Wen Wen Liu

Fashion Management Dissertation

Abstract

Since their creation in Genoa1[you can add more info in your footnote like who created as if its intended for the reader not just as a footnote
required by academia. In articles it normally offers more info],
jeans have embodied the iconography of rebellion and
change. [refer: roland barthes mythologies, james Dean: rebel without a cause / Brando’s: the wild one / The cowboy… Jeans have enormous sociological
connections]
It is almost poetic now, hundreds of years since conception and at a time of great flux
in global trade, an Italian city – Florence, once again plays a significant role in preserving or
developing the jean. [promoted by the Americas i.e. lee and levis / don’t advertise for Italy do research!] Following changes to
rules governing international trade, China potentially stands poised to become the largest
global producer of jeans. However, in Florence, Zegna and designers such as Marithe and
Francsois Girbaud exhibit part of the spirit common to those jeans companies heading off
China’s ascendancy (and probable [if so state or make a footnote…. explaining not just a reference to nothing] dominance) of
production and supply of this fashion sector2. This study intends to provide an insight into the
nature of this ascendancy: threat, opportunity or non-entity?

In illuminating this area, great store has been made of monitoring market development
(through trade and industry press), requesting information directly from organizations such as
the China National Textile & Apparel Council, China Customs and The European Union
Delegation to the UK and applying leading theories and authoritative predictions. Information
collected from these processes has been held up against available forecasts. Trends, where
they appeared, have been noted and commented upon, final conclusions and
recommendations and notes and comments arrived at following these observations.
[who gives a shit – I don’t know what this means its purely about cost of production so if the so if the forecasts reveal something –a thesis topic- say what it is,
don’t just say it as an empty background comment.]

In relation to importation into the EU of Jeans from China, revising the World Trade
Organisation (WTO) Quota System has thrown up evidence[this is the important stuff so don’t
bluff it in the thesis statement say “can that [SUMMARY DETAIL TO BE FILLED IN WHEN I
COMPLETE STUDY].

From the above it is easy to conclude that [FILL DETAILS IN HERE].

Introduction

In the field of fashion management, the WTO Quota System is significant because following
its revision, for the clothing and textile sector and not just jeans producers and manufacturers,
it is believed that

“……………..the sourcing of low value-adding activities will increasingly go to low cost

countries, with more aggressive retail strategies in the west and the emergence of new
markets. New sourcing strategies are to be developed, requiring better supply chain
management together with a strong connection to technology. This challenges companies to
identify the best opportunities throughout the value chain globally and to think globally in a
market perspective.”3 [Now you use the footnote correctly, after clarifying something]
Before this revision, Asia and in particular China had already challenged the EU to a large
extent within the fashion manufacturing sector. If not legally, then illegally through counterfeits
[explaination required and evidence (you mean the cheap copy)]. It became standard knowledge that the
EU, home of many fashion houses which were key generators of employment, had been
hemorrhaging jobs to Asian countries.

In a recent report4, the European Foundation for the Improvement of Living and Working
Conditions (EFILWC) opined [is that a word] that with enlargement to the East and in conjunction
with its states in the south, the EU was set to increase its 200 billion euro textile & clothing
production capacity. This in an industry spread amongst approximately 230, 000 companies
and employing more than 2.7 million people, a figure that could possibly rise to between 3.3
million and 7.3 million plus. [what does this figure mean to the jeans industry?]

The same report states that “…... The share of the textiles and clothing sector, in terms of
total manufacturing value added at EU level, amounts to roughly 4% and the share of total
manufacturing employment level is around 7%” continuing to predict “ that the end of the
quota system will result in a loss of 15% of the jobs in this sector in the United Kingdom alone
and 13% in Germany”.

The last figures are quoted in the report as reason enough to galvanise into action those
concerned with EU fashion management. If they fail to take note, recognise the threat from
the abroad and identify their own unique strengths, weaknesses and competativeness, a
good chance exists that when Chinese products replace other countries goods around the
world, this revision will do for the European Jeans and clothing industry what Japan and
Korea [and scandavia, germany etc. don’t make incorrect comparisons: the british car industry didn’t die because of competition alone but due to rising costs
of production and collaborations with european firms]
have done for the British car industry. Are you pro- european here? Are you
making a thesis or fighting a cause. Try writing a thesis starement like:

“supposing liberalisation the WTO (export) quota system will increase economic growth in for the (Jean) textile industry: does this risk replacing European
production with new production monopoly in Asia”

This dissertation examines this danger and aims to explore the resultant changes that are or
may occur within the EU Jeans production and supply chain. It also studies how these
changes are perceived and managed by the fashion hierarchy and, reflecting the EFILWC’s
reported concerns:

Forecasts the short, medium and long term developments that might take place in this sector
as a result of the revision and the industry’s reaction to it
Outlines strategies for change
Reflects upon survival mechanisms and options for growth in the mid-term

In pursuing this aim, the dissertation argues that [FILL IN DETAILS OF MAIN ARGUMENT
OF THE DISSERTATION HERE].

This argument is effective because [SET OUT DETAILS OF WHY THE DISSERTATION
HAS BEEN EFFECTIVE IN ILLUSTRTING THE AIM IT HAS] and this has only been
possible through [FILL IN DETAILS REGARDING THE METHODOLOGY OF THE
DISSERTATION THAT ENSURED ITS EFFECTIVENESS IN ILLUSTRATING ITS AIMS AS
STATED ABOVE]
[I don’t understand the above statements and disclaimers, it would be better to say “please wear these jeans at your own risk as we cant confirm where they were
produced”]

Rationale

This dissertation investigates the revised WTO Quota System and its impact on the EU textile
trade with particular reference to the importation of Jeans from China.
Sets out the foundations of the WTO, charting China’s accession to the WTO to the point of
liberalization of the trade quotas between WTO states on 1stJanuary 2005.
It is worth noting that from 1948, international trade between states had been strictly
regulated firstly through a multilateral legal agreement and thereafter through a quota system
administered by the WTO. Regulation sought to level the playing field of international
commerce by restricting the export strengths of more economically liberalized states in favour
of lesser ones. However, regarding clothing, regulation adversely impacted on the lesser
economically liberalized states by imposing export quotas on them. It is such imbalances that
the WTO sought to address by the gradual removal of quotas to the point of eradication. The
EU’s perspective was that for textiles, this milestone was passed on 1stJanuary 2005.

Because:

China’s textiles & apparel (inc Jeans ) exports accounted for $3.828 bill out of its total $64.99
bill worldwide exports
the EU was its fourth largest export recipient
the EU’s imports of such Chinese textiles & apparel (Inc jeans) amounted to $1.759 bill.

(Source: all info - China Textile and Apparel Exp. US $10.4 Billion in Jan. 2006, CNTAC)

The total value of EU imports of textiles & apparel (inc. jeans), from all sources, was $[FILL
IN AMOUNT] bill.
China was on the ascendant and less isolationist economically
the EU had firstly arrived at its perspective regarding unfettered access but then also began
viewing China’s penetration as threat

This became a significant matter for consideration by the apparel manufacture and retail
sector.

Knowledge of China’s potential effect on the EU’s economy can be quite helpful in setting
strategic management objectives and deciding upon long-term strategy.

Although the initial research underlying this dissertation suggest a temporary curb to
China’s forward thrust, because of her sustained and almost daily march uniformly across
several sectors in other economies, it is prudent to expect that China will resurge in this
field sometime in the near future. With large capital reserves, access to textile raw
materials from home and abroad, a larger work-force and cheaper manufacturing base
China’s dominance of this global sector is a very real possibility. A fashion professional’s
survival in such a ‘What If?’ scenario largely depends on their ability to envisage and plan
for such dominance.
 Plans for such forward laying possibilities, as well as for more immediate situations, are
some of the options that are introduced and developed in the dissertation.

The potential challenges to researching and writing up this topic have included its wide
scope. Limiting this and remaining relevant to the overall study topic is an obvious,
sensible, difficult but ultimately achievable aim. Obtaining primary data for this topic is also
likely to be difficult, although using secondary sources of data does not have the same
issues.

2.0 Aim and Objectives

The aim of this dissertation is to set out what, if any, impact the liberalization of the WTO
Quota System has had on the Sino-EU Jeans trade.

Where a significant impact is shown, it is hoped that the dissertation will:

Concisely indicate that impact and its actual, possible or probable effects
Place its significance for short-, medium- and long-term strategic fashion management
planning in context
Indicate which groups within the fashion supply chain are most likely to gain or loose from this
impact and demonstrate why
Set out base and advanced contingency strategies that these groups might best be advised to
adopt to counter this impact

Where no significant impact appears regarding a particular group or set of groups, just
identifying this alone still has strategic management planning value. This value arises
because, once ruled out; these possible impacts can be ruled out because they have already
been identified as not applying by the relevant study.

3.0 Proposed Research Methodology

Whilst researching this topic, I have preferred to use primary data that I have received by
telephone, email or letter from relevant people and organisations. Additional data has been
acquired from industry, trade and specialist publications, journals and web resources. This
dual approach to research has helped me to improve my English, work hard at my
communication and writing skills, obtain new research skills such as questionnaire design,
response tabulation, scenario development and telephone research/interviewing and, finally,
improve my existing internet and library research skills.

Through this work, I have also come to learn something about foreign trade relations and
some of the trade issues relating to the global fashion trade.

Any one of the skills or knowledge sets that I have outlined above will come in useful in my
private, academic and professional life.
Yeah ok…

now I sleep - Akay

1 The blue jeans story, New Internationalist, June 1998

2 Italy wrestles the China dragon, International Herald Tribune, June 27 2005

3 Fashioning the future: Challenges for the European textiles and clothing sector, European
Foundation for the Improvement of Living and Working Conditions (EFILWC), 2005-06

4 ibid