5.1 The Industry
Market Segmentation
5.1.1 Clothing & Apparel Industry
The growth of Malaysia's clothing and apparel industry accelerated in the early 1970s, when the country was on the course of export-oriented industrialization.
The industry was the seventh largest contributor to total earnings from manufactured exports in 2006. Malaysian exports of clothing and apparel have increased significantly over the years driven by a few factors.
5.1.2 Shape of the Industry
Strong external demands from Malaysia's major markets particularly United States of America (USA) and European Union (EU). Quality textiles and apparel through the use of quality certified production processes.
Malaysia Import & Export Statistic (in brief) from Year 2003 - 2007
Export (RM) | Import (RM) | |||||
2004 (Total) | 1,359,572,283.00 | 1,119,417,800.00 | ||||
Textiles | 991,192,222.00 | 937,774,549.00 | ||||
Apparel | 368,380,061.00 | 181,643,251.00 | ||||
Export (RM) | Import (RM) | |||||
2005 (Total) | 1,480,271,157.00 | 1,176,459,587.00 | ||||
Textiles | 1,139,552,438.00 | 987,226,492.00 | ||||
Apparel | 340,718,719.00 | 189,233,095.00 | ||||
Export (RM) | Import (RM) | |||||
2006 (Total) | 1,769,489,507.00 | 1,229,099,999.00 | ||||
Textiles | 1,339,752,499.00 | 1,015,856,933.00 | ||||
Apparel | 429,737,008.00 | 213,243,066.00 | ||||
Export (RM) | Import (RM) | |||||
2007 (Total) | 1,803,086,509.00 | 1,329,946,553.00 | ||||
Textiles | 1,363,665,692.00 | 1,095,516,594.00 | ||||
Apparel | 439,420,817.00 | 234,429,959.00 |
5.1.3 Development of the Industry
There is increased market access after the phasing out of the export quota system under the Multi Fiber Agreements (MFA) in 2005. Improvements in delivery time due to the use of advanced technology and efficient supply chain management.
5.2 Market Place
5.2.1 Current Condition of the Market Place
The market place of clothing and apparel in Malaysia is intensive competitive. Most of the international brand has established their business and penetrate their brands and products into Malaysia’s market earlier or recently.
Bukit Bintang is considered as the biggest fashion market with several giant shopping centers that are vibrant and frequently visited. Well-known and familiar fashion retailer such as MANGO, PADINI, ESPRIT, TOPSHOP, TOPMAN, SUB, G2000, FOREVER 21, GAP, GIORDANO and ZARA can be easily found in the area which is busy with consumer traffic.
Other than that, shopping complexes like Mid Valley Megamall, One Utama, Sunway Pyramid, and The Gardens are great market place of the industry. Those complex lots and stores are always mainly occupied by fashion retailer and outlets. The places are consistently crowded with people during weekends and holiday.
From observations on the situations, market of clothing and apparel in Malaysia is seen with its great potentials.
5.2.2 Changes in Market
Strong competitions in the market are leading to more innovation and healthy growth of the industry. It is eventually stimulating the market place and boosting the economy.
Although lower prices are resulted in competition, there are still concerns and risks of facing low quality production, bad shopping experience and poor customer services.
