# Apparel and footwear: Value chain, from upstream to the customer Brands and garment makers selling finished clothing, shoes and accessories to shoppers Source page: https://www.materialinsights.org/industries/apparel/value-chain/ #### Value chain, from upstream to the customer **Criticality to the chain:** 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 **Brand and designApparel and footwear brand owners**3 · Important Design ranges, own the brands and customer data, place orders with factories and capture the largest share of the retail price. **Why important:** Brands set orders and specifications for whole supplier networks, but no single brand is essential and consumers switch easily. Technologies Trend and demand forecasting 3D product design Product lifecycle management Direct-to-consumer apps Depends on Industries [Software and IT services](https://www.materialinsights.org/industries/software_it/)[Media and entertainment](https://www.materialinsights.org/industries/media_entertainment/)**Examples:** Inditex, Nike, H&M, Aditya Birla Lifestyle Brands, Adidas **Design software and digital sampling vendors**2 · Supporting Sell 3D design, pattern-making and marker software that cuts physical samples and fabric waste. **Why supporting:** Several vendors compete and files can move between platforms with some effort. Technologies 3D garment simulation Digital pattern making Marker optimisation Digital fabric libraries Depends on Industries [Software and IT services](https://www.materialinsights.org/industries/software_it/)**Examples:** Lectra, Browzwear, CLO Virtual Fashion Stage 2 **Materials and componentsFabric mills supplying garment makers**3 · Important Weave, knit, dye and finish fabric to brand specifications and deliver it to garment factories. **Why important:** Fabric is the largest cost in most garments and nominated mills cannot be changed without brand re-approval, which takes months. Technologies Fabric testing and colour matching Nominated-mill programmes Recycled and traceable fibre blends Quick-response greige stock Depends on Commodities [Ct Cotton](https://www.materialinsights.org/commodities/cotton/) Chemicals [PSF Polyester fibre](https://www.materialinsights.org/chemicals/polyester_fibre/)[VSF Viscose fibre](https://www.materialinsights.org/chemicals/viscose/)[PA Nylon (PA6, PA66)](https://www.materialinsights.org/chemicals/nylon/) Industries [Textiles and leather](https://www.materialinsights.org/industries/textiles/)**Examples:** Arvind, Vardhman Textiles, Crystal Group, Shenzhou International **Trim and accessory makers (zips, thread, labels, buttons)**3 · Important Supply zips, sewing thread, buttons, labels and RFID tags that brands nominate for every style. **Why important:** Big brands nominate a short list of trim suppliers such as YKK, Coats and Avery Dennison for each style, so a shortage or failed test stops a line even though trims cost little. Technologies Nylon and metal zips Core-spun sewing thread Woven and printed labels RFID tags Depends on Commodities [Cu Copper](https://www.materialinsights.org/commodities/copper/)[Zn Zinc](https://www.materialinsights.org/commodities/zinc/) Chemicals [PA Nylon (PA6, PA66)](https://www.materialinsights.org/chemicals/nylon/)[PSF Polyester fibre](https://www.materialinsights.org/chemicals/polyester_fibre/) Industries [Plastic and rubber products](https://www.materialinsights.org/industries/plastic_rubber/)**Examples:** YKK, Coats, Avery Dennison **Footwear material and sole makers**3 · Important Make finished leather, synthetic leather, foams and rubber or TPU soles for shoe factories. **Why important:** Several suppliers exist, but performance foams are proprietary to a few chemical firms and brand approval takes months. Technologies EVA and PU midsole foams Rubber outsole moulding Microfibre synthetic leather Water-based adhesives Depends on Commodities [Rbr Natural rubber](https://www.materialinsights.org/commodities/rubber/)[Bf Beef](https://www.materialinsights.org/commodities/beef/) Chemicals [PU Polyurethanes (MDI, TDI, polyols)](https://www.materialinsights.org/chemicals/polyurethanes/)[SBR Styrene-butadiene rubber](https://www.materialinsights.org/chemicals/sbr/)[LLDPE Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/)[Adh Adhesives and sealants](https://www.materialinsights.org/chemicals/adhesives/) Industries [Plastic and rubber products](https://www.materialinsights.org/industries/plastic_rubber/)[Textiles and leather](https://www.materialinsights.org/industries/textiles/)**Examples:** Tata International, Covestro, Huntsman, Kuraray Stage 3 **ManufacturingCut-make-trim garment factories**2 · Supporting Cut fabric, sew, wash and pack garments for brands, usually on thin margins and short lead times.^[2](https://fibre2fashion.com/news/apparel-news/china-2023-s-top-global-rmg-exporter-bangladesh-2nd-vietnam-3rd-wto-297174-newsdetails.htm) **Why supporting:** Tens of thousands of factories in China, Bangladesh, Vietnam, India and elsewhere compete, so brands move orders season by season. Technologies CAD marker making and automatic cutting Lockstitch and overlock sewing lines RFID and line-balancing software Social and safety compliance systems Depends on Energy [Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[ICE Internal combustion engines and gensets](https://www.materialinsights.org/energy/e_engines/) Industries [Textiles and leather](https://www.materialinsights.org/industries/textiles/)[Machinery and equipment](https://www.materialinsights.org/industries/machinery/)**Examples:** Shahi Exports, Gokaldas Exports, Pearl Global, Shenzhou International **Footwear assembly factories**3 · Important Last, stitch, cement and finish shoes for global and domestic brands.^[3](https://www.worldfootwear.com/news/246-billion-pairs-global-footwear-production-in-2025/11690.html) **Why important:** China makes 55.6% of the world's shoes and big sports brands rely on a few large Taiwanese-owned groups in Vietnam and Indonesia, so moving volume takes many months (World Footwear). Technologies Strobel and cemented construction Injection-moulded direct soling Automated stitching Knitted uppers Depends on Chemicals [Adh Adhesives and sealants](https://www.materialinsights.org/chemicals/adhesives/)[PU Polyurethanes (MDI, TDI, polyols)](https://www.materialinsights.org/chemicals/polyurethanes/) Energy [Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[Blr Boilers, furnaces and stoves](https://www.materialinsights.org/energy/e_combustion_heat/) Industries [Plastic and rubber products](https://www.materialinsights.org/industries/plastic_rubber/)[Machinery and equipment](https://www.materialinsights.org/industries/machinery/)**Examples:** Pou Chen, Feng Tay, Bata India, Relaxo Footwears **Garment laundries, printers and embellishers**2 · Supporting Wash, distress, print and embroider finished garments, especially denim and casual wear. **Why supporting:** Many units cluster near garment hubs, though effluent limits are tightening. Technologies Ozone and laser denim finishing Enzyme washing Screen and direct-to-garment printing Computerised embroidery Depends on Commodities [H₂O Water](https://www.materialinsights.org/commodities/water/) Chemicals [Enz Industrial enzymes](https://www.materialinsights.org/chemicals/enzymes/)[H2O2 Hydrogen peroxide](https://www.materialinsights.org/chemicals/hydrogen_peroxide/)[Srf Surfactants](https://www.materialinsights.org/chemicals/surfactants/)[Pig Organic pigments](https://www.materialinsights.org/chemicals/pigments/) Energy [Blr Boilers, furnaces and stoves](https://www.materialinsights.org/energy/e_combustion_heat/) Industries [Water and sanitation](https://www.materialinsights.org/industries/water_sanitation/)**Examples:** Arvind, Jeanologia, Kornit Digital **Sewing and footwear machinery makers**3 · Important Make industrial sewing, cutting, embroidery and shoe-moulding machines and sell them with spares and service. **Why important:** A few Japanese, Chinese and European makers dominate, and specialist machines take months to deliver. Technologies Direct-drive servo sewing heads Automatic cutters Sewing robots Injection-moulding machines Depends on Commodities [St Steel](https://www.materialinsights.org/commodities/steel/)[Al Aluminium](https://www.materialinsights.org/commodities/aluminum/)[Cu Copper](https://www.materialinsights.org/commodities/copper/) Industries [Machinery and equipment](https://www.materialinsights.org/industries/machinery/)**Examples:** Juki, Jack Technology, Brother Industries, Desma Stage 4 **Sourcing, compliance and logisticsSocial and product compliance auditors**2 · Supporting Audit factories for labour, safety and chemical compliance and test products against buyer and legal standards. **Why supporting:** Several global inspection firms compete, though forced-labour import rules raise the stakes of each audit. Technologies Social audits Restricted-substance testing Fibre-origin testing Supplier risk platforms Depends on Industries [Software and IT services](https://www.materialinsights.org/industries/software_it/)**Examples:** Bureau Veritas, Intertek, SGS, TÜV Rheinland **Freight forwarders and fashion logistics providers**2 · Supporting Consolidate cartons from factories, ship by sea or air and run warehouses that feed stores and online orders. **Why supporting:** Many forwarders and 3PLs compete, but freight spikes hit margins quickly. Technologies Container consolidation Air freight for fast fashion Automated fulfilment centres Returns processing Depends on Energy [Shp Ship propulsion](https://www.materialinsights.org/energy/e_marine/)[Jet Aviation propulsion](https://www.materialinsights.org/energy/e_aviation/) Industries [Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)[Paper and packaging](https://www.materialinsights.org/industries/paper_packaging/)**Examples:** Maersk, DHL, Kuehne+Nagel, Expeditors Stage 5 **Retail and after-useFashion and footwear retailers and marketplaces**2 · Supporting Sell to consumers through stores, apps and marketplaces and manage pricing, markdowns and returns. **Why supporting:** Retail is fragmented and shoppers switch easily, though large value chains and marketplaces are gaining share. Technologies Omnichannel inventory Dynamic pricing and markdown tools Quick fashion and value formats Marketplace logistics Depends on Energy [Bld Energy in buildings](https://www.materialinsights.org/energy/e_buildings/) Industries [Wholesale and retail trade](https://www.materialinsights.org/industries/wholesale_retail/)[E-commerce and digital marketplaces](https://www.materialinsights.org/industries/ecommerce/)[Real estate](https://www.materialinsights.org/industries/real_estate/)**Examples:** Trent (Westside, Zudio), Myntra, Amazon, Shein, Inditex (Zara) **Resale platforms, collectors and textile recyclers**1 · Commodity service Collect used clothes for resale, export or recycling into new fibre.^[5](https://textileexchange.org/knowledge-center/reports/materials-market-report-2025/) **Why commodity service:** Collection and resale are easy to enter, while fibre-to-fibre recycling is still under 1% of fibre supply (Textile Exchange). Technologies Online resale platforms Automated textile sorting Chemical recycling of cotton and polyester Take-back programmes Depends on Industries [Waste and recycling](https://www.materialinsights.org/industries/waste_recycling/)**Examples:** Vinted, ThredUp, Circulose, Syre ## Other sections - [Overview](https://www.materialinsights.org/industries/apparel/index.md) - [Where ₹100 goes](https://www.materialinsights.org/industries/apparel/cost-mix/index.md) - [Price links with suppliers](https://www.materialinsights.org/industries/apparel/price-links/index.md) - [Example story](https://www.materialinsights.org/industries/apparel/story/index.md) - [Linked industries](https://www.materialinsights.org/industries/apparel/linked-industries/index.md) - [Materials drawn on](https://www.materialinsights.org/industries/apparel/materials/index.md) - [Chokepoints and risks](https://www.materialinsights.org/industries/apparel/risks/index.md) - [Sources](https://www.materialinsights.org/industries/apparel/sources/index.md)