Chloé Fashion Houses Business Model Analysis

Executive Summary

Chloés business model is greatly effective. There is proof for its incorporation from the local to international phase with effective communication among different departments of the company. Successful brands continually strive to make high profits through the provision of innovative products and services to clients by upholding quality, discounts, and a variety of marketing approaches. This report discusses Chloés supply chain and recommends a menswear line. The companys production line deals with the manufacturing of brands such as ready-to-wear clothes, accouterments, bags, and shoes. The retail approach is a highly valued channel of product distribution. With the intensified utilization of social media as a way of marketing communication for Chloé and other luxury brands, there has been the need to assess the impact empirically.

Introduction

Chloé is a fashion house headquartered in Paris and it was founded in 1952 by Gaby Aghion. It is currently under luxury brands Holding Company and has been worn by numerous celebrities such as Madonna and Emma Stone to mention a few. Aghion believed that the then-existing fashion was extremely stiff and official thus opted for modifications and began to design clothes that she referred to as luxury and ready-to-wear (Mendes & Rees-Roberts 2015). This report elucidates and explores Chloés supply chain and proposes a menswear line. Chloés policy has turned out to be a great success in the market and has made other fashion houses follow suit.

Operations and Market

Chloés production line is concerned with the manufacturing of brands that include ready-to-wear clothes, shoes, accouterments, and bags. Under the value generation, the production line ensures that Chloés customers have a lifestyle marked by elegance, comfort, and luxury (Barthès 2006). Although Chloé has products for men, its major customers across the globe are extremely feminine, iconoclastic, well-traveled, and adventuresome. The age bracket of Chloés customers differs from one nation to the other although the companys clients around the world are reasonably wealthy (Walker 2018).

Essential resources exist in different forms such as intellectual, monetary, physical, and human. Physical resources of the company encompass materials used in the creation of products in conjunction with showrooms, equipment, design places, and stores. Intellectual resources act as Chloés brand patents and copyright. Human resources are the most important in the Chloé fashion house since they form its labor force, which ensures that the company succeeds (Barnard 2007). The fashion house has placed a great significance on the training and development of its sales staff. The monetary resources of the company are facilitated by the support offered by Richemont, its parent corporation. Although Chloé has ensured the selection of the best person for every task, it has witnessed a high turnover of its creative executives.

Concerning the channel of product distribution, Chloé values the retail approach. This has resulted in the establishment of the company-owned boutiques, multi-brand stores, superstores, and point-of-sale counters. The company is represented in more than one hundred and thirty stores across the globe where it owns some and others are franchise entities (Mendes & Rees-Roberts 2015). Such stores are mainly found in the United States, Europe, and Asia while South Korea, the Middle-East, Japan, and China form a flourishing market. Additionally, more than five online stores are presently offering Chloés products and the company has made significant strides in acquiring a huge market share in China where it has a Chinese webpage for its customers.

The major operations undertaken by Chloé encompass designing, generating, developing, marketing, sales, and distribution. Import and export are also part of the companys key endeavors, which assist it to uphold an international presence. Its main partners include Lamy, concerned with the provision of the corporations sunglasses, Iris, tasked with the delivery of shoes, and Coty Prestige, which has purchased the corporations beauty permit and is accountable for offering different types of perfumes. Consumer relationship is essentially exceedingly strong amid clients and sales personnel (Brannon 2010). Returning customers are marked in the database of loyal consumers and are given benefits that include an invitation for occasions, price reductions, and pre-sales to mention a few.

Concerning the income model, the corporation has two major channels that encompass wholesale and retail. The retail stream exists in the form of ordinary retail and direct retail, also called online sales. Direct retail accounts for about 40% of the revenue acquired through the channel while ordinary retail takes place in stores and brings a higher proportion of the income. The amount of revenue acquired through the wholesale channel is not certain when compared to its retail counterpart, but it is approximated to be close to three hundred million dollars each year. Fundamental bases of cost are manufacturing, branding, and retailing (Bruzzi & Gibson 2000). However, there are existing challenges for the corporation. Increasingly developing markets such as India and Brasil have not yet been explored. It is left to Chloés creative managers to tell how effectively new practices and struggle for market shares achieve the set objectives. Nevertheless, as the corporation contends with heightened resilience in its brand equity, the arising challenges are anticipated to be overcome through its carefully planned policies.

Marketing and Brands

Luxury brands have existed as leaders in the fashion industry with their estimable aesthetic significance and striking yet traditional business administration. Nevertheless, the recent entry of various fashion houses in the luxury markets over and above decreased sales associated with economic downturns have resulted in increased challenges for Chloé (Kim, Fiore & Kim 2011). To overcome the recent unanticipated problems of aggressive competition, Chloé has shifted toward marketing communication with the help of social media. The application of social media platforms such as Facebook and Twitter has expanded to all marketing approaches of the company and has become its business expansion tool.

Chloés competitors include Calvin Klein, Charvet Place Vendôme, and A.P.C. Unlike Chloé, the competitors deal with menswear such as shirts and suits. This gives them outstanding brand objectives and policies. Concerning the points of parity (POP), all the four brands are in the luxury fashion industry, provide a significant degree of prestigiousness and social status and remain reasonably priced for the middle and high-income groups (Kim, Fiore & Kim 2011). Additionally, they all employ a multi-channel distribution approach that includes online stores and physical storefronts. The points of difference (POD) for Chloés products are that they are more trendy, fashionable and quality than those of its competitors. In a positioning map, Calvin Klein, A.P.C., and Chloé offer quality products at a high price. Charvet maintains low prices for its high-quality products.

Positioning map.
Fig. 1: Positioning map.

Preliminary studies have been undertaken to draw samples of luxury fashion brands such as the products offered by Chloé. The data was obtained from luxury brand customers through interviews. The aspects of social media marketing studies encompass customization, entertainment, interaction, inclination, and communication. Multiple regression analysis established that entertainment has a considerable positive influence on trust, intimacy, and intention to buy. Other constructive results encompass the influence of customization on trust, the impact of interrelation on the intention to buy, intimacy generated by communication, and inclination based on confidence. It appears that customization, entertainment, and inclination gratified customers anticipation for luxury fashion brands (Schroeder & Salzer-Mörling 2006). Since Chloé seeks to offer value to clients in all possible approaches, its products and services have tended to center on the provision of entertainment content at no cost, tailored services, and improvement of social media use, which are inclined toward facilitating customer relationship.

Marketers in the Chloé fashion house have established a considerable connection between trust and purchase plan. Since the confidence variable in the relationship with customers is considerably linked to purchase intention, the mediating influence of customization and inclination play a vital role (Welters & Abby 2007). Effective marketing by Chloé has shown successfulness of social media marketing on consumer relationships and intention to purchase hence creating an approach of facilitating performance through the definition of particular factors of influence. All the elements in Chloés social media marketing strongly sway customer affiliations and persuade them to buy (Bashir & Verma 2017). Such practices, in addition to the facilitation of communication amongst customers, provision of tailored services, issuance of exciting content, and reception of genuine information based on the best interest create an entertaining ambiance.

Chloé does not currently major in outstanding fashion brands for men. The products for men that the company provides are based on both what is and is not fashionable about style. The designers should realize that men do not regularly shop and when they do, they are inclined to products that best suit them. With this understanding, the company should establish a game plan after thoroughly identifying excellent designers for mens clothes that will make them look good everywhere (Turunen 2015). This calls for majoring in numerous fashion lines for mens products for the company to guarantee a broad scope of elegant, modish shirts, suits, pants, and accessories for fashion-sensitive gentlemen.

It is difficult to defy the ethical appeal of eco-friendly products. In the new menswear line and its other products, Chloé should seek eco-friendly distribution as a way of protecting generations to come. Nevertheless, sustainable and eco-friendly products usually come with a high price tag, which may compel Chloé to weigh the concerns of ethics against affordability and demand (Welters & Abby 2007). Although it is laudable to produce sustainable brands concerning environmentally conscious clothes, they are often not easily accessible. They necessitate careful sourcing and choosing materials, which encompass sustainable fabrics like organic cotton. Key countries for production include Austria, Denmark, China, Finland, Germany, Hong Kong, Italy, Japan, Sweden, Switzerland, Taiwan, the Netherlands, the United Kingdom, and the United States. In its critical path method, Chloé seeks to deliver all its fashion brands on time since the management understands that good product offered early outshine amazing ones supplied late. To succeed in this endeavor, managers in the company remain focused, challenge employees to prioritize crucial tasks, and learn lessons from past mistakes for enhanced improvements.

Fashion theorists are convinced that brands are a depiction of social, monetary, cultural, and political variations and should articulate modernity while representing the feeling of the times. Druckers theory of business offers valuable management thoughts that challenge a companys performance. What has led to the collapse or failure of once large and successful corporations around the world is the fact that their theory of business does not work anymore. A successful theory of the business such as the one employed by Chloé has three fundamental segments. The first component is anchored in suppositions concerning the environment of the organization, for instance, society, the market, consumers, and technology. It describes things for which a company is paid. The second part holds assumptions of the mission of the company; what an organization deems meaningful practices for its success (Pentina, Guilloux & Micu 2018). The third element entails presuppositions of the core competencies necessary to realize the companys mission. This establishes areas in which organizations should excel to maintain a competitive benefit. Researchers should thus seek to establish the pointers of a stagnating theory and the best approach of rethinking it while taking effective measures to modify strategies and operations in the supply chain.

Conclusion

Chloé fashion house is under luxury brands holding Company and numerous celebrities have endorsed its products. This report has explored and given details of Chloés supply chain. The companys policy has turned out to be a great achievement in the market and has made its competitors follow suit. Social media marketing and the satisfaction of the needs of customers have made Chloé one of the leading organizations in the fashion and luxury brands industry. To maintain a leading position, the company should work diligently towards upholding only the trendy and classic brands for women, men, and children. Moreover, the company should focus on offering quality products within an environmentally friendly and sustainable capsule variety at low prices.

Reference List

Barnard, M 2007, Fashion theory: a reader, Routledge, London.

Barthès, R 2006, The Language of fashion, Berg Publishers, Oxford.

Bashir, M & Verma, R 2017, Why business model innovation is the new competitive advantage, IUP Journal of Business Strategy, vol. 14, no. 1, pp. 7-11.

Brannon, E 2010, Fashion forecasting, 3rd edn, Fairchild Books, New York, NY.

Bruzzi, S & Gibson, P 2000, Fashion cultures: theories, explorations and analysis, Routledge, London.

Kim, E, Fiore, A & Kim, H 2011, Fashion trends: analysis and forecasting, Berg Publishers, Oxford.

Mendes, S & Rees-Roberts, N 2015, New French luxury: art, fashion and the re-invention of a national Brand, Luxury, vol. 2, no. 2, pp. 53-69.

Pentina, I, Guilloux, V & Micu, A 2018, Exploring social media engagement behaviours in the context of luxury brands, Journal of Advertising, vol. 47, no. 1, pp. 55-69.

Schroeder, J & Salzer-Mörling, M 2006, Brand culture, Routledge, New York, NY.

Turunen, L 2015, Challenging the hierarchical categorisation of luxury fashion brands, Nordic Journal of Business, vol. 64, no. 2, pp. 119-138.

Walker, R 2018, Why fashion brands all seem to be using the same font, Web.

Welters, L & Abby, L 2007, The fashion reader, Berg Publishers, Oxford.

Alessandra Rich Fashion Houses Launch of Menswear

Executive Summary

The paper presents an overview of Alessandra Rich fashion house, including brand identity, a brief competitor analysis, and a target market. Further, sustainable production is discussed, including sourcing, distribution, the critical path, and the supply chain strategy. Special emphasis is made on the ways of reducing the environmental footprint by using eco-friendly and organic materials to replace toxic ones, as well as those produced with cruelty, such as leather. The prospects of creating a menswear collection are discussed in light of statistics indicating the global growth of interest in mens fashion.

The paper is logically structured to provide easy access to each of the topics included. In a research methodology table, there is a brief analysis of primary and secondary research sources employed in the project. The paper is highly relevant to present-day fashion industry discourse since it covers acute issues that need thorough consideration on the part of fashion retailers.

Introduction

The industry of fashion has always belonged to the most popular and widely discussed ones. The most recent trends in garment retail are concerned with the sustainability and eco-friendliness efforts of brands. It is no longer enough to make high-quality clothes to be successful. At present, companies have to show that their production and distribution processes do not harm the environment and can be reused or recycled when no longer wanted. Another important emerging tendency is that of menswear fashion. Women have been the center of the fashion industry for many centuries, and recent data indicate that it is time for men to become active consumers in this sphere. The present paper provides an analysis of Alessandra Richs fashion house in view of the prospects of creating a mens collection.

Research Methodology Table.

Reference Lion, A, Macchione, L, Danese, P & Vinelli, 2016, Sustainability approaches within the fashion industry: the supplier perspective, Supply Chain Forum: An International Journal, vol. 17, no. 2, pp. 95-108. Pedersen, ERG, Gwozdz, W & Hvass, KK 2016, Exploring the relationship between business model innovation, corporate sustainability, and organisational values within the fashion industry, Journal of Business Ethics, vol. 149, no. 2, pp. 267-284. Turker, D & Altuntas, C 2014, Sustainable supply chain management in the fast fashion industry: an analysis of corporate reports, European Management Journal, vol. 32, no. 5, pp. 837-849. Yang, S, Song, Y & Tong, S 2017, Sustainable retailing in the fashion industry: a systematic literature review, Sustainability, vol. 9, no. 7, pp. 1266.
Research type Secondary Primary Primary Secondary
Design/methodology Case study methodology Quantitative study An analysis of corporate reports Systematic literature review
Research questions/hypotheses Research questions:
1. What approaches are used by suppliers to support internal and external sustainability policies?
2. How is the interest in sustainability promoted among suppliers?
Hypotheses:
1. A high rate of business model innovation (BMI) leads to increased sustainability;
2. Flexible organizational values lead to high sustainability and innovation levels;
3. BMI is related to financial performance.
Research question:
How are corporate sustainability and the supply chain of fashion organizations developed under the pressure of fast fashion tendencies?
Research question:
What are the major trends of research on sustainable retailing in the industry of fashion?
Key findings The major environmental drivers include water minimization, vegetable dyeing, recycling, and solar power. The main social reasons are the need to follow the code of conduct and support local communities. There is a close relationship between BMI, sustainability, and financial performance. The main approaches employed by fashion companies to comply with sustainability measures include:
 arranging good manufacturing conditions;
 following the code of conduct;
 making sure that the value chain follows high environmental and social standards;
 guaranteeing safety to employees and long-term relations to suppliers.
The interest in sustainable fashion has increased significantly over the past decades. The most popular and prospective trends are eco-labeling, green branding, second-hand fashion, and e-commerce.

Brand

Company Overview

One of the most popular fashion companies of modern times, Alessandra Rich Limited, was launched in 2009 in London. Rich is an Italian-born designer who used to be the sole director of the company for the first five years. In 2014, her husband, Steven, was appointed as a co-director (Alessandra Rich Limited n.d.). Alessandra Rich owns over 75% of shares and voting rights, and she has the right to appoint or remove directors (Alessandra Rich Limited n.d.). The companys financial statement are not publicly available, but it possible to conclude that it is highly profitable based on the prices for clothing items and celebrity clients choosing garments from Rich.

Rich creates clothes for world stars, including Meryl Streep, Beyoncé, Rihanna, and Olivia Wilde. Alessandra Rich is currently available in more than 40 stores and retailers all over the world (Italian-born, London-based designer n.d.). Rich has participated in every stage of the formation of her business, from sourcing textiles to establishing the channels of distribution. The designer has also been producing her shows and look books by herself since the day the label was born (Italian-born, London-based designer n.d.). The company is rather successful and profitable, and its owner and designer have many fresh ideas to satisfy the most demanding customers.

Brand Identity

The company specializes in womens clothes, making a particular emphasis on femininity and tenderness in its items. The brand is associated with light materials creating soft images and classic looks. The best-known feature of Alessandra Richs house is the tantalisingly feminine designs with the floor-sweeping dresses that are recognized as a much applauded signature (Italian-born, London-based designer n.d., para. 15). Starting with the first collection, the designer added vintage necklaces and hosiery to every look she created. Only in 2016, did Rich add mini dresses and playsuits to her spring-summer collection (Italian-born, London-based designer n.d.). However, long gowns made of delicate materials remain the designers identity card.

Apart from being known for its floor-sweeping lace gowns, Rich also creates classic comfortable dresses that have become favorite elements of royals wardrobes. Richs daylight glamour collections have earned praise from Kate Middleton, Pippa Middleton, Samantha Cameron, Abigail Spencer, and Emma Louise Connolly (Pithers 2018, para. 1). Hence, at present, Alessandra Rich brand identity is focused solely on femininity and glamour. However, it seems that with the designers exquisite ability to create exactly what people love to wear, she would be popular with males garments as well.

Competitor Analysis: Positioning Map, Points-of-Parity (POP), and Points-of-Difference (POD)

Competitor Analysis: Positioning Map, Points-of-Parity (POP), and Points-of-Difference (POD)

Competition in the fashion retail industry is rather high, but at the same time, every fashion house fills in its niche and has something exquisite to offer to its customers. Hence, Alessandra Rich has both POP and POD that can promote her brand among others. If to compare Rich to such fashion houses as Dior and Prada, POP include:

  • trendiness;
  • unique garments for women;
  • ready to wear clothes;
  • retail stores all over the world;
  • prices were higher than average.

Comparing the same companies, Richs POD are:

  • only womens clothes (Prada and Dior also have mens and childrens collections);
  • an exquisite selection of materials and garments;
  • a classic look is a priority in almost all collections.

Target Market

Currently, the target market of Alessandra Rich fashion house includes women aged between 25 and 70 who are rich and enjoy luxury and comfortable clothes. These females frequently are in cinema or art business. Also, many of the prospective clients belong to royal families or are friends with them. The company looks out for customers with fresh views but not without a love for classic trends. Richs target market also involves men who want to buy some elegant outfits for their ladies.

However, in view of modern tendencies in mens apparel, Rich should also include males in the target market sector. According to predictions, menswear will develop by 2.3% by 2020, compared to 2.2% in womenswear (The global growth of menswear 2019). Hence, the fashion house needs to create a menswear line and attract male customers interest to its products. It is possible to do so by creating combined collections and inviting celebrities, especially couples, to advertise them.

Sustainable Production

Sourcing: Sustainable Fabrics

Fashion designers are gaining more and more sustainability awareness, which is reflected in their choice of materials, as well as in production and distribution processes. Companies engage in social and environmental sustainability practices. Social approaches involve supporting local communities and complying with the codes of conduct. Meanwhile, environmental sustainability approaches include exploiting sustainable fabrics, reducing the use of plastic, and employing vegetable dyeing (Lion et al. 2016). To establish sustainable practices in its sourcing activities, Rich has to use sustainable fabrics. Currently, the company uses faux fur and some other eco-friendly materials, but there are many more options to reduce the environmental footprint that the fashion house could employ.

Linen is rarely used in Richs collections, but it might be considered as a substitute for some of the materials or as a new approach. Organic linen produced from flax may be bought from a Belgian company, Libeco, which is an established world leader in this sphere (Organic linen n.d.). Fabrics created by Libeco have the Oeko-Tex Standard 100 quality label, which testifies their eco-friendliness and social responsibility. Linen is not dyed and contains no toxic substances (Ecological aspects n.d.). Wool, which is necessary for autumn-winter collections, can also be obtained from eco-friendly companies. For instance, Rosy Green Wool company, which is represented in England, is one of the most reputable and eco-friendly producers of wool from Merino dArles in France. The organization has the Global Organic Textile Standard (GOTS) certification, which states that wool is 100% organic (Rosy Green Wool n.d.). These fabrics will increase Alessandra Richs sustainability and will engage more consumers in the company.

Other highly important materials used in the fashion industry are leather and suede. While they are renowned for their warming and protecting qualities, their production process is highly eco-unfriendly and involves the deaths of numerous animals. Thus, it is crucial for Rich to replace leather and suede with more sustainable counterparts. A new product aimed to replace the use of animals skins was presented by an Italian company, Vega, which suggested making leather from wine leftovers (Skrabania 2018). Vega prides on zero animal cruelty and a chemical-free production process. The product is not yet available on the market, but Rich could negotiate future collaboration with Vega.

Suede is another material frequently employed in fashion retail that requires eco-friendly analogs. One of the most productive creators of faux suede in the American company, Majilite (Quality n.d.). Another organization located in the USA that could be of great use for Rich house is Tandem repeat, a producer of programmable textiles that can replace elastane (Worlds first programmable textiles n.d.). Elastane is favored by fashion retailers due to its flexibility, but its production is rather toxic and not sustainable. Thus, even though the supply chain might suffer from such a far location of materials, Alessandra Rich may win significantly on sustainability and eco-friendliness.

Production: Sustainable and Eco-Friendly

To make the production process sustainable, it is crucial to analyze its consumption levels, as well as the amount of waste produced during the work on a new collection. As Pedersen, Gwozdz, and Hvass (2016) note, corporate sustainability is closely associated with business model innovation and corporate social accountability. Possible ways of increasing sustainability efforts involve the following:

  • reducing the use of textiles with toxic and harmful components;
  • finding suppliers within a short distance from the company;
  • recycling as much as possible to minimize waste;
  • using eco-friendly packaging.

Distribution: Eco and Sustainable Ways of Distributing the Collection

The ways of distributing fashionable clothes constitute a controversial topic in society. The fashion industry presupposes diverse supply chains that involve production, manufacturing of textiles, designing clothes, retail, and final disposal of clothes (Yang, Song & Tong 2017). Distribution as a component of the supply chain is undergoing major alterations. The reason for such changes is that modern societies have taken to the politics of consumerism, which implies buying clothes out of luxury rather than necessity (Yang, Song & Tong 2017). To reduce such an unhealthy method of distribution, Alessandra Rich has to implement positive shipping practices incorporating low emissions, a decreased level of environmental footprint, and sustainable ways of disposal employed to garments that have gone out of fashion. A viable solution might be donating clothes to charities, reusing, or recycling them.

The Critical Path

The critical path of the supply chain depends on many factors, each of them being co-dependent. For Alessandra Rich, the critical path may last between six and eleven and a half months. If any of the steps takes longer than the set maximum to implement, other phases will be frozen until the issue is resolved. Therefore, it is crucial to make sure that at every stage, all participants of the production and distribution process know their duties and fulfill them well.

The Supply Chain Strategy: Key Countries for Production.
The Supply Chain Strategy: Key Countries for Production.

When programming the supply chain strategy, it is crucial to focus on the most convenient locations for the delivery of materials from which will be neither too expensive nor environmentally harmful. It is also necessary to provide transparency and arrange productive networking (Turker & Altuntas 2014). Most of the fabrics needed by Alessandra Rich come from neighboring countries. However, faux suede and programmable textiles have to be shipped from the USA.

The Suply Chain Strategy

Conclusions

The project has helped to analyze the basic processes necessary to enhance the eco-friendly efforts of Alessandra Rich as well as predict the likelihood of developing a menswear collection. The paper has covered significant aspects of the fashion houses processes. The analysis of the target market has allowed identifying a niche that is composed of menswear. The designated critical path and supply chain strategy helps to predict complications in the production and distribution systems and find approaches to avoid them.

Recommendations

It has been found that the companys environmental efforts are effective but not sufficient. For instance, it is good that the brand uses faux leather, but it is bad that it uses materials containing harmful substances. Hence, it is necessary for the fashion house to replace some of its textiles with organic ones. Particularly, it is necessary to find textile producers that would be located closer to England, which will reduce waste and the use of energy.

Reference List

Alessandra Rich Limited n.d.

Ecological aspects n.d., Web.

The global growth of menswear and whats next for mens fashion 2019, Web.

Italian-born, London-based designer Alessandra Richs collections are inspired by muses in her imagination n.d.

Lion, A, Macchion, L, Danese, P & Vinelli, A 2016, Sustainability approaches within the fashion industry: the supplier perspective, Supply Chain Forum: An International Journal, vol. 17, no. 2, pp. 95-108.

Organic linen n.d., Web.

Pedersen, ERG, Gwozdz, W & Hvass, KK 2016, Exploring the relationship between business model innovation, corporate sustainability, and organisational values within the fashion industry, Journal of Business Ethics, vol. 149, no. 2, pp. 267-284.

Pithers, E 2018, How Alessandra Rich became the royals label of choice.

Quality n.d., Web.

Rosy Green Wool n.d.

Skrabania, L 2018, Vegea: eco-friendly vegan leather from wine industry leftovers, Reset, Web.

Turker, D & Altuntas, C 2014, Sustainable supply chain management in the fast fashion industry: an analysis of corporate reports, European Management Journal, vol. 32, no. 5, pp. 837-849.

Worlds first programmable textiles n.d., Web.

Yang, S, Song, Y & Tong, S 2017, Sustainable retailing in the fashion industry: a systematic literature review, Sustainability, vol. 9, no. 7, pp. 1266.

Thai-Lay Fashion Companys Operations Management

Executive Summary

Operations management is an essential function of any organization irrespective of size and motive. All organizations do some or all of the requirements of operations management, even if there is no separate staff or department for this purpose. This paper reviews operations management in business with reference to the Thai-Lay Fashion Company Ltd., which is situated in Hong Kong. The paper has been divided into three sections, namely, a review of operations management, strategic role/objectives of operations, and the operations strategy in the company. The company has done quite well in this regard but should take steps to improve or even have a specialized department for this purpose. This is mainly to make the company capable of handling challenges during future expansion plans.

Introduction

The term operations management (OM) refers to the process of managing the different activities in an organization. Operations management can be defined as The maintenance, control, and improvement of organizational activities that are required to produce goods or services for consumers. (Business Definition for Operations Management. 2008). This implies that operations management is an extremely broad subject and should be taken seriously by all organizations irrespective of size or intent.

All organizations, in fact, have OM built into their systems, even though smaller companies may not have a specialized department or personnel for the purpose. So, smaller organizations like the Thai-Lay Fashion Company will have OM activities even though they do not have a special department or manager for this purpose. This paper will review operations management with respect to the above-mentioned company.

Thai-Lay Fashion is a company based in Hong Kong and is a manufacturer and exporter of garments. The company employees nearly 250 persons and has an annual turnover of nearly HKD 10 million. A variety of garments for adults and children of all sexes are manufactured by the company. The main export market of the company is stored in Europe. The paper will be arranged as per the following topics, namely,

  1. Overview of operations management,
  2. the strategic role and objectives of operations,
  3. Operations strategy, all three with reference to the Thai-Lay Fashion Company Ltd.

Overview of Operations Management

Two other factors that are closely related to operations management are the operations functions and the operations managers.

Operations Functions

The main activity of a business organization is the transformation of raw materials into finished products or services. Operations functions are the way in which the transformation takes place by facilitating the conversion of raw materials into finished products. The operations function is the one function directly involved in that transformation, and is responsible for the activities that justify the existence of the firm, both economically and as a value-creating organization in society. (Operations and Management Science: Department of Operations and Management Sciences. 2008).

It can be seen that this is a very important function for any organization of any size. This function is part of two other important functions in a company, namely, marketing and product or service development. In many cases, there would not be a clear-cut demarcation, and employees may see themselves performing some or all of these functions. This is especially true for a medium-sized company like Thai-Lay Fashion. For example, the design department may sometimes engage themselves in manufacturing also. In short, operations management will have to move in a fine balance with other activities of the company.

It would be worthwhile to mention the different operation functions at Thai-Lay Fashion. They include designing garments, manufacturing, marketing, purchase of materials like yarn and dyes, maintenance of machinery, advertising and design of promotional materials, etc.

Operations managers

Since there is no separate department for operations management in this company, the respective managers of different departments act out the role of operations managers.

Inputs and outputs

All organizations will have inputs that have to be processed or transformed into outputs. Inputs can be mainly classified into three namely materials, information, and customers. In Thai-Lay Fashion, materials include yarn, dyes, thread, etc. Information input here refers to the marketing forecasts by the finance department and design suggestions provided by the customers and the design department of the company, and also customer feedback of the product. There is no customer input here since such a situation will exist only where people are a part of the process, like a hairdresser or a hospital.

So, the inputs using all of the above are ultimately transformed into the finished product or output. The output here is the garments manufactured by the company. The requirements for the transformation from input to output are facilities and personnel. Facilities of the company include the factory and warehouse, the machinery, the storage areas, etc., and personnel include trained workmen, designers, and managers. Output can also be intangible, like consultancy service. Some companies produce both tangible and intangible products. Thai-Lay Fashion has only tangible products. If it starts a consultancy division, the products will include intangible outputs.

Managing processes

There are many processes that help in the transformation of yarn into fabrics. Processes can be defined as the manner in which decisions are made, and work is performed within any organization. (Glossary: Processes. 2008). The company is a combination of processes from the design, purchase, and manufacturing departments. Unless all these processes work together, proper production of garments will not take place.

Analyzing business

No organization will exist in a world by itself. It is an integral part of a larger picture which includes suppliers, customers, other service providers, etc. Operations management should take into account all these factors when performing the management functions. For example, the company has a supply chain that starts from the raw material down to the end customers who buy the garments from stores in Europe. It should also be considered that there are internal suppliers and customers for an organization. Here, the manufacturing department will be an internal supplier to the marketing and sales department, who is the internal customer. The internal customers in Thai-Lay are also treated with the same consideration as that of its external customers, namely the stores in Europe.

Hierarchy of operations

The whole process of manufacturing garments is the result of many processes from different departments in the company.

Even inside each department, there will be different processes that will be required to complete a function. For example, manufacturing requires weaving, stitching, sewing, painting, etc., for a garment to be complete. The whole process that involves all these departments and their respective activities must be coordinated for smooth functioning. The concept of internal customers and suppliers also forms a part of this whole process. This structured process of the whole by combining all the parts can be referred to as a hierarchy of operations. (Slack, 1997, p. 67).

Characteristics of operations processes

Even though many different processes share similar characteristics, there are four factors with regard to output that set them apart, namely volume, vaVarietyvariation, and visibility. (Operations and Process Management: About Operations and Process Management. 2008).

Volume

Some processes are able to achieve high volumes, whereas other can only produce low volumes. High volumes tend to have lower unit costs than low volume processes. Another characteristic of high volume is that its processes are repeatable, while it may not be possible for low volume processes. Examples of high-volume processes are assembly-line production of certain products. The Ford Model T was probably the first example of high volume production using the principle of repeatability. Thai-Lay Fashion has most products that are of low volume. The process of weaving is a high volume area, whereas the actual manufacture of the garment is a medium or low volume area. This is because garments do not look alike, and hence they cannot be made repeatable.

VaVariety

Some processes are designed to produce a variety of goods, whereas others stick to a small variety. The service provided by a courier company limits itself to the transfer of goods and documents among people and does not have much vaVarietyOn the other hand, a firm of lawyers can provide a variety of services like handling cases civil and criminal cases, preparation of reports, providing legal advice, etc. Thai-Lay Fashion has a lot of vaVarietyince it is in the garment business where customers have different tastes according to age, gender, culture, etc.

Variation

Variation refers to the predictability of the output process. A hotel for holidaymakers will have a high variation in bookings depending on the season. A business-class hotel may get regular bookings throughout the year. Thai-Lay Fashion has reasonable predictability with increased variations during the Christmas season.

Visibility

Visibility is the rate of contact the product has with the customers. A garment will have high visibility once it leaves the premises of the factory and is placed on the shelves of retailers.

The four characteristics and their relationships can be clearly understood from the following chart.

Typology of operations

Activities in operations management

For an operative management strategy to be effective, the concerned personnel and managers should involve themselves in certain activities. This is true even if the firm is a medium one like Thai-Lay Fashion. A research article Operations management activities of small, high growth electronics firms has listed certain activities that persons in charge of operations management should strictly involve themselves in. The eleven typical activities are

  1. aggregate planning,
  2. forecasting,
  3. facilities layout,
  4. facilities location,
  5. job design,
  6. inventory control,
  7. product or service design,
  8. quality and control,
  9. maintenance,
  10. production control,
  11. inventory control. (White, 1990, p. 5).

Thai-Lay Fashion is actively engaged in all the above except for facilities location and facilities layout.

Importance of Operations Management in Thai-Lay Fashion Company Ltd.

Operations Management activities in Thai-Lay Fashion have brought forth significant benefits to the company. The company has been able to keep its prices very competitive, customer feedback about products have been increasingly positive and has been able to make optimum use of investment funds. The company is serious about operations management and may even have a separate department once the growth of the company has reached a certain stage.

The strategic role and objectives of operations

For an organization to get the full benefits of its operations management activities, the operations management team has to have a clear picture of its role in the organization. Secondly, operations management should be clearly given specific performance objectives. It is also imperative to know and measure the success arising out of the implementation of the activities of operations management. In other words the operations manager should understand his role in the organization, what exactly he has to do in achieving goals of the organization and his success measured to understand the effectiveness of operations management strategies.

In turn the role of operations management with regard to organizational (business) strategies is three fold. The first is to implement business strategy, second is to support the business strategy and third is to drive the business strategy.

Implementing business strategy

All healthy organizations have effective strategies for survival and growth and it is the duty of all the departments to see that this strategy is implemented. The operations manager (or his equivalent post) should also share this responsibility. For example, Thai-Lay Fashion has immediate plans to buy new machinery and long term plans for strong growth into the Asian market. The maintenance department has to see that the new machine is properly installed and well maintained throughout its working life. The marketing department should do its part in gaining a foothold into the Asian markets.

Supporting business strategy

The operations management team should have the capability to see that the business strategies of the company are implemented according to plan. For example, the design department in Thai-Lay Fashion should have the capability to bring out designs that are suited to the Asian markets.

Drive the strategy

This refers to the long-term implementation of strategies by plans that would automatically sustain them over the years. A system whereby supplier relations are kept at a very high level would be an example of driving the supplier strategy. For this purpose, steps for building supplier relationships should be in-built as a part of the daily function of the purchase department. The operations management function in Thai-Lay Fashion should put more efforts into driving strategies of the company.

Hayes and Wheelwrights four stages

This model is used to evaluate the competitiveness of functions including that the operations management function.

Capability and Maturity  Hayes and Wheelwrights Four Stages
(Capability and Maturity  Hayes and Wheelwrights Four Stages).

The model developed by Professors Robert H. Hayes and Steven C. Wheelwright of Harvard University gives four stages of competitiveness. Stage one is where the operations management functions is looking internally without any awareness or care of what is happening in the outside world. Functions became fixed and routine. The operations management team will believe that there is nothing new to be done and also that what they are doing is quite satisfactory.

Stage one is referred to being internally neutral. Stage two is slightly better. They look at competitive practices and see that their own standards are matching their competitors. This stage is referred to as externally neutral. Stage three is even better with the operations management practices striving not just to be as good as those of its competitors, but to be the best in the whole industry. Practices work in close alignment with the overall strategies of the organization. This is called internally supportive. Stage four has only a subtle difference from the previous stage where an attempt is made to be world class.

A long term strategy with emphasis on forecasting is also practiced in this stage. Moreover, practices are adaptive to the requirements of the future if the need arises. Stage four is called externally supportive. (Capability and Maturity  Hayes and Wheelwrights Four Stages). Thai-Lay Fashion can be said to be in the final stages of stage three and moving towards practices that would enable it to be classified as a stage three in operations management practices.

Performance objectives

The company also tries to take all the needs of its stakeholders when formulating operations management practices. The objective here is five fold namely having quality, speed, dependability, flexibility and cost. Thai-Lay Fashion appears to have quality, dependability and flexibility. The company has a strong and effective quality control department. Orders are always dispatched within the time frame. A lot of flexibility within production and design is also possible where changes can be made in design halfway through the production process. With regards to cost it could do better to bring it down a little further to be more competitive especially since it is planning to enter the Asian markets. Average speed for orders is 90 days and efforts should be made to speed this up to at least 60 days.

Operations Strategy

Once what is mentioned in 1 and 2 has been put into practice, the nest step is to formulate an operations strategy. Major decisions about, and strategic management of: core competencies, capabilities and processes, technologies, resources and key tactical activities necessary in any supply network, in order to create and deliver product and service combinations and the value demanded by a customer. (Lowson, 2002, p. 57).

A strategy in this context can have the following characteristics namely a top-down approach and a bottom-up approach. It should also take into account the market requirements and the capability of company resources. A top-down approach refers to the alignment of strategies along with overall strategies of the company. A bottom-up approach is the opposite where overall strategies are aligned with operational capability and resources.

Purpose

The purpose of implementing an operations strategy has been explained by Ken Platt of Cambridge University as the five Ps namely, purpose, point of entry, process, project management and participation. Purpose refers to the goals for which operational strategies are implemented. Point of entry refers to the support from within the organization for the implementation of the strategies. The processes which are used for the implementation of strategies should be very clear. A project management strategy should exist within the organization and finally participation of all personnel concerned should be ensured for successful implementation.

Trade-offs

Any organization will have to have a balance between trade offs. For example, in order to increase production of garments, the quality might suffer and this should not happen. The managers at Thai-Lay Fashion are careful that trade-offs are avoided or at least kept to a minimum.

Conclusion

The operations management function in any organization is an important and complicated job. Thai-Lay Fashion Company Ltd does not have a dedicated operations management department or manager, but many of the activities required for this purpose are carried out in the organization in an efficient manner. The company also has a clear-cut operations management strategy though there are areas where the company could improve.

For example, its speed of operations and cost competitiveness could improve especially since the company has plans to expand into new markets. This improvement is essential because a new market will open up a whole set of new challenges to the company. The company could also look into the possibility of having a specialized department for this purpose. But it could be concluded that on the whole, with a little more or time and effort, the company is capable of handling the challenges in the implementation of a successful operations management strategy.

Bibliography

Business Definition for: Operations Management. (2008). BNET Business Dictionary, BNET The go to Place for Management. Web.

Operations and Management Science: Department of Operations and Management Sciences. (2008). Michigan Ross School of Business. Web.

Glossary: Processes. (2008). [online]. Online Learning Centre, Global Business Today. Web.

SLACk, Nigel. (1997). The Blackwell Encyclopedic Dictionary of Operations Management. Blackwell. P. 67. Web.

Operations and Process Management: About Operations and Process Management. (2008). Businessanalyser. Web.

LIANGSIRI, Jirapha. Typology of operations. [online]. Center for Industrial Production. p. 10. Web.

WHITE, Richard E. (1990). Operations Management Activities of Small, High Growth Electronics Firms: Management Activities. Journal of Small Business Management. All Business  Simple Solutions, Powerful Advice. P. 5. Web.

Capability and Maturity  Hayes and Wheelwrights Four Stages. University of Cambridge. Web.

Lowson, Robert H. (2002). Strategic Operations Management: The New Competitive Advantage: Operations Strategy Definition 2  The Wider Value Delivery Strategy. Routledge, P. 57.

Overseas Sweatshops in the Fashion Industry

Overseas sweatshops are a common practice for many companies and industries all over the globe. The production of clothes is one of the most significant sectors that employ foreign sweatshop labor (Stafford). This paper covers a brief history of the issue and reasons why fashion giants decided to move their production abroad. Moreover, it dwells on problems associated with working conditions, like child labor and gender-based violence. The research relies on scholarly articles, reports of international organizations, and analytical overviews of the industry. Arguments presented below support the notion that unsafe working conditions and violation of employees rights undermine the ethical permissibility of overseas sweatshops.

Though there is no unified definition for a sweatshop, it generally refers to a place where unskilled workers work long shifts for low wages. This term was first used in the mid and late 19th century when middlemen or sweaters set up contracts with tailor shops (Aßländer 2). In the U.S., the demand for ready-made clothes spurred the spread of sweatshops. To reduce costs, shop owners hired women for simple sewing and paid them 25 to 50 percent less than male tailors (What is a Sweatshop). Additionally, the flow of immigrants from Europe allowed sustaining this employment model. It remained unchanged even with the emergence of trade unions and stricter labor laws.

Since the fashion industry continued to grow and expand, the regulation of working conditions and labor markets in the U.S. and Europe enhanced too. Therefore, garment producers moved the production process abroad to secure access to the cheap workforce and raw materials. Some countries, such as the United Kingdom, turned to their former colonies, including India and Bangladesh, to outsource cotton and other fabrics (Holland and Brewster 117). Nowadays, Bangladesh is the second-largest clothing producer after China, where 85% of the countrys export accounts for the textile industry (Holland and Brewster 117). The unprecedented flourishing of free trade and globalization led to the creation of the fast fashion business model. As a result, the reliance of these businesses on overseas sweatshops exposed problems of unacceptable working conditions and child labor.

Fast fashion brands set trends and put an exceptional value on garments to stimulate constant purchasing. It is a so-called perceived obsolescence when consumers are forced to buy new items just because they are fashionable (Hackett). Fashion giants work with manufacturing companies that have unauthorized subcontractors (Stafford). Hence, decent working conditions are not ensured as sweatshops do not adhere to legal standards. In 2013, the Rana Plaza garment factory building in Bangladesh collapsed, killing 1 134 people and injuring more than 2 500 (Safi and Rushe). Public pressure followed, and several brands gave money to their supplier to improve safety at factories. However, there is no consistent cooperation between the government, trade unions, and fashion giants to implement changes.

Furthermore, there are still groups that suffer from gender-based violence and intense exploitation in the workplace. For example, women comprise 70% of the workforce in China, 85 % in Bangladesh, and 90% in Cambodia (International Labour Organization Training Centre and Fair Wear Foundation 31). They are regarded as those less likely to resist violence and assault from the management. Women are often discriminated against and are deprived of the right to maternity leave. They are afraid to report acts of violence or rights violations because they will lose their source of income. Abuse toward women is also linked to the need for meeting growing production targets. Cultural norms and established gender roles in patriarchal societies exacerbate the problem.

Children are another vulnerable group that is exploited by subcontractors in sweatshops. Even though child labor is forbidden in many countries, these practices persist in the developing world. For instance, families in rural India and Bangladesh send young girls to factories or mills with the promise of high earnings (Moulds). In reality, they are working long shifts under hideous conditions in a modern slavery system. Moreover, children are selected for cotton picking as their small hands allow them to work faster (Moulds). The main challenge in coping with child labor is the complexity of supply chains. Even when brands have strict regulations or standards, they do not control subcontractors that recruit children. Slowly, the situation is changing because fashion companies conduct special audits to track how their manufactures source and treat workers.

Nevertheless, it is claimed that overseas sweatshops are ethically acceptable because they ignite industrial and economic development in host countries. Outcomes of economic development are supposed to improve the quality of life. For instance, South Korea in the 1970s supported labor-intensive clothing manufacturing for economic expansion and diversification (Brooks 125). However, there should be strong state regulations of the industry as well as transparent welfare policies. National authorities are not able to control the industry in the global free market where there are low entry barriers for foreign entities. Consequently, local manufacturers cannot compete with powerful brands and prefer to function as subcontractors. They are not interested in creating a better working environment or providing workers with study opportunities.

Demand from consumers may bring about changes in the overseas sweatshop system. People in different corners of the world start to reject fast fashion and the philosophy behind this concept. Some garment firms initiate campaigns to raise awareness about unsustainable consumption. For instance, the outwear brand Patagonia created an advertisement that asked customers not to buy another jacket (Rome 16). To sum up, the environmental impact of the industry and ethical aspects of the production process is questioned by consumers and companies.

Throughout history, unskilled workers have been at the heart of sweatshops. The industrial revolution increased the scale of garment manufacturing without improving the working environment. Rapid economic development and surging demand in the US and Europe pushed sweatshops to the developing countries in Asia, Africa, and Latin America. Complicated supply chains and the lack of state control prompted subcontractors to exploit the labor force. Workers, especially women and children, do not receive essential protection, health insurance, and decent wages. These factors prove the unacceptability of all forms of overseas sweatshops due to their inhumane nature.

Works Cited

Aßländer, Michael. Sweated Labor as a Social Phenomenon Lessons from the 19th Century Sweatshop Discussion. Journal of Business Ethics, 2019. Web.

Brooks, Andrew. Clothing Poverty. Zed Books, 2015.

Hackett, Lisa. Addressing Rage: The Fast Fashion Revolt. A Journal of Media and Culture, vol. 22, no. 1, 2019.

Holland, Peter, and Chris Brewster, editors. Contemporary Work and the Future of Employment in Developed Counties. Taylor & Francis, 2020.

International Labour Organization Training Centre and Fair Wear Foundation. Gender-based Violence in Global Supply Chains: Resource Kit. 

Moulds, Josephine. Child Labor in the Fashion Supply Chain The Guardian.

Rome, Adam. Fashion Forward? Reflections on the Environmental History of Style. Environmental History, vol. 23, no. 3, 2018, pp. 122.

Safi, Michael, and Dominic Rushe. Rana Plaza, Five Years on: Safety of Workers Hangs in Balance in Bangladesh. The Guardian, 2018.

Stafford, Victoria. Factory Exploitation and the Fast Fashion Machine Green Business Network, 2018.

What is a Sweatshop. Smithsonian. 

Small and Medium-Sized Fashion Retail Enterprises

Abstract

The current dissertation proposal offers to investigate several success factors for small and medium-sized enterprises in fashion retail business in the UK. These factors include the skills and qualifications of business managers and owners, the funding, the customer service strategies, and the ways to obtain funding for new businesses. A qualitative study with semi-structured interviews that are to be conducted with business managers and/or owners is proposed.

In the modern world of business, companies are forced to engage in stiff competition in order to survive in the market. Therefore, it is important to investigate the success factors of businesses so as to permit new enterprises to successfully grow and develop. Also, small and medium-sized enterprises (SMEs) are crucial in UKs economy (Ghobadian & Gallear, 1997), which means that understanding their situation is essential. Thus, the aim of the current dissertation proposal is to investigate in more detail a number of success factors SMEs in fashion retail which are important according to the literature.

The objectives of the proposed study include:

  • Determining whether management skills and/or qualifications of owners or managers of SMEs in fashion retail are important factors for business success;
  • Identifying whether the dearth of finances affects the growth of SMEs in fashion retail;
  • Finding out which strategies are used by SMEs in fashion retail to deliver best customer service;
  • Identifying the ways to obtain funding for new companies in the UK, and assessing the quality of these ways.

Literature Review

The impact of management skills and qualification on the business success. According to different studies, the competency of a SMEs owner or manager plays an important role in the success of a business. According to Islam, Khan, Obaidullah, and Alam (2011), characteristics such as education, managerial know-how, social skills and industry experience affect an SMEs success. Laguna, Wiechetek, and Talik (2012) discovered that specific managerial competencies work as a mediator between their general competencies and SME success. Raisiene (2014) also highlights the importance of specific managerial competencies. However, to better understand the mechanisms in which these competencies affect the success of SMEs, a qualitative research is needed.

The lack of finances and its effect on the growth of SMEs in fashion retail business. On the whole, the literature highlights the importance of finance for business growth, and states that its lack plays the role of a barrier to such growth (Brown & Lee, 2014). Also, Olawale and Garwe (2010) showed the dearth of funds to be the most important obstacle that hinders the success of organisations in South Africa. However, it is possible to further investigate whether the lack of finance also plays a critical role for SME in fashion retail in the UK.

The strategies for delivering best customer service. The significance of the quality of customer service should not be underestimated, for the latter allows for attracting new clients (at least via word-of-mouth) and preserving the loyalty of the current ones (Brady & Cronin, 2001), and for improving the sales (Appiah-Adu & Singh, 1998). It is possible to employ various strategies to deliver high-quality customer service (Verhoef et al., 2009); however, it is clear that some of these strategies will be better than others. Therefore, it is needed to investigate which strategies UK SMEs in fashion retail utilise to enhance customer experience so as to be able to propose improvements for these enterprises.

The ways to obtain funding for British SMEs in fashion retail. As has been previously noted, funding plays an important role in the development of an organisation (Brown & Lee, 2014; Olawale & Garwe, 2010). There exist several ways to gain finance for an enterprise in the UK, including bank loans and grants from private organisations (Small Business Grants, n.d.), as well as loans from governmental structures (About Start Up Loans, 2017). However, little information is available about where fashion retail SMEs in the UK actually obtain funding. Therefore, it would be beneficial to further investigate their sources of funding, as well as collect the opinions of businesses about the quality of the sources of finance that they used.

Methods

The philosophical point of view of the social constructionism will be adopted for this study. According to this standpoint, the social reality is not simply given, but constructed by individuals and transferred by them (Lindgren & Packendorff, 2009). In practice, for this research it will mean that the experiences of people involved in fashion retail SMEs were created by these people and those they communicated with, and could be enhanced by improving the manners in which they act, which means that it is important to know the currently used methods and manners of action to be able to improve them.

The research design of the proposed study will be qualitative. Semi-structured interviews will be conducted with participants; the latter will be asked to reflect on their past and current experiences pertaining to running their businesses. Therefore, it is probable that the study will be utilising a phenomenological approach. The data will be collected from selected owners and/or managers of fashion retail SMEs, and analysed by the researcher. Common themes will be found in the transcribed interviews, and further explored by the author of the dissertation.

Prior to interviewing the participants, the latter will be asked to read and sign a form so as to obtain their informed consent for participating in the study. In order to comply with ethical requirements, the anonymity of the respondents will be preserved; the researcher will not publish their names, the names of organisations where they work or which they own, or any personal information. Also, information which may be considered a business secret will not be revealed.

The limitations of the current study are related to the chosen type of design. While qualitative design allows for exploring the manner in which certain factors influence the success of a business, the findings will reflect the opinions of business owners or managers rather than precisely measured relationships between the considered factors and business success. Also, it is possible that the sample size will be rather limited due to the time constraints and the peculiarities of the chosen design.

Research Plan and Timescale

The researcher will start the study by conducting a thorough literature review to better find out what is known on the declared topics, which will allow for creating better questions for the semi-structured interviews. It might be expected that reviewing the literature and preparing the surveys may take up to 3 weeks.

Next, participants will be selected and interviewed; finding and interviewing them might be a difficult and time-consuming task, taking at least three months of time.

After that, the data will be transcribed and analysed. Analysis of qualitative data may take much time as well; an estimated two months may be needed.

Finally, the dissertation will be composed and written, which may take another two months to complete.

Thus, on the whole, the work on the dissertation may take up to 8 months.

References

About start up loans. (2017). 

Appiah-Adu, K., & Singh, S. (1998). Market orientation and performance: An empirical study of British SMEs. Journal of Entrepreneurship, 7(1), 27-47.

Brady, M. K., & Cronin Jr, J. J. (2001). Customer orientation: Effects on customer service perceptions and outcome behaviors. Journal of Service Research, 3(3), 241-251. Web.

Brown, R., & Lee, N. (2014). Funding issues confronting high growth SMEs in the UK. 

Ghobadian, A., & Gallear, D. (1997). TQM and organization size. International Journal of Operations & Production Management, 17(2), 121-163. Web.

Islam, M. A., Khan, M. A., Obaidullah, A. Z. M., & Alam, M. S. (2011). Effect of entrepreneur and firm characteristics on the business success of small and medium enterprises (SMEs) in Bangladesh. International Journal of Business and Management, 6(3), 289-299. Web.

Laguna, M., Wiechetek, M., & Talik, W. (2012). The competencies of managers and their business success. Central European Business Review, 1(3), 7-13.

Lindgren, M., & Packendorff, J. (2009). Social constructionism and entrepreneurship: Basic assumptions and consequences for theory and research. International Journal of Entrepreneurial Behavior & Research, 15(1), 25-47.

Olawale, F., & Garwe, D. (2010). Obstacles to the growth of new SMEs in South Africa: A principal component analysis approach. African Journal of Business Management, 4(5), 729-738. Web.

Raisiene, A. G. (2014). Leadership and managerial competences in a contemporary organization from the standpoint of business executives. Economics and Sociology, 7(3), 179-193. 

Small business grants. (n.d.). 

Verhoef, P. C., Lemon, K. N., Parasuraman, A., Roggeveen, A., Tsiros, M., & Schlesinger, L. A. (2009). Customer experience creation: Determinants, dynamics and management strategies. Journal of Retailing, 85(1), 31-41.

Zara in the United Kingdoms Retail Fashion Market

Introduction

Zara is a multinational company specializing in the production and distribution of clothes and other fast fashion goods. The company was established in 1975 in Spain with its primary objective being to retail clothes (Chatvijit 2012). In its initial stages, the company operated exclusively in Spain where it is headquartered. It had no subsidiaries in other parts of the globe. However, in the recent past, the company has penetrated many countries across the world in an attempt to maximize its profitability. Additionally, it has expanded its line of products to fit the needs of all people in society. Today, the company has a wide range of products that target women, men, children, and teenagers. A great percentage of the companys income comes from its subsidiaries, which are located in different parts of the globe. Its UK subsidiary is central to the income of the firm as illustrated by the annual dividends it pays to the parent business. For example, in 2016, the subsidiary paid £47m to the parent branch up from £43m in 2015 (Christopher 2016). The high dividends were attributed to the rapid growth in turnover for the UK branch, which grew by 8% to £535.2m in 2016 (Christopher 2016). Given the importance of the UK subsidiary to the companys profitability, this paper explores the factors behind the success of the subsidiary.

Five-Force Analysis of the Retail Fashion Market in the UK

Introduction

Porters five forces is a tool used to analyze the factors present in an industry, which are likely to affect a companys competitive advantage. The tool bases its analysis on the following key industry forces: rivalry, buyers bargaining power, the threat of substitutes, suppliers bargaining power, and the threat of new entry. By assessing the listed factors, a company can make informed decisions regarding market penetration. This section explores the UKs retail fashion industry to gain insight into the forces that have placed Zara ahead of the rivals.

Porters Five-Force Analysis

Zaras Porters Five Forces
Figure 1: Zaras Porters Five Forces

The rivalry is stiff in the fashion industry, with several large companies specializing in the production and sale of clothes. Zaras major rivals in the UK market include Gap and Hennes & Mauritz among others. The listed companies are big enough to enjoy the economies of scale, hence giving them the power to influence the prices of raw materials (Christopher 2016). Price is one of the key sources of sustainable competitive advantage for a company. Businesses need to embrace the cost leadership strategy to successfully compete in the market (Chatvijit 2012). Therefore, the existence of large businesses in the industry poses a great threat to the future of Zara. It is expected to experience heightened competition. The rivalry is stiffened by the fact that the companys opponents are multinational giants, implying that they have the capability of obtaining cheap labor from the less developed nations. This situation makes labor costs low, hence leading to low prices for their goods and services.

A high bargaining power implies that customers can influence the major decisions of a firm, including the pricing strategy (Joung 2014). On the other hand, low buyers bargaining power implies that consumers have little or no power to influence the companys decisions. For Zara, customers bargaining power is moderate, implying that it is neither high nor low. One of the reasons for the described phenomenon is that the company produces high-quality goods, which are highly attractive to customers. The companys products have won the hearts of the target customers all over the UK as illustrated by the tremendous growth in the subsidiarys profits.

However, although buyers bargaining power is considerably low due to the strong brand equity, customers have some control over the decisions of the business. As indicated previously in this paper, the rivalry is stiff in the fashion industry, implying that customers have a wider choice. Customers dissatisfaction with Zaras products may lead to the procurement of the rival merchandise. Therefore, the firm must produce high-quality goods and sell them at reasonable prices to win the loyalty of its customers.

The threat of substitutes is relatively high, owing to the existence of similar products from other companies. Given that Zaras pricing strategy is based on quality, the prices are sometimes relatively high relative to those of the rival products, a situation, which may scare away low-income earners. Consequently, such customers may tend to purchase products from a rival business that produce similar items but sell at a lower cost. The low switching cost is another factor that explains why the threat of substitutes is high. The switching cost refers to the extra expenses incurred by a customer because of dropping a product or service for an alternative (Christopher 2016). Although Zara produces relatively higher quality products relative to its competitors, the quality difference is not huge enough to stop a customer from purchasing a rivals product. However, the company counters the threat by producing high-quality products to make the switching cost high. Besides investing heavily in research and development, the company is highly innovative to the extent that it constantly introduces improved models.

Suppliers bargaining power is low, meaning that Zara can force the prices of the raw materials downwards. Zara is a global firm with subsidiaries in many countries across the world (Christopher 2016). The companys big size implies that it can purchase raw materials in large volumes to acquire discounts from suppliers. Additionally, the voluminous purchases give it the ability to influence the suppliers operation strategies, thus leading to favorable terms.

The other reason for the low suppliers bargaining power is the reduced switching cost. Competition is high among the suppliers, a situation that compels them to offer attractive terms to buyers to win their loyalty (Choi 2013). Consequently, the company may abandon a supplier for the rivals on the grounds of unattractive terms. Competitor suppliers will have to accept the terms dictated by the company. They may even offer lower prices to attract the defecting corporations.

Currently, the fashion industry in the UK is saturated, with each of the existing firms controlling a considerable market share. The firms that dominate the industry are global. They enjoy the economies of scale, hence giving them the power to sell their products at low costs. New entrants may not bargain discounts from suppliers. Hence, their (new entrants) operations costs, and the retail price of their products may be high. Therefore, such new entrants may find it difficult to acquire a profitable market share, meaning that they may be suppressed before being well established. The threat of new entrants is minimal. Zara may not mind about increased competition emanating from new enterprises. Instead, it should concentrate on differentiation to counter the competition that it currently faces from the existing businesses.

Another reason for the low threat of entrants is that the start-up capital for the fashion industry is overly high to the extent that new enterprises cannot easily raise it further. A new entrant must be able to raise enough money to finance its capital assets, as well as the initial operations before it realizes its first profits. Due to the high competition in the industry, there is no guarantee that the investment will realize good returns. This situation makes investors shy from investing in the industry for fear of losing their finances. It is important to note that new companies usually raise funds from investors in the form of loans. Debt capital may raise the cost of operations due to the high payable interests. The existing companies already make good annual profits, which may finance the companys operations with no payable interests, hence translating into low operations costs and reduced commodity prices.

Reflection

Based on Porters five-force analysis, it can be concluded that the company has a bright future in the UK. The view is informed by the fact that although rivalry is stiff in the fashion industry, the company can influence the prices of raw materials to make its goods cheaper in the market. The low pricing strategy coupled with quality products reduces the overall competition while lowering buyers bargaining power.

Assets and Competencies

Introduction

To understand a companys strengths and ability to remain competitive against the backdrop of stiff rivalry in almost every industry, it is important to assess its assets. A firm with strong tangible and intangible assets will have the capability to use them to counter rivalry. This section analyses Zaras assets using the Resource Audit Model and VRIO tools to determine if it is capable of remaining competitive in the UKs fashion industry.

Resource Audit Model

In terms of tangible assets, Zara finances its property and operations mainly using the retained earnings coupled with equity capital. The high profits realized by the firm annually contribute to the increment of the retained earnings, hence leading to the reduced need for debt capital. This situation makes the companys cost of capital low. It also increases its debt capacity. The companys financial capability is a strong source of competitive advantage since it allows it to invest in R & D to improve quality and to mitigate market risks (Cortez et al. 2014). Also, its financial power facilitates the opening of new stores to advance its growth strategy and to open one-stop shops.

In terms of intangible resources, one of the major sources of competitive advantage for Zara is its strong workforce. The company has a highly skilled and diverse workforce that is experienced to handle various tasks. Based on the companys website, the company not only recruits the best talents but also offers continuous skill-based training for all employees. Additionally, it strives to retain its talented workforce through competitive remuneration and development programs, hence making the personnel valuable, rare, inimitable, and non-substitutable. These four elements are vital when it comes to sustainable competitive advantage.

The companys products are widely accepted by customers around the globe. They recognize the business for being the global leader in the provision of quality products at fair prices. The companys reputation has been boosted by the environmental initiatives that it has launched in the UK and other countries all over the globe. In the recent past, customers are becoming more aware of the need to conserve the environment (Joung 2014). Hence, they are engaging firms that are corporate socially responsible, as opposed to those that do not care about the environment. Therefore, the decision to sponsor environmental conservation activities is a great boost to customers confidence in the company in the backdrop of the intensified campaigns against unethical firms.

VRIO Analysis

As indicated in the table below, Zara combines three major competencies, namely, quality, fashion, and a competitive pricing strategy, to achieve a sustainable competitive advantage over its competitors. Regarding product quality, the company, through its product differentiation strategy, ensures that only high-quality products penetrate the market. This goal is achieved through exclusively engaging only the quality-conscious suppliers. On the other hand, fashion is achieved by supplying fashionable garments based on gender and socio-cultural factors for the target customers. Using the cost leadership strategy, the company brings down the operations costs, thus facilitating the application of the low pricing strategy (Battaglia et al. 2014).

Quality Fashion Price
Valuable Yes Yes Yes
Rare No No No
Costly to Imitate Yes Yes Yes
Non-substitutable Yes Yes Yes
Performance inference Average/Above
Average Returns
Average/Above
Average Returns
Average/Above
Average Returns

As illustrated by the table above, Zaras products are imitable. However, the costs of such an undertaking are overly high. Therefore, the products may be imitated to make substitutes available to customers. Besides, the products are not rare since it is quite possible to have quality and fashionable clothing within the fashion industry. However, by integrating the core competencies of quality, fashion design, and the competitive pricing strategy, Zara can outsmart its rivals in the industry.

Reflection

Based on the Resource Audit Model and the VRIO analysis tools, the author concludes that the companys competitive advantage in the UK is directly attributable to its tangible and intangible assets. The companys major tangible asset is its financial muscle, which prevents it from using debt capital to finance its assets. This situation leads to a lower cost of capital. On the other hand, intangible assets include a skilled workforce and a strong brand image, both of which are grounded on the provision of high-quality goods to customers.

Zaras SWOT Analysis

Introduction

The SWOT model refers to a tool that is used to assess the strengths and weaknesses of a firm about its brand. The model is an acronym of strengths, weaknesses, opportunities, and threats. It helps marketers to determine the ability of a company to execute the opportunities available in the market to outsmart its rivals (Christopher 2016). This section explores the strengths and weaknesses that Zara (UK) has, including its ability to exploit the available opportunities.

SWOT Analysis for Zara

Strengths

  • Strong brand equity
  • Great customer experience
  • Strong financial position
Weaknesses

  • Low-quality perception
  • Delays in the execution of customer orders
Opportunities

  • Internet marketing
  • Globalization
  • Mergers and acquisitions
Threats

  • Competition
  • Changes in legislations

The companys major strength is its strong brand image. Its products are widely accepted all over the globe as evidenced by the high number of customers it controls. The company has customers across the UK, including women, men, teenagers, and children, who are loyal to it following the strong brand equity. Clients tend to buy the companys products just because they are Zara-branded. Next, the company has a strong financial base in terms of the profits earned annually, which it uses to sponsor its assets, as opposed to using debt capital. Besides, its large size facilitates its exploitation of economies of scale to lower the operation costs, hence maximizing profits.

One of the greatest weaknesses of the company is the low-quality perception of its products among customers. Such perception results from the low pricing strategy that the company utilizes. Generally, high-quality products are highly-priced while poor-value goods are cheap. In the light of the stated view, customers tend to perceive the companys products as poor quality, owing to the low prices it charges. The other weakness revolves around the delays in the execution of an order from a customer. The delays are attributed to the high number of customers doing business with the company daily.

The company has the opportunity to increase its customer base in the UK through the exploitation of the internet. The UK has experienced a high embracement of the Internet and social media networks, a situation that presents an opportunity for market expansion for the company (Cortez et al. 2014). Therefore, the company may use the Internet to maximize its market share by opening online stores to supplement the physical ones. The company may also partner with supermarkets and other garment stores to bring the goods closer to customers.

One of the major threats facing the company is competition. It faces stiff rivalry from competitors who include H & M and Gap. The listed organizations are big enough to enjoy economies of scale. Hence, they can force the prices of garments downwards. The other potential challenge includes changes in legislation in the future. Zaras UK-based subsidiary procures raw materials from numerous countries across the world. Changes in import/export laws or diplomacy rows between the UK and other countries from which the raw materials come from may negatively affect the companys profitability.

Future Strategy for Zara

Based on the strengths and opportunities available for the company, the author recommends the firm to extensively use the Internet and social media to maximize its market share in the UK. Currently, the company has not fully exploited the UK market, implying that it has the opportunity to grow its sales in the country by focusing on market development and diversification. Regarding market development, the company may use the Internet to reach customers who are not reachable through personal promotion. Encouraging customers to make reviews online to attract the attention of other potential clients can achieve this goal. Positive reviews by customers through social media may influence more of them to test the products (Chatvijit 2012). Additionally, the company may advance its market development strategy by encouraging conversations between it and customers. It should invest more in online stores to facilitate the full exploitation of the existing market.

The savings achieved through Internet marketing may be used to push the prices of the clothing downwards. It is important to note that the Internet is much cheaper relative to the print and audio media and hence its alignment with the competitive pricing strategy. Lastly, the Internet coupled with social media may facilitate the advancement of the product diversification strategy (Epstein & Buhovac 2014).

Reflective Account

Based on the assessment of the companys strengths and weaknesses, the author concludes that the business has enough assets to exploit the opportunities that are present in the UK market. The company may use its strong Internet base to exploit the market fully. Additionally, it may use its financial muscle to lower the operating costs by minimizing debt capital.

Conclusion

ZARA is a Spanish company, which operates in the fashion industry. It has multiple branches in many parts of the globe. Since its inception, the company has grown tremendously to the extent that it is currently one of the best performing multinational businesses in the fashion industry. Its success is highly attributed to the high income it earns from its subsidiaries. Its UK subsidiary is especially important to the mother branch since it contributes highly to its income. In 2016, the UK-based Zara branch paid £47m to the parent company, a situation that illustrates its importance in making the business successful. This paper has explored the factors that have pushed the UK subsidiary ahead of the rivals. The analysis concludes that the companys assets combined with the industrys favorable conditions have contributed heavily to its success.

Reference List

Battaglia, M, Testa, F, Bianchi, L, Iraldo, F & Frey, M 2014, Corporate social responsibility and competitiveness within SMEs of the fashion industry: evidence from Italy and France, Sustainability, vol. 6, no. 2, pp. 872-893.

Chatvijit, S 2012, Exploring the effects of scarcity, impulse buying, and product returning behaviour in the fast fashion environment among female fashion conscious consumers, The University of North Carolina at Greensboro, Greensboro.

Choi, T 2013, Fast fashion systems: theories and applications, CRC Press, Boca Raton.

Christopher, M 2016, Logistics & supply chain management, Pearson, Upper Saddle River.

Cortez, M, Tu, N, Van Anh, D, Ng, B & Vegafria, E 2014, Fast fashion quadrangle: an analysis, Academy of Marketing Studies Journal, vol. 18, no. 1, pp.1-18.

Epstein, M & Buhovac, A 2014, Making sustainability work: best practices in managing and measuring corporate social, environmental, and economic impact, Berrett-Koehler Publishers, Oakland.

Joung, H 2014, Fast-fashion consumers post-purchase behaviours, International Journal of Retail & Distribution Management, vol. 42, no. 8, pp.688-697.

Customer Satisfaction in the Fashion Industry: H&M Case

Introduction

Research design is a prominent and vital part of marketing researcher. By applying various methods of analyzing and interpreting data, one can form solutions to emerging problems and ensure the stable development of a company. In this process, choosing the most appropriate type of research design is especially important, as it allows the professional to meet their goals in the most effective manner. The decision is made by taking into consideration the main purposes of research and the result that is ought to be achieved. For the purposes of this paper, a look into the fashion industry will be taken, specifically the H&M brand. The company is a juggernaut of the industry, being the biggest fashion retailer in Europe. Operating in 74 countries, the company has managed to amass much profit and garner a considerable reputation. However, similar to other businesses, the issue of customer satisfaction affects H&M and their profits considerably. The paper will explore the levels of satisfaction within the brands customer base using a specific research method.

Hypothesis and its Limitations

The company, having had an ability to spread their influence around the globe, the worldwide response to their products varies. In some countries, customer satisfaction is measurably higher than in others. Studies on the relative customer satisfaction with H&M products have been conducted in the past, highlighting important trends and correlations. The study, named Customer satisfaction in the fashion industry. Case study of HM case company has explored the differences in customer perception in Sweden and China (Yu & Shi, 2013). The authors used a quantitative method to collect questionnaires from young adults between the ages between 18 and 25. Evaluating respondent attitudes towards pricing, product quality, design satisfaction, and brand awareness, the paper has found that customer satisfaction in Sweden is higher than in China (Yu & Shi, 2013). Taking this information into account, it can be hypothesized that each of these criteria affects customer satisfaction, especially customer service. At least 10% percent of Chinese interviewees seem to be dissatisfied with the customer service present in H&M.

Research Design

Types of Research Design

There are a number of research designs available, with some of the often-used ones being: exploratory research, descriptive research, and causal research. The first type, Exploratory research, is well suited for addressing problems with little coverage and specific issues concerning a business. This approach allows individuals to gain a more nuanced understanding of the topic, while not necessarily leading to a solution. It can aid a researcher in developing further hypophysis and defining the underlying issues more clearly. Exploratory research is most often conducted using existing information and studies on the topic, although the use of focus groups, personal interviews, and case analyses, among other approaches are also viable. The main drawback of this research method is that it does not offer complete results and instead promoted further discussion, which is not helpful as a short-term solution to a problem. Descriptive approach, on the other hand, is used to describe an idea or an occurrence that is being studied. Descriptions are usually sorted into categories and can be utilized to understand a specific phenomenon in more detail. The research method employs surveying methods, including questionnaires, personal interviews, and different kinds of surveys. While allowing researchers to become more familiar with the topic of their study, the approach does not directly address the underlying issues or reasons for the topics relevance. Causal Research is the last type, utilized to accomplish objectives the previous two are unable to meet. This research design approach is effective in examining the underlying causes of a specific outcome. Investigating cause-and-effect relations, this approach allows the researchers to understand the impact specific changes have on pre-existing conditions. Causal research explains the relationships between multiple variables.

Chosen Research Design

For the purposes of this paper, Causal research method will be employed to explore the correlation between customer satisfaction and the quality of service. This approach seems to be the most effective, as it allows the researcher to compare the trends and correlations of two variables. As outlined in multiple studies, the correlation between the customer service and peoples attitude is substantial.

Chang Lee, M. (2000). The Causal Relationship between Service Quality, Customer Satisfaction, and Profitability in Taiwan Banking Industry.

In the paper, the author examined how service quality affects the banking industry in Taiwan. Having created structural and measurement models to investigate the relationship between the two variables, the author has confirmed that in the case of Taiwanese banking, quality of service has a positive correlation with customer satisfaction and an increase in profits.

Ehsan, A., Hassan, D., Morteza, S., & Setareh, S. (2018). Examine the Causal Relationship between Satisfaction and Expectations of Product Quality and Services and the Post-Purchase Behavior of the Sport Consumers with the Mediating Role of Brand Awareness. Asian Exercise And Sport Science Journal, Vol.2(No.2). 

The study has examined how service quality affects product quality expectations and customer satisfaction in the constraints of sport-oriented products. By using a 35-item questionnaire, the researchers have found that there is a significant causational relationship between the quality of customer service and their expectations about the product.

Huang, G., & Sudhir, K. (2020). The Causal Effect of Service Satisfaction on Customer Loyalty. Management Science

An instrumental-variable approach was used by the authors to gain an estimate on the causal effect of service satisfaction on customer loyalty. Cross-sectional survey data were utilized to gather data previously collected. The result gathered suggest that the value of customer service satisfaction in developing brand loyalty is severely underestimated. The authors reinforce the notion that customer satisfaction needs further investment from companies and that their approach can be used in other case-specific studies.

Conclusion

This paper has explored some of the aspects of research design in regards to the marketing efforts of companies. The dissatisfaction with service quality in H&M retail stores was used as an issue, with the main hypothesis being that the Chinese audience is dissatisfied with the current level of store service. It is proposed that the Causal Research method will be effective in analyzing this issue, as it has shown its effectiveness in previous precedents.

Works Cited

Chang Lee, M. (2000). The Causal Relationship between Service Quality, Customer Satisfaction and Profitability in Taiwan Banking Industry.

Ehsan, A., Hassan, D., Morteza, S., & Setareh, S. (2018). Examine the Causal Relationship between Satisfaction and Expectations of Product Quality and Services and the Post-Purchase Behavior of the Sport Consumers with the Mediating Role of Brand Awareness. Asian Exercise And Sport Science Journal, Vol.2(No.2). Web.

Huang, G., & Sudhir, K. (2020). The Causal Effect of Service Satisfaction on Customer Loyalty. Management Science.

Yu, Y., & Shi, Z. (2013). Customer satisfaction in the fashion industry : Case study of HM case company.

Fast Fashion Essay: Reasons Why It is a Problem

A popular trend in clothing in a particular place during a specific time period. Inexpensive clothing is created based on fashion trends, which encourages clothing disposal as a result of its fast-response system.

Started and influenced due to competition among clothing brands and to increase profit. Large apparel brands such as Zara, H&M, Uniqlo, and GAP would produce cheap, low-quality clothes consist of synthetic chemicals and non-sustainable dyes. These large companies manufacture their products in 3rd world countries, where the working conditions are poor, wages are low and production is bad for the environment. The clothes are then shipped to stores in Europe and North America to be sold for very low prices. Low prices encourage consumers to buy more for less, only for the clothes to end up in landfills. The decay of synthetic garments in landfills is detrimental to the environment. Dyeing and printing consume tons of water and chemicals and it also releases numerous volatile agents into the atmosphere that are harmful to our health.

With the increase of clothing production, many items are discarded and eventually thrown out after a few uses for new weekly trends. These disposable items create numerous harmful impacts on the environment, including increasing greenhouse gas emissions through landfill pollution. These great amounts of clothing waste also help contribute to global warming through water pollution. The different types of fibers used to produce clothes all have their own negative impacts. Synthetic fibers have sustainability issues and aren’t able to naturally degrade that pollutes the oceans. This harms the wildlife because various animals can consume plastics which can kill them due to the toxic compounds inside.

The different levels of government are taking the initiative to minimize the environmental impact of fast fashion. At the municipal level, Markham bans clothes, sheets, towels, curtains, and shoes from trash bags. Instead, residents drop them off at city-run street-side collection bins. Anything collected is donated to the Salvation Army and the Canadian Diabetes Association. At the provincial level, Ontario MPP Donna Skelly calls on her government to implement a province-wide stewardship program to put an end to the fast fashion cycle. At the federal level, the government requires retailers to pay taxes and duties on all imported garments. If a garment goes unsold, companies can either discard it at a landfill, and the import duty is refunded since the garment is considered unused, or recycle the material, which makes it “used” according to the government, and the duty is not refunded.

A Canadian brand called “Wallis Evera” uses hemp on its garments. It is a natural fiber (instead of a petrol-based fiber like nylon, acrylic, or polyester), and they are incredibly durable and also biodegradable. Hemp also requires very little water and no harmful pesticides, insecticides, or fungicides.

In 2007, Kelly Drennan founded Fashion Takes Action, the only non-profit organization in Canada focused on promoting sustainability in the fashion industry and among consumers. Hosting conferences like WEAR (World Ethical Apparel Roundtable) and Eco Fashion Week were also promoting a brighter future in the textiles industry.

Big brands are starting to take notice. Nike, H&M, Burberry, and Gap have all recently signed up for the Make Fashion Circular initiative. It aims to improve the industry’s record on sustainability and reduce global waste from fashion by recycling raw materials and products.

These policies are helping bit by bit, but they have not solved the overall issue of Fast Fashion. Fast Fashion is still a global issue, and it won’t ever go away and stop until everyone becomes aware. We need to promote more NGOs on our social media because they encourage emerging designers to pursue sustainable (not fast) fashion. But most importantly, the government should focus more on educating people about the consequences and impacts of cheap clothing, then Fast Fashion would become easier to solve.

We think that the previously stated methods towards solving this issue are very effective, but it would be very beneficial to the environment if consumers learn to purchase less or what’s necessary and to make better use out of what they currently have.

Consumers could simply change shops and buys at stores that aren’t engaged in fast fashion and purchase higher quality items that consist of harmless fabrics. Eco-friendly clothing items that are made out of organic fibers are so beneficial to the environment. Although they’re pricier, it would be worth it in the long run as they are less harmful and are more breathable.

Consumers should wear their clothes fully until they can’t be used. Once that happens, rather than throwing your clothes out, it’s a great idea to recycle your clothes because it’s very easy and doable. For example, if a sweater or a t-shirt gets too small or old, you could cut pieces out of it to make a new item, like mittens, or transform it into a “trendy” crop top. This prevents these items from contributing to landfill pollution and water pollution. It also allows people to become more resourceful and think more about how they can help the environment.

Conclusion

Lastly, cooperative interactions between customers and fashion companies can really help build a relationship that will allow them to collaboratively and more effectively work towards fixing this issue. If both consumers and the fashion industry continue on with their efforts and further promote awareness in Fast Fashion, we believe that there would be a list of positive results about this issue.

Fashion Development in Paris And Australia

Throughout the world, Paris, along with London, has been known as the fashion capital of the world and has been that way for hundreds of years. France first began to recognise clothing as a business at the start of the 17th century with the introduction of the mass amount of exports of clothing products.

Fashion in France was a booming business and was first noted as a heavy investment within the countries historic seams through the marvellous and grand clothing designs worn by Marie Antoinette during her life living in Paris as the wife of Louis VIII, the dauphin of France. Marie and her husband are one of the major reasons why French royalty is known for its opulence and excessiveness. France was also the first country to separate styles into seasons. Louis fascination for elaborate wigs actually created a black market for human hair.

Marie-Antoinette was very inspirational for her wealth and sense of style. “This is one of the major reasons why the French people despised her, as she seemed to have cared more about getting the latest dresses, shoes, and wigs, than feeding her people. Marie-Antoinette popularised sky-high wigs, putting feathers in her hair, and custom made dresses by designer Rose Bertin. These custom made frocks were just the beginning of the style category Haute Couture.”

One of the most disastrous financial blunders that fell upon the country in the way of fashions was actually down to a necklace diamond necklace affair which bankrupted the jewellers and leading to financial difficulties for the population of Paris. The affair started when Louis XV of France Brough his mistress du Berry a 2,000,000 ( approximately $14 million USD in 2015) necklace. It took the best jewellers in France to make the diamond and it took seven years but when the King died of smallpox and du Berry was banished from Versailles Louis XVI offered it to Marie who refused it. This left huge financial damage on the jewellers of France as no one else could afford the necklace and the ones who could afford it did not want it. After the continuous scandals, many people saw the now queen of France as a spendthrift, licentious and empty-headed foreign queen taking root in the French psyche. “As you all know, the reign of Marie Antoinette in the fashion world sadly ended when she was dethroned, put in jail, and eventually killed by French revolutionaries.’

After the French Revolution, the women of Paris started to revolt against the original and traditional garments worn such as the hug corseted dresses as usually worn by Marie Antoinette. Instead, they opted to abandon the “ornate construct of overbearing fashions of the 1700s and moved to the long flowing muslin dresses based upon classical designs of the Greeks and Romans. This new elegant style draped the figure with a flattering high Empire style waistline. The fashions of the early 1800s were not only elegant and pleasing to the eye, but were very comfortable.” (‘Fashion in the 1800s | French Fashion History’, 2019). It was during the late 18th century where the first fashion magazine was published named Journal des Dames et des Modes with included issues of hand-coloured fashion engravings. The first magazine was published in June of 1797.

Haute couture then came blooming in after the French Revolution calmed down and the bloodthirst was mostly gone. Although it originally started in the courts of Marie Antoinette due to economic breakdown within the county, it was mostly isolated to only the wealthy high profile persons. In the 19th century, Haute Couture made its come back. This was made possible to a man by the name of Charles Frederick Worth who was the founder of ‘The House of Worth’ which was the first modern couture house located in Paris. With the new opening of ‘The House of Worth,’ many other French fashion houses opened up. “Famous designers of the time included Jeanne Paquin, Paul Poiret, and the House of Patou. It is thanks to these artists that the term fashion designer came about” (‘History of French Fashion in Paris’, 2019).

During both the World Wars fashion was put on hold due to the limited amount of resources that were needed during the war. Paris during Both WW1 and WW2 were forced to closed their fashion houses due to the rationing of fabrics and this was reflected throughout Europe during this time. After WW2 the world of fashion launched into new the world of new designers and women were ready to treat themselves to the luxuries of new endless amounts of luxury fabrics, elegant designs and designer labels. Designers such as Chanel made their comeback after closing their haute couture houses during the war. The new influx of luxury fabrics brought about new designers such as Pierre Balmain, Christian Dior and Hubert de Givenchy who all emerged in the 1950s.

In the mid-1840s fashion of that time imitated both England and French-style sand trends. The children clothing was clothing that represented their social class and family wealth. “Sons of the wealthy wore similar clothes to adult males of the time; a frock coat, a waistcoat, an upright winged shirt collar, a necktie and in some schools, a top hat. Girls from the wealthy classes wore long two-piece outfits with waisted jackets with a pleat at the back and petticoats under the skirt, their hair in ringlets, and a bonnet with ribbons. Working-class clothing reflected their role as workers in society; women as domestic servants and men as labourers and children working doing odd jobs such as selling homegrown vegetables and fruits”. (‘1840s | My Place for teachers, 2019)

In the early 19th century there were quite a lot of changing designs that were usually seen in England and in Paris as the climates down in Australia are very different. New additions to the usual designs of clothing started to emerge such as wide brim hats and lightweight silk coats in summer.

The New Look became incredibly popular and it continued on the emphasis on women expressing their sexuality in fashion, magazines and find using the war. Unfortunately, not everyone was in agreement with the newfound freedom women had with their styles and fashion. “Government figures, military leaders and members of the clergy railed against the spread of venereal disease and women’s supposed lax sexual morality. At the same time, however, a surfeit of images and articles encouraged women to maintain their sexual allure in order to boost the morale of serving men”(‘Glamour returns to post-war Australia’, 2019).

The Lew looks focus turned to the extenuate women’s waists and busts but this trend required specific body types to pull it off which brought in the undergarment known as ‘waspies’ which was waist specific girdle which bought about corseting in the 19th century.

Before the 1850s fashion in Australia didn’t wasn’t highly noted throughout society due to the vast majority of the population being of a very poor and lower class range and also due to functionality due to the main street and current surroundings being mostly dirt and mud. Wearing fancy clothes at this stage in Australia was only left for the filthy rich who never did their own washing and barely left the comforters of their own home. During 1850 the newfound discoveries of golf within the countries soil in the area of Ballarat brought in vast amounts of immigrants and large yuan cities of supplies and luxe items such as pineapples, silks and valuables. The Victorian gold rush brought not only luxury items and vast amounts of people to the land, due to the prospect of finding gold but, also brought along the prospect of becoming wealthy. The wealth from gold hit women with the prospect of wealth and divine clothing and accessories. The prospect of wealth attracted a lot of families and women to the goldfields and living conditions improved and spoon permanent houses were built by the late 1850s. Soon trends of fashion hit the muddy streets of Ballarat with the most fashionable of clothes coming directly from France, England and the USA. By this time Ballarat had become one of the richest places in the world and the current fashion trends worn not only by women but by men as well reflected the new flux of wealth in Australia.

Despite the newfound internets in extravagant corsets, crinolines, top hats and jewellery which became all the rage, the wearing of extravagant and luxury items became more noted throughout the country it was a symbol of social status class in society.

Despite the flashing of money during this period of time, those who didn’t prosper from the gold and were poor, which is noted to be a lot of the population at this time, wore clothing of what every there could find and patch together. Power women made their clothes by hand not only for themselves but their husbands and children as well until the introduction of the sewing machine in the early 1860s. While wealthy women had their clothes tailor-made with whatever fabric or design they desired. The wealthy enjoyed luxurious amounts of fancy fabrics, silks, expensive accessories and dyed coloured fabrics all due to the booming industrial revolution. Compared to nowadays, fashion brand names weren’t really noticeable or even vented yet and had no standing of wealth and possible social class, unlike today. Instead many women especially paraded around the streets showing off their lace, tall hats, silk ribbons, and excessive amounts of gold jewellery was the way of showing off and making a point of your social status. During the time of the gold rush large pieces of gold jewellery were the fashion and trend in the 1850s in Ballarat.

In 1838 the Australian renowned department store David Jones first opened its doors on the 24th of May. It opened its doors in Sydney on try corner of George and Barrack street. In July 1948, after WW2, David jones first welcomed famous french designer Christian Dior designs. Dior had introduced the Corelle Line which re-established Paris as the centre of International style after WW2 interruptions and made the brand even more popular.

“The New Look’s emphasis on busts and waists was received rapturously. After nearly a decade of shoulder pads and short straight skirts, women around the world were hungry for the glamour and feminine luxury of Dior’s fashions.” (‘Glamour returns to post-war Australia’, 2019)

Due to the war, many recourses became rationed but as fabric, paper and the coloured film gradually became more available to more new French styles became available and brought about a focus point for thousands of Australian women. A desire to pursue and dress in the most glamorous attire was achievable after many years of rationed clothing and supplied during the war. “Following its Sydney debut, the New Look became rapidly popular in Australia, where French high fashion had been held in the highest esteem for decades. Many Australian women maintained a belief, fostered by local magazines such as the Australian Women’s Weekly, ‘in the importance of Paris as the centre of style’”(‘Glamour returns to post-war Australia’, 2019).

For in both Australia and Paris during the 1960s was a pivotal time in drastic changing clothing and celebrity icons. In Australia, the introduction of the ‘Mini Skirt’ was noted as a scandalous move but popularised by hippies and celebrity icons such as Audrey Hepburn, Marilyn Monroe and the English model known as ‘Twiggy’ due to her twig-like appearance. The fashion which graced the streets of Australia was named modern fashion or ‘mod’. Mod referred to the lifestyle lived and worn by people in London, where it originally started but soon mod overtook the world speeding all over Europe such as Paris then moved to America and exploded in Australia, especially with the vats growing economy. “1960s fashion broke the social traditions of the previous decade, allowing more freedom for peoples attire. There was either ‘formal’ or ‘casual’ wear and distinct separations as to what was for women and what was for men. The 60s brought us unisex clothing, like denim jeans. Based on the successful pop music, art and fashion scene this new mod lifestyles goal was to be innovative and different. The mod fashion designs were slim-fitting, with bold featured shapes in bright and wild tones. Contrasting the browns, greys and pastel colours of the 50s. Unlike the past fashions were being mass-produced and were affordable.” (‘Fashion’, 2019).

In Paris, during the 1960s it brought to light ready-to-wear fashion. Up until this point, all fashion was standardised with most of the population wearing very similar clothing and styles continuously unless you had the wealth to support a large wardrobe. It was very normal to have between 2-3 outfits for women from the 1700s – 1950s for those in the middle to lower class section. This was all changed with the entire of the 1960s with the introduction of Prêt-à-porter which means read to wear. Clothing began to become easier to make and Manufacture in mass amounts and became a lot more affordable with the introduction of synthetic materials. Designer burin this time became to embrace the new trends and affordable materials and Parisian designer Yves Saint Laurent is heavily credited to be the driving force behind this startling trend. Parisian icons such as Brigette Bardot, Jane Birkin and Françoise hardy rose to fame during the 1960s and embraced the change in designs and fashion and promoted it throughout not only the country but throughout Europe.

How The War Influenced The Fashion Industry

Fashion, throughout history, has been and still is ever-changing and evolving however periods clearly separated in chronology and that are distinguishably different can have similarities as well. Throughout this essay, both the periods of World War I and World War 2 will be compared and contrasted to that of the era of Dior’s ‘New Look’. Specifically, in relation to these times in history, this essay will explore ‘fashion on the ration’ in times of war and the excess of fabric used with the New Look. In exploring these periods, the focus will be predominately on the similarities and differences of the social, economic, and political influences of the times. There will be an analysis of how less gave way to more in regards to design, fabric, and notions between 1920 and 1950 from when the first World War began to when Dior introduced the New Look two years after the end of World War 2.

Two of the most world-defining events in history would have to be regarded as World War I and World War II. The repercussions and changes brought about by these wars are still very much noticeable today in both women’s role in society and women’s clothing. Similarly, Dior’s ‘New Look’ can be considered as one of the most defining moments in fashion history. The name ‘New Look’ was adopted by then Harper’s Bazaar editor-in-chief Carmel Snow after his first haute couture show in Paris in 1947 and having opened his couture house after the ending of World War II. Dior’s “first collection revolutionized the aesthetics of the time”. These two periods, specifically ‘fashion on the ration’ and Dior’s New Look with the use of excess fabric have both similarities and differences that will be further explored throughout this essay.

Ways That Ww1 Influenced The Fashion Industry

Prior to World War I, Paris was fashion’s capital. Women from all over the West looked to the Parisian designers for fashion direction and style. Designers such as Georges Doeuillet who introduced a new style for the era that “revived” the empire waist and Paul Poiret, whose designs prevailed throughout the first decade of the 20th century due to the most stylish women visiting him for clothes as his “approach was so advanced and radical that they didn’t work with any other designer’s garments”. Before the eruption of World War I, Poiret’s hobble skirt design and the re-emerging ‘directoire’-styled dress, which gave women freedom of movement with higher waistlines meaning there was no need for corsets, were popularised by many women. However, this style of dress did not last as a more streamlined style was introduced to allow women flexibility in their dress when having to step into traditionally male roles once men were sent off to fight. The hobble skirt style was replaced with a-line skirts as they were to resemble military wear.

Fashion during World War 2

The outbreak of World War II transitioned the world back as it was two decades ago. With more at stake in World War II, the repercussions were set to be immensely bigger and on a global level compared to the previous war. As opposed to World War I where rationing was only introduced in January of 1918 and the war ended in November of 1918, World War II erupted and rationing began immediately. In contrast and not that the first World War wasn’t taken seriously, but for the second, people knew what to expect as well as knowing that being twenty years later, the war and fighting capabilities would be far more developed than previously.

From the experience of the German Blockade that introduced rationing in 1918, rationing for World War II was introduced in 1940, only a year after the war had begun, compared to four years after the first world war. Clothes rationing was introduced in 1941. A fixed number of clothes per person was determined and coupons were issued to control the amount of clothing allowed to civilians. In 1942, America aimed to limit fashion’s influenced even further with the introduction of the Production Board issued Limitation Order 85 (L-85). L85 endeavored to save 15 percent of domestic fabric production along with “forty million pounds of wool cloth”. The Order influenced more than just the quantity of fashion; details and notions were no longer allowed, clothing was less full and ultimately clothes became less showy and stylish. Many issues arose with the rationing and coupon policy. The coupons indicated the number of items you were able to buy but did not specify a cost which created inequality). Rebellion against the restrictions was popular and the distinct difference between rich and poor grew.

Europe was left in a state of complete chaos at the end of World War II. The Allied win propelled the United States into the powerhouse status they still currently hold worldwide and Paris started along the road to recovering after German occupation from 1940 to 1944. Only two years after the misery that was World War II in Europe, Christian Dior showcased his debut collection on February 12 1947 in Paris. His collection signified an end to the utilitarian, military-inspired and subdued garments that were worn throughout the war. The newness for younger generations but on the other hand, rather transition to pre-war style was well-loved by many with a comment made that “God help the buyers who bought before they saw Dior” and a claim by Harper’s Bazaar then editor-in-chief Carmel Snow “Dior saved Paris as Paris was saved by the Battle of the Marne”. With all of the love, awe, and praise of Dior’s New Look, it also attracted criticism, with mainly American women believing that the New Look was impractical and anti-feminist, compared to the wartime where it became acceptable for women to wear the same as men. Upon Dior’s first trip to America, he was met with women holding signposts that read “Down with the New Look”, “Burn Monsieur Dior” and “Christian Dior Go Home”. Dior’s looks continued to be controversial in regards to its affordability, the questioning of feminism, and the use of fabric considering much of Europe was still upholding their wartime restrictions.

Both World War I and II share many similarities in that they were both on a worldwide scale, both the Central Powers (Germany, Austria-Hungary, Bulgaria, and the Ottoman Empire) and the Allied Powers (Great Britain, France, Russia, Italy, Romania, Japan, and the United States) suffered many casualties and that the home fronts for all were severely affected. Due to the instability and devastation throughout Europe from the events of the first World War; unsettled issues from the end of the war in 1918 were left brewing for a further two decades before the resentment was unleashed by a Hitler-led German invasion of Poland.

Changes in women’s dress can be directly linked to the influence World War I had on the home front. Women had already begun transitioning into traditionally male-dominated jobs before the war erupted however, it pushed the social dynamic to change further in regards to the workplace. Women’s dress became much simpler, besides the trend of the hobble skirt, however, this didn’t last very long. The simplicity, along with the addition of masculine and military features dominated women’s clothing during the war effort. In contrast to the masculine changes adopted to women’s clothing, Dior’s New Look of 1947 brought back pre-war femininity which had mixed responses. The ultra-femininity of the New Look was unliked by feminist groups and created some negativity around the designer who was set to bring fashion back to Paris.

During World War, I and II women were all for taking on more responsibilities. They had been pining, marching, and petitioning for more female presence in the workplace. The war and the space in jobs left by men who had been conscripted into the war efforts gave women the chance they had been looking for. And in turn, traditional clothes women had been wearing needed to change. Although women’s fashion had already begun evolving, the war fast-forwarded these changes. The working woman was unable to wear masses of fabrics in the form of skirts and dresses due to the restricting nature of such garments as well as the need to condense the amount of fabric being used in order to make military uniforms for soldiers. Changes saw a more masculine feel being adopted into women’s wear. Trousers and skirts that were more masculine than feminine became popular, as did skirts that were made similarly to that of men’s military uniforms. Unlike the excitement felt by women in the need to transition into more practical and ‘masculine clothing, Christian Dior’s revival of Parisian couture attracted much criticism from these same women who believed that the New Look and other looks from Dior’s 1947 collection were anti-feminist and ultimately derailed all the work done by women in order to be seen as equal to their male counterparts and be able to work in similar jobs. Women were now more prominent in the workplace than ever before and didn’t want to have to wear ‘ultra-feminine dresses. They loved the conformity, practicality, and easy wear of traditionally male garments such as trousers, pants, and skirts that were more masculine-inspired.

During both the World War I and World War II periods, money was tight. The US especially was unprepared for the economic strain the war would create. Businesses didn’t have a lot of money to spare as people were not spending in this time of crisis. It wouldn’t be fair to say that fashion took a massive hit in the war periods like World War I specifically brought women more comfortability and practicality in fashion and everyday wear, however, it did create a massive shift in the evolution of fashion. In World War II, however, this was direr on a global scale for most aspects of the allies countries including potentially being under foreign rule due to invasion and conquering by Germany if the Ludendorff Offensive on Paris had have succeeded. Rationing in World War II also brought about limitations for designers and clothing for women. The introduction made the fabric that was available for use was made more expensive so in turn increased the price of all aspects of clothing manufacturing. Wool and nylon were needed for military clothing, so most of these were unavailable to civilians. Japanese silk was banned in the USA following the Japanese attack on Pearl Harbour, and rayon was the newest fabric innovation to be introduced and was predominately used for womenswear during the war.

Similarities between the war periods and Dior’s New Look include that they both had a major influence on fashion. Throughout eras prior to World War I more fabric was used the majority of the time as this indicated wealth and higher status amongst richer individuals. The factors of women needing more practical garments to wear whilst working, along with the fabric rationing introduced in 1918, less became popular. The Art Nouveau-styled figure dominated the war period. The traditional bodice piece transitioned into the brassiere which was now more sort after by women who were becoming more physically active. In these simplistic but equally elegant garments, the more affordable fabric was being used in the form of rayon. In the war year of 1914 – 1918, rayon was a new innovation having been developed in 1846 but only began to be manufactured in the United States in 1911.

Following on from the previous topic of the contrast between more and less, wartime rations favored minimalism, practicality, and simplicity in fashion and as the wave of Dior’s New Look after the war had come to an end signified a rebirth of a type of maximalism, and layers and volume in fashion, I have decided to look at how designers incorporate both minimalism and maximalism within some well-known designer collections and how these balance each other. An interesting example that can be seen to have taken aspects of both is Raf Simmons for Jil Sanders Spring 2011 Collection. The collection developed through a discussion of minimalism which leads Simmons and his team to begin to explore the inverse; maximalism. Although in the explanation of his inspiration on Vogue Runway’s website, he wasn’t directly inspired by either wartime limitations on fabric or the drastic change to the voluminous fashion of Dior’s New Look, there are undeniably several aspects of his collection that can be considered a nod to both these times in fashion history. The minimalism aspect of the looks can be seen with the inclusion of the white tee-shirt, paired with large, exaggerated balloon skirts that all feature different shaping and design details. Another resemblance that can be made to both the World War 1 and World War 2 periods is the trousers and tailored jacket look which is reminiscent of women stepping into male roles during the war and experimenting with the traditionally male garments including trousers and formal suits jackets. The immense amounts of fabric used for some looks also can be associated with Dior’s New Look where more was better. However as opposed to Dior’s crispness and accentuation of the bust and hips, in many of the looks in this collection, Simmons has a complete disregard for the traditional silhouette and chose to focus on the exaggerated and disproportionate shapes that can be created outside of the female form with masses of fabric.

In summary, there are many notable similarities and differences between the war periods and the fashion revolution that is Dior’s New Look. The revival of feminine dress with increased fabric usage compared to the wartime periods which had just drawn to a close demonstrates the complete opposition of these two periods of fashion. However similarly in both periods, they were influenced by social and economic factors which showed that only the wealthier could afford better clothes in the wartime and also couture garments when Dior set out to bring couture design back to Paris after the disaster of war. Both endured much criticism in the inequality due to fashion rationing and the coupon system during the war as well as the denouncing of the New Look as anti-feminist and the protests of ‘Anti-New Look’ that ensued. Although these periods of history have both their similarities and difference, ultimately they are integral to fashion today and future fashion. In the way that fashion is currently heading in transitioning the phenomenon of fast fashion into a more streamlined, eco-friendly, sustainable approach; ideas like using less material in times of war and creating elegant timeless designs like Dior can be considered.