The objective of this report is to understand the structure of fashion logistics to realize in each level of fashion pyramid. Understanding the supply chain and fashion logistics and channel distribution, also analyze the relationship between each of logistics. Depends on the structure of logistics that evaluate the two level of fashion supply chain which are mass fashion and ready to wear Furthermore,discussing the ethical issue and sustainable management is another key point to realize the influence of fashion supply chain in the present. Fashion logistic Based on the practice of the company, the innovation of logistics service indicate to the brand new procedure, useful method. As mentioned,”In the new economy , innovation is the primary requirements for logistics to the market, “Which means by the logistics service could build the relationship with customers and the competition are generated obstacle also increase loyal customers so that make market runs more efficiently.
Fashion stands a key role for “self-image” which regard as the cycle reflection of society, culture and environmental features for the specific time. Nowadays, the common way of supply chain has been transformed to the new market of international entrants, Besides, there are some new challenges of coping with time limit and the source of products to be faced. For fashion logistics, the main part of the operation which can obtain advantages from economy are combined with in-house when the labours are highly demanded for producing products and execute by a web of subcontractors. In the sector of fashion supply chain, fast -fashion retailers have changed consumer behaviour, they are not hold the stock for weeks. Depends on consumes’ requirements, fast fashion line has gone quickly if good sale for some specific products.
On the other hand, owing to the factor of economy, the main market has transferred to Asia which means luxury fashion products are lead to another market, especially China, Moreover,the structure of luxury industry transformation has brought about the result of the luxury good sharply growth in this part. The SCM of luxury fashion brands have controlled the production strongly ,especially emphasize the country of origin iWhen a company enter to the new area, they would outsource or become partner with other luxury fashion brands and cooperate with their suppliers. Global dispersion of fashion supply chain has been moved to offshore sourcing and outsourcing because of the technological evolution and geopolitics. The initial factor of offshore outsourcing is labour coats to emerge from the industrial core from other countries such as , South Korea ,Taiwan ,Hong Kong .However ,these countries garment industries have become mature ,low coast is difficult to sustain.
In online logistics , utilising the network to service customers has become more complicated,it contain multiple challenges about amount of orders and delivery , return products ,rearrange the stock between network and warehouse. On the other hand, click and collect is the advantage of online logistics customer can be supplied of multiple methods to get their parcels not only home delivery which also reduce the costs for retailer. It is a win-win situation for both .For instance, Collet+ combine with the petrol station and convenient store where can be returned and delivered which cooperate with multiple-channel and pure players. In present, the multichannel for retailing is a big challenge, technologies created the new virtual retailing and deal with some problems for consumers,so that it has increased home delivery and click and collect .Now every fashion sector is integrating with omnichannel retailing for consumer needs.
The purpose of the supply chain is controlling the different function of supply chain so that the products can be delivered to customers reliably and on time. The main challenges of supply chain management is the dynamic nature of fashion retail. The variety of products is also unstable and unpredictable. Ready to wear supply chain Basically ,the luxury industry focus on marketing and branding. For aspect of long-term development,supply chain management and operation should be considered, if brands target the higher position or the value increasing . As result of the increasing of luxury products, basing on communication management and branding ,some luxury brand companies have committed with social relevance. Sourcing and production is the key element for any manufacturing business ,hence, the demands and the balance producing is the main issues are faced for the fashion retailers.
Because of the technology development,the luxury fashion trend is not only in the specific area, also the potential growth is another consideraLion to expand the sale outside of the origin to achieve the target goal . The global fashion company take this as the foundation in the present. The new definition of new luxury is based on consumer experience ,it is not like the old luxury focus on the features of products and qualities .As result of satisfying the imagination of customers, luxury goods should emphasize communication and experience to consumers(Danziger, 2005), In the segment of luxury goods, the sourcing must confirm the qualities and the procedure of generating and the materials to reach the level of requirements As result of this reason,the materials usually are from the particular countries such as leather from Italy ,wool from India ,etct.
The successful key factors of luxury goods is generating in the original countries ,even is operating in outsourcing but still produce in origin tln fact ,it represent the high quality and the original design so that it influence the price to customers The ready to wear manufacture basically is the same as mass production but produce with high quality ,and the quantities of production is smaller than mass production. The ready to wear are distributed to the flagship store and upscale department store whose lines are costly and original creation off-the—rack. Beside ,brand extension is for each of market segment to trade down and up Such as Giorgio Armani and Ralph Lauren Nowadays ,the challenge of luxury fashion supply chain is paying attention the quality even is outsourcing and flexible supply chain also back to basics and aware to retail and distribution,also regard the supply network as the partner and extend the sustainable pros ,and set up the differentiated target to reach.
In luxury supply chain ,offshore sourcing and outsourcing the main factors to develop the brands ,For example ,comparing to Burberry and Louis Vuitton which ask the different approach .Such as Burberry polo shirt is with the mass -production needs and the handbags of LV only can be produced with small quantities. Owing to the luxury market have changed which much more approach to the fashion consumers in the mainstream direction. The luxury fashion companies integrate to the in-house supply chain and outsourcing model to innovate the new strategy of luxury fashion SCM. Mass fashion supply chain Fast fashion reduces the on lead-time and less stressed with SCM. It is a vertical combination for the model of fast fashion. Such as ZARA, in order to more close the new transformation of the domestic market and utilize the advantage of fast response time.
The supply chain management integration has increased obviously ,it more emphasize the connection with downstream of retailers and distributors and consumers. The modern fashion demanding has risen sharply from fashion consumers. Towards to the improvement of fashion supply chain and the concept of ”just in time “with quick response system,and agile supply chain(Christopher et al,, 2004; Bruce et al., 2004) .There are some challenge for the fast fashion supply chain, firstly , retailer power is reducing inventory and responding the requirements and not carry with stock for long time. Secondly, partner and networks relationship transformation is not always focusing on fast fashion strategy .Thirdly, supplier should be flexible and responsive for changing requirements .Furthermore ,eliminating the stages of the supply chain ,because of the time limitation and consumer requirement.
Also the sourcing region for fast fashion should be involved to geographical consideration and cultural in close proximity .Besides, the logistics changing should innovate with the shipping technology and market And the last is the ethical issue , the pressure of deliver the productions on time , it would cause the labours overwork and the problem of sweatshops CSR and ethics for fast fashion in fast fashion ,the primary issue is the labour production sustainably and the material source finding (Fletcher,2010)r The cheapness items and offshore production cause the ethical issue and the CSR should be concerned ,especially the child labour hiring and the working environment.
For example , UK fast fashion brand Primark forced their own worker to make clothing over 12 hour per day for £3.50 an hour indicates even the consumers aware about the ethical problems but are attracted to the fashionable ,price offerings. 0n the contrary ,Zara and H&M have grabbed some elements from slow fashion which take advantage for the long-term development. H&M encouraged their consumers to recycle their discard clothing and get the discount for the new purchasing. What is more ,H&M emphasize the green retailing for environmental protection , this is a win» win-win strategy for consumer, environment, and H&M all get benefits. CSR and ethics for Luxury fashion brands A report by pointed out the social , environmental and governance issues are indicated from 10 largest trade companies The ethical criteria related to human rights, animal rights , and environmental and social performance.
For instance, the generating raw material of luxury products(leather ,fur)which involved the human rights and animal rights Giorgio Armani described in an announcement that the decision of company was concerning for animals right and environment protection . The awareness of ethical issues has risen ,it could wake some brand up which prefer to produce the fur products, In addition, the result of new strategy and company‘s policy appeal some ethical consumer to purchase i For sustainable management,Hermes is a goof example to present, it provides the information where connect to the production location and consider the impact of society and environment for the factories in the local groups, Stella McCartney is famous for role in declining the carbon in fashion world something that is evidently reflected in her individual collections.
The making of design most of them are made from organic cotton and recycle material. In the present, sustainability is becoming the mainstream for fashion business It also means last longer and less wasteful for the production. This report has analyzed the situation of fashion supply chain and the transformation of fashion logistics in each level of pyramid .Also understand the difference between slow fashion and fast fashion and evaluate the advantages and disadvantages for each supply chain .Moreover, ready to wear and mass fashion indicate the relationship with consumer has become the main point for the strategy of fashion supply chain Sustainable and ethical issues indicate the core problems of fast fashion and luxury fashion brand which would affect the situation ,environment and supply chain management improvement.
