Retail sports market – frameworks for the analysis of operations management

Sese retail sports market is subdivied into clothing, spoerts footwear and sports in taiwan this sector
increasingly competitive, saturated and dominated downstream insident SME reatailers and
upstream by large manufactures such as nike, adidas , elie , mizuno , kappa, et al. The market is
heavily influence by the folowing trends: following interest in healt and fitness by customers having
more leisure time than ever more :

Increasing variety of intelektual sports are now televised, simulating greater participation:

Sportswear is now worn as leisurewear and has become an importent element in street fashion ;

Fashion trends from japan and amerika have a large influence on this market ;

Leading sports brands such as nike, adidas and reebok are growing in popularity;

Were is increasing competition from clothing discount stores, mail order companies, non sprecialist
outlets ( street stalls, markets, and department stores, and imported clothing from cina, hongkong
korea and south east asia.

Demand :

Market has many similarities to other fashion sectors. Seasonality, short seasons, high inventories
and volatility are all evident. Demand is very uncertain due to the factors ;

Many frequent sports activity in communities, universities, clubs, schools, etc ;

Rise and fall in fame of sports personalities can cause rapid changes in demand;

Does tend to be linked to major professional sports events

We weather is unpredictable and cause swings in demand.

Contribution

A brans dominate the taiwanese sports market ; nike, adidas and rebook. There are also as suppliers
that are increasing market share by offering much lower cost.

Sports shops are the main outlets for sports purchases, althought new chain stores are now ... und

..ring and sourcing

As high labour and land aquisition cost. This has meant that a number of manufacturers ..ed
production to cina and other parts of asia offering lower cost due to lower wage. However , quality
of fabric and material offshore can be uncertain, consequently many materials to contract
manufactures , who make the garments and them send them back sulted in long lead times, low
levels of flexibility, poor response and many hidden costs transpotation.

Taiwan will usually source goods by using one or more of the following purchasng

Foward purchase offshore, low cost . chinese or other asian suppliers are used . orders are proced n
advance of any season (6-12 months in advance ). Fabric and trims are sent to the manufactures
who construct the garments/ shoes etc to spesification. Normally the finished goods are then
shioped back to taiwan in the agreed quantity needed for the wole the sale sesason prior to the start
of that sellng season. Purchasing decisions are madederably in advance of the saic season and
before any demand indications is known . .... is reasonable, and the priice of the finished goods is
low (although there may be and cost ) re orders are not usually possible during the sales seson as
response is very relationships with these suppliers are at a distance and formal ; there is no real ity
for returns or exchanges at the end of the season.

Domestic, responsive and flexible. A taiwanese manufacturer provides a proportion ( force 40

percent ) of the goods needed prior to the start of the selling sesaon. There after son manufacturing
is based upon a re estimation of acual demand using pos data led by the retailer and reorder using
electronic data intercange . this provides turn araound manufacturing and shipment of product that
are in demand , the can more accurately stock reflecting demand , increasing consumer service , and
do not have a ig inventory burden . production and distribution costs are higher. And volumes are
deliberately small. Such a strategy does rely upon a close, almost relationship between supplier and
retailer

An asian offshore manufacture ships a large proportion of the goods needed to the start of the
season. During the season , the retailer then makes weekly punshment order using taiwanese
suppliers for small top up amounts . however point pus data and derived information are not widely
shared with this domestic supplier supply is often shipped from his stock holding built as a buffer
against uncertainly quality can be controlled althought price will be higher. There is a faster
response and degree of flexibility due to smaller batch sizes, but there will be increased labaour and
ortation costs and supplers bear the inventory burden.

Ons related to relevated to the taiwan retail sports market case study

How the case above might be analysed in terms of value adding using the concepts and value
system.

Ussed in this chapter it is useful to tthink of an organization , or even an industry , using output and
transformation process model . using the three different sourcing above , construct a model a
taiwanese retaile . what will be the main different the three?