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Case Title:

Fashion Industry: Can Asia Buck the Trend?

Publication Year : 2009

Authors: Naga Sandhya Ramadugu & Pasupuleti Girija

Industry: Retailing

Region:Global

Case Code: INA0106

Teaching Note: Available

Structured Assignment: Available

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Abstract:
Well, how does one define fashion going global – When a Gucci or Armani is displayed on the fashion streets of Japan and China or when celebrities like Liz Hurley or Will Smith showcase themselves in an Asian outfit? The winds of global fashion industry are changing their course – no more do fashion winds move only from west to east but they blow from east to west too. Asian fashion, of late, has made its presence felt on the global ramp. For centuries, western brands like Gucci, Versace, Armani and LVMH maintained their supremacy in the world of fashion. Innovation, rich designing, marketing expertise coupled with the presence of excellent fashion connoisseurs, enabled the western brands to command a premium over the years. In comparison, the Asian fashion industry, which is still in the nascent stage of growth, has been trying vigorously to position itself among the global players. Although oriental fashion is pulling huge crowds to its fashion weeks, the Asian fashion industry, despite talented designers and lean manufacturing processes, is failing to build a brand image in the high-end luxury segment. Factors like low brand value, lack of technical know-how, infrastructure and distribution networks have been hampering their growth opportunities globally.

This case study dwells upon the dynamics of the global fashion industry and the comparative position of the Asian fashion industry. The case study also analyses the challenges and threats to Asian fashion designers and brands from global players besides providing a scope to identify the ways in which Asian fashion industry can create an uncontested market space and make competition irrelevant.

Pedagogical Objectives:

  • To understand and analyse fashion industry dynamics in a flat world (market share, profit margins, value chain, etc.)
  • To analyse the critical success factors for fashion industry and debate on whether they would change when the companies go global
  • To understand the Asian fashion industry’s capabilities and contrast them with the global fashion industry’s critical success factors
  • To debate on the essential requisites for any Asian fashion house to go global and the strategies they should follow to position themselves so as to successfully compete with the incumbents.

Keywords : Asia, Oriental, Fashion, Blue Ocean Strategy, SWOT Analysis, GAP Analysis , Japan, China, Europe, Retail, Gucci, Global, Brand, Apparel, Supply chain

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