Global Commodity Chains and Fast Fashion: How the Apparel Industry Continues to Re-Invent Itself

Abstract

This article examines changes in global commodity chains in the apparel industry, most notably how supply-driven innovations are linked with changing consumer (demand-driven) behaviour. It begins with a discussion of apparel manufacturing as a quintessentially labour intensive, low capital sector that has a long history in advanced economies. In recent decades, however, two forces have resulted in changes in this industry. First, increased liberalized trade regimes (MFA phase-out) have reduced quotas on apparel exports and imports, encouraging emerging economies to embrace this industry as part of their export-led growth strategies. As a consequence, much of apparel manufacturing has shifted to these emerging economies. Second, Western retailers have increasingly pushed supply chain rationalization and improved channel integration to force manufacturers to be more responsive to cost, quality and speed of delivery requirements. Shortened turn-around time for manufacturers now complements low price as the essential features for sub-contracting and it provides retailers with opportunities to sell inexpensive, fashion-orientated goods. Innovations associated with fast fashion are discussed, particularly how some retailers have combined supply chain rationalization with fashionable product offerings that meet volatile consumer preferences. The interaction between consumer identity formation and retailer strategies is discussed in detail, providing an analysis of the interdependency of both demand for and supply of products. Finally, the article uses examples of two major retailers, Zara and H&M, to illustrate how strategic differences within the fast fashion model reflect variations in global commodity chain restructuring.

“Made in Canada”: Local production networks in the Canadian fashion industry

“…Several key developments during the 20th century created the GPNs that transformed the fashion industry (Pickles et al 2015). New supply chain management systems led to radical changes with respect to the flexibility and speed with which new clothing could be designed, produced, and brought to market (Tokatli 2008;Bhardwaj and Fairhurst 2010;Taplin 2014). Lean retailing revamped apparel and textile firms into highly flexible, nimble organizations that could The Canadian Geographer / Le G eographe canadien 2018, 62(2): 238-249 "Made in Canada" 239 respond to real-time changes in the consumer landscape (Abernathy et al 1999).…”

“…Lean retailing revamped apparel and textile firms into highly flexible, nimble organizations that could The Canadian Geographer / Le G eographe canadien 2018, 62(2): 238-249 "Made in Canada" 239 respond to real-time changes in the consumer landscape (Abernathy et al 1999). These developments allowed firms to produce garments in countries with low labour costs, in order to maximize cost efficiencies, without compromising response times to retailers (Reinach 2005;Tokatli 2008;Taplin 2014). The resulting new geography of production in the fashion industry radically changed consumer consumption patterns.…”

Global value chains in international knowledge work: networks, stratifications and labour markets

“…Of course, longer standing GVCs in manufacturing, notably in the apparel and food and drinks sector have been the subject of widespread criticism and consternation on ethical grounds (Klein 2010;Levy 2006;Taplin 2014), the core of such concerns relating to the existence of 'sweatshop' employment conditions in emerging and developing economies. While knowledge services may ostentatiously portray an aura of elitism, empowerment and even glamour, closer scrutiny of the industry reveals that its international organization is predicated on a productive logic analogous to that manifested in manufacturing.…”

Strategic approaches to sustainability in fashion supply chain management

“…In terms of NPD, authors have investigated the importance of taking care of sustainability practices in the design of fashion collections because many of a product's sustainability burdens are determined through the choices that are made at this stage of the product life cycle (Dickson and Eckman 2006;Niinimäki and Hassi 2011). However, within the fashion industry, the idea of adopting sustainable design practices often contrasts with the need to continuously renew products, which is characterised by reduced lead times and costs, as proposed by the wellknown fast-fashion model (Li et al 2014;Taplin 2014;Macchion, Danese, and Vinelli 2015). Thus, studies discussed new green design concepts by providing indications of how to approach sustainable NPD without forgetting this industry's style requirements (Gam et al 2009;Curwen, Park, and Sarkar 2013).…”