SIC 23 - Apparel And Other Finished Products Made From Fabrics And Similar Materials
This major group, known as the cutting-up and needle trades, includes establishments producing clothing and fabricating products by cutting and sewing purchased woven or knit textile fabrics and related materials, such as leather, rubberized fabrics, plastics, and furs. Also included are establishments that manufacture clothing by cutting and joining (for example, by adhesives) materials such as paper and non-woven textiles. Included in the apparel industries are three types of establishments: (1) the regular or inside factories; (2) contract factories; and (3) apparel jobbers. The regular factories perform all of the usual manufacturing functions within their own plant; the contract factories manufacture apparel from materials owned by others; and apparel jobbers perform the entrepreneurial functions of a manufacturing company, such as buying raw materials, designing and preparing samples, arranging for the manufacture of clothing from their materials, and selling of the finished apparel. Knitting mills are classified in Industry 2253 if primarily knitting outerwear, and in Industry 2254 if primarily knitting underwear and nightwear. Custom tailors and dressmakers not operating on a factory basis are classified in Retail Trade, Industry 5699; and establishments which purchase and resell finished garments but do not perform the functions of the, apparel jobbers are classified in Wholesale Trade, Industry Group 513.
Industry trends:
The apparel and textile industry under SIC 23 is witnessing several significant qualitative trends, primarily driven by shifting consumer behaviors, technological advancements, and environmental concerns. A prominent trend is the increasing demand for sustainable and ethically sourced materials. Consumers today are more informed and conscious about the environmental impact of their purchases, driving brands to adopt eco-friendly practices and materials like organic cotton, bamboo fibers, and recycled fabrics.
Another trend is the rise of digitalization and technology integration in the supply chain and production processes. Brands are leveraging artificial intelligence, 3D printing, and IoT to enhance efficiency, reduce waste, and personalize the consumer experience. Virtual fitting rooms and augmented reality are also gaining traction, allowing consumers to visualize how clothes will fit and look without physically trying them on.
Moreover, the direct-to-consumer model is becoming increasingly popular, disrupting traditional retail channels. This approach allows brands to directly engage with their consumers, gather insights, and adjust strategies promptly. E-commerce continues to soar, especially with the increased reliance on online shopping post-pandemic, necessitating robust digital marketing strategies and optimization of mobile platforms.
In terms of forecasts, the demand for athleisure and comfort-focused apparel is expected to maintain an upward trajectory as flexible work and lifestyle norms persist. The industry will also likely see advancements in smart fabrics and wearable technology, catering to the growing interest in health and fitness. Overall, brands that prioritize sustainability, technology integration, and customer engagement are poised to thrive in the near future.
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