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Texprocess with innovative sourcing platform
22 Nov '10
4 min read
Today's brands are more often dealers than manufacturers
Which of today's popular brands actually produces its fashions, not to mention accessories and perfumes? The answer is not many because, in numerous cases, only the brand itself and managerial, marketing and creative personnel remain in Europe, close to the market. The products are made worldwide. There are two basic approaches: the bargain hunter, who is always on the look out for even cheaper production facilities, and the solid relationship manager who treats 'his' producers and partners. In the long run – which means five to seven years in the fashion sector – it is the relationship manager who comes out top in the last analysis because he or she has the process chain and standards of quality better under control.
However, the trend is shifting away from outward processing, where the customer (the brand) purchases and finances the material, and the producer 'only' cuts and makes up the product, to full service business where the producer assumes responsibility for all aspects of procurement including cutting, designing and financing the products. The reason: the material can account for as much as 70 percent of the cost of production. From the time the material financed by the customer reaches the producer, the former is, for good or evil, fully dependent on the loyalty and expertise of the latter. In practice, there is, as in so many cases, plenty of room for numerous variations between the two procurement models, including joint ventures and shareholdings.
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Which of today's popular brands actually produces its fashions, not to mention accessories and perfumes? The answer is not many because, in numerous cases, only the brand itself and managerial, marketing and creative personnel remain in Europe, close to the market. The products are made worldwide. There are two basic approaches: the bargain hunter, who is always on the look out for even cheaper production facilities, and the solid relationship manager who treats 'his' producers and partners. In the long run – which means five to seven years in the fashion sector – it is the relationship manager who comes out top in the last analysis because he or she has the process chain and standards of quality better under control.
However, the trend is shifting away from outward processing, where the customer (the brand) purchases and finances the material, and the producer 'only' cuts and makes up the product, to full service business where the producer assumes responsibility for all aspects of procurement including cutting, designing and financing the products. The reason: the material can account for as much as 70 percent of the cost of production. From the time the material financed by the customer reaches the producer, the former is, for good or evil, fully dependent on the loyalty and expertise of the latter. In practice, there is, as in so many cases, plenty of room for numerous variations between the two procurement models, including joint ventures and shareholdings.
Click here for more details
Messe Frankfurt Exhibition GmbH
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