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Industrial strategy for the clothing sector

1994

Abstract

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Key takeaways

  • Historical behaviour in the clothing industry has demonstrated that firms do react to regulatory change: Firms have chosen different forms of labour flexibility, in light of labour market controls on relative wages and regional incentives.
  • Clothing is often perceived as an industry with many small firms.
  • Static strategies are most typically found in clothing when firms focus their efforts on achieving labour cost reductions.
  • S.A. clothing firms should be encouraged to focus on operational or dynamic flexibility.
  • Many clothing companies are managed as family firms, without sufficient training in new management and organisational techniques.