As the high-cost, high-value haute couture end of the fashion world prepares for the catwalks with the latest collections, the other side of the clothing industry faces an increasingly grim future.
Fierce competition from low-cost manufacturers in the Far East, North Africa, the Baltic States and Portugal have caused scores of Irish clothing firms to close or move their manufacturing base overseas, much as clothing manufacturers in other high-cost European countries have done already.
The recent closure of children's wear manufacturer J A Hickey in Dublin and the decision by Fruit of the Loom to put its remaining 1,900 workers in Donegal and Derry on a three-day week are only the latest signs of the decline of a once thriving industry.
Since 1995, employment in the sector has fallen by more than 25 per cent, to around 18,000. This year alone more than 1,000 clothing workers have lost their jobs, mostly in Donegal.
"The traditional mass market for low-end manufacturing is gone," says Susan Keane, director of the recently-formed Irish Clothing and Textile Alliance, a coalition of three clothing industry groups that hopes to revive the sector.
With hourly wage rates as low as 30 cents in countries like Vietnam, it is not hard to see why. A survey by Enterprise Ireland found most manufacturers planned to out source their production if they were not already doing so. At the same time, 75 per cent said they could not find skilled and semiskilled workers to take up existing jobs, says Giles O'Neill, consumer products manager.
"The challenge now is getting companies that were traditional manufacturers to invest in designers and brands," says Ms Keane. "If there is a strong emphasis on design and quality control, it's more cost-efficient to outsource part of the manufacturing to low labour cost regions and keep the jobs here in high-value activities."
Design, branding, marketing and supply chain management are the new buzzwords and companies are already taking note. Ladies' fashion house Michael H, which last year won Brand of the Year in the UK for its Gold collection, epitomises the new approach. Simon Dowling, marketing and sales manager, says: "We do our own design, manufacturing and marketing, and we have our own retail shops. That vertical chain allows us to control everything."
Although some manufacturing is out-sourced, most is done at the firm's factory in Ballyfermot, Dublin, where it employs 260 people. Local control over core elements in the collection is important so the need for cutters, machinists and pressers will remain. But the people in demand in the future will be those with design, technology and logistics skills, Mr Dowling says.
As the profile of the clothing industry changes, the companies that survive and prosper will be those that can bring something unique to the market, experts say. Clubman Omega, a Donegal shirt-maker, has managed to do that. Clubman employs 144 people in Buncrana and was bought out by a group of local business people in the mid-1980s after twice going into receivership.
IN THE past four years, annual sales have grown by 20 per cent and significant growth is forecast for the next three years, according to Sean Tighe, managing director. "Part of our success is we've concentrated on niche markets," he says.
Another company carving out its niche is Silvergate Manufacturing which produces corporate business wear under the Michael Jacobs label for bank, insurance and and other office staff. But success in corporate uniforms came only after the firm was forced to drop its business in ladies tailored suits in the 1980s.
With most top international fashion houses outsourcing their manufacturing to low-cost countries, the only way for an Irish firm to remain competitive is to differentiate itself through marketing and branding, says Mr Jacobs.
"If you go to the same places as the top French or German manufacturers go to source their garments, you'll come up with the same goods," he says. "Design is important but the most important thing is marketing and how you can get people to buy your product rather than your competitor's because, often, the only difference is the label."
That's a lesson that has yet to be embraced by many Irish manufacturers, particularly on the export front, says Mr O'Neill. Marketing, distribution and supply chain management are as important at the catwalk end of the market where clothes are designed for the individual and priced accordingly.
Young knitwear designer Lucy Downes started her own label, Sphere One, last year on her return from a four-year stint with New York design house DKNY. Already, UK and Japanese retailers are eyeing her striking cashmere sweaters and tops.
"I would say that the successful businesses and the ones that are emerging and continuing to thrive are the very small focused businesses. They're nimble, they can change with the whims of fashion, and they're market-oriented," she says.
Although operating at a different level of the market, Clubman's Sean Tighe would agree. "There's a very strong place for niche operators as long as you provide good value for money, deliver on time, use good fabric and design and have good quality of manufacturing. But if you're not customer-led or marketing-led, you'll fail."
