Product details

The global apparel industry is known to be a buyer-driven industry, led by the retailers, marketers and branded manufacturers. In the United States, in particular, the industry is dominated by a handful of giant retailers (Walmart, Sears, Kmart, Dayton Hudson, JC Penney), which account for over two thirds of all apparel sales. In recent years, these companies have increasingly deployed information technologies (IT) to gain market knowledge, streamline their value chain, and manage their extensive global sourcing networks. In response to market demand, TAL Apparel Limited (TAL), a no-name Hong Kong-based garment manufacturer, has developed a sophisticated information management system to manage the supply chain for its retailer customers, thus solidifying its position in the apparel value chain. By taking ownership of customer ordering, inventory management and shipment dispatch functions, the manufacturer has gained valuable access to real-time market information, allowing it to venture into the design and test marketing business. This case explores how a traditionally weak member in the apparel industry uses IT to gain competitive advantage in the intensely competitive global marketplace, thus upgrading itself in the economic value chain.