Overview of Global fashion Industry

Session 1

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What is global interdependence ? Answer : Princess Diana's death An English princess with an Egyptian boyfriend crashes in a French tunnel, driving a German car with a Dutch engine, driven by a Belgian who was high on Scottish whiskey, followed closely by Italian Paparazzi, on Japanese motorcycles, treated by an American doctor, using Brazilian medicines! And this is sent to you by a Canadian, using Bill Gates' technology which he got from the Japanese. And you are probably reading this on one of the IBM clones that use Philippine-made chips, and Korean made monitors, assembled by Bangladeshi workers in a Singapore plant, transported by lorries driven by Indians, hijacked by Indonesians and finally sold 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 Movement
Direction of Fashion change
Trickle down theory Trickle up theory

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Trickle 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 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 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 technologyintensive 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, consumergoods 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

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