fashion industry supports localization in clusters of firms with coordination and differentiation
as their core activities. However, it is important not to overstate the permanence or
solidity of such localization forces. For portfolio companies there are few reasons to
suppose that the portfolio cannot be moved or managed from some other place. Indeed
many entrepreneurs setting-up branded portfolio firms may have selling the entire operation
(to whomever, wherever) as their short-term exit strategy. sheath bridal gown ,
For firms involved in
retail and consumer-driven markets it may well be sensible as they grow to devolve as
many high-end functions to locations that are “closer” to the markets they aim to serve.
For larger firms that operate in many different markets it may also be sensible to outsource
almost everything (for instance, H&M have outsourced: design to the likes of Lagerfeld,
etc; advertising and branding to local experts; development of retail concepts to local
subsidiaries) and even to off-shore the central corporate vehicle (for instance, to benefit
from variable tax regimes or to raise capital through multiple exchange listings).
Before turning, in the next section, to the spatial aspects of the interactive processes that
contribute to learning and innovation in Swedish fashion, we should note a different yet
rather obvious spatial aspect: the importance of the notion of product origin in fashion.
Spatial origins and associations do matter to fashion consumers and can be leveraged as
valuable assets: e.g. Made in Italy, Paris fashion. This raises interesting questions about
products’ origins and whether it is that in fashion product origins are always constructed.
For the vast majority of fashion companies garment production is as a rule outsourced,
typically to low-cost countries. The bigger companies normally have permanent garment
suppliers, contractors they use season after season. Smaller companies also outsource but
might not have similarly close connections to suppliers; they turn instead to intermediaries,
often referred to as buying agents, to find the right producers. Japanese school uniforms .
These types of
agents act as an extended arm between fashion companies and garment producers. They
help their customers with the material part of their production—both for sales collections
(the clothes presented to potential retail customers) and for final collections (what is
actually sold in the stores).
Buying agents can be a secretive breed and in the Swedish case it is hard to find information
on them. According to interviewees this low profile is a conscious choice. They
want to work with customers on a long-term basis, and their portfolio consists mainly of
return clients . Buying agents’ secrecy denotes that they do not need to develop active
marketing strategies—hence they can afford to keep a discreet profile. In addition, the
536 A. Hauge, A. Malmberg & D. Power
customers’ brands typically do not want to be associated with buying agents’ services.Many
fashion companies want to downplay the more unglamorous parts of garment production.
Low-cost production will, if not concealed, certainly not be emphasized. Fashion has
come under scrutiny for exploiting sweat shop labour, and this is without a doubt one of
the darker sides of garment production. However, fear of negative exposure might not be
the most important reason for which fashion companies want to keep their production
arrangements clandestine; claims of exclusivity and superior quality are more difficult to
argue when the clothes are made at low cost in spaces also used by less exclusive brands.
Despite the different intangible inputs in fashion, the production country of origin
remains important to consumers.
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