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Globalisation
MARGIE'S TRAVEL

and Fashion in
the Philippines
M G R O U P 6
Globalisation is the process by which the world
is becoming increasingly interconnected as a result of massively
increased trade and cultural exchange.

Fashion a popular trend, especially in styles of

dress and ornament or manners of behavior.
- a multi-billion dollar industry that has to survive in a more and
more competitive global market and produce for a trans-
continental audience and the way it is transmitted, shared and
created changes along with society.
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SPANISH COLONIAL
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AMERICAN
COLONIAL
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21st
CENTURY
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Globalisation has resulted in:
increased international trade
a company operating in more than one country
greater dependence on the global economy
freer movement of capital, goods, and services
recognition of companies such as McDonalds and Starbucks in LEDCs
Within the last ten years, globalization has become a huge part of the fashion industry. Globalization does take an affect on our fashion industry.
When a product is produced in one country and consumed in another, we have cross-cultural consumption. Our global retailers don’t find success within
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cross-cultural consumption without extensive observation.

Studying consumption patterns of different areas across the globe is an important aspect for global retailers.
Understanding the cultural impact and consumption patterns of different countries is important for global retailers to be successful. When these aspects are
taken into consideration, global consumers are active and retailers are making money.
Definition: Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural
exchange.
Fashion is a multi-billion dollar industry that has to survive in a more and more competitive global market and produce for a trans-continental audience, it is
also an immaterial good and the way it is transmitted, shared and created changes along with society. -a popular trend, especially in styles of dress and
ornament or manners of behavior.

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Impact of Globalization on Fashion Industry

Globalization affects fashion industry through the production, distribution and marketing channels. One main impact of globalization is to keep the people informed and updated on
each and every new trend in the fashion industry through old and new media like radio, television, newspapers, internet, mobile phones etc. Consequently, now there is a tendency
for imitating Western fashion all over the world replacing the traditional clothing in each nation. For example to highlight secularism, a ban has been imposed on women wearing
headscarfs in France by considering wearing headscarf as a traditional religious symbol. The government considered wearing headscarf adversely affecting the immigrants to
assimilate into the Western culture, which is called cultural assimilation (Huntington, 1997). This cultural assimilation is an important impact of globalization in fashion industry.
The updating of new trends in the fashion industry was based on the economies of scale approach. This is intended to obtain new trends in fashion to all markets at appropriate
times and at the correct prices for reducing the total production costs. The need for reducing production costs has resulted in the tendency among the developed nations to
outsource production to developing nations like China where the production will be cheaper. This has adversely affected the local business in developed nations and violates the
economies of scale principle. The local industries got affected badly because of this outsourcing of production and many of them were not able to continue operating consequently.
Eg: producing a brand, t-shirt in Western China where no minimum wage regulations are there instead of producing it in Australia for reducing the production cost. In this case,
achieving high profit margin in Australia is very difficult compared to that in China (Purdy, 2000).
Globalization has changed this phenomenon however by reducing the transportation and communication costs and thereby increasing the accessibility of people to new fashions
all over the world. This has also increased the speed of production in fashion compared to the olden days. The modern communication tools like internet forums have enabled the
development and spreading of new technological innovations, which has increased the effectiveness of production in all nations. Globalization has thus resulted in more exchange
of ideas and information regarding the availability of textile fabrics and production, which has also resulted in a rise in the demand for products.
The consequence of all these was the brand names monopolizing the fashion industry and the spread of individualistic attitude instead of post materialistic especially among the
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middle classes. Base on these global conditions, the trends in fashion industry were to tempt the individuals for self-improvement instead of accepting them as they are. The most
visible example of this can be seen from the growing trend of becoming thin models as the ideals of female beauty. This has proved to be anatomically more correct and has
several psychological and physiological impacts. However, the negative side is that this has created by the pressure among female models for becoming thin models (Collins,
1997).
The merits of globalization in fashion industry can be considered as the shift in the trends among the middle class from buying outsourced products under the influence of post
materialistic ideologies to buy more locally produced ones. However, the problem is that the population of middle class is seen to be decreasing compared to the other groups. In
addition to these, another impact of globalization was the shift in the production from developing to developed nations to go with the principle of economies of scale mostly under
the influence of new and old media all over the world. However, this cannot be considered as a favourable trend especially under the scenario of the present economic crisis
(Graham et al, 2006).
According to Abarnathy et al (2003), the globalization of textile and clothing industry is not a new one and its history can be traced back to even the twelfth century. According to
this study, in the earlier days the globalization was concerned with movement of labour and capital across nations based on comparative factor costs and productivities for labour,
capital and other inputs between nations and their impact on product costs, changes in international exchange rates, quotas and tariffs. In the present scenario, the movement of
labour and capital is based on some other aspects of distribution in addition to these like lean retailing, product proliferation, onshore and offshore outsourcing. The Multi Fibre
Arrangement that has been existing in the textile industry for many years ended in 2005 with the decision of all WTO members to eliminate all quotas on textiles. China after
accessing WTO in 2002 became a quota free nation in the WTO in the same year.

M The overall picture in the fashion industry thus shows that globalization has resulted in falling transportation and communication costs .This has significantly affected the growth of
the markets in the industry .The concept of lean retailing has developed combining reduced transportation and communication costs as well as new technical innovations. The
main problem however with the lean retailing is that it has enhanced the pricing pressures (Abarnathy et al, 2003). As a part of globalization process, the quotas on textiles also
were removed with effect from 2005.