The Italian textiles and clothing sector plays a major role in the national economy. However, companies in the sector face increasing international competition. In the Liri Valley clothing district, for example, the effects of globalisation have resulted in company closures. Many of the existing enterprises are small-scale manufacturing companies working as subcontractors for large retailers and brands, which have the power to exert downward pressure on prices. The companies have responded to these challenges in a variety of ways, by establishing their own high-quality brands and entering national and regional niche markets, and/or providing fast and flexible manufacturing services to clients. Other strategic options include the offshoring of manufacturing tasks to countries in northern Africa and eastern Europe.