The garment and footwear industry in Asia and the Pacific has reached a pivotal juncture. Economic and demographic transition in China together with the rise of an affluent consumer class in emerging markets are shifting the competitive landscape. Meanwhile, recent industry tragedies such as the April 2013 collapse of Rana Plaza in Bangladesh have again highlighted social responsibility and legal compliance as fundamental considerations in apparel sourcing decisions.

In that dynamic context, this note presents economic trends for the region’s apparel industry and examines the main factors that will shape the medium-term outlook for its growth. Referring to analysis of recent industry developments in terms of employment, wages, productivity and working time, this note contends that promoting better working conditions can help countries drive competitiveness by attracting a better qualified workforce and by enhancing workplace productivity.