McCormick+Schmitz Handbook for value chain research on - PACA

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4. Types of garment <strong>chain</strong>s Since garment <strong>chain</strong>s vary considerably, our understanding of how they work can be helped by grouping them into different types. We look in the following two sections at two such groupings, one based on <strong>chain</strong>s’ geographic spread and the other on how they are controlled. 4.1 Geography of garment <strong>chain</strong>s The geography of a <strong>value</strong> <strong>chain</strong> is important because it tells the <strong>research</strong>er how far s/he needs to go to encompass the full <strong>chain</strong>. As was mentioned in chapter 2 above, some <strong>chain</strong>s are global, while others are international, national, regional, or local. Global <strong>value</strong> <strong>chain</strong>s are those with activities taking place in many countries on different continents. In the case of garments, this may mean that design takes place in London or New York, fabric is sourced from China, trim and other inputs are made in India, and assembly takes place in Mauritius. In some cases, even the assembly of the same or related items can take place in several countries. For example, large buyers often contract producers in different countries to make identical shirts. It is also not unusual to find a matching skirt and blouse where the blouse was made in one country and the skirt in another. Obviously such globally dispersed production requires very careful planning and coordination. This is a subject that we will return to in the next chapter. Other <strong>chain</strong>s extend beyond national boundaries, but they cannot be called truly global. One <strong>for</strong>m of international <strong>chain</strong> involves locating different <strong>chain</strong> activities in two or three, often neighbouring, countries. A South African company, <strong>for</strong> example, may design a garment that will use fabric from Zimbabwe, be assembled by a “cut-make-and trim" firm in Lesotho, and sold through one or more South African retailers. 21
Figure 4.1: Triangle manufacturing US Buyer Taiwan Low-wage Producer One variant of international production has come to be called "triangle manufacturing" (Gereffi 1999). It came into being in the 1970s and 1980s as a way of taking advantage of low-wage labour and favourable quotas, while at the same time using the experience that had already been developed by many Asian suppliers. Triangle manufacturing begins when a buyer places an order with a manufacturer with which it has previously done business. A typical example is a US retailer placing an order with a Taiwanese apparel firm. In order to fill the order at a competitive price, the Taiwanese firm then shifts some or all of its production to another manufacturer in a low-wage country. The triangle is completed when the finished goods are shipped directly to the original buyer. Such goods are, of course, subject to the quotas and/or tariffs of the manufacturing country rather than those of Taiwan through whom the order was placed. The Taiwanese manufacturer, however, as the main contractor and recipient of the payment, can ensure its own profitability. Still other <strong>chain</strong>s are contained within a single nation. The South African garment industry provides a good example. The country’s history of isolation means that it developed capabilities in all aspects of garment production, from design to distribution. The country’s multi-outlet retailers, such as Woolworth and Foschini, are able to function as design houses and major buyers, contracting <strong>for</strong> the production of garments from a variety of sources within the country. Some of these national <strong>chain</strong>s involve interfirm linkages similar to those characterising global <strong>chain</strong>s. October (1996), <strong>for</strong> example, describes how producers in the Western Cape cooperate on joint clothing ranges, with a 22
Page 1 and 2: MANUAL FOR VALUE CHAIN RESEARCH ON
Page 3 and 4: 10.1 Mapping homeworkers 57 10.2 Ma
Page 5 and 6: List of Boxes Box 1.1: Maria: A hom
Page 7 and 8: Introduction In developed and devel
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Page 11 and 12: Part I. Homeworkers in Value Chains
Page 13 and 14: Box 1.2: Agnes: A homeworker moving
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Page 17 and 18: A value ch
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it may well be worth recording them
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it is useful to present the results
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Figure 12.3 : Sub-contractor networ
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13.2 Observing Here are some of the
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A good research de
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A major concern in the protection o
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Buyers’ expectations Producers’
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15. Working with public agencies Th
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useful source of infor</str
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In order to assess the impact of su
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The first step is to gather basic i
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In step one, the research</
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is to examine how such differences
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Let us start with the latter, askin
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You may want to investigate what ty
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Given that home-workers are often c
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usiness schools and technology inst
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A second reason for</strong
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individuals can also be ordinary pe
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In answering the first question, th
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Obtaining or creating the sampling
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selection of a few illustrative cas
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The coding of open-ended questions
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You will also need to analyse the q
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The third step is data collection.
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the society. Neilson (1990: 20) cla
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Casson, Mark, and Robert Price. 198
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Kaplinsky, Raphael. 1998. “Global
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Wilson, Fiona. 1991. Sweaters: Gend
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Business forums de
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