Learning from the Fashion Industry Essay Example

Learning from the Fashion Industry Essay Example Learning from the Fashion Industry Essay Learning from the Fashion Industry Essay CRANFIELD UNIVERSITY ELEFTHERIA DIMITRAKOU LEARNING FROM THE FASHION INDUSTRY: A STRUCTURED LITERATURE REVIEW CRANFIELD CENTRE FOR LOGISTICS SUPPLY CHAIN MANAGEMENT MSc THESIS CRANFIELD UNIVERSITY CRANFIELD SCHOOL OF MANAGEMENT CRANFIELD CENTRE FOR LOGISTICS SUPPLY CHAIN MANAGEMENT MSc THESIS Academic Year 2006-2007 ELEFTHERIA DIMITRAKOU Learning from the Fashion Industry: A Structured Literature Review Supervisor: Dr. Chris Morgan August 2007 This thesis is submitted in partial fulfilment of the requirements for the degree of Master of Science  © Cranfield University 2006. All rights reserved. No part of this publication may be reproduced without the written permission of the copyright owner. ABSTRACT This research study is a Structured Literature Review focused on identifying the learning points which can derive from the fashion industry regarding supply chain management solutions. Manufacturing, distribution and marketing issues that enable a more robust analysis of the sector are investigated. A review of business models used by companies in the fashion industry is conducted to gain insights into the way that fashion firms manage demand. An extensive review of the literature reveals that the fashion industry is marketorientated and characterised by short life cycle products and low demand predictability. Lead time reduction enables the development of flexible manufacturing and logistics systems. Short lead times enable reduction of forecast errors and improvement of supply chain responsiveness towards volatile market conditions. The main supply chain solutions in the fashion industry are based on quick response, fast fashion, agile, lean and leagile concepts. Use of information technology, automated manufacturing systems, production and distribution planning based on real-time demand and transparency of information across the whole supply chain are some of the primary characteristics of the fashion supply chains. In the light of the unpredictable and volatile nature of the fashion industry, this is considered to be worth noting. Based on the segmentation of the industry in terms of volumes and varieties, a model presenting the structure of the sector and the different supply chain approaches is developed. The model allows a comprehensive analysis of the way that the fashion industry works, in terms of manufacturing, distribution and marketing operations, in different volumes/variety levels and product characteristics. i ACKNOWLEDGEMENTS First and foremost, I would like to express my gratitude to my supervisor, Dr. Chris Morgan, for his guidance and support. His willingness to discuss and advise benefited the completion of this study. I would also like to thank the members of the advisory group who contributed to this study. Especially, I would like to express my appreciation to Mr Sanaul Mallick, for his availability and contribution. I would also like to thank my friends at Cranfield University and in Greece for their support during this demanding year. Last but not least I would like to express my gratitude to my family for their everlasting trust and support. ii â€Å"True knowledge exists in knowing that you know nothing†. â€Å"And in knowing that you know nothing, that makes you the smartest of all. Socrates (469 BC 399 BC) iii TABLE OF CONTENTS CHAPTER 1 INTRODUCTION.. 1 1. 1 INTRODUCTION 1. 2 BACKGROUND TO THE RESEARCH .. 1 1. 2. 1 Background to the fashion industry 1 1. 3 IMPORTANCE OF THE TOPIC .. 3 1. 4 AIM OF THE PROJECT AND OBJECTIVES OF THE RESEARCH .. 4 1. 5 SCOPE OF THE PROJECT .. 4 1. 6 RESEARCH QUESTION .. 1. 7 METHODOLOGY OF THE RESEARCH .. 5 1. 8 STRUCTURE OF THE THESIS 6 CHAPTER 2 METHODOLOGY. 8 2. 1 INTRODUCTION 8 2. 2 DEFINITION OF STRUCTURED LITERATURE REVIEW (SLR) 8 2. 2. 1 Differences between Structured Literature review and Traditional Review. 9 2. . 2 Advantages of the Struc tured Literature Review 10 2. 3 STRUCTURED LITERATURE REVIEW PROCESS.. 10 2. 3. 1 Mapping the study field (Stage 1) .. 11 2. 3. 2 Developing the search strategy (Stage 2) 13 2. 3. 3 Assessment of the literature (Stage 3).. 20 2. 3. 4 Material Analysis (Stage 4) 2 2. 3. 5 Synthesis of the material (Stage 5). 22 CHAPTER 3 DESCRIPTIVE RESULTS. 23 3. 1 INTRODUCTION . 23 3. 2 CONTENT DESCRIPTIVE ANALYSIS ACADEMIC PAPERS .. 23 3. 3 HISTORICAL EVOLUTION OF THE IDEAS ACADEMIC PAPERS 25 3. 4 JOURNAL CLASSIFICATION- ACADEMIC PAPERS .. 28 3. AUTHORS’ CRITERION ACADEMIC PAPERS .. 30 3. 6 TYPE OF STUDIES- ACADEMIC PAPERS .. 31 3. 7 GEOGRAPHICAL ORIGIN ACADEMIC PAPERS .. 34 3. 8 OTHER PAPERS SOURCES NEWSPAPERS/TRADE PUBLICATIONS/REPORTS/WHITE . 35 3. 9 OTHER SOURCES- BOOKS. 36 iv 3. 0 OTHER SOURCES CASE STUDIES .. 37 CHAPTER 4 LITERATURE REVIEW: ANALYSIS OF THE FASHION INDUSTRY 39 4. 1 INTRODUCTION . 39 4. 2 FASHION DEFINITION . 40 4. 3 THE LEVELS OF THE FASHION INDUSTRY.. 0 4. 4 APPAREL CATEGORIES .. 42 4. 5 FASHION INDUSTRY CHARACTERISTICS 43 4. 6 FASHION TRENDS . 43 4. 7 FASHION INDUSTRY SUPPLY CHAIN . 45 4. 8 FASHION LEAD TIMES. 46 4. FASHION SUPPLY CHAIN APPROACHES . 47 4. 9. 1 Quick response (QR). 48 4. 9. 2 Fast fashion concept. 51 4. 9. 3 Lean supply chain.. 54 4. 9. 4 Agile supply chain approach 55 4. 9. De-coupling point approach . 58 4. 9. 6 Leagile supply chain approaches 59 4. 10 GLOBAL VS LOCAL SOURCING . 61 4. 11 MANUFACTURING IN THE FASHION INDUSTRY 63 4. 11. 1 Definition of fashion manufacturing. 63 4. 11. 2 Manufacturing types.. 3 4. 11. 3 Manufacturing operations .. 65 4. 11. 4 New manufacturing trends . 72 4. 12 DISTRIBUTION IN THE FASHION INDUSTRY .. 72 4. 12. 1 Distribution channels 73 4. 12. 2 Retail buying process . 73 4. 12. Retail logistics 75 4. 12. 4 Supply chain relationships.. 78 4. 13 MARKETING IN THE FASHION INDUSTRY .. 83 4. 13. 1 Definition of fashion marketing .. 83 4. 13. 2 Fashion marketing in practice.. 83 4. 13. 3 Fashion marketing rocess. 85 4. 13. 4 The role of consumer behaviour in marketing.. 89 4. 13. 5 Marketing communication.. 92 4. 14 SUMMARY . 93 CHAPTER 5 BUSINESS MODELS IN THE FASHION INDUSTRY 96 5. 1 INTRODUCTION . 6 v CASE STUDY 1 96 GUCCI’S AGILE SUPPLY CHAIN . 96 CASE STUDY 2 99 MARKS AND SPENCER’S REFINED SUPPLY CHAIN 99 CASE STUDY 3 . 03 ZARA’S FAST SUPPLY CHAIN 103 CASE STUDY 4 . 111 TESCO: THE GROWTH OF SUPERMARKET FASHION . 111 5. 2 COMPARATIVE ANALYSIS OF THE CASE STUDIES 115 5. 3 SUMMARY . 119 CHAPTER 6 DISCUSSION AND CONCLUSION.. 120 6. INTRODUCTION .. 120 6. 2 DEVELOPMENT OF THE MODEL .. 120 6. 4 DISCUSSION OF THE PROPOSED MODEL .. 123 6. 5 DISCUSSION OF THE RESULTS IN TERMS OF THE AIM OF THE SCOPE . 129 6. 6 CRITIQUE OF THE RESEARCH .. 134 6. 7 FURTHER RESEARCH 36 REFERENCES . 137 APPENDICES 148 vi LIST OF FIGURES Figure 1. 1: Thesis structure . 7 Figure 2. 1: SLR implementation process 11 Figure 2. 2: Field scope- main elements of the S LR 12 Figure 2. : Snowball search strategy 19 Figure 3. 1: Percentage of each content area. . 24 Figure 3. 2: Percentage of SCM/Logistics and marketing in the fashion industry. 25 Figure 3. 3: Percentage of SCM/Logistics and marketing in the apparel industry. 25 Figure 3. : Articles per year. 26 Figure 3. 5: Articles referring to apparel and fashion industry per year. 26 Figure 3. 6: The evolution of the fashion sector. .. 27 Figure 3. 7: The evolution of the apparel sector. .. 27 Figure 3. 8: Percentage of articles per Journal 29 Figure 3. 9: Authors who have written journal articles focused on the clothing/apparel industry and supply chain. . 31 Figure 3. 10: Theoretical/ Conceptual studies 32 Figure 3. 11: Theoretical/ Conceptual studies per year.. 32 Figure 3. 12: Analogy for studies per year for the fashion sector.. 33 Figure 3. 13: Analogy for studies per year for the apparel sector.. 33 Figure 3. 14: Types of empirical studies. . 34 Figure 3. 15: Percentage of articles per country. .. 5 Figure 4. 1: Route map of the chapter. .. 39 Figure 4. 2: The apparel supply chain 45 Figure 4. 3: Apparel business process. .. 46 Figure 4. 4: Generic supply chain strategies 48 Figure 4. 5: Cycle Time Compression through Quick Response 51 Figure 4. 6: Apparel supply chains.. 3 Figure 4. 7: The foundation for agility in a fashion business .. 56 Figure 4. 8: Approaches to agility in the supply chain 58 Figure 4. 9: De-coupling point locations.. 59 vii Figure 4. 10: Time compression methods in leagile supply chains .. 60 Figure 4. 11: Lead-time and forecast error relation. 62 Figure 4. 12: The fashion flow chart. . 6 Figure 4. 13: Production stage chart for the fashion supply chain. 67 Figure 4. 14: Sourcing types in the fashion industry 78 Figure 4. 15: Sourcing model for fast fashion. .. 81 Figure 4. 16: The fashion marketing process.. 85 Figure 4. 17: The marketing environment. .. 86 Figure 4. 18: Fashion internal market environment. 7 Figure 4. 19: Fashion ex ternal market environment. .. 88 Figure 4. 20: Fashion market environment strengths and weaknesses. .. 88 Figure 4. 21: A model of consumer behaviour .. 89 Figure 4. 22: Drivers of fashion change 90 Figure 4. 23: Maslow’s pyramid. . 91 Figure 4. 24: Brief summary of the literature results .. 5 Figure 5. 1: Business operations in the luxury sector . 98 Figure 5. 2: Gucci’s supply chain. .. 99 Figure 5. 4: Marks and Spencer revival.. 102 Figure 5. 5: Price-fashion brand positioning. .. 104 Figure 5. 6: Zara’s value chain. . 107 Figure 5. 7: Product pre-commitments: Zara vs Traditional Industry 108 Figure 5. 9: UK clothing specialists (Market positioning 2006). 111 Figure 5. 10: Non-food items bought from main supermarket in the last 12 months (January, 2007). .. 112 Figure 5. 11: Where consumers bought clothing from for themselves in the last 12 months (June 2006). 113 Figure 6. 2: Proposed fashion matrix .. 22 Figure 6. 3: Matching supply chains with products .. 128 viii LIST OF TABLES Table 2. 1: Differences between traditional and structured literature review. 9 Table 2. 2: Key words and search strings 13 Table 2. 3: No. of articles in each search string for ABI database 16 Table 2. 4: No. of articles in each search string for EBCO database. . 17 Table 2. 5: Relevant article results per database. . 21 Table 3. 1: No. f articles per Journal and star ranking. 28 Table 3. 2: Number of articles and year of publication per Journal. 30 Table: 3. 3: Number of articles per country 35 Table 3. 4: Other sources (newspapers etc. ) . 36 Table 3. 5: Book results. . 37 Ta ble 3. 6: Case studies results 38 Table 4. 1: UK fashion retail seasons. . 44 Table 4. 2: QR benefits 50 Table 4. 3: Differences between traditional and â€Å"fast fashion† retailing. . 54 Table 4. 4: Product characteristics for lean and agile supply chains 58 Table 4. 5: Agile manufacturing principals and benefits.. 71 Table 4. 6: Fashion supply chain relationships . 83 Table 4. 7: Two views of fashion marketing. 4 Table 4. 8: The fashion marketing concept. 85 Table 4. 9: Fashion industry levels 94 Table 4. 10: Product classification . 94 Table 5. 1: Marks and Spencer product ranges. . 103 Table 5. 2: Key differences between Zara and traditional retailer’s business model. . 110 Table 5. : Companies’ characteristics.. 116 Table appendix-A: No. of articles in each search string for Emerald database. 148 ix LIST OF APPENDICES Appendix A: Search Result of Databases .. 148 Appendix B: Questionnaire- Interview notes 149 Appendix C: Garment Production Process 152 x LIST OF ABBREVIATIONS CAD- Computer Assisted Design CAM- Computer Assisted Manufacturing CMI- Co-Managed Inventory DC- Distribution Centre EDI- Electronic Data Interchange EPO- Electronic Point of Sale IT- Information Technology JIT- Just-In-Time MRP- Material Requirements Planning NOS- Never-out-of-stock PDM- Product Data Management POS- Point of Sale QR- Quick Response RFID- Radio Frequency Identification SCM- Supply Chain Management SKU- Stock Keeping Unit SLR- Structured Literature Review SR- Systematic Review TQM- Total Quality Management UPC- Universal Product Code UPS- Unit Production System 3PL- Third Part Logistics xi Chapter 1 Introduction CHAPTER 1 INTRODUCTION 1. 1 Introduction The purpose of this chapter is to provide a prologue to the research. The background and the importance of the research are presented. The aim, the objectives are stated and the research questions are developed. Finally, the structure of the thesis and the scope are covered. 1. 2 Background to the research Recent business trends have been characterised by demand unpredictability, fast moving markets, expansion of product variety, short product life cycles, increased outsourcing, globalisation and explosion of information technology (Lee, 2002). Therefore, how to be successful in today’s rapidly changing environment is a key issue for many companies across different industries (Tang, 2005). According to Christopher (2005), today it is not companies that compete but supply chains. Supply chain management has been regarded as one of the main areas for companies to enhance competitive advantage (Lee, 2002). Consequently, companies have had to learn how to make critical decisions that would affect not only their present performance, but also their future success (Tang, 2005). 1. 2. Background to the fashion industry The fashion industry has faced many changes in terms of supply chain management during recent years. These changes emerged due to the characteristics of the market. In the past fashion retailing was dominated by several large retailers which increased the competition levels in the market (Barnes and Lea-Greenwood, 2006). 1 Chapter 1 Introduction During the 90’s, firms such as New Look and supermarkets s uch as Tesco, heavily influenced dominant fashion retailers’ markets and traditional market shares. Many retailers, in order to survive; moved production towards low wage, overseas countries. These countries offered cost efficiencies, and enabled these retailers to be focused on price competition. However, the overall result of this strategy has led to long lead times, and inflexible and complicated supply chains. This cost efficiency did not always ensure supply chain effectiveness due to the distance between the production and consumption points. Consequently, speed to market and quality levels were decreased (Bruce and Daly 2006; Barnes and Lea-Greenwood, 2006; Birtwistle et al. , 2003). The situation became worse due to the changes in the fashion market, such as consumers’ attitudes, lifestyles and the information explosion. The information explosion enabled consumers to be well informed of the trends around the globe and they became wiser about what they demanded. Entering the 21st century many firms such as Zara, recognising these changes, moved their focus from cost efficiencies to faster responsiveness to the trends and demand, and decrease of time to market performance (Hines, 2007b; Barnes and Lea-Greenwood, 2006). Nowadays, the fashion industry is characterised by aggressive competition levels. In the light of this high competition, fashion companies have to present not only price benefits for the consumer but also be focused on â€Å"newness† and constant â€Å"refreshing† of their product ranges (Hines 2007b; Hoffman, 2007; Barnes and Lea-Greenwood, 2006). Today’s retailers recognise that the customer is king. However, regarding the fashion sector, the customer is ever more fickle, impatient and fussy, and that leads to even more complications for the supply chain management. Michael Barrat, Retailer Researcher Director at AMR Research said that â€Å"information and trends are moving around the globe at speeds we have never seen before. As a result the consumer has more options and thus shops more often† (Hoffman, 2007, p. 1). Due to these challenges the supply chains in many cases have been reconstructed with the aim of serving the customer in a highly timely manner. 2 Chapter 1 Introduction 1. 3 Importance of the topic There are a number of factors behind the author’s decision to choose this topic as the thesis project. The decision was based on the fact that this sector presented interesting supply chains based on time dependence. Fashion markets have long attracted the interest of researchers. In terms of supply chain management there was a challenging sector which had been beset by the problems of volatility and demand unpredictability (Christopher and Peck, 1997). The fast pace of the fashion industry was a great challenge for companies involved in this sector. Across the seasons trends were changing. Thus the success or failure of a fashion company depended on effective purchasing decisions, inventory planning, manufacturing efficiency and product delivery. So in this case time urgent was fundamental. Those companies that assured product availability within days were regarded as the market winners (Worthington, 2006). In the fashion industry, pipelines have been notoriously long, inflexible and complex. Consequently, long buying cycles have been developed, resulting in inappropriate structures for the requirements of the modern fashion industry. Moves to improve supply chain responsiveness in the fashion industry have been made with the introduction of concepts such as quick response, Just-in-Time systems and agile philosophies (Bruce and Daly, 2007; Hines, 2007b). A review of business odels developed from companies such as Zara and Gucci and several others, has signalled that the fashion industry had successful supply chain solutions which were able to effectively meet consumer needs. Therefore, there were potential solutions and techniques that other industries might consider to improve the way in which they organised and managed their supply chain operations (Gutgeld and Beyer, 1995). 3 Chapter 1 Introduction 1. 4 Aim of the project and objectives of the research AIM: The aim of the research is to identify opportunities for other sectors to learn from the fashion industry. OBJECTIVES: The thesis has three objectives. Firstly, to review the literature on the theory and implementation of supply chain and marketing processes in order to identify the extent to which the fashion industry is able to create, anticipate and keep abreast of consumer demand. Secondly, to undertake case study reviews to identify the business models used by companies in the fashion industry, e. g. Zara and Gucci, that enable them to meet consumer needs. Finally, through analysis and synthesis to identify lessons that other industries can gain from such fashion retailers in how they organise and manage their supply chain operations. . 5 Scope of the project The fashion industry includes the design, manufacturing, marketing and sale of clothes, footwear and accessories. Nevertheless, in the literature or in the media, it is common when referring to the fashion industry to regard it as a clothing sector (Jackson, 2007). For that reason the focus of this research is on the garment ind ustry. Consequently, issues not related to the garment industry such as fibre, yarn and fabric manufacturing are excluded from the scope of the project. Whilst the research is primarily focused on fashion products, basic products that are not considered as fashionable are eviewed as well in order to develop a more comprehensive and holistic analysis of the total apparel product spectrum. The scope 4 Chapter 1 Introduction includes analysis of the fashion industry structure in general and the characteristics of several participants. Specifically, the analysis embraces common supply chain solutions in the industry such as quick response and agile approaches, as well as the type of relationships across the different actors in the pipeline. Referring to processes, a description of the manufacturing, distribution and marketing of fashion items is undertaken. Specific marketing issues are not included in the analysis. The scope of this project includes an evaluation of the theory through case study analysis. The purpose of this is to identify the ways that companies use in practice so as to meet demand. The case study review enables a comparative analysis across different investigated companies in terms of possible similarities and differences. Finally, the scope includes the development of a model which enables the author to crystallise the whole industry in terms of levels and products, and the related supply chain issues in each stage. 1. Research question Based on the objectives, the research question of the thesis is: â€Å"Why is the fashion industry able to provide lessons to other industries? † The fulfilment of this question is based on the answer of another question which is: â€Å"How do the several actors in the fashion industry organise and manage their supply chain operations? † 1. 7 Methodology of the research The logic of the research is based on a structured literature review. Descriptive analysis of the literature material is conducted along with critical review of the thematic contents of the literature findings, with he aim of discovering potential literature gaps. The literature review is based on academic papers and books. However, trade publications, 5 Chapter 1 Introduction newspapers and case studies are reviewed due to the nature of the topic. This enables the author to gain a more holistic and robust approach towards â€Å"real-world† issues. 1. 8 Structure of the thesis The thesis is structured as follows (Figure 1. 1) Chapter 1 The aim of this chapter is to develop an initial engagement with the reader of the broad field of the study and further focus on the research problem. The aim, the objectives and the scope of the project are outlined. Chapter 2 In this chapter the methodology adopted by the author in order to approach the research is outlined. A description of the implementation process is developed. Chapter 3 In this chapter, there is a descriptive analysis of the literature related to the fashion sector in terms of supply chain and marketing issues. The description particularly refers to the characteristics of the selected articles based on a set of criteria which are highlighted in chapter 3. Chapter 4 The content of this chapter is the review of the academic literature to gain insight into the fashion industry. This thematic section refers to the first objective of how the fashion industry works towards consumer demand. Chapter 5 In this chapter case study reviews are conducted. Identification of the business models used by companies in the fashion industry is developed. This thematic section aims to approach the second objective. 6 Chapter 1 Introduction Chapter 6 This chapter is divided in two sections. Firstly, it aims to consolidate the main findings in the literature review (from the two previous chapters) and develop a comprehensive model of how the fashion industry is structured and works. Secondly, it refers to the reflection of the overall work in order to define the main supply chain strategies and related tools adopted in the fashion industry and can be the base for providing lessons to other industries. Furthermore, it includes evaluation and review in terms of strengths and limitations of the research and proposes further future research. Figure 1. 1: Thesis structure Source: Author 7 Chapter 2 Methodology CHAPTER 2 METHODOLOGY 2. 1 Introduction The underlying thinking of the overall methodology strategy adopted in this project is to critically review the literature in the light of the three objectives of the thesis (See paragraph 1. 4). This chapter presents the methodology which has been chosen to meet the stated objectives. As the title declared, the thesis is a Structured Literature Review (SLR) by nature. In so doing, the definition of the SLR is presented along with its differentiation from a traditional literature review. Finally, the advantages of the SLR and the implementation process are demonstrated. . 2 Definition of structured literature review (SLR) The structured literature view is an evolution of the Systematic Review (SR). These two approaches present similar characteristics, but their differences are based on the implementation process. According to Morgan (2007, p. 2) the systematic literature review is more rigorous than the SLR. Maylor and Blackmon (2005, p. 98) de scribe the literature review as â€Å"a process of finding more about a research topic, in particular a theoretical problem it is the record of other people’s research†. According to Morgan (2007, p. ), â€Å"a (Structured) literature reviews are a method of making a sense of a large body of information, a †¦ method of mapping out areas of uncertainty†¦ and a way to tell the difference between real and assumed knowledge. They are methodologically sound (and lead to)†¦ results (that give) †¦. a good representation of the ‘truth’†. Denyer (2002, p. 14) states that SR is â€Å"a review of the evidence on a clearly formulated question that uses systematic and explicit methods to identify, select and critically appraise relevant primary research, and to extract and analyse data from the studies that are included in the rearview†. Finally, Boaz, Ashby and Young (2002, p. 2) define that the SR approach â€Å"acknowledges the large body of existing research and seeks to synthesize the findings from all relevant studies†. 8 Chapter 2 Methodology 2. 2. 1 Differences between Structured Literature review and Traditional Review The Systematic Literature Review (and consequently SLR mentioned before as an evolution of the systematic) is based on spotting the phenomena and is focused on a more â€Å"replicable, scientific and transparent process, ( , that aims to minimize bias through exhaustive searches of published and unpublished studies † (Cranfield Online, 2007). In comparison, in the traditional approaches of the literature review, the author included merely subjective information and thus irrelevant information, which did not fit in the research content, was excluded (Denyer, 2002). Regarding the traditional literature review, it was focused on a specific investigated area and did not provide detai led critical analysis to the degree that SLR did. The following table (2. 1) illustrates the major differences between these two areas. Structured Literature Reviews Scope of study Narrow Review question Organising the study Identifying studies Selecting studies Synthesising study results Clear, well-developed question/hypothesis Structured, clear process Rigorous and comprehensive search of published and unpublished information Pre-determined inclusion and exclusion criteria of studies Conclusion based on the most methodologically sound studies Traditional Reviews Wide General discussion, often without a developed question or hypothesis Unplanned/unfocused, permits creativity Searching is probing. Usually doesn t locate all the literature. Reasons for the inclusion and exclusion of studies may not be explicit No differentiation between methodologically sound and unsound studies Table 2. 1: Differences between traditional and structured literature review. Source: Nikolaidi, (2006). So the main difference between the structure literature review and the traditional approaches of literature review is the systematic approach of the SLR. Furthermore, traditional approaches have been deemed as solely descriptive without providing any new information, as well as lacking of any critical assessment (Tranfield et al. , 2003). 9 Chapter 2 Methodology 2. 2. Advantages of the Structured Literature Review The main advantages of the structured literature review are, firstly, that the evidencebased approach offers a scientific and objective quality to the research. Secondly, there is an effective way to draw together and analyse extensive literature, as well as, eliminate any bias and error issues (Tranfield et al. , 2003; Denyer, 2002 ). The author chose the structured literature review as a methodology approach due to the fact it enables the connection of the existing research information and the development of an overall view of the research area via a reliable and valid route. A further reason for selecting SLR, apart from the fact that it constitutes a resourceful technique, is that it enables the integration of all the research areas under investigation, such as the fashion industry, general apparel sector and supply chain management. 2. 3 Structured Literature Review Process In general the steps followed to develop a structured literature review are: 1. Scope the field 2. Develop the research strings 3. Determine the research areas 4. Review the results 5. Conclude the findings The following diagram (2. ) depicts the implementation process of the SLR through which the research is developed and the thesis is accomplished. The sequence of the stages is continuous and each phase is interdependent with the following one. 10 Chapter 2 Methodology Stage 1 Focus of the Investigation Stage 2 Search Strategy High level Stage 3 Assessment of the Literature Material Analysis Low level Stage 4 Stage 5 Material Synthesis Figure 2. 1: SLR implementation process Sourc e: Adapted from Morgan, (2007), Lecture notes. 2. 3. Mapping the study field (Stage 1) The main elements of the structured literature review are supply chain, logistics and fashion industry. These three elements were the starting point in the attempt to explore and comprehend the objectives and border the research scope. The fashion industry was reviewed in terms of supply chain management and logistics operations with the aim of identifying the way that the industry is structured and operated and the main value points that might provide lessons to other industries. 11 Chapter 2 Methodology Supply chain Fashion industry Logistics Figure 2. : Field scope- main elements of the SLR Source: Author. The first objective, which is related to the fashion industry and the way of managing customer’s demand, was covered by reviewing the literature area where the three cycles (figure 2. 2), fashion industry, supply chain and logistics overlap. However, apart from a holistic review of the supply chain, particular issues such as manufacturing, distribution and marketing of fashion items were assessed in detail. The second objective which was related to the identification of business models followed in the fashion industry was approached through case study analysis. A model development enabled the synthesis and the analysis of the fashion industry in a comprehensive way. At this point, worth noting was that the term fashion industry was used with a broad meaning, including the general apparel industry as well. Finally, the above described step was considered to be fundamental in identifying the domains that the research covered, spotting possible overlaps between them; developing the research questions and justifying the investigating approach (Morgan, 2007). 12 Chapter 2 Methodology 2. 3. Developing the search strategy (Stage 2) The aim of this phase is to identify all the relevant studies for the issues investigated and develop a set of arguments with the aim of elucidating the design of the research and giving reasons for decisions taken. Identification of the search strings The literature research started by identifying key words and by developing the search strings (Tranfield et al. , 2003). The searching terms were derived by conducting an initial literature review and by discussing these with the supervisor and the sponsor of the thesis. After identifying the key words, the search strings were developed. The following table (2. 2) presents the key words and the search strings. SLR elements Supply Chain Key words Supply chain Demand chain Value chain Fashion industry Apparel industry Fashion goods Fashion items Fashion industry Textile industry Garment industry Clothing industry Footwear Fashion retail Fashion business Logistics Logistics Manufacturing Distribution Marketing Logistics or manufactur* or distribut* or marketing Fashion or apparel or textil* or garment* or cloth* Supply chain or demand chain or value chain Search strings Table 2. 2: Key words and search strings Source: Author 13 Chapter 2 Methodology Identification of the databases The prime resources in order to conduct a structured literature review were the electronic databases. For the purpose of this research three databases were used: ABI/INFORM Trade and Industry (ProQuest) EBSCO Business Source Premier Emerald Library Journals The academic databases ABI/INFORM Global/Trade and Industry (ProQuest) and EBSCO Business Source Premier were regarded as providing the most relevant literature after conducting an initial search with simple keywords. Emerald Library journals offered a narrower range of results. More specifically, after cross checking, the author figured out that the majority of the articles found in this latter database were included in the two former academic databases. These two top potential sources have the following characteristics: ABI/INFORM Global (ProQuest) This included subjects related to management techniques, theory and practice of business, marketing and business and economic conditions. It provided about 2,770 Journal titles (Proquest Online, 2007). ABI/INFORM Trade and Industry (ProQuest) This covered about 1,210 serials in areas related to companies, trends and products (Proquest Online, 2007). EBSCO Business Source Premier This daily updated database included about 8,800 Journal titles with more than 1,100 peer reviewed publications and full-text articles from high quality marketing and management articles. The main fields that it covered among others are management and marketing (Ebscohost Online, 2007). The research of the publications was narrowed down by overviewing only peer reviewed titles in order to ensure a higher level of research credibility. Peer-reviewed 14 Chapter 2 Methodology publications referred to the fact that the articles are reviewed and approved by experts in similar topic areas (Proquest Online, 2007). Search Results The following two tables (2. 3 and 2. 4) illustrate the search results for titles of each database in relation to each search string. The tables refer to the two main academic databases ABI/INFORM Global/Trade and Industry (ProQuest) and EBSCO Business Source Premier. The relevant table for the Emerald database is cited in appendix-A. These tables aim to present all the likely combinations among the literature review elements and search strings by ensuring a higher possibility for appearing relevant to the investigated articles. â€Å"Refine† refers to the number of titles which were peer reviewed. The tables presented the potential articles from each database. However, the author, in order to proceed to the assessment of the literature which consisted of one of the following steps, decided to focus on one search string which was: (a) Supply chain (or) demand chain (or) value chain AND Fashion (or) textile* (or) garment* (or) apparel (or) cloth*. The reason for that decision was that the number of the resulting titles of this search string was manageable by allowing the search to remain broad but not out of scope. So there was no need to narrow it down further. Indeed, by including the additional search string of â€Å"Logistics (or) distribut* (or) manufact* (or) marketing† the resulting titles became even fewer (figures 2. 3 and 2. 4). However, in order to ensure that no valid information was missing these titles were reviewed in brief, during the literature assessment process, and it was discovered that the majority of them were included in the former (a) search string. 5 Chapter 2 Methodology Source: ABI database Supply chain (or) demand chain No. of articles in each search string Supply chain (or) demand chain (or) value chain Fashion Fashion (or) textile* (or) garment* (or) apparel (or) cloth* Logistics (or) distribut* (or) manufact* or marketing 39, 702 Refine: 6436 315 Refine: 71 54,005 Refine: 3,524 177,020 Re fine: 8140 1,291 Refine: 184 (or) value chain Fashion Fashion (or) textile* (or) garment* (or) apparel (or) cloth* Logistics (or) distribut* (or) manufact* or marketing 16,922 Refine: 2972 9,684 Refine: 953 34,616 Refine: 2227 1,164,875 Refine: 110,267 Three search strings together Supply chain (or) demand chain (or) value chain Fashion (or) textile* (or) garment* (or) apparel (or) cloth* Logistics (or) distribut* (or) manufact* or marketing (ABI) Total 719 articles Refine: 120 articles Table 2. 3: No. of articles in each search string for ABI database. Source: Author 16 Chapter 2 Methodology Source: EBSCO database No. f articles in each search string Supply chain (or) demand chain (or) value chain Fashion 30,526 Refine: 7,127 210 Refine: 84 33,458 Refine: 4,063 Fashion (or) textile* (or) garment* (or) apparel (or) cloth* Logistics (or) distribut* (or) manufact* or marketing 104,139 Refine: 9245 885 Refine: 179 Supply chain (or) demand chain (or) value chain Fashion Fashion (or) textile* (or) garment* (or) apparel (or) cloth* Logistics (or) distribut* (or) manufact* or marketing 18,918 Refine: 4, 988 10,920 Refine: 1,403 39,435 Refine: 3,555 ,774,721 Refine: 267,820 Three search strings together Supply chain (or) demand chain (or) value chain Fashion (or) textile* (or) garment* (or) apparel (or) cloth* Logistics (or) distribut* (or) manufact* or marketing (EBSCO) Total 543 articles Refine: 140 articles Table 2. 4: No. of articles in each search string for EBCO database. Source: Author Other sources Other non-academic sources, such as Google scholar and Mintel reports were investigated in order to approach the researching areas more effectively. Furthermore, due to the difficulty of finding enough sources related to the supermarket clothing departments and fashion marketing, these sources, along with books, provided further information. The additional sources that were used were: 17 Chapter 2 Methodology Google scholar Trade Publications (e. g. Traffic World) Newspapers (e. g. Financial Times) Mintel reports Case studies (e. g. Zara, and Marks and Spencer) Reference/ Reports (e. g. Just-Style) White papers (e. g. CFPIM Intentia Americas) Mintel offered efficient information for the clothing and supermarket sectors. Furthermore, books provided very useful information about the examined issues covering both theory and examples from the practice. The latter enabled the author to decide the case studies to be studied. Google scholar, apart from providing some efficient publications, facilitated a first overview of the issues investigated. Furthermore, it provided a good link to a college (London College of Fashion) which deals with the fashion industry. At this point, regarding the process of searching for relevant information about the issues investigated, apart from the development of the key words search, a â€Å"snowball search† was conducted. According to Maylor and Blackmon (2005), â€Å"snowball search† is the review of the reference and the bibliography list of a relevant article in order to discover any previous useful researches and information (figure 2. 3). 18 Chapter 2 Methodology Snowball search Original reference A References to A B C References to B D E F G Figure 2. 3: Snowball search strategy Source: Maylor and Blackmon, (2005). Case studies According to Yin (2003) the case study, as a method, enables researchers to preserve the holistic and meaningful attributes of real life events. These could include, among others, organisational and managerial processes. The primary aim of examining a case study was to identify the business models used in the fashion industry in terms of their supply chain management and the extent to which they enabled them to meet consumer requirements. As mentioned above, books provided information regarding case studies for some companies. Nevertheless, the majority of the case studies were found in the site of ECCH (European Case Clearing House) (ecch. com). Advisory groups The main advisors in the research were the supervisor and the sponsor of the research project. Furthermore, a formal presentation of the progress of the research was conducted on the 6th of June 2007. During this presentation useful recommendations were given by a panel of academics in terms of the issues investigated. Apart from the above mentioned advisors; the group included an academician (Sanaul Mallick, lecturer in corporative strategy) from the London College of Fashion, who contributed to the 19 Chapter 2 Methodology progress of the research by offering useful information and expertise. The interview was based on a semi-structured questionnaire, which was conducted on the 25th of July 2007 at the London College of Fashion. Finally, librarian staff provided assistance in terms of the source searching. 2. 3. 3 Assessment of the literature (Stage 3) In this stage, evaluation of the articles found in the electronic databases was conducted. For the purpose of this process, inclusion and exclusion criteria were developed. The latter was enabled by the initial search which was conducted in the first stages of the research as mentioned before. These pre-determined criteria which were slightly refined during the whole process enabled the avoidance of any bias and possible errors of judgment. According to Morgan (2007), this phase of the structure literature review is divided into two stages: â€Å"high level assessment of the literature† and â€Å"low level assessment of the literature†. High level assessment of the literature Firstly, the high level assessment of the literature review refers to an initial screening of each article’s title and abstract. In this point the inclusion criteria are: Empirical and theoretical studies. No time-frame restrictions. All the related sectors, for example in the broad meaning of apparel sector apart from fashion, basic clothing was taken into consideration as well. No strict geographical restrictions. Respectively, the exclusion criteria were: No relevance to the investigated area. Not written in the English language. The resulting numbers from this brief screening for each database are illustrated in the following table (2. 5): 20 Chapter 2 Methodology Databases ABI (Proquest) EBSCO Emerald Table 2. 5: Rele vant article results per database. Source: Author. No. of possible relevant articles for fashion industry 67 81 37 The above results were referred to the search string (a) and duplications were included. As mentioned before, from the 81 possible relevant articles founded in EBSCO only 49 articles were not included in ABI’s results, and the majority of the articles in Science direct and Emerald were found in the two former databases. As a result, the total relevant articles for the fashion industry which proceeded to low level literature assessment were around 115. Low level assessment of the literature Low level assessment of the literature is regarded as a more detailed and full text screening of the remaining possible relevant articles. In this stage the previous screening of the abstracts enabled the development of more restricted inclusion and exclusion criteria, closely related with the research scope. Inclusion criteria: Fashion industry background. Fashion industry related only to clothing. Supply chain strategies in both sectors and approaches such as Quick Response (QR) and agile. Related logistics operations in each sector including manufacturing, distribution and marketing. Geographical areas: UK, US, Australia; and generally developed countries. Exclusion criteria: Focus on corporate responsibility. 21 Chapter 2 Methodology Focus on related environmental issues. Geographical restrictions. Exclude countries such as India, Sri Lanka and Hong Kong. E-retailing related to internet sales For the fashion industry exclude fabric industry. The estimated final number from academic journals is 51 academic articles. Regarding other information sources the final number is 8 books, 11 case studies, 5 newspapers, 6 trade publications, 2 reference/ reports (including Mintel) and 1 white paper. 2. 3. Material Analysis (Stage 4) The material analysis included the presentation of the chosen articles in a descriptive way. The descriptive analysis referred to the categorisation of the articles in a number of comprehensive ways in order to present the overall analysis of the investigated issue. The descriptive findings are developed in Chapter 3. 2. 3. 5 Synthesis of the material (Stage 5) The approach of the first objective was based on ac ademic articles and books. However, newspapers, trade publications and white papers were used in order to approach the issue in a more robust way. Furthermore, the second objective, the assessing of business models followed in practice, was approached through case study review. Regarding the third objective, based on the literature and case study findings, a conceptual model was developed based on Hayes and Wheelwright (1979) model. The model presented the structure of the fashion industry and the way that the supply chains were organised and managed. This overall process enabled highlighting the learning points from the fashion industry in terms of supply chain strategies and tools. 22 Chapter 3 Descriptive Results CHAPTER 3 DESCRIPTIVE RESULTS . 1 Introduction The purpose of this chapter is to present a description of the finally selected articles. The descriptive analysis is regarded as findings and contributes to more robust overview of the further thematic analysis. The majority of the descriptive analysis is focalised on the academic papers (total 51 articles). However a brief presentation of the rest of the sources such as case studies and books is undertaken. 3. 2 Content descriptive analysis Academic papers A first review of the papers allowed a classification of the selected articles in terms of content. The four categories that the articles could be categorised into were fashion industry, apparel industry, supply chain management and logistics, and marketing. Supply chain management included manufacturing, suppliers, information issues, relationships and strategies. The following figure (3. 1) presents the percentages of each of these four categories in the total number of articles. Analysis of the fashion and apparel industries separately was conducted. Nevertheless, articles in which the title, the abstract and the keywords referred to apparel or clothing or textile, sometimes referred to fashion, as well. For that reason the classification regarding those two categories was based on the title, the abstract, the descriptors and the main points referred to in the article, reflecting in that way the focused area of each author. 23 Chapter 3 Descriptive Results 4% 29% 31% Fashion Apparel SCM/ Logistics Marketing 36% Figure 3. 1: Percentage of each content area. Source: Author Figures 3. 2 and 3. 3 present a further descriptive analysis of the fashion and apparel industry in terms of supply chain/ logistics and marketing. Regarding the two industries, the majority of the articles referred to supply chain and logistics. However, the percentages of the articles that referred to marketing were more in the fashion than in the apparel industry. But was there a reason for that? The market oriented nature of the fashion industry and the need for effective demand management, indicated that supply chain and marketing issues were both important. In so doing, marketing could be considered as an important factor to the success of a fashion firm; thus attracting the interest of researchers. However, the supply chain management seems to have been the area that has attracted the researchers’ interest more than marketing. This could be explained by the challenging nature of the industry in terms of manufacturing and general logistics issues. 24 Chapter 3 Descriptive Results 25% 75% Fashion SCM/ Logistics Fashion Marketing Figure 3. 2: Percentage of SCM/Logistics and marketing in the fashion industry. Source: Author 6% 94% Apparel SCM/ Logistics Apparel Marketing Figure 3. 3: Percentage of SCM/Logistics and marketing in the apparel industry. Source: Author 3. 3 Historical evolution of the ideas Academic papers In this section the characteristics of the selected articles were described based on chronological criteria. Figure 3. 4 presents the distribution of the articles both in number and percentage during the years. The majority of the selected articles were found after 2000, with more focused on 2006. Figure 3. 5 presents a comparison between the fashion and apparel sectors across the years. 25 Chapter 3 Descriptive Results 14 12 No. of Articles 10 8 6 4 2 0 1979 1989 1993 1994 1995 1996 1997 1999 Year No. of Articles Percentage 2000 2001 2002 2003 2004 2005 2006 25% 20% 15% 10% 5% 0% Figure 3. 4: Articles per year. Source: Author 00% 90% Percentage of Articles 80% 70% 60% 50% 40% 30% 20% 10% 0% 1989 1993 1995 1997 1999 2000 2001 2002 2003 2004 2005 2006 Years Apparel Industry Fashion Industry Figure 3. 5: Articles referring to apparel and fashion industry per year. Source: Author The following figure (3. 6) presents the distribution of the â€Å"fashion† articles per year. The evolution of the ideas during the years could be that in the 90s most of the articles were referring to general supply chain/logistics and marketing issues whilst in the beginning of the next decade concepts such as quick response and agility became more aggressive. Over the last years, i. e. towards 2005 and 2006, concepts of fast fashion, customer driven, customisation and demand management were deemed as more popular. 26 Chapter 3 Descriptive Results Fashion Industry 60% Percentage of aticles 50% 40% 30% 20% 10% 0% 1989 1993 1995 1997 1999 2000 2001 2002 2003 2004 2005 2006 Years Fashion Industry Figure 3. 6: The evolution of the fashion sector. Source: Author The following figure (3. 7) presents the apparel industry evolution during the years which could be characterised as more mature. Whilst the majority of the articles referring to fashion were found in 2006, the apparel sector presented a more â€Å"smooth† distribution both in number of publications and content. Quick response was always an area of focus. In the recent years, and a reflection on networks, the integration and explosion of technology use was found. Apparel Industry 30% Percentage of articles 25% 20% 15% 10% 5% 0% 1989 1993 1995 1997 1999 2000 2001 2002 2003 2004 2005 2006 Years Apparel Industry Figure 3. : The evolution of the apparel sector. Source: Author 27 Chapter 3 Descriptive Results 3. 4 Journal classification- Academic papers The following table (3. 1) and figure (3. 8) present the number and the percentage of selected articles in each journal. The ranking in terms of stars was given based on the â€Å"Academic Journal Quality Guide of The Association of Business Schools in 2007†. The majority of the articles, especially for the fashion industry, were derived from the  "Journal of Fashion Marketing and Management†. Journal Title Journal of Fashion Marketing and Management Journal of Enterprise Information Management International Journal of Operations and Production Management Business Strategy Review Supply Chain Management: an International Journal Industrial Management and Data Systems Management Science International Journal of Retail and Distribution Management Supply Chain Europe International Journal of Physical Distribution and Logistics Management International Journal of Agile Management Systems The McKinsey Quarterly International Journal of Clothing Science and Technology European Journal of Marketing California Management Review Competition and Change Harvard Business Review Industrial Relations Integrated Manufacturing Systems International Journal of Logistics: Research and Applications International Journal of Production Economics Journal of Marketing Management Technology in Society International Journal of Logistics Management The International Review of Retail, Distribution a nd Consumer Research Total No. of Articles 10 1 3 1 1 1 1 3 1 3 2 2 2 1 1 1 3 1 1 1 4 1 1 4 1 51 Ranking 1* * 3* 1* 3* 1* 4* 1* N/A 1* 1* N/A N/A 3* 3* 2* 4* 2* 2* 2* 3* 3* N/A 2* 2* Table 3. 1: No. of articles per Journal and star ranking. Source: Author 28 Chapter 3 Descriptive Results 8% 2% 2% 8% 2% 2% 2% 6% 2% 2% 2% 4% 2% 20% 2% 6% 2% 2% 2% 2% 6% 4% 4% 6% 2% Journal of Fashion Marketing and Management Journal of Enterprise Information Management International Journal of Operations and Production Management Business Strategy Review Supply Chain Management: an International Journal Industrial Management and Data Systems Management Science International Journal of Retail and Distribution Management Supply Chain Europe International Journal of Physical Distribution and Logistics Management International Journal of Agile Management Systems The McKinsey Quarterly International Journal of Clothing Science and Technology European Journal of Marketing California Management Review Competition and Change Harvard Business Review Industrial Relations Integrated Manufacturing Systems International Journal of Logistics: Research and Applications International Journal of Production Economics Journal of Marketing Management Technology in Society International Journal of Logistics Management The International Review of Retail, Distribution and Consumer Re search % of Articles per Journal Figure 3. 8: Percentage of articles per Journal. Source: Author The following table (3. 2) presents the journals in combination with the year of publication of each article. In the brackets are the numbers of the articles published each year for each specific journal. At this point it should be noted that there was no exclusion of papers that were a certain number of years old. The reason that most of the papers were published in 2006, especially in the â€Å"Journal of Fashion Marketing and Management† (where the majority of them were found), might be due to the end of the quota system in 2005; which encouraged even more the sourcing in low wage overseas countries such as China (McKee and Ross, 2005). So there might be an interesting investigated area from several authors on the fashion industry. 29 Chapter 3 Descriptive Results Journal Name Journal of Fashion Marketing and Management Journal of Enterprise Information Management International Journal of Operations and Production Management Business Strategy Review Supply Chain Management: an International Journal Industrial Management and Data Systems Management Science International Journal of Retail and Distribution Management Supply Chain Europe International Journal of Physical Distribution and Logistics Management International Journal of Agile Management Systems The McKinsey Quarterly International Journal of Clothing Science and Technology European Journal of Marketing California Management Review Competition and Change Harvard Business Review Industrial Relations Integrated Manufacturing Systems International J