Although the global fashion industry continues to thrive, the sector's long-term sustainable development faces many challenges, ranging from the rising costs of raw materials and labour, to the diminishing supply chain.
To discuss these issues, stakeholders from around the world will gather at the annual Prime Source Forum (PSF), an ideal platform to explore concerns that have an impact on the industry, to formulate long-term strategic solutions and to identify opportunities for growth.
Sponsored by Swarovski Elements, this year's PSF takes place at the Convention and Exhibition Centre from March 30 to April 1, and is organised by UBM Asia, APLF and SIC Group.
Fluctuations in commodity markets and the surging prices of some raw materials pose a major challenge to the global apparel industry, according to Thomas Nelson, managing director and vice-president of global product procurement for VF Asia, a subsidiary of global fashion company VF Corporation. 'Cotton was in the US 50 cents [a pound] range in 2010 and is now above US$2,' he says. 'We spend more time researching and monitoring commodity pricing to ensure we are getting the best deals.'
Echoing Nelson's sentiment is Joachim Hensch, president of the International Association of Clothing Designers and Executives. 'The rising cost of raw materials has caused a lot of movement in the manufacturing areas,' he says. 'Many buyers are forced to find new companies to make up for the price increases to keep retail prices stable.'
Hensch, who is also the head of the pattern design department at Hugo Boss, highlights the possible hidden costs incurred in building relationships with new suppliers. 'Many relationships previously built [between the buyers and suppliers] are replaced by relationships with new partners,' he says. 'I wonder if all the parties involved are aware of these hidden extra costs and the risk of compromising the quality of their products.'