEL-codes: F60 M20 O19 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ora:journl:v:1:y:2015:i:1:p:1102-1108

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