AN APPLIED ANALYSIS OF FOOTWEAR AND APPAREL FIRMS IN EMERGING MARKETS

Abstract

Footwear and apparel firms in emerging markets occupy a pivotal yet precarious position in global value chains. Leveraging advantages such as abundant labor and preferential trade agreements, companies in countries like Vietnam, Bangladesh, Brazil, and Turkey have become vital suppliers to major international brands. However, their long term competitiveness now hinges on moving beyond assembly toward higher value activities—design, branding, quick response production, and sustainable practices. Drawing on recent literature and sector data, this study analyzes the drivers and constraints of firm upgrading, highlighting the roles of supply chain integration, technological adoption, and institutional support. We find that lean manufacturing, digital tools, and proximity to consumer markets help firms shorten lead times and differentiate products, while weak intellectual property regimes, limited financing, and stringent compliance requirements often impede progress. Sustainability pressures further reshape strategic priorities: firms adopting circular economy principles and cleaner technologies secure reputational gains and access to premium segments but face significant upfront costs. Finally, export diversification emerges as a buffer against demand shocks such as those experienced during the COVID 19 pandemic. Policymakers can enhance sector resilience by facilitating access to finance, strengthening innovation ecosystems, and promoting ethical standards. Overall, successful upgrading in footwear and apparel not only boosts firm competitiveness but also supports inclusive industrialization in emerging economies.