BUSINESS RESEARCH MODELS
A RESEARCH ON MEN’S APPARELS
SUBMITTED BY: GROUP 6
We are happy to present this report to our teacher, Dr. Sumeet Kaur. We are grateful that she gave us such an interesting project to do, and we have tried our best to succeed at it. Ourdeepest thanks to Professor Dr. Sumeet Kaur for guiding and correcting various documents of ours with attention and care. We would like to extend our heartfelt thanks to all our family members and friends for their support and encouragement, without which the research would not have taken the present shape.
-Thank you –
TABLE OF CONTENTS
| PAGE NO.
| Literature Review
| Gaps and solutions by our survey
| Research Methodology
Fashion is the imitation of a given example and satisfies the demand for social adaption, the more an article becomes subject to rapid changes of fashion, the greater the demand of cheap products of its kind. In case of ZARA the leading retail outlet around the world, the concept of global apparel chain is used, which is characterized as a prototypical example of a buyer-driven global chain, in which profits derived from “unique combinations of high-value research, design, sales, marketing, and financial services that allow retailers, branded marketers, and branded manufacturers to act as strategic brokers in linking overseas factories” with markets. Apparel production was very fragmented. On average, individual apparel manufacturing firms employed only a few dozen people, although internationally traded production, in particular, could feature tiered production chains comprising as many as hundreds of firms spread across dozens of countries. About 30% of world production of apparel was exported, with developing countries generating an unusually large share, about one-half, of all exports. These large cross-border flows of apparel reflected cheaper labor and inputs—partly because of cascading labor efficiencies—in developing countries. Despite extensive investments in substituting capital for labor, apparel production remained highly labor-intensive so that even relatively large “manufacturers” in developed countries outsourced labor-intensive production steps (e.g., sewing) to lower-cost labor sources nearby. China is expected to become the “supplier of choice” for most U.S. importers (the large apparel companies and retailers) because of Its ability to make almost any type of textile and apparel product at any quality level at a competitive price. Although many countries may see their share of the U.S. market decline, a large number of countries likely will become second-tier suppliers to U.S. apparel companies and retailers in niche goods and service. For every Giorgio Armani one might think of there are more brands such as Levi, Lee, Wrangler, and private labels such as Brooks Brothers, Lands’ End and L.L.Bean. It is tempting to think of clothing from any of the last six as American, and apparel with the Armani tag as Italian. However, although the design and merchandising of the product is likely to be American or Italian, the actual garments are often sewn outside of the U.S. and Italy. Because apparel manufacturing is labor intensive, wage rates are clearly a major factor in sourcing decisions. This gives an immediate competitive advantage to producers in developing countries, including China and India Modern retailers no longer have warehouses full of apparel products ready for the selling floor. Rather they have become “lean retailers” owning just the products on the selling floor. As a result, suppliers’ warehouses and distribution centers act in many ways as virtual warehouses and distribution centers for the retailers. At least once a week, most often on Sunday evening after the weekend sales are known, retailers have their computer...
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