What is Fashion Supply Chain: Downstream SC Challenges in International Markets?
With the maturity and saturation of traditional markets (such as Europe and the US) – fashion companies are looking to new and emerging markets (such as India and China) as the primary source for business growth. But managing customers with very diverse needs implies significant challenges for fashion companies and their supply chains, considering that the supply chains are tasked to serve the unique characteristics of these distinct emerging markets.
The fashion downstream supply chain in international markets research project focuses on understanding the characteristics of the downstream supply chain that is necessary in order for the firm to penetrate and serve both the traditional markets (US, Europe, Japan) as well as emerging markets (Eastern Europe, South America, China, India, Middle East, Russia). The research project intends to develop a deeper understanding of the main constraints and needs of these markets/countries, and then understanding the ability of the downstream fashion supply chain to address and serve those needs to create a competitive advantage.
How does it work?
The research project will examine three aspects:
- Design of the downstream fashion supply chain. Emerging markets characteristically do not have the benefit of significant infrastructure, therefore the design of the downstream supply chain entails understanding the regional constraints and capabilities. It is likely that many global supply chain failures may come as the result of inappropriate or incomplete supply chain design. The study intends to understand downstream design choices and the implications of those choices on the various markets, considering the market characteristics, constraints and needs.
- Impact of the downstream fashion supply chain on internal processes. Competition and regional market characteristics that call for new downstream supply chain designs may also call for new internal processes that support the new designs, such as demand forecasting, order management, and inventory allocation. The study intends to understand the implications of new designs on internal processes that are necessary to create an efficient and effective downstream supply chain.
- Role of the downstream supply chain in demand capture. Serving new markets calls for supplying those markets with new products that serve the specific market tastes and practical needs. The study intends to understand the primary requirements of these markets as well as identifying the information sharing and involvement of downstream supply chain in serving and capturing market demand.
To date, preliminary analysis has been conducted, utilizing 24 case studies including some of the leading Italian fashion companies, including firms such as Gucci, Dolce & Gabbana, Ermenegildo Zegna and Emporio Armani, among others.
Reference document: Project Description Review
Reference document: Project briefing at EUROMA July 5, 2011
Research activities:
- Case study development of fashion companies with different country of origin
- Survey development in collaboration with 100/150 Italian fashion companies
- Benchmarking among different companies
What are the key benefits?
Participants in the study will be given a copy of the final report as well as access to the early versions of the reports and engage one-on-one with the researchers. The full reports will include the results obtained with all the case studies.
How do I participate?
There is no cost to participate, and all participants will enjoy the benefits noted above. Please contact Antonella Moretto, amoretto@mit.edu, if you are interested in participating in the research initiative.
Key members of the team
James B. Rice, Jr.
Deputy Director, MIT CTL
jrice@mit.edu
617.258.8584
Antonella Moretto
Visiting Student – Politecnico di Milano
amoretto@mit.edu
Prof. Andrea Sianesi
Politecnico di Milano
andrea.sianesi@polimi.it
Prof. Gianluca Spina
Politecnico di Milano
gianluca.spina@polimi.it