Industry News

Keeping current on what is happening in distribution can be difficult. At FedEx, one of our goals is to help distributors identify news that affects your business and provide resources to help you solve your business problems.

Industry Programs & Events

Industry Associations & Publications

Industry Trends

Staying up on the ever changing Apparel industry is difficult. The following trends are important to the ongoing development and growth in the Apparel segment.


Global Sourcing of Apparel Continues its Ebb and Flow, Country to Country
While China has captured close to 25 percent of the apparel imports to the U.S., other areas continue to grow as well. Much of this growth, and anticipated growth, is being facilitated through legislation such as DR-CAFTA, NAFTA and the end of import quotas from China that went into effect January 1, 2005. What does all this mean? From a sourcing standpoint the question is a difficult one. Especially when you take into account the impacts that the China importing growth will have on the U.S. transportation infrastructure.

According to an article from the Boston Consulting Group (BCG):

Port congestion will probably worsen on the West Coast of North America. BCG cites statistics that China is scheduled to increase their port capacity by 500,000 twenty-foot equivalent units (TEU) per year over the next several years. However, no more than five new berths are planned for the West Coast.

Rail capacity is perhaps more constrained than the ports, according to BCG. They estimate that capacity out of Los Angeles and Long Beach is already very nearly gone, and freight out of Oakland, Seattle and Tacoma is expected to reach capacity in 2007 or 2008. And no major rail-infrastructure projects are being discussed to alleviate this looming capacity problem.

Bottom-line, understanding the transportation implications of where you source is important now and only going to become more critical.


Speed to Market Is Being Addressed With Technology
Product Lifecycle Management (PLM) is at the forefront of this speed to market focus. According to an ARC Consulting study, PLM applications will grow from an estimated $6.9 billion in 2005 to over $13 billion in 2010. Much of the predicted growth will be with the small- and medium-sized businesses. While ARC sees this primarily in discrete manufacturing industries like automotive currently, they predict steady growth in CPG industries as well. 


Channel Integration Continues
In many ways the classic distribution model is fading like a pair of well-worn jeans. Apparel manufacturers are increasingly moving into retailing. Most recent evidence of this is VF Corporation’s opening of a Napapijri store in New York. Overall, VF Corporation plans on opening 400 stores worldwide. VF isn’t new to retailing as it currently operates 305 full-priced stores and 220 outlets. However, VF announced this as a key strategic move as they intend to generate around 20 percent of revenue from retail, up from 13 percent today.

Much of this shift comes from the consolidation of department stores and the growth of private labels. Manufacturers face a stagnant market and are looking for alternatives for growth. The trick is not to alienate the current retailers carrying their merchandise.


Back to Top
Industry Programs & Events

FedEx is an active supporter and participant in the apparel industry. We frequently provide educational programs or participate in industry events. Look for upcoming activities in your area.
Industry Associations & Publications

American Apparel Producers' Network (AAPN)
Surf Industry Manufacturers Association (SIMA)
IASC International Association of Skateboard Companies (IASC)
American Apparel & Footwear Association (AAFA)
Apparel Magazine
Textile World
Women’s Wear Daily
Fashion Market Magazine Group
California Apparel News