MONTREAL - The Canadian apparel industry has fallen behind their US counterparts when it comes to developing online business strategies, says a new study by Richter Consulting. The study Canadian Apparel eBusiness looked at what the industry needs to do to stay competitive.

"Loss of competitiveness in the face of continuing globalization is the most significant concern revealed by the study," explained Alan Milstein, of Richter Consulting. "Apparel executives believe that e-business will be a key factor to penetrating the US market."

While nearly 60 per cent of respondents to the apparel study felt they could not compete without an e-commerce strategy, only 25 per cent used the Internet for transactions with their customers or suppliers. Cost was the biggest reason why these companies had yet to develop an e-commerce site. In the past three years 80 per cent of participants have budgeted less than $50,000 for this area and 45 per cent of this group have devoted under $10,000 to the cause.

"With the impending implementation of World Trade Organization agreements in 2005, Canadian apparel manufacturers cannot ignore the need to innovate and remain competitive on a global scale. Industry Canada will be devoting significant resources to help the industry meet these challenges," said Les Kumar-Misir of Industry Canada.

The entire study can be found online at www.richter.ca/rc.

 

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