Fashion’s Influence on Garment Mass Production: Knowledge, Commodities and the Capture of Value Sally Weller A thesis submitted in total fulfilment of the requirements of the degree of Doctor of Philosophy Centre for Strategic Economic Studies Victoria University, Melbourne AUSTRALIA October 2003 ABSTRACT In affluent communities, it is difficult to think about clothing without considering issues of fashion. Yet, in analyses of the garment industries, fashion is rarely considered in detail, and is certainly not analysed as a structuring force over the configuration of garment production industries. Yet through fashion, garments as commodities are complexly embedded in social and cultural processes and in the specificities of place. Although the structures of the global garment production industries have been the subject of numerous studies from a variety of theoretical perspectives, none hitherto have addressed the influence of fashion on the structures and locations of garment production. This thesis begins with the idea that fashion is a complex and influential form of knowledge. It explores the effects of fashion ideas on the global garment system through a case study of the ideas and commodity flows that bring fashions and garments to the Australian market. It traces the interconnections between global knowledge flows and global commodity flows in a manner attuned to the relationships between knowledge, power, industrial organisation and the capture of surplus value from the production system. The analysis highlights how Australia’s position in garment production is framed by its geographical position on the periphery of the fashion world. Fashion knowledge is a complex form of knowledge with four interrelated expressions. First, fashion exists in the media, separate from the garment industries, where it contributes to the construction of ‘dream worlds’ of unreality. In this expression fashion influences consumers’ preferences for particular styles. Second, fashion exists in local communities, where fashion ideas spread through personal interactions in complex flows that are related to social status and personal aspirations. Third, fashion is expressed in garments, through their design qualities, where ideas are embedded into the cloth to create garments as socially meaningful objects. However, the meanings that garment convey are unstable and shift with the fashion mood. Fourth, fashion is expressed in firms, through brands, which capture fashion ideas as intellectual property and use them to generate profits. Fashion also influences firm strategies and the ways that firms relate to each other. The garment production system is concerned, fundamentally, with the coordination of these different expressions of fashion. i The first part of the thesis explores fashion’s impact on consumer desires and on the production system. In contrast to previous analyses, which have focused on the temporal movement of fashion changes, the discussion emphasises the stylistic aspects of fashion − the knowledges that create fashion styling and the mechanisms by which fashion knowledge diffuses in time and space. It shows that fashions in the globalised media are dominated by the styles of a relatively small number of designers who are located in key cities, who are linked closely to the beauty and media industries through licensing agreements, and whose style authority is protected by intellectual property rights. The uneven penetration of the elite fashions shown in the media generates uneven global landscapes of fashion. Nonetheless, the elite fashion system provides leadership to the mass production system by orchestrating the fashion trend direction and the timing of fashion seasons. This structure mitigates market uncertainty in the mass production sector. The mass production garment system follows the lead of elite styles, generating a plethora of interpretations, imitations, derivatives and copies depending on producer firms’ relation to intellectual property rights. Through these processes, fashion produces a global hierarchy stratified by style aesthetics, authenticity, production quality and price-income clustering. These segmentations are expressed by firms as fashion brands. The second part of the thesis examines the restructuring of the Australian garment industries in the 1990s to show how fashion altered the trajectories of firms as they adapted to Australia’s new market-oriented accumulation strategy. These chapters examine changing retail, production and import sourcing frameworks to show how the imperatives of fashion shaped the strategies of firms. Various examples specify how the globalisation of garment production is patterned by the interaction of the world of ideas and knowledges, in fashion, with the world of goods. Because fashion knowledge is unevenly distributed across places, both the values that people place on garments and the cost of producing garments vary from place to place. Firms in the fashion industries prosper by capturing the shifts in valuation that as garments travel in space and time. Specifically, firms capture a form of surplus value that is created as commodities shift between production-oriented value frameworks, based on the costs of labour and materials, and consumer-oriented value frameworks, based on the willingness to pay for fashion. The garment production system is led by the firms that understand and exploit value shifts. ii ACKNOWLEDGMENTS Many people have assisted in the preparation of this thesis. My supervisor Peter Sheehan provided an environment that allowed me the flexibility to develop my ideas and priorities. His comments at various stages of the research and writing process were as insightful as they were supportive. Michael Webber provided numerous inspirations to the development and theorisation of the work-in-progress. Our discussions pushed ideas to new stages and directions. Other people and institutions have given me help and support at different stages of the ongoing research. Victoria University’s Tradedata service provided me with the data sets for analysis in this thesis and in related work. I am grateful to the many people who provided me with information and resources at different parts of the project, especially to people in Australia, Hong Kong and Fiji who gave up their time to explain their roles in the garment industry. Listening to the discussions in the Economic Geography and International Political Economy list-servers connected me to wider intellectual communities that I could possibly access locally. The Australian Federal Government, through an Australian Post-Graduate Award, enabled me and my children to (barely) survive financially for duration of this project. I am indebted to other sources of funding: Victoria University assisted with annual stipends, and supplemented some of my travel costs. I am also grateful to the Commonwealth Department of Industry Science and Resources, the Woolmark Company, and the Victorian Government and the Australian Council of Trade Unions for providing intermittent consultancy work. Finally, I am indebted to my children, Terry and Patrick Hartnett, who have watched this project with amusement, and tolerated good-naturedly my apparently endless preoccupation with the computer screen. iii DECLARATION This thesis contains original research by me, unless otherwise stated in the text. This work has not been submitted previously, in whole or part, in respect of any other academic work. Content that draws on my own previously published work is indicated in the text. The dissertation is less than 100,000 words in length, exclusive of appendices, bibliography and footnotes. Sally Weller September 2003 .............................................................. Copyright in the text of this thesis rests with the author. Copies (by any process) either in full, or extracts, may only be made in accordance with instructions given by the author and lodged with the Victoria University Library. Details may be obtained from the Librarian. This page must form part of any such copies made. Further copies (by any process) made in accordance with such instructions may not be made without permission (in writing) of the Author. The ownership of the intellectual property rights which may be described in this thesis is vested in Victoria University, subject to any prior agreement to the contrary, and may not be made available for use by third parties without the prior written permission of the University, which will prescribe the terms and conditions of any such agreement. Further information on the conditions under which disclosures and exploitation may take place is available from the Director, Centre for Strategic Economic Studies, Victoria University. iv TABLE OF CONTENTS Abstract………………………………………………………..……………. (i) Acknowledgements…………………………………………………………. (iii) Declaration…………………………………………………………………... (iv) Table of Contents………………………………………….………………… (v) List of Tables………………………………………………………………... (xiii) List of Figures………………………………………….……………………. (xv) List of Abbreviations…………………………………. …………………..... (xvii) CHAPTER 1 Introduction and Overview…………………………………… 1 1.1 Globalisation, Clothing and Fashion………………………………….. 2 1.2 Aim and Themes………………………………………………………. 4 1.3 The Scope of Enquiry………………………………………………….. 5 1.4 Placing the Study in Economic Geography……………………………. 7 1.5 Methodological Approach……………………………………………... 9 1.6 Field Methods and Analysis 11 1.7 Structure of the Thesis…………………………………………………. 15 CHAPTER 2 Critique Of Geographies Of Garment Production……...…… 18 2.1 19 2.2 Metaphors of Clothing Production…………..………………………... 2.1.1 Market-based Metaphors………………………………...… 21 2.1.2 The New International Division of Labour………..………. 24 2.1.3 Global Commodity Chains………………………………… 26 2.1.4 Networks and Garment Production Districts…………..…... 32 2.1.5 Global Production Networks…………………………..…… 37 2.1.6 Conclusion: Practical Adequacy……………………………. 38 The Nature of Fashion…………………………………………………. 41 2.2.1 Fashion, Status and Identity…………………..……………. 41 2.2.2 Fashion as Social Knowledge………………………………. 46 2.2.3 The Meaning of Clothes…………………………………….. 46 2.2.4 Fashion’s Rhythms and Changes…………………………… 48 v 2.2.5 The Value of Meaningful Objects…………………………... 49 2.2.6 Conclusion: Fashion, Value and Knowledge……………….. 52 2.3 Fashion and Globalisation……………………………………………... 53 2.4 Conclusion…………………………………………………………….. 56 PART 1 FASHION AND THE PRODUCTION SYSTEM ……….………. 59 CHAPTER 3 Australia In Global Flows Of Fashion Ideas.………………… 60 3.1 61 3.2 3.3 The Media in Australia………………………………………….…….. 3.1.1 Fashion on Television………………………………………. 62 3.1.2 Fashion in Magazines……………………………………….. 65 3.1.3 Advertising as Linkage……………………………………... 66 3.1.4 The Media as Image Creation………………………………. 68 Globalising Fashion: the Case of Marie Claire ……………………….. 69 3.2.1 Marie Claire and Global Fashion ………………………....... 70 3.2.2 Marie Claire’s Format ……………………………………… 71 3.2.3 Marie Claire’s Content ……………………………………... 71 3.2.4 Marie Claire and Elite Fashion……………………………... 73 3.2.5 Marie Claire compared to Vogue…………………………… 76 3.2.6 Summation: The Media and Global Elite Fashion………….. 77 Diffusion and Resistance……………………………………………… 78 3.3.1 The Penetration of Media Information……………………… 78 3.3.2 The Effectiveness of Advertising…………………………… 78 3.3.3 Fashion as Hybridisation……………………………………. 80 3.3.4 Local Culture?......................................................................... 81 3.3.5 Conclusion: Global and Local Fashions …………………… 85 Conclusion ……………………………………………………………. 85 CHAPTER 4 The Commodification Of Fashion Ideas ………………….… 87 4.1 88 3.4 Creating the Landscapes of Fashion………………………………….. 4.1.1 Fashion Design…………………………………….……….. 88 4.1.2 The Structuring of Style………………………….….……... 90 vi 4.1.3 4.2 4.3 4.4 Fashion as Intellectual Property…………………..………... 93 The Restructuring of Elite Design……………………………………. 97 4.2.1 Expansion into Licensing…………………………………... 98 4.2.2 Restructuring of the Elite Garment Production………….… 101 4.2.3 Corporatisation of the Luxury Goods Sector……………..... 105 4.2.4 Globalisation of Luxury Goods Sector…………………...... 108 Fashion’s Coordination of Space and Time…………………………... 110 4.3.1 The Place of Elite Fashion…………………………..……... 110 4.3.2 Fashion Events as Regulating the Rhythms of Fashion…..... 112 4.3.3 Clothing’s Place in the Fashion System……………………. 114 Conclusion…………………………………………………….……… 115 CHAPTER 5 Fashion Knowledge in Mass Production ………………….. 117 5.1 Capturing Fashion Knowledge………………………..……………... 118 5.1.1 The Protection of Complexity………………………….…... 118 5.1.2 The Transmission of Fashion Knowledge……….………… 119 5.2 5.3 5.4 5.5 Managing Fashion’s Uncertainty ………………..……………… 120 5.2.1 Elite Fashion Shows as Peer Review ……………………… 120 5.2.2 The Role of the Cognoscenti ……………………………… 121 5.2.3 Fashion Predictions and Uncertainty …………………..….. 122 5.2.4 Fashion Predictions and Production Planning …………….. 123 The Transmission of Elite Styles into the Mass Market …………….. 125 5.3.1 Sanctioned Copying …………………………………..…… 125 5.3.2 Licensing …………………………………………………... 126 5.3.3 Designer Ready-to-Wear Ranges ………………………….. 128 5.3.4 Diffusion Lines ……………………………………………. 129 The Transmission of Fashion Styles beyond Elite Firms……………. 131 5.4.1 Copies and ‘Knock-offs’…………………………………… 132 5.4.2 Imitations ………………………………………………….. 133 5.4.3 Interpretations ……………………………………………... 136 Style Authenticity and Power ……………………………………..… 138 5.5.1 Intellectual Property Rights in Production…………........... 138 5.5.2 A Hierarchy of Style……………………………………….. 139 vii 5.5.3 Knowledge and Power……………………………………... 141 Conclusion ………………………..…………………………………. 142 CHAPTER 6 Fashion Ideas, Brands and Firm Strategies……….………... 144 6.1 The Economics of Fashion………………………………………….... 145 6.1.1 Fashion Business as Time Competition.. . ………………... 146 6.1.2 Fashion Business as Controlling Market Spaces………….... 149 6.1.3 The Basis of Competition 152 5.6 6.2 6.3 6.4 6.5 Fashion, Brands and Commodities…………………………………... 152 6.2.1 The Nature of Fashion Brands……………….…………….. 153 6.2.2 Brands and Commodities………………………………….. 154 6.2.3 The Qualities of Fashion Brands……………..…………….. 155 6.3.4 Brands as Communities of Practice………………………... 156 6.3.5 Conclusion: The Power of Brands………………………..... 158 An Articulated Production System……………………………..……. 159 6.3.1 Brandspaces………………………………………………... 160 6.3.2 Concept Flows……………………………………………... 161 6.3.3 Translation Flows…………………………………………... 161 6.3.4 Commodity Flows…………………………………….……. 165 6.3.5 Coordinating Multiple Flows……………………………… 169 The Organisation of Fashion into Firms……………………………... 170 6.4.1. Spatialising Multiple Flows………………………………… 170 6.4.2 Vertical Integration and Disintegration……………………. 171 Conclusion………………………………………………………….... 173 PART 2 FASHION’S INFLUENCE ON INDUSTRIAL ORGANISATION AND COMMODITY FLOWS………………………… 175 CHAPTER 7 Australia’s Internationalisation Strategy………………..… 176 7.1 Australian Trade and Industry Policy………………………. 176 7.1.1 Re-regulating the TCF Sector ……………………………... 179 7.1.2 Managed Change ………………………………………….. 181 7.1.3 Implementing the Reforms………………………………… 182 viii 7.1.4 Contradictory Policy Objectives………………………….... 183 7.1.5 Conclusion: Australia’s Internationalisation……………..... 185 Global Garment Trade ………………………………………………. 186 7.2.2 Global Trade Patterns …………………………………….. 186 7.2.1 The Effects of Global Trade Regulation ………………….. 188 7.3 Regionalised Trading Patterns ……………………………..………. 190 7.4 Conclusion …………………………………………………………... 194 CHAPTER 8 The Restructuring of Australian Garment Retailing…….. 195 8.1 196 7.2 8.2 8.3 8.4 Clothing Markets in Australia ……………………………..………… 8.1.1 Aggregate Demand for Garments………………………….. 196 8.1.2 Changing Demographics ………………………………….. 198 8.1.3 The Capacity to Consume ……………………………….... 200 8.1.4 Segmentation in Market Spaces …………………………… 200 8.1.5 Summary: Preferences and Demand ………………………. 202 The Clothing Retail Sector …………………………………………… 202 8.2.1 Department Stores…………………………………………. 203 8.2.2 Specialty Chains………………………………………….... 205 8.2.3 Small Retailers, Boutiques and Local Designers …………. 206 8.2.4 New Retail Forms ………………………………………..... 207 8.2.5 Summary: Competing Retail Forms ……………………… 208 Retail Restructuring ………………………………………………...... 208 8.3.1 Department Stores versus Specialty Chains ………………. 209 8.3.2 Changing Market Shares …………………………………... 210 8.3.3 Industry Concentration and Firm Size …………………….. 212 Retailer Power and Retailing Profits………………………………….. 214 8.4.1 The Restructuring of Retail Capital ……………………….. 214 8.4.2 Retailing and the Capture of Surplus ……………………… 214 8.4.3 The Production-Consumption Interface……………………. 217 Conclusion …………………………………………………………… 217 CHAPTER 9 The Internationalisation of Garment Commodity Flows..… 219 9.1 220 8.5 The Organisation of Australian Production………………………….. ix 9.2 9.3 9.4 Effects on Prices and Volumes……………………………………… 222 9.2.1 Effects on Clothing Prices…………………………………. 222 9.2.2 Price Relativities………………………………………….... 224 9.2.3 Import Penetration ………………………………………… 225 Domestic Restructuring and Convergence …………………………… 227 9.3.1 Local Restructuring………………………………………… 229 9.3.2 The Growth of Outworker Production ………………..…… 230 9.3.3 Changing Employment Conditions………………………… 231 9.3.4 Convergence in Business Strategies……………..………… 232 9.3.5 Changing Production to Retail Flows……………………… 235 9.3.6 Price Setting and Margins………………………………….. 236 International Commodity Flows and Local Specialisation…………… 238 9.4.1 Import Strategies…………………………………………… 238 9.4.2 International Retailers’ entry into the Australian Market….. 240 9.5.1 Patterns of Internationalised Commodity Flows…………… 241 Conclusion …………………………………………………………… 248 CHAPTER 10 Fiji: Capturing Value in Production Networks…………… 251 10.1 Background to the Fiji Industry ……………………………………… 252 10.2 The Configuration of the Garment Industry in Fiji…………………… 257 9.5 10.3 10.4 10.2.1 Transnational Branch Plants…………………………...… 258 10.2.2 Australian Offshore Production……………………….… 259 10.2.3 Fiji’s Independent Producers…………………………….. 259 Local Relationships in the Fiji Independent Sector………………….. 260 10.3.1 Complementary Specialisation…………………............... 260 10.3.2 Production-based Cooperation…………………………… 261 10.3.3 Political Co-operation……………………………………. 261 10.3.4 Cultural Commonalities………………………………….. 261 10.3.5 Conclusion: Localised Embeddedness…………………… 262 Transnational Relationships in the Supply Chain………………..…… 263 10.4.1 Role Definitions………………………………………..… 263 10.4.2 The Role of Trust………………………………………… 264 10.4.3 Knowledge Flows……………………………………...… 265 x 10.4.4 Translating Designs into Garments………………………. 266 10.4.5 Market Risk………………………………………………. 267 10.4.6 Capturing Value………………………………………….. 267 10.4.7 Conclusion: Transnational Networks……………………. 269 Events Surrounding the Speight Coup…………………………….….. 270 10.5.1 Changing Conditions……………………………………… 270 10.5.2 Altered Perceptions of Risk………………………………. 271 10.5.3 Bargaining and Inter-firm Relationships………………….. 273 10.5.4 Restructuring and Industrial Upgrading…………………... 273 Conclusion …………………………………………………………… 274 CHAPTER 11 Hong Kong: Capturing Value from Global Flows………… 277 11.1 278 10.5 10.6 11.2 11.3 11.4 Background to Hong Kong’s Development………………………….. 11.1.1 Regional Geo-Politics……………………………………. 278 11.1.2 Hong Kong’s Local Growth Trajectory…………………. 279 11.1.3 Global Positioning………………………………………. 280 11.1.4 Hong Kong as a Global City…………………………….. 282 Fashion Knowledge Flows and Garment Commodity Flows………… 282 11.2.1 The Hong Kong-PRD Garment Production Complex…… 283 11.2.2 Fashion-Oriented Export Specialisation…………………. 285 11.2.3 Hong Kong and Fashion Knowledge…………………….. 287 11.3.4 Conclusion: Hong Kong in Global Garment Production… 289 The Role of Hong Kong’s Intermediaries……………………………. 290 11.3.1 Relationships with Globalising Brands…………………… 290 11.3.2 Intermediaries in the Production System………………… 293 11.3.3 Relationships with Production Plants in the PRD………… 297 11.3.4 Cross Border Garment Trade in the PRD 300 Relationships with Australian Buyers………………………………… 303 11.4.1 Making Up Australian Designs…………………………… 304 11.4.2 Buying Hong Kong Designs……………………………… 304 11.4.3 Price Negotiations………………………………………… 306 11.5 Capturing Value: Hong Kong’s Re-export Margin…………………… 307 11.6 Conclusion……………………………………….…………………… 309 xi CHAPTER 12 Conclusion: Ideas, Commodities and Value ………..……. 311 12.1 312 12.2 12.3 Fashion in Garment Mass Production: Summary of Findings………... 12.1.1 The Fashion System……………………………………… 312 12.1.2 Fashion and Mass Production……………………………. 313 12.1.3 Fashion and Restructuring……………………………….. 315 12.1.4 Fashion and Trade……………….…………………..…… 317 Power, Profit and The Capture of Surplus Value……………………... 319 12.2.1 Capturing Value from the Production System…..……….. 320 12.2.2 Inter-Regional Transfers of Value……………………….. 322 Implications for Industrial Organisation…………..………………… 325 12.3.1 Knowledge in Production and in Place…………………. 325 12.3.2 Knowledge and Power…………………………………… 326 12.3.3 Spatialised Industrial Organisation……………..……..… 329 12.3.4 Social Embeddedness……..…………………………...… 331 12.3.5 Regulation and Industrial Organisation……………..…… 332 12.5 Further Research ……………………………………………………... 332 12.6 Conclusion ………………..……………………….…………………. 333 Appendices……………………………………………………………………. 336 References……………………………………………………………………. 347 xii LIST OF TABLES Table 2.1 Fifteen Main Garment Exporting Nations, 1990 and 1999……... 20 Table 2.2 Limitations of Commodity Chain Analysis………………….….. 31 Table 2.3 Metaphors for Clothing Industries ……………………………… 39 Table 3.1 Penetration of Communications Media in Australia…………… 62 Table 3.2 Australian Fashion and Transnational Media Groups……......... 65 Table 3.3 Advertisements in Marie Claire, April 2000, Four Editions…... 73 Table 3.4 Clothing Designers in Five Marie Claire National Editions…..... 74 Table 3.5 Country of Edition and Origin of Clothing Firms………..…...... 75 Table 3.6 Most Mentioned Brands, April 2000…………………………… 76 Table 3.7 Leading Designers: Marie Claire and Vogue, April 2000…........ 77 Table 4.1 The Spaces of Fashion…………………………………….….… 92 Table 4.2 Haute Couture, circa 2000…………………………………..…. 97 Table 4.3 Ralph Lauren Licences, circa 1990…………………………….. 99 Table 4.4 Consolidation of Elite Fashion Firms…………………………… 107 Table 4.5 Markets for Luxury Goods……………………………………… 109 Table 5.1 Couture, Designer Ready-to Wear and Diffusion Lines………... 130 Table 5.2 Examples of Interpretation ……………………………….…….. 137 Table 6.1 Traditional and Customer Capitalism Compared……………….. 151 Table 6.2 Flows in Relation to Space, Time and Uncertainty……………... 169 Table 7.1 Growth in Global Garment Trade………………………………. 186 Table 7.2 Garment Import Shares, Selected Countries, 1999……………... 187 Table 7.3 Regional Garment Trade as Share of World Apparel Trade……. 191 Table 8.1 Clothing and Footwear in Household Consumption Expenditure 197 Table 8.2 Household Consumption Expenditure, 1993-94………………... 199 Table 8.3 Market Segmentation: ‘The Female Persuasion’……………..… 201 Table 8.4 Competitive Structure of the Specialty Sector, Australia……….. 206 Table 8.5 Australia’s Clothing Markets………………………………........ Table 8.6 Retail Sales of Clothing Sales By Retail Sector………………… 211 Table 8.7 Retail Sales: Market Shares by Store Type ……………………. Table 8.8 Retail Concentration, 1998/99…………………………..………. 213 Table 8.9 Performance of Publicly Listed Clothing Retailers………..…… Table 8.10 Profit Margins in Australian Industry……………………..…….. 216 208 212 215 xiii Table 9.1 Comparative Price Level Indexes for Clothing, OECD, 1990….. 223 Table 9.2 Occupational Changes, 1986-96……………………………...…. 232 Table 9.3 Occupational Change in the Fashion System…………………... 233 Table 9.4 Vertical Integration in the Garment Production System ……… 234 Table 9.5 Profits Rates in Garment Production……………………….….. 237 Table 9.6 Country of Origin, Outerwear Imports, 1990 and 2000 ………. 243 Table 9.7 Specialisations by Country of Origin, Selected Countries, 2000.. 245 Table 9.8 Port of Loading of Women’s Outerwear………………….……. 246 Table 11.1 Top Ten of Global Brands Made in the HK-PRD………..…...... 284 Table 11.2 Main Destinations, Hong Kong Garment Exports…………...…. 285 Table 11.3 Garment Importers and Agents in Hong Kong…………..……... 290 Table 11.4 Organisational Forms in the Hong Kong Garment Trade…...….. 294 Table 11.5 Firm Inter-linkages in the HK-PRD…………………………… 303 xiv LIST OF FIGURES Figure 2.1 The Organisation of Global Commodity Chains …………..… 29 Figure 2.2 Complementarities in Industrial Districts……………….......... 35 Figure 3.1 Fashion Designers in Marie Claire…………………….……… 72 Figure 4.1 Competing Styles in Fashionspace……………………………. 93 Figure 4.2 The Internationalisation of the Elite Sector……………..……. 104 Figure 4.3 The Spring/Summer 2002 Fashion Calendar………………. … 113 Figure 4.4 The Fashion Image-Production System……………..………… 115 Figure 5.1 Sanctioned Copying…………………………………………… 127 Figure 5.2 Imitation in the Australian Garment Market………………….. 135 Figure 5.3 Knowledge Flows and Mass Production Forms………………. 139 Figure 5.4 Fashionspace as a Hierarchy based on Design Authenticity …. 140 Figure 6.1 The Product Cycle for Fashion Garments……………………. 148 Figure 6.2 Time and Uncertainty………………………………………… 149 Figure 6.3 Brands in the Production System…………………………….. 160 Figure 6.4 Concept Flows – Design and Consumption………………….. 162 Figure 6.5 Translation Flows – Design and Reproduction………………. 164 Figure 6.6 Commodity flows – Production to Consumption…………….. 167 Figure 6.7 Firms in Brandspaces ………………………………………… 171 Figure 7.1 Regional shares in World Trade in Clothing, 2000……..…….. 190 Figure 7.2 Import Sources, Italy and the United States, 1990-96………... 193 Figure 8.1 Changes in Household Consumption Expenditure………….… 197 Figure 8.2 Change in Population, 1996-2001…………………................ 199 Figure 8.3 Department Stores’ Share of Sales…………………………… 205 Figure 9.1 Retail Prices of Clothing and All Groups, 1973 to 1997…….. 223 Figure 9.2 Price indices for clothing production, 1989-90 = 100……….. 224 Figure 9.3 Clothing Imports and Manufacturers Sales……………........... 226 Figure 9.4 Market Shares of Australian TCF Producers 1968-1995.......... 227 Figure 9.5 Parallel Imports of Designer Brands………………………….. 242 Figure 9.6 Imports by Garment Type, Australia, 1996-99………………. 244 Figure 9.7 Port of Loading and Country of Origin, 2000………….......... 247 Figure 10.1 Fiji Garment Exports, 1986 – 1997 ………………………….. 256 Figure 10.2 Garment Production Locations, Viti Levu, Fiji………………. 257 xv Figure 10.3 The Fiji Garment Industry before the Speight Coup………….. 258 Figure 10.4 Revenue, Cost and Profit Margins, Fiji ………………………. 269 Figure 11.1 Hong Kong Exports of Articles of Apparel and Clothing……... 283 Figure 11.2 Hong Kong Exports by Product Type……………..………….. 286 Figure 11.3 Hong Kong’s Outward Processing Trade………………........... 302 Figure 12.1 Vertical Disintegration and Value Frameworks………………. 321 Figure 12.2 Global Flows of Ideas and Commodities……………………… 324 xvi LIST OF ABBREVIATIONS ABS Australian Bureau of Statistics ACP Australian Consolidated Press AFTA ASEAN Free Trade Area ARA Australian Retailers Association ASIC Australian Standard Industrial Classification ANZCERTA Australia - New Zealand Closer Economic Relations Trade Agreement ANZSIC Australian and New Zealand Standard Industrial Classification APEC Asia-Pacific Economic Cooperation ASEAN Association of South East Asian Nations ATC Agreement on Textiles and Clothing CIF Customs, Insurance and Freight (inclusive of, in trade price) DCs Developed Countries EBIT Earnings Before Interest and Tax EDI Electronic Data Interchange EOI Export Oriented Industrialisation ETMs Elaborately Transformed Manufactures EU European Union FDB Fiji Development Bank FDI Foreign Direct Investment FOB Free On Board (exclusive of customs, insurance and freight) FTIB Fiji Trade and Investment Board GATT General Agreement on Tariffs and Trade GCC Global Commodity Chains GDP Gross Domestic Product HK Hong Kong ICS Import Credit Scheme IPR Intellectual Property Right JIT Just-in-Time LDCs Less Developed Countries LVMH Möet Hennessy Louis Vuitton MFA Multi-Fibre Arrangement NAFTA North American Free Trade Agreement xvii NIE Newly Industrialised Economy NIDL New International Division of Labour NTB Non Tariff Barrier OAP Overseas Assembly Provisions OBPT Operating Profit Before Tax OECD Organisation for Economic Cooperation and Development OEM Original Equipment Manufacture OPT Outward Processing Trade PPP Purchasing Power Parity PRD Pearl River Delta QR Quick Response SEZ Special Economic Zone (South China) SITC Standard International Trade Classification SOE State Owned Enterprise SPARTECA South Pacific Regional Trade and Economic Cooperation Agreement TCF Textiles Clothing and Footwear TNC Transnational Corporation TRIP Trade-Related Intellectual Property UNCTAD United Nations Conference of Trade and Development UNIDO United Nations Industrial Development Organisation VAN Value Added Network WIPO World Intellectual Property Organisation WTO World Trade Organisation YSL Yves St. Laurent xviii
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