The rise of the global LTP mega-corporation – Part 2
In our previous post, we explored the early days of the labels, tags and packaging (LTP) industry, a time when suppliers were local, deeply embedded in domestic garment manufacturing, and highly specialised.
But the 1990s brought seismic change. As garment production moved offshore in search of lower labour costs, the LTP sector was forced to adapt or be left behind.
Some smaller players evolved, carving out niches based on service, quality and innovation. Others, however, set their sights on scale, beginning a decades-long process of mergers, acquisitions and consolidation that would eventually produce the global “mega-corporations” we see today.
Now in the second part of the series, we’ll tell the story of how one of those giants came to dominate the industry – and why there’s still plenty of room for independent players like immago.
From local networks to corporate giants
The early consolidation phase began as some LTP companies realised they could only compete internationally by growing larger, faster. They needed more production sites, wider market access, and the ability to offer global supply to brands, who themselves were spreading manufacturing across continents.
The result was a flurry of mergers and acquisitions. Large companies swallowed smaller ones, regional leaders joined forces, and global footprints expanded. What started as a fragmented industry began to take on the shape of a few dominant players with truly international reach.
The key milestones that shaped the giant
The most striking example of this transformation is the rise of CCL Industries – now the world’s largest label company. Here’s how it happened:
- 2007 – Avery Dennison acquires Paxar
At the time, Avery Dennison was already a major name in labelling, but the purchase of Paxar made them the largest LTP supplier in the apparel sector. Paxar’s strength in woven labels, heat transfers and RFID solutions significantly expanded Avery’s capabilities and market share. - 2013 – CCL Industries acquires Avery Dennison’s Office and Consumer Products & Designed and Engineered Solutions divisions
This move catapulted CCL from a strong player in industrial and specialty labels into a diversified global powerhouse, with far greater reach in the apparel industry. - 2016 – CCL acquires Checkpoint Systems
With Checkpoint came advanced RFID and security technologies, allowing CCL to integrate supply chain visibility and loss prevention into its offering, particularly appealing to large retail customers.
Over the years, CCL has also absorbed numerous smaller companies, steadily consolidating market share and expanding into other labelling sectors. The pace of this growth has been relentless.
The scale of the machine
Today, CCL’s numbers are staggering:
- 26,000 employees worldwide.
- 213 production facilities in 42 countries.
- Market leadership across multiple sectors, not just apparel, but also food & beverage, healthcare, automotive and consumer goods.
Their size gives them formidable advantages:
- Economies of scale.
- Global platform for brands needing production at multiple locations.
- Influence over supply chain priorities.
For large multinational apparel brands, working with a supplier like CCL can seem like the obvious choice; they have the size, reach and infrastructure to deliver at scale, but… bigger isn’t always better.
The hidden cracks in the armour
Being a giant comes with its own problems.
Complex structures slow everything down
The bigger the organisation, the more layers of management, regional divisions and duplicated roles you have to navigate. Decision-making can be slow. Requests can get stuck in chains of approval. Innovation cycles can drag out for months, even years.
Service can suffer
Customers sometimes report uncertainty over who they’re actually dealing with, especially when a project spans multiple regions. With so many moving parts, communication can be inconsistent, and response times lag.
Bureaucracy resists change
In fast-moving industries, the ability to adapt quickly is essential. But mega-corporations often have entrenched processes and corporate cultures that make rapid pivots difficult. When new opportunities or challenges arise, they can be slow to respond.
Innovation can take a back seat
In very large organisations, the priority is often protecting existing revenue streams rather than experimenting with new ideas that carry risk. Smaller players, unburdened by such vast structures, can afford to be more creative and proactive.
The independent advantage
For small to mid-sized apparel companies, these weaknesses matter. While CCL and other global players can offer impressive pricing and coverage, they can’t always match the personal service, flexibility and innovation of independents like immago.
Here’s what sets smaller, independent companies apart:
- Agility and responsiveness: Fewer decision layers mean faster answers, quicker turnarounds, and the ability to adapt to sudden changes in production or design.
- Tailored solutions: We’re not locked into one-size-fits-all processes. We can customise designs, materials and production methods to suit your specific brand vision and operational needs.
- Innovation through collaboration: We work closely with you to co-create solutions, whether that’s new sustainable materials, creative branding options or packaging formats that reduce waste.
- True partnership: You’re not just another account number on a spreadsheet. Our relationships are built on understanding your business, your challenges and your goals.
Yes, independents may not always match the lowest price offered by a mega-corporation, but when you factor in the value of faster problem-solving, greater flexibility and more innovative approaches, the overall cost-to-benefit ratio can swing heavily in our favour.
Why bigger isn’t always better
It’s tempting to think bigger always means better, but in LTP, that’s not necessarily true. For smaller apparel brands, the relationship with a supplier is about more than just unit costs. It’s about:
- Consistency – knowing you’ll get the right product, every time.
- Adaptability – being able to adjust designs, quantities or timelines without bureaucratic headaches.
- Innovation – keeping your branding and packaging ahead of the curve.
These are areas where independents shine – and where giants can struggle.
The David vs Goliath balance
The rise of global LTP mega-corporations has reshaped our industry beyond recognition. Their reach and influence are undeniable, and for some customers, their model works perfectly.
But for many small to mid-sized apparel brands, working with an independent can mean a better fit – a partnership that delivers not just products, but the kind of service, flexibility and creative thinking that giants can’t easily replicate.
In our third and final post, we’ll explore exactly how to choose the right partner for your brand, and how to avoid the pitfalls of the “big company trap”.
If you’d like to talk about how immago can help your brand stand out in a globalised market, get in touch with us today. We’ve been in this industry for decades, and we know how to combine experience, innovation and personal service to give you the competitive edge. Something the big guys simply can’t do.