The global textile and garments industry : the role of Information and Communication Technologies (ICTs) in exploiting the value chain

The global textile and garment sector has been in a state of flux since January 2005, when almost four decades of restrictions on trade formally came to an end with the demise of the Multi-Fibre Arrangement (MFA) quota system. Many developing countries now face increasing competition and downward pressure on prices as the global garment industry consolidates around a relatively small number of winners. Information and Communication Technology (ICT) has an important role to play as developing countries adjust to the new era. First, ICT, as a general purpose technology, can improve business practices and increase the efficiency and competitiveness of developing country firms. Secondly, ICT is the main driver that shifts value along the value chain, enabling new business models, disaggregating production chains, and creating new opportunities for developing countries in the global supply chain. This study attempts to develop these ideas through an analysis of the textiles and garments sector, reinforced by specific company case studies.