Fiji’s garment industry : an economic analysis

The May 2000 civilian coup has had a detrimental effect on investor confidence in Fiji. Political instability and uncertainty surrounds the economy and the garment industry – one of the successful products of the Export Oriented Industrialization strategy – is the most affected. Investment in this sector has stalled and a total of 7 garment factories have closed operations with the likelihood of others following the same direction if the political impasse and uncertainty continues. In light of the continuing demise of the industry, this paper enlightens the contribution of the industry to Fiji’s economy in terms of exports and employment creation. The paper also presents an analysis of the profitability and operating efficiency status of the industry and contends that the industry is a viable one. It also presents policy makers with some recommendations that can be considered in light of reinvigorating investment in the garment industry.

Globalisation and manufacturing strategy in the TCF industry

Purpose – The textiles, clothing, and footwear (TCF) industry has struggled in Australia since the government commenced dismantling tariffs. By sourcing from Asia, middlemen undercut established suppliers, and retail chains set benchmark low prices with their imported “house” labels. The policy-makers predicted that local producers would become more efficient, and export to make up for lost sales, but the media paints a picture of rising imports, retrenchments, and factory closures. The research objective was to discover what strategies the survivors (actually) employ in adapting to the pressures of globalisation.

Design/methodology/approach – More than 30 companies were involved in the study, ranging from small family businesses to subsidiaries of big multinationals. Each case study was based on an interview with a senior executive, normally followed by a plant tour. This methodology suits a fresh topic, as it avoids preconceptions and imposes no bounds.

Findings – Results show that the policy change was based on “pie in the sky” forecasts. Increasingly, TCF production is transferred to cheap offshore locations, generally via subcontracting plus the “badging” of foreign designs. To survive, local factories should focus on quality and customer service, preferably in niche markets (like uniforms), or for specific customer groups, and develop technologically advanced products. A move down the supply chain into retailing can also assist. Large multinational corporations that engage in foreign direct investment dominate the management literature.

Originality/value – This paper presents a different perspective, neglected in international operations management, whereby domestically oriented businesses attempt to defend themselves against the adverse consequences of globalisation.

Doubling fish exports or garment exports : which would benefit the Fijian economy most? Evidence from a computable general equilibrium model

The need to diversify Fiji's export base has been identified as an important avenue for reducing Fiji's vulnerabilities in international trade. This paper poses the question: Doubling fish exports or garment exports: which would be most beneficial for the Fijian economy? To achieve the goal of this paper, the computable general equilibrium model is used, this being at the forefront of research on 'impact studies'. The main finding is that when garment exports and fish exports are doubled, the benefits to the Fijian economy are greater from garment exports, suggesting that the latter has stronger linkages with the rest of the economy. On the basis of this finding, policymakers should divert resources towards sustaining the garment industry whose future is uncertain due to expiring trade agreements and unstable economic policies.

Fabric and greasy wool handle, their importance to the Australian wool industry: a review

Handle-related properties of woollen fabrics have been demonstrated to be major factors affecting consumer buying attitudes. Handle is the combination of both textural and compressional attributes. Compressional handle has demonstrated processing advantages in woven and knitted fabrics. The handle of processing lots can be manipulated using a variety of technologies but direct manipulation of textural greasy wool handle pre-processing is still crude. On-farm, there is documented evidence that including handle assessment in a selection index provides additional improvements in genetic gain. However, the assessment of greasy wool handle is based on a tactile evaluation of the wool staple by sheep and wool classers, and its application is affected by a lack of framework that instructs assessors on a standard method of assessment. Once a reliable and repeatable protocol is developed, further understanding of the effect greasy wool handle has on final garment quality will be possible.