The Road to the SDGs

PURPOSE X With a market size of US$ 2.2 trillion and an expected annual growth rate of 3.5%, the textiles and apparel industry holds great potential for MCs. X However, to achieve success, MCs must navigate major market disruptions. These include innovations in automation and digitalisation, as well as the rise of new sustainable materials. X The report documents the many ways in which changes in the industry could shift the balance of power, providing opportunities for MCs to position themselves at stages in the GVC where they can add higher value. X Collaboration with industry associations within and across countries is identified as an important factor. In particular, joint projects with universities can lead to knowledge exchange and drive innovation. X The report also highlights the importance of partnerships with brands and knitting houses or weaving mills, with a view to fostering more vertical integration for companies in MCs. METHOD X IsDB’s new programming framework demonstrates how MCs can position themselves for success by: – Boosting recycling and circular economy principles – Strengthening their standing and visibility as sourcing destinations – Using platforms such as industry associations and fairs for industry marketing – Considering IsDB’s collaboration models for PPPs, joint project financing and risk sharing. X The report sketches out a range of futures for the textiles and apparel industry in MCs, taking into account a range of major trends. These include: – The growing importance of MCs in the processing side of the industry, driven by rising labour and production costs in China, as well as a relocation of some of the GVC to other countries – Digitalisation and new processing technologies that present opportunities for MCs, such as installing advanced textile- and apparel-making equipment such as laser-cutting, automated knitting or sewing robots Future of the textiles and apparel industry A lthough the COVID-19 pandemic holds short- to medium-term risks and vulnerabilities for the textiles and apparel value chains in IsDB MCs, there are many longer-term opportunities for the industry to bounce back IsDB’s ‘Textiles and Apparel’ report addresses these issues as part of its ‘The Future’ publication series, which forecasts economic trends and emerging global priorities for the benefit of MCs For MCs in the textiles and apparel industry, GVCs are an important part of their business model. The report indicates how countries are performing at diverse stages of the value chain [ 228 ] SDGs