Business Dynamic (9)- Survival Of The Fittest That’s Happening Now
Thanks to the Covid-19 pandemic, 2020 has been the craziest year to date. This is because the virus has forced several companies out of business. In the textile industry for example, Taiwanese suppliers are shuffling their way through a difficult year. On the other hand, big companies with enough capital to pull through the financial troubles created by the virus are focusing on the development of automated facilities for their buildings. While, small to medium-sized companies with a limited budget have either thrown in the towel so to speak by crying bankruptcy or are simply waiting for the moment to come when they are forced into bankruptcy. But guess what! There are still some Taiwanese textile suppliers with the means to accept various orders that previously belonged to companies which have now gone bankrupt. So what is really going on?
As matter of fact, this is a trial in which to test the resolve of small and medium-sized companies that are currently part of the supply chain to see whether they can meet up to the latest standards of their industry in order to focus on whether or not to expand larger volumes in a faster and cheaper way. Today, there are countless companies within the supply chain closing their factories almost overnight due to a financial crisis, or not having enough robotic facilities to compensate for a shortage in staff during the pandemic period. Therefore, first tier companies with a higher turnover have started to eliminate excess supplies especially if they have trouble keeping up with the advancement of the Industrial Revolution around them.
On the other hand, the Trump Administration is currently deliberating whether or not to ban certain commodities made from cotton from Xinjiang, China, which could affect the entire apparel supply chain including wholesale and retail. By the time, first-tier international apparel companies begin to support this policy initiated by the U.S. to ban imported cotton from Xinjiang, China. The global apparel works as we know could change drastically. Thanks to the BLM and LGBT campaigns, however, that highlighted the urgency environment of human rights much to the dismay of unethical businessmen who seek only to increase their profits.
Under those circumstances, the ban has in a way delivered a right-hook to Chinese suppliers smashing them right out of the apparels market. So first-tier international apparel companies are reshuffling both retailers and supplier in the apparels market by rejecting unethical orders from China. As well as benefiting companies that run their businesses by following proper ethics. However, when companies realized that China’s quality productions are hard to duplicate, they had to urge their suppliers to relocate their factories to countries like Vietnam or Indonesia. So big suppliers remain on a vice versa structure, while small and medium-sized suppliers may vanish completely if they can’t fully please brands companies this time around.
