APPAREL INDUSTRY: GLOBAL TECHNOLOGY TRENDS FORECAST FOR EGYPT/ Ghada Mohamed AbdelAziz Ibrahim Adham King Osman

Supervisor:
Mohamed Awny

Thesis (M.A.)—Nile University, Egypt, 2022 .

"Includes bibliographical references"

Contents:
Declaration for Copying.................................................................................................................II
DEDICATION ..............................................................................................................................III
ACKNOWLEDGEMENTS .........................................................................................................IV
Abstract ...................................................................................................................................... XIII
Chapter 1 Introduction............................................................................................................15
Chapter 2 Apparel Industry and Production ........................................................................21
2.1 Apparel Industry in Egypt .................................................................................................21
2.1.1 Egyptian Textile & Apparel Exports and Imports to the world ..............................22
2.1.2 [Numbers of Producing International Companies Versus Egyptian Companies
presence in Egypt:..................................................................................................................23
2.2 Forecasting the Egyptian Apparel Exports & Imports ......................................................24
2.2.1 Moving Average Forecast........................................................................................25
2.2.2 Weighted moving Average forecast.........................................................................26
2.2.3 Exponential Smoothing Forecast .............................................................................27
2.2.4 Exponential Smoothing MAD, MSE, and MAPE ..................................................29
2.2.5 Linear Trend Forecast..............................................................................................29
2.3 Forecasting Techniques Conclusion:.................................................................................31
2.4 Retail Market Overview ....................................................................................................31
2.4.1 Market Segmentation...............................................................................................33
2.4.1.1 Market Value Forecast................................................................................................ 33
2.5 Technology and Innovation Industrial council:.................................................................33
2.5.1 Industrial free zones:................................................................................................33
2.5.1.1 Types of investment in Egypt...................................................................................... 34
2.6 Five Forces Analysis.........................................................................................................34
2.6.1 Buyer Power ............................................................................................................35
2.6.2 Supplier Power.........................................................................................................36
2.6.3 Threat of new Entrants.............................................................................................37
2.6.4 Threat of Substitutes................................................................................................37
2.6.5 Industry Rivalry .......................................................................................................38
2.7 Apparel industry Value chain............................................................................................38
2.7.1 Value chain ..............................................................................................................38
2.7.1.1 Value Chain Model...................................................................................................... 39
2.7.2 Apparel Value Chain ...............................................................................................40
2.7.2.1 Apparel Retail Value Chain Model .............................................................................. 41
VII
2.7.3 Fashion cycle........................................................................................................... 42
2.7.4 Types of Apparel producers .................................................................................... 45
2.7.4.1 Manufacturers.............................................................................................................46
2.7.4.2 Wholesalers.................................................................................................................46
2.7.4.3 Contractors..................................................................................................................47
2.8 Departments of Apparel Company/Factory ...................................................................... 47
2.8.1 Customer Relationship Management and Merchandising Department ................... 47
2.8.2 Apparel Product and Design Development Department.......................................... 47
2.8.2.1 Develop design ideas...................................................................................................49
2.8.2.2 Select fabrics that are available and appropriately priced..........................................49
2.8.2.3 Make the first pattern.................................................................................................49
2.8.2.4 Make a sample garment or prototype ........................................................................49
2.8.2.5 Evaluate and refine the fit and design.........................................................................50
2.8.2.6 Compute the cost........................................................................................................50
2.8.2.7 Make a production pattern .........................................................................................50
2.8.2.8 Make duplicates..........................................................................................................51
2.8.2.9 Grade the production pattern.....................................................................................51
2.8.3 Apparel Production Planning Department............................................................... 51
2.8.3.1 The Production Planning Department in the Apparel Manufacturing factory ............53
2.8.3.2 Production Scheduling ................................................................................................53
2.8.3.3 Master scheduling:......................................................................................................54
2.8.3.4 Material Requirement Planning MRP..........................................................................55
2.8.3.5 Production cost of garments.......................................................................................56
2.8.3.6 Cost Considerations.....................................................................................................56
2.8.4 Procurement Department......................................................................................... 57
2.8.4.1 Strategic Sourcing........................................................................................................57
2.8.4.2 Procurement life cycle.................................................................................................58
2.8.4.3 Goal and Duties of Procurement Department ............................................................59
2.8.4.4 Factors in Choosing a Supplier ....................................................................................59
2.8.4.5 Evaluating Sources of Supply.......................................................................................59
2.8.5 Quality Control Department/ Process...................................................................... 59
2.9 The Apparel Production Processes ................................................................................... 60
2.9.1.1 The cutting process: ....................................................................................................61
2.9.1.2 Sewing Production ......................................................................................................66
2.9.1.3 Pressing .......................................................................................................................67
2.9.1.4 Finishing, Inspecting, Packing and shipping: ...............................................................68
2.10 Technological Trends in the Apparel Industry............................................................. 69
2.11 Key Technology Tools in Apparel Industry................................................................. 69
2.12 Technology Trends....................................................................................................... 69
2.12.1 Data Warehousing and Business Intelligence for Apparel Companies ................... 71
VIII
2.12.2 Cloud Computing for apparel companies: ...............................................................72
2.12.3 Product Life Cycle Management Systems (PLM) and Product Data Management
Systems (PDM)......................................................................................................................73
2.12.4 Mobile Devices and Apparel Businesses:................................................................74
2.12.5 3D Design and Visualization: ..................................................................................75
2.12.6 The “Internet of Things” IoT and the smart factory: ...............................................76
2.12.7 Functional Clothing: Smart Clothing and Wearable Technology ............................78
2.12.8 Conclusion of the technological trends in the apparel industry ...............................79
Chapter 3 Research Problem and Methodology ...................................................................81
3.1 The Research Problem.......................................................................................................81
3.2 Research Questions: ..........................................................................................................81
3.2.1 Questions relating to the Global Apparel Industry: .................................................81
3.2.1.1 Technology.................................................................................................................. 81
3.2.1.2 Market and Competition............................................................................................. 82
3.2.2 Research Questions relating to the Egyptian manufacturers:...................................82
3.2.2.1 Production and Operations......................................................................................... 82
3.2.2.2 Management Systems: ERP and Supply Chain Management...................................... 82
3.3 The Research Objective of the study:................................................................................82
3.4 The Significance of the Research ......................................................................................83
3.5 Research Methodology:.....................................................................................................83
3.5.1 The Research Type ..................................................................................................83
3.5.2 Research Method .....................................................................................................83
3.5.3 Method of Data Collection ......................................................................................84
3.5.4 Questions Asked during Factories visit: ..................................................................84
3.6 Research Limitations:........................................................................................................85
Chapter 4 Forecasting and Foresight of Technology Trends Globally ...............................86
4.1 Technology Space Map (Power zone Analysis)................................................................86
4.1 Technology Interaction Matrix TIM .................................................................................89
4.2 Technology Interaction Matrix Rules................................................................................90
4.3 Overview on Technology Interaction Plot.........................................................................91
4.4 Technology Interaction Plot – TIP of the Technology Trends in the Apparel Industry ....93
4.5 The Technology PowerZone Extension ............................................................................94
4.6 The fashion Cycle Technologies .......................................................................................95
Chapter 5 Manufacturing Factories Field Study ..................................................................96
5.1 Field visits to Apparel Manufacturing Factories...............................................................96
5.1.1 Factory A: ETC........................................................................................................97
5.1.2 Factory B: Misr- Venice Company for Apparel: .....................................................98
IX
5.2 Manufacturing Factories Problems and Suggested Solutions........................................... 99
Production and Operations..............................................................................................................99
Management Systems: ERP and Supply Chain Management.........................................................105
Administration and Human Resources...........................................................................................107
Marketing.......................................................................................................................................111
Financial Management...................................................................................................................112
Chapter 6 Conclusion and Future Work............................................................................. 113
6.1 Conclusion:..................................................................................................................... 113
6.2 Research Recommendations and Future work:............................................................... 116
References.................................................................................................................................... 118
Appendices................................................................................................................................... 121
Appendix 1: Industrial Zones.................................................................................................. 121
Appendix 2 Apparel Market and Competition in Egypt........................................................... 125
Apparel Retail and Distribution ........................................................................................... 125
Types of Apparel Retailers.................................................................................................. 125
6.2.1.1 Manufacturers as retailers........................................................................................126
6.2.1.2 Independents............................................................................................................129
6.2.1.3 Multiples ...................................................................................................................130
6.2.1.4 Department stores....................................................................................................130
6.2.1.5 Concessions...............................................................................................................132
6.2.1.6 Franchises..................................................................................................................133
6.2.1.7 Discounters ...............................................................................................................135
6.2.1.8 Markets.....................................................................................................................135
6.2.1.9 Mail order..................................................................................................................136
6.2.1.10 Electronic shopping ...................................................................................................136
6.2.1.11 Ecommerce ...............................................................................................................137

Abstract:
Technology is rapidly changing and adding interesting capabilities such as
production automation and innovations. Recent emerging technologies combination
with existing production technologies enhances the Egyptian Apparel industry
readiness to overcome the new challenges in the manufacturing of apparel and
sustain the industry value in the Egyptian economy. The increased competition
between apparel international brands and the local Egyptian brands resulted
recently in the closure of many Egyptian manufacturing factories due to the
inadequate use of technologies and failure to adopt apparel industry best practices.
This was very obvious post COVID 19 crisis with the effect of the pandemic on
consumers and manufacturing capacities.
This research objective is to analyze the global technology trends of the apparel
manufacturing industry and that of the current manufacturing approaches in Egypt
considering the new technology trends. This would help Egyptian manufacturers in
restructuring the industry. This research work identified some of the managerial and
operational challenges of the manufacturing factories in Egypt to meet the global
and local challenges facing this industry. The research aims to suggest technological
solutions related to the critical problems in processes and operations according to
the GAP Analysis findings of the visited factories.
Therefore, this research explains the global technology trends in the apparel
industry and suggests the possible strategical solutions, which these technologies
can provide for the Egyptian Apparel Industry post COVID 19 crises. The seven
technology trends discussed in this research are:
1. Data Warehousing and Business Intelligence
2. Cloud Computing
3. Product Life Cycle Management Cloud PLM Systems
4. Smart Phones and Mobile Devices
5. 3D Design and Visualization,
6. The “Internet of Things” IoT and the smart factory
7. Functional Clothing; Smart Clothing and Wearable Technology.
XIV
A survey was conducted on those seven Technologies and how they drive each
other. The survey findings are mapped in the Forecasting and Foresight model
resulting in mapping the PowerZone Analysis - Technology SpaceMap. The survey
findings was used to structure the Technology Interaction Matrix (TIM) , and
plotting the Technology Interaction Plot (TIP) indicating technologies to invest in
their development and implementation.
The research also provides a forecast of the Egyptian apparel export and imports
pre and post COVID 19 pandemic. The forecasting techniques applied on Exports
and Imports include Moving Average, Weighted Moving Average, Exponential
Smoothing, and Linear Trend analysis. To study the Egyptian apparel market, this
research analyzes the Egyptian retail market segmentation and applies Porter’s Five
Forces analysis on the Egyptian Apparel Industry. This research shows how the
technologies are impacting each part of the value chain. To study the primary and
support activities of the Apparel Value Chain, this research provides an elaboration
upon both activities. The functions of different departments of the apparel
companies or factories are discussed. Functions includes; Customer Relationship
Management, Merchandising, Product and Design Development, Production
Planning Department, Procurement, and the Quality Control departments.
In short, this research supports Egyptian Apparel industry stakeholders, fellow
scholars and researchers to:
• Gain understanding and insights about the global industry technological
trends and the status of the Egyptian Apparel Industry
• Analyze challenges facing apparel industry in Egypt with suggested
solutions
• Identifies future challenges
• Suggest future strategical recommendations to develop the industry in
Egypt.

Text in English, abstracts in English.