Abstract
Very small enterprises employing fewer than 10 workers make up the majority of firms in Iran’s apparel-producing industry. Cooperation among firms has always been weak. A salient characteristic is that firms in the sector have shown a strong tendency to avoid involving themselves in the creation of vertical relationships between producers and distributors, unlike in Japan and other advanced industrialized countries. Following changes in government trade policy since the 2000s, these apparel firms are confronted with a massive inflow of Chinese-made clothing. It was occasionally reported that Iran’s apparel market was being overwhelmed by Chinese products, but the reality is somewhat different. The study will discover real causes of this inflow, which not only reflect eminent price competitiveness and the supply capability of products of China ’s apparel industry but also the domestic state of production and distribution system of Iran’s apparel industry.
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Notes
- 1.
This kind of phenomenon, however, is not observed only in Iran. For example, in Vietnam where apparel production for export is thriving and high economic growth has recently been achieved, distributors do not necessarily lead the production activities so far as the production sector for the domestic market is concerned. It is reported that small producers supply low-priced goods entirely based on their own product planning (Gotō 2005). Also in China , which has now become a “world’s factory,” some small producers who are not integrated into a larger distribution channel operate independently around the “Specialized Market ” (see Ding 2011; for more details, see Chap. 6). These cases make a good contrast to the apparel industries in Japan and South Korea, which developed almost from the beginning due to distributors’ initiative (Arita 1978; Hanabusa 1978).
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Mainichi Shinbun, September 17, 2004.
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Iwasaki, Y. (2017). Introduction. In: Industrial Organization in Iran. SpringerBriefs in Economics. Springer, Singapore. https://doi.org/10.1007/978-981-10-4579-0_1
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