Québec has always been the Canadian clothing and fashion leader. For many years, this industry has engendered extensive economic activity and many jobs. Montréal is Canada's leading city in the clothing sector and, along with Los Angeles and New York, also ranks among the foremost clothing manufacturing centres in North America.

Following marked growth in the 1990s, the industry is undergoing a period of disruption. Indeed, in addition to contending with the striking upturn in the value of Canadian dollar, it is facing massive imports from China, the leading clothing exporter, and the complete abolition on January 1, 2005 of import quotas.

These fundamental changes are compelling Québec businesses to reposition themselves. This strategy support is intended to sustain efforts by companies to enhance their competitiveness and adopt business models adapted to the new international environment.

A five-point strategy

The Québec government will earmark nearly $82 million for the industry to implement the strategy over three years. This strategy focuses on five themes.

Foster the adaptation of business models

It is important to ensure the Québec industry's profitability and competitiveness and to enable it to develop new competitive advantages. Consequently, the government will support businesses that adopt business models or strategies better adapted to international competition and aimed at:

• prompt order fulfilment;
• the development of product niches;
• broadening the range of fashion products through the addition of derivative products;
• the adoption of new business practices and organizational innovation;
• the development of brand images;
• the optimization of the value chain;
• broadening of a company's activities.

Encourage product introduction, marketing and exporting

The strategy makes provision for support for companies that wish to penetrate markets with high potential, especially market niches, and the most promising geographic markets.

In collaboration with its partners, the government will support projects centred on the marketing of Québec products. For example, mention should be made of the elaboration of a trademark strategy, the organization of missions abroad, the hiring of an export specialist, and so on.

Furthermore, this strategy calls for a $2-million annual investment to promote Québec products at home and abroad, mainly in the United States. The Montréal CollectionS Website will also be enhanced in order to better support the promotion of Québec firms the world over.

Support reliance on design and advanced technologies

To considerably bolster the chances for success of businesses on markets, the industry must be able to rely on closer linkage between components of the production and distribution chain and fashion designers. To foster such linkage, the government will support partnerships, either between designers or between designers and manufacturers.

Moreover, the government will foster greater reliance on design by streamlining the certification process that leads to entitlement to the tax credit for design and by pursuing its promotion in the industry.

We must also further stimulate technology transfers and the use of technical, innovative materials. Businesses must make better use of the information technologies and cutting-edge technologies. In this way, the government will support firms in the sector through technological projects and by facilitating access to the measures stipulated in the Québec Research and Innovation Strategy.

Promote Montréal as a fashion centre

The government recognizes the key role that Montréal plays in the Québec fashion and clothing industry. In order to broaden recognition abroad of the city as a fashion centre, the government, in collaboration with Montréal organizations, will support major fashion events in the city in order to stimulate spinoff for businesses in the industry.

In addition, the government will support, in collaboration with Montréal organizations, new industry initiatives aimed at positioning Montréal on the international fashion scene. Mention should be made, for example, of advertisements in prestigious fashion magazines and visits by foreign buyers and journalists to Montréal events.

Make the business environment more favourable

The Québec government assumes responsibilities with respect to working conditions and worker training. To enhance the industry's competitiveness, the government will implement worker training measures that emphasize clothing industry trades. These measures will include, in particular, assistance for francization training and developmental projects, initiatives to stabilize employment, and a promotion campaign focusing on the industry and industry-related trades.

Moreover, synergy between industry stakeholders must be revitalized. The period of streamlining that the industry has just undergone has affected associations and their membership. We must consolidate their representativeness, foster cooperation and support the developmental projects that the industry advocates. In order to contribute to the strengthening of these links, the government will work with Montréal and industry organizations to create an industrial cluster or fashion promotion bureau and intensify exchanges between industry members.

PRO MODE: financial assistance and service

The PRO MODE measure will be made available to the industry to satisfy the specific needs of businesses with respect to the implementation of the strategy. This measure can support the projects of industry firms for up to three years.

PRO MODE will also support the developmental projects of sectoral associations in the industry, e.g. new or improved services and one-off or recurring initiatives. It can also support the projects of organizations wishing to contribute to the development of the Québec fashion and clothing industry and will be accompanied by an integrated offer of service from the ministère du Développement économique, de l'Innovation et de l'Exportation. Worker training and human resources management measures will round out the services offered by the government in conjunction with the strategy's implementationgie.

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