ІНТЕГРАЦІЯ УКРАЇНСЬКИХ ВИРОБНИКІВ ОДЯГУ ТА ВЗУТТЯ ДО ГЛОБАЛЬНИХ ЛАНЦЮГІВ ВАРТОСТІ: ВИКЛИКИ ТА МОЖЛИВОСТІ

Abstract

The peculiarities of producer-driven global value chains as well as buyer-driven global value chains have been characterised. The most distinct peculiarities of buyer-driven global value chains are low entry barriers, outsource production, labour intensive sectors. In addition, giant brands, large retailers and wholesalers are at the top of the value chain and coordinate it. It is emphasised that the light industry belongs to the low-technology industry and is a common example of the buyer-driven global value chain. The light industry includes industries that produce goods for end consumers among the main ones are apparel and footwear. The article outlines the challenges and opportunities for integration of Ukrainian ready-made apparel and footwear manufacturers into global value chains. It has been concluded that the domestic light industry is integrated into global value chains through the export of the finished products made primarily from the toll-raw materials. An expert survey among manufacturers of apparel and footwear was conducted in 2020. 40 representatives of small and medium-sized enterprises from different regions of Ukraine took part in the survey. According to the results of the expert survey, Ukrainian apparel and footwear manufacturers are involved in various stages of the production cycle. At least half of the enterprises have used raw materials mainly of foreign origin. Turkey and China are the main countries of imported raw materials. Apparel and footwear manufacturers in Ukraine have sold their goods to foreign as well as domestic markets. Domestic manufacturers of ready-made clothing and footwear have faced the challenges during the last three years among which are Covid-19 pandemic, the agreement on a free trade area between Ukraine and Turkey, the Russian invasion of Ukraine in 2022. Among the opportunities that have been emerged are the use of online marketplaces to sell their goods, relocation to safe regions in Ukraine, strengthening cooperation with EURATEX. Apparel and footwear manufacturers have mentioned that only if government and local authorities support and promote the domestic producers at national and regional level the industry will be further developed.