Danish Fashion Going Global - Spandet And Partners

DANISH FASHION GOING GLOBAL 69
22. Outsourcing
22.1. General
The reality of outsourcing did not surprise most Danish fashion companies. Already in
the 1950s a company like Møller & Co. moved part of the production to China in
1956. Also InWear Group was one of the early movers. From the foundation in 1969
most of the production took place in India, Portugal, or Hong Kong.
At last everybody had to follow troop in the 1980s with Poland being one of the new
main production countries.
Outsourcing meant that the traditional fashion companies had to re invent
themselves and the business field that they operated in. Danish fashion transformed
from being mainly wholesale production to becoming knowledge-based companies
and marketers of fashion brands.
Outsourcing meant introduction of a new business model. The companies had to
learn to adjust to market conditions focusing on product development, design,
logistic, marketing, and branding. It resulted in new fashion companies and labels
that integrated the design aspect with business and production knowledge.
The new strategy of following international trends and compete on price and costs
has since then been a successful business model for many Danish fashion
companies.
In line with outsourcing, new types of fashion companies saw the daylight.
The strategy worked for many companies. Examples are Pandora, Bestseller, BTX
Group, and IC Companys. All these companies have a strategy of marketing an
international look in their designs and to be quick in production of designs which
prove to be successful in the markets.
The production of fashion, jewelry, and accessories was moved to low-paid countries;
and in order to sustain the competition, the Danish manufacturing companies had to
follow.
In the fur business the opposite scenario took place. The production was maintained
in Denmark with Denmark being the world’s largest producer of mink. Therefore
some regard fur as a part of Danish agriculture. Today most of the buyers at the fur
auctions in Denmark are from China.