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developed. Apparel operations can upgrade in three ways: process, product, and<br />
functional upgrading (Kaplinsky and Morris 2001:39).<br />
Process upgrading involves improving the production line to deliver more effectively at a<br />
cheaper price. Through product upgrading, the company can enhance quality or offer<br />
higher-end products. Functional upgrading involves redrafting the company’s business<br />
strategy to move from manufacturing only, to design, branding and marketing. These are<br />
the core elements on which South Africa’s independent fashion designers should<br />
concentrate in order to increase their market profile in South Africa.<br />
Within the context of functional upgrading, e-business (Moodly, 2002) has been seen as a<br />
useful tool, but restrictions within South Africa for using this mechanism within the value<br />
chain is constrained by the high cost of the internet and the poor functionality of lines for<br />
Internet usage.<br />
According to Gereffi et al (2001), there is another aspect that lends itself to upgrading: the<br />
creation of networks. This involves companies seeking out new customers with brand<br />
recognition and proven market value, and which in turn provides some surety for better<br />
financial returns for the manufacturing industries.<br />
Governance provides a parameter in which the various players linked into a value chain<br />
need to confer and co-operate in establishing a basis of uniform understanding, so as to<br />
comply with prescribed ethical standards including those pertaining to labour regulation.<br />
6.3 Buyer-Driven Value Chain<br />
Changes in the global clothing industry and the way retailers stock their stores have<br />
impacted strongly on clothing manufacturers, forcing them to adapt their entire<br />
operations as they strive to keep abreast with mutating realities and norms. Today, the<br />
retail level of the value chain functions on “just-in-time” buying in response to demands by<br />
consumers for new styles. According to McCormick and Schmitz (2002), retailers retain low<br />
stocks and demand rapid turnaround on production orders. These authors claim that the<br />
clothing industry has evolved to the point where there are multi-seasonal, short-run designs<br />
appearing in the retail outlets.<br />
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