Overview of Global Fashion Industry Session 1

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Session 1

Overview of Global fashion Industry

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• What is global interdependence ?

• Answer : Princess Diana's death

• An English princess with an Egyptian boyfriend crashes in aFrench tunnel, driving aGerman car with aDutch engine, driven by aBelgian who was high onScottish whiskey, followed closely byItalian Paparazzi, onJapanese motorcycles, treated by anAmerican doctor, usingBrazilian medicines!And this is sent to you by aCanadian, usingBill Gates' technology which he got from theJapanese.And you are probably reading this onone of the IBM clones that usePhilippine-made chips, andKorean made monitors, assembled by Bangladeshiworkers in a Singapore plant, transported by lorriesdriven by Indians, hijacked by Indonesians and finallysold to you by a Chinese!That's Globalization!!!

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What is Fashion

Fashion is the custom or style of dressing that prevails among any group of persons. It is a style of present that may last for a year or two or span of years.“courtesy Fairchild dictionary of fashion”

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Fashion and non fashion?

• Non fashion changes slowly with time.

• Whole value depends on ‘permanence’.

• Varies greatly in space.

• Special dress associated with a locality.

• Fashion styles change rapidly.

• Rapidity of change is the very essence.

• Varies comparatively little in space.

• Spreads rapidly to most of the parts, with same cultural influences.

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Fashion MovementFashion Movement

• Direction of Fashion change

– Trickle down theory

– Trickle up theory

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Trickle Down theoryTrickle Down theory-- by Veblen and Simmel

• The elite class differentiated itself through fashion.

• The adjacent lower classes imitated the look.

• The elite class moved to adopt a new fashion to differentiate.

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Trickle across theoryTrickle across theory

• Proposed by King (1963)• Fashion elements trickles across horizontally

within social strata. • Rather than elite introducing fashion ideas

King saw leadership with in each social strata and each social group.

• It is also called mass market or simultaneous adoption theory.

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Trickle up theoryTrickle up theory

• Proposed by Field (1970) • Higher status segments with more power

imitated those with lower status. Fashion floated upwards.

• Eg- Afro prints, negro music and dance had lot of influence on culture.

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Reasons for global perspective

• Economic growth • Varying stages of economic development

in many newly developing countries s• New communication technologies • Easy access to most parts o the world

through improved transportation systems • Intuitional arrangements on the part of

business and government

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Global apparel value chain

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Global apparel value chain

•“Producer driven”•“Buyer-driven”

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Global apparel value chain

• In producer-driven value chains, – Manufacturers play the central roles in

coordinating production networks.

– This is typical of capital- and technology-intensive industries such as automobiles, aircraft, computers, semiconductors and heavy machinery.

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Global apparel value chain

• Buyer-driven value chains –

– are those in which large retailers, marketers and branded manufacturers play the pivotal roles in setting up decentralized production networks in a variety of exporting countries.

– typically located in developing countries.

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Buyer-driven value chains

– Common in labor-intensive, consumer-goods industries such as garments, footwear, toys, handicrafts and consumer electronics.

– Retailers like Wal-Mart, Sears and JC Penney, athletic footwear companies like Nike and Reebok.

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Global apparel value chain

•They are “manufacturers without factories”,

• Buyer-driven chains profits come from combinations of high-value research, design, sales, marketing.

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Global apparel value chain

• Apparel value chain is organized around five main parts: – raw material supply, including: natural and synthetic

fibers; – Yarns and fabrics manufactured by textile companies; – Production networks made up of garment factories,

including their domestic and overseas, subcontractors; – Export channels established by trade intermediaries;

and– marketing networks at the retail level.

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Apparel value chain