Gildan Plans to Expand into Asian Market

Friday 19th of October 2007 02:51:08 AM

Gildan Plans to Expand into Asian Market

In order to keep up with competition and allow the company to continue growing, Montreal-based Gildan Activewear is beginning to expand into the Asian market by increasing its marketing efforts in countries like Japan and China. Plans to build a new manufacturing plant in Asia are also being discussed. The company, which is one of the largest distributors and manufacturers of T-Shirts in North America, sees the expansion as a natural progression.

“As part of our longer-term strategy, we're also considering other core businesses where we can use our competitive advantage and develop our business model further," said executive vice-president Laurence Sellyn.

In addition to increasing sales in Asia, Gildan also has plans to increase the amount of T-Shirts, socks, and underwear that are sold larger discount stores such as US-based Walmart. Gildan currently owns two sock manufacturers, Kentucky Derby Hosiery and the newly acquired V.I. Prewett and Sons.

In an effort to compete in different markets, Gildan shifted production of t-shirts and other clothing outside Canada and the US. Plants have been opened in various countries including Honduras, Haiti, and the Dominican Republic. Moving manufacturing plants to these locations has enabled Gildan to compete with a variety of manufacturers including the Chinese. With three new distribution centers opening in China in the near future, the company is planning to sell Blank T-Shirts to Chinese screen printers.

Other undergarment companies are also following Gildan’s example. Hanesbrand recently announced it will close US manufacturing plants and move their operations overseas in an effort to cut costs as well. This will cost about 5,000 people their jobs over the next few months.

(c)Jolka Igolka, www.sxc.hu