globalEDGE Blog - Page 93

This is part one of a five-part blog series on the evolution of the textile industry over time.

The textile and apparel industry is one of the most popular in the world.  Like most other industries the textile industry has evolved over time.  The evolution of the textile industry is one of the most interesting industries to examine.  One can trace the origins of the textile industry back to prehistoric times.  It is estimated by anthropologists that humans began wearing clothes somewhere between 500,000 and 100,000 years ago. Since this time the textile industry has been evolving.  The earliest trade hubs of textiles can be found in ancient China, Turkey, and India.  All of these regions can be found along the Silk Road; for more information on textile trade along the Silk Road be sure to read tomorrow’s blog.

When it comes to market growth, countries around the world have different perspectives on what constitutes a strong performance of the economy. On Wednesday, October 11 the International Monetary Fund (IMF) announced its prediction that India’s growth rate will decrease to 6.7 percent for 2017, compared to a prediction earlier this year of 7.2 percent. This large drop is largely due to Prime Minister Narendra Modi’s implementation of the Goods and Service Tax (GST) and the demonetization of the Indian banknote. If India’s growth rate falls, it would be behind China’s predicted growth rate of 6.8 percent for 2017. Modi has faced backlash and criticism about the effects that these policies have had on India’s economy so far, which is an interesting contrast to the opinions of citizens in developed countries on the progress of their markets’ growth.  

Until this day, we deal with controversies on gender pay gap globally. Is the whole matter due to gender discrimination by employers or is it just a fraction of it? Does culture or family traditions play a role? Or does it just come down to the fact that women are expected to raise a family and work less, or even leave their job, at some point? These are all factors that contribute to the gender pay gap problem, however, the way people look at it has created some misconceptions.

We are in the midst of the 10 year anniversary of the S&P 500’s its pre-recession high. On October 9th, 2007, this index peaked at 1,565. Since then indexed bottomed at 666 on May 6th, 2009 but has recovered. This index is currently trading around 2,550, the highest it has ever been. The United States is in the midst of the second longest economic expansion in its history. Economic prosperity has allowed the housing market to recover and the United States Federal Government has ended its policy of fiscal stimulus by normalizing interest rates. How does this compare to Europe and Asia in the same time period?

Fair Trade has been around since the 1950s, but what exactly is Fair Trade and how has it changed since its inception? Fair Trade is global movement focused on providing over 1.6 million small-scale producers and workers with fair prices. It is an approach to commerce that eliminates forced labor, child labor, and discrimination while demanding safe working conditions, fair payment, respect for the environment, and transparency. It is an ethical method to trade and works towards alleviating poverty and sustaining development in developing nations.

Universities play a central part in initiating and facilitating global learning. The Centers for International Business Education and Research (CIBERs) were developed to help provide guidance and tools for competitiveness in an international environment. There are seventeen CIBER schools established across the United States, Michigan State University being one of them.

The sneaker industry is becoming a new fad in today’s society, and led by sportswear behemoths Nike and Adidas, is transforming the market into one of the world’s most profitable and demanding sectors.  Propelled by the resurgence of Adidas footwear in popular models like the “Ultra boost,” “NMD,” and rapper Kanye West’s coveted creation, the “Yeezy,” and the continued success of Nike in models such as the “Air Jordan” and “Air Max,” consumers are lining up to purchase sneakers more than ever.  One way producers are ensuring the continued success of their products is by making purposely small amounts of their sneakers in order to create an atmosphere of excitement and exclusiveness that buyers aim to obtain.  This then allows the producers to release the same shoe in larger quantities at a later date—a restock—and gain high sales rates, making their profit margins even larger.  Transparency Market Research expects the world sneaker market to be worth $220.2 billion by 2020.

The economics of the music industry have completely changed in recent years as sales of physical copies and online downloads have changed to online viewing websites and streaming subscriptions through companies such as Spotify and Pandora. The music industry is clearly rising, as in the first half of 2017, music industry revenues have reached four billion dollars, compared to the midway point in 2015 with revenue of three billion dollars.  Subscriptions to online streaming websites are accounting for an increasing percentage of total music industry proceeds. Returns from subscriptions to companies such as Spotify or Apple Music have increased by sixty-one percent from 2016, and American subscribers to streaming music sites now equal thirty million people.  

Automotive manufacturers across the globe are investing in electric vehicles and its accompanying technology at unprecedented levels. Just this week, Detroit based General Motors announced plans to introduce two more electric vehicles in the United States over the next year 18 months and 20 vehicles globally in the next six years. Not to be outdone, cross-town automotive competitor, Ford Motor Company, disclosed that they had formed a new team, dubbed “Team Edison”, to help direct investments toward new electrified vehicles expected in the coming years. This trend is not unique to the U.S. German auto manufacturer, Volkswagen, recently stated that they plan to invest $83 billion worldwide into rolling out 300 electric vehicle models by 2030. This investment is a marks a major shift in strategy, as VW was firmly committed to diesel fuel technology prior to their 2015 emissions scandal. Toyota, Nissan, and Mercedes-Benz have also announced plans to increase production of electric vehicles, either themselves or through joint ventures with other manufacturers.

Recently, technology has been hitting many new sectors of everyday life from reading, media and now clothing. The bra industry plays a major factor in the economic impact of clothing and now is attempting to flourish even more with the new technology being implemented into innovative products.