Danish Fashion Going Global - Spandet And Partners

DANISH FASHION GOING GLOBAL 53
times the production price and not only three times the production price for a pair of
black socks made in China with a brand label stitched onto it.
Groupon is as an example of the many deal-of-the-day websites, localized to major
geographic markets and a new sales platform which will also play a major role in the
fashion business. Groupon serves more than 150 markets in North America and 100
markets in Europe, Asia, and South America and has amassed 35 million registered
users.
Upstream integration
All non identity creating activities (what the consumer cannot see)—upstream
integration—can be organized and managed on one common platform with maximum
synergy in operations—production, freight, logistics (pick and pack), controlling, IT,
financing, administration, legal issues and common overall management.
This may collide with the individual (designers) having and controlling their own
company although there is a lot of business sense and competitive advantage in
creating such a constellation.
Downstream optimization
All identity creating activities (what the consumer can see)—downstream
optimization—product, concept wholesale (in Denmark) is handled by the label itself
in order to ensure no cannibalization of the brand identity.
Based on the assumption that the downstream activities can have major strategic
importance for the individual designer/label it could be more realistic to look at the
upstream activities, a common sales management, sales people and some back
office functions as a basis for optimization throughout the value chain.
The challenges of moving from Tier 4 to Tier 3 to Tier 2 to Tier 1 are illustrated on the
next page. Moving from Tier 4 towards Tier 1 is very expensive/requires a lot of
capital.