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The textile and clothing sector in Romania is one of the key industrial sectors. The sector accounts for providing employment to a large of labor force in the country. It creates employment for 137000 employees and it contributes for about 11% of the Romanian’s export revenues, at the second place after automotive industry, who held 40%. Despite being rated among the top European exporters of textiles, over the past years, the Romanian textile and clothing industry has become less competitive in the global marketplace [1]. There are many reasons for this, including the liberalizing policies of the EU and WTO, the low profitability as well as the intense competition from low cost producing countries. Romania’s competitive advantage in clothing industry, reported to the European one, is mainly due to low-cost labour force. The clothing industry is considered to be one of the most labour intensive industry that focuses on creating, designing, manufacturing, marketing, consuming, supplying chain, trading and many other components of clothing, and its accessories as a whole. Considering this, labour costs have a major impact of the competitiveness in this market and their continued growth has negatively influenced Romanian competitiveness. Due to the concurrent factors impacting the clothing industry, Romanian producers can no longer compete based on cost alone. Managers of the companies in clothing industries face major challenges to deal with the frequent problems that arise from ever changing operating conditions. They also have faced sophisticated strategic challenges that have to be addressed successfully if

Redesign and upcycling – a solution for the competitiveness of small and medium-sized enterprises in the clothing industry