DAVOS, SWITZERLAND — Reducing supply chain barriers to trade, such as border administration and transportation and communications infrastructure, could sharply boost global production and trade, a report by the World Economic Forum said.Lowering such impediments to global commerce would also help lower costs to companies, including in the textiles and apparel sector, and ultimately lower consumer prices, said the study, released here Wednesday at the WEF annual summit.The report, “Enabling Trade: Valuing Growth Opportunities,” compiled in collaboration with Bain & Co. and the World Bank, estimates that reducing supply barriers even 50 percent to the world’s best practices could increase world gross domestic product 4.7 percent, or $2.6 trillion, and exports 14.5 percent, or $1.6 trillion.RELATED STORY: European Leaders Push for EU-U.S. Trade Pact >>It also highlights, through 18 case studies, that removing barriers that companies face can enhance competitiveness.“Eliminating supply chain barriers eliminates waste for companies,” said Mark Gottfredson, a partner at Bain & Co.Gottfredson said red tape is one barrier that can be tackled at a low cost, and noted when shipping low value goods such as apparel, supply chain barriers can be expensive.In Madagascar, the report shows, barriers can account for up to 4 percent of total revenues of an apparel producer through higher freight costs and increased inventories, “eroding the benefits of duty-free access to export markets,” and its competitive status due to lower labor costs — the country’s minimum wage is $35 a month, compared to $53 in India and $155 in China.“Madagascar’s border administration procedures present operational problems that result in significant delays,” the report notes.Such supply barriers, it adds, limit Madagascar’s apparel companies’ access to some of the apparel industry’s most lucrative markets, such as the fast-fashion segment, which has an annual growth rate of 14 percent and now accounts for almost 20 percent of the apparel market.“With inventory turns every two to eight weeks, fast fashion companies like Zara and H&M depend critically on reliable deliveries,” it said.
To celebrate Pride 2018, @themarcjacobs released the #GratefulNotHateful campaign, a social media initiative aimed at extending Pride beyond the parade. Inspired by Jacobs’ everyday outlook, the campaign features Jacobs along with a group of models and social media stars who are members and supporters of the LGBT community, all seen wearing @marcbeauty’s Highliner Gel Eye Crayons in colors of the rainbow. Head to our Instagram stories to see close-ups of the liner. #wwdbeauty
Virgil Abloh’s dad Nee and Don Crawley, cofounder of RSVP Gallery, were some of the hometown crew at the Chicago-born designer’s debut show for Louis Vuitton. (📸: @jdiderich ) #wwdmens #louisvuitton #virgilabloh
About last night: @marycharteris and @adwoaaboah hit up Hyde Park for the Serpentine Galleries’ annual summer party held in partnership with @chanelofficial. Head to WWD.com to see more photos. #wwdfashion
“This is Paris, my first show. I’m all about democracy. If some kid shows up, flew from New Jersey to just be around, let’s get him a seat.” — @virgilabloh tells WWD’s @jdiderich ahead of his first show for @louisvuitton men’s. (📸: @alfredo_piola ) #wwdmens #virgilabloh #louisvuitton
“Kate Spade was a true fashion icon who brought joy to the lives of women around the world, and inspired women to live life to the fullest. We are dedicated to carrying on her legacy,” said Anna Bakst, brand president and chief executive officer of @katespadeny. The Kate Spade Foundation announced that it will be donating $1 million to suicide prevention and mental health awareness in tribute to the recent death of Kate Spade. Read more on WWD.com. #wwdnews (📷: @chinseephoto)
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim