DONE BY,

FASHION DHANYA K R (4)

KEERTHIKA V (8)
ORIENTATION KRISHNA K R (11)
(ASSIGNMENT 1 – 18/03/2019) NANDITHA SIVAN (15)
 VALUE

WHAT IS VALUE CHAIN AND ANALYSIS

TOPIC WHAT IS VALUE ADDITION IN FASHION

OVERVIEW
THE FTAR COMPLEX
VALUE CHAIN - EXAMPLE

THE USES OF VALUE CHAIN ANALYSIS

 VALUE
• The value is the total amount (i.e,
total revenue) that buyers are
willing to pay for a company’s
products.
• The difference between the total
value and the total cost of
performing all of the company’s
activities provides the margin
 • The value chain is a business tool
developed by DR.Michael Porter
• Portor’s definition: Includes all
activities to design, produce, market ,
deliver and support the product or
service.
What is the • The value chain concentrating on the
Value Chain? activities starting with the rzw
materials till the conversion to final
goods or services
• Two categories
1. PRIMARY ACTIVITIES
2. SUPPORT ACTIVITIES
What is value chain
analysis?
• It is used to identify sources of
competitive advantage
• The purpose of value chain
analysis is to increase
production efficient so that the
company may deliver the
maximum value for the least
possible cost.
Here are five steps in the value chain process :
• Inbound Logistics: Receiving,warehousing, and inventory control.
• Operations: Value-creating activities that transform inputs into products, such as
assembly and manufacturing.
• Outbound Logistics: Activities required to get a finished product to a customer.
These include warehousing, inventory management, order fulfillment, and
shipping.
• Marketing and Sales: Activities associated with getting a buyer to purchase a
product.
• Service: Activities that maintain and enhance a product's value, such as customer
support and warranty service.
 These include :

In order to help
streamline the five I Procurement
primary steps,
Porter says the
value chain also II Technology development

requires a series
of support
III Human resource management
activities.

IV Infrastructure.
 • Value addition in textiles and
clothing. According to the
Financial Times Lexicon, in
economic theory, value added
refers to the worth added to a
product during the production
process-i.e.,the difference
between what the producing
company paid for its inputs
and the price it charges for the
finished goods.

WHAT IS VALUE ADDITION

IN FASHION?
FIVE
FUNCTION FASHION AND OPERATIONAL
FEATURES OF STYLE PERFORMANCE
VALUE ADDED
TEXTILE AND
CLOTHING
SUSTAINABILITY SERVICE
VALUE ADDED
YARNS
Value Addition In
Spinning :
The field of value added yarns has
been profiting. Value added yarns
are yarns which are given pre-
programmed 'characters' at the
spinning stage, electronically
controlled and consequently 100
% reproducible
The intentional variations are
introduced in a pre-determined
way to get a control over the
design of yarn.
Value added yarns are deployed by the designers
to give products a natural, rustic and attractive
appearance, in contrast to high quality yarns with
absolutely regular yarn diameters.

Value addition in textile products is need of an

hour in today's fashion world. This can be at fibre,
yarn, fabric or processing stage.
 The fundamental strength of the Indian
textile industry is its strong production base
of wide range of fibre/yarns from natural
fibres like cotton, jute, silk and wool to
synthetic/man-made fibres like polyester,
viscose, nylon and acrylic
 Indian cotton spinning industry is second
largest in the world after China
 Trends in value-added yarns
 Global trend will be shifting from occasion
specific clothing to function based clothing where
fabric properties will be playing major role.
Some of the trends like temperature controlled &
IT embedded technical garments will be gaining
more importance in coming future. Increasing
awareness on climatic changes, global warming,
eco-friendly concept & enormous industrial
growth will be leading to more focus on function
based clothing than need specific clothing.
consumption of speciality yarns has increased in
ethnic wear.
VALUE ADDED FABRICS

To make salable consumer products,

fabric have to go through various
chemical-processing sequences such as
preparatory, dyeing, printing and
finishing. Among these the chemical
finishing assumes considerable
significance because the value addition is
realized through functional finishing to
impart the desirable properties.
• The process involves three distinct levels of proprietary technology that allow
precise control of the application and placement of polymers within fabrics to
meet specific performance criteria.
1. Fibers and filaments of the fabric are encapsulated with an ultra thin polymer
film.
2. A durable barrier film can be precisely place within the fabric, between fiber
bundles.
3. Performance properties can be enhanced using additives that control the
surface
chemistry of the polymer film.
• The process creates water and wind protective fabrics that are extremely
breathable lightweight, soft and compressible for the sports apparel and
equipment industry.
 • Value addition is the
conversion of raw materials
into finished product
• Value addition increases the
aesthetic look of the
garment but does not have
any effect on the quality of
the product
• The key aspect of value
addition is high price,
uniqueness , attractiveness
and focusing a business
more closely on targeted
market segments
VALUE ADDITION IN
GARMENT INDUSTRY
 Increases the value of the
garment both by appearance
and by price.
MAIN
REASONS FOR
VALUE Attracts the customer to buy
that particular garment.
ADDITION IN
GARMENT
INDUSTRY
To increase the market demand
TYPES OF VALUE ADDITION IN THE GARMENT
INDUSTRY

Special
Finishing Printing
processes

Closures Embroidery
THE FTAR COMPLEX
• The FTAR Complex is defined with its segments viz.
• Fiber producers
Textile mills
Apparel manufacturers
Retailers
Consumers
• How has the FTAR complex changed over decades?
• 1950s: Production driven
1960s: Product driven
1970s: Decade of imports
1980s: Era of the retailer
1990s: Consumer driven
2000s: Consumer focused
Beyond: Technology- driven/Market-oriented
The sources of the competitive advantage of a firm that can be from its discrete activities and how they interact with one
another.

The value chain is a tool for systematically examining the activities of a firm and how they interact with one another and
affect each others cost and performance

A firm gains a competitive advantage by performing these activities better or at a lower cost to the competitors.

Helps the company to stay out of the “no profit zone”

Presents opportunities for integration

Aligns spending with value processes.

USES OF VALUE CHAIN ANALYSIS

 PRIMARY ACTIVITIES
• INBOUND LOGISTICS: Sources its fabric from China and
Hongkong
• OPERATION: Efficient telecommunication stysyem
connecting head quarters to vsupply, sales and production
locations, long term ties with designers sewing agencies etc.
• OUTBOUND LOGISTICS: Fast and efficient delivery of
products at accurate time of demand of fashion products
managed by officials across stores.
• MARKETING AND SALES: has a unique marketing strategy ;
responds quickly to the fashion demand of the customers and
ZARA OVERVIEW ON can quickly produce latest fashion trends bringing them to only
VALUE CHAIN having 18% of unsold merchandise.
• SERVICE: Quickly responds to its young customers.
PROCESS SUPPORT ACTIVITIES
• PROCUREMENT: Brings in raw materials real quickly from
cheap places yet with great quality.
• TECHNOLOGY DEVELOPMENT: Has tons of invention of IT
field helping them to run the chain smoothly; uses PDA.
• HUMAN RESOURCES: Has HR managers and many other
skilled employees in each and every ZARA store across the
world contributing to it smooth running in the industry.
• FIRM INFRASTRUCTURE: It is independent with its own
network of stores, logistic centres and production fascilities.
Sandblaster
Abrasive blasting, more commonly known as
sandblasting, is the operation of forcibly
propelling a stream of abrasive material
against a surface under high pressure to
smooth a rough surface, roughen a smooth
surface, shape a surface or remove surface
contaminants. A pressurized fluid, typically
compressed air, or a centrifugal wheel is used
to propel the blasting material (often called
the media). Many consumers are willing to
pay extra for jeans that have the appearance
of being used. To give the fabrics the right
worn look sandblasting is used.
 Why is the
Sandblaster
banned?
> Sandblasting has the risk of causing silicosis to the
workers, and in Turkey, more than 5,000 workers in the
textile industry suffer from silicosis, and 46 people are
known to have died from it. Silicosis was shown to be
very common among former denim sandblasters in
Turkey in 2007. A 2015 study confirmed that silicosis is
almost inevitable among former sandblasters. Sweden's
Fair Trade Center conducted a survey among 17 textile
companies that showed very few were aware of the
dangers caused by manually sandblasting jeans.
 Agricultural media has been used as an abrasive in some
blasting applications. This is the use of broken down nut
shells, seeds, and kernels from organic food. Using this
type of media is able to provide an ecological advantage,
because it makes use of the waste that is created from
food processing and preparation
What is used as Bead blasting is also popular, and can be used in situations
where sand would be inappropriate, impractical, and
an alternative? damaging to the material that is being blasted. This
method uses small glass beads that break up upon impact,
removing surface residue and contaminants.
Dry Ice can also be used as media, and is popular in a
number of industries
 • http://www.textilevaluechain.com/index.php/ar
ticle/industry-general/item/296-value-addition-
in-textiles-and-clothing
• https://corporatefinanceinstitute.com/resource
s/knowledge/finance/what-is-value-added/
• https://en.wikipedia.org/wiki/Abrasive_blasting
• https://quizlet.com/15370848/chapter-1-flash-
cards/
BIBLIOGRAPHY
• https://www.investopedia.com/ask/answers/04
3015/what-difference-between-value-chain-
and-supply-chain.asp