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REQUIREMENTS:
POSSIBLE
ACTUAL
The evaluation discusses a leadership issue that revolves around
ethics or ethical decision making and addresses the following:
1. The power bases used by the leader.
2. The influence tactics used by the leader.
3. The leadership style of the leader.
4. The outcome (or potential outcome) of the situation.
30
The student justifies whether or not the leader acted effectively
and ethically.
20
The leadership issue is discussed from a servant leadership
perspective and includes an explanation of how the situation
would be different if the student, as a servant leader, were
appointed into the leadership position. The discussion addresses
the four criteria:
1. The power bases used by the leader.
2. The influence tactics used by the leader.
3. The leadership style of the leader.
4. The outcome (or potential outcome) of the situation.
30
Leadership Philosophy is attached as an appendix and includes a
discussion of:
1. Personal values and beliefs that influence leadership style.
2. Past experiences and/or people that have influenced the
development of those values.
3. Expectations of self and others.
4. Leadership style and influence tactics.
40
Evaluation is prepared according to the APA guidelines found
in the APA Style Guide, located in the Student Success Center.
10
Mechanics of Writing:
· Student is clearly in control of standard, written American
English.
· All work includes correct spelling, punctuation, and grammar.
10
Language Use and Audience Awareness:
· Student uses correct sentence construction, word choice, etc.
· Student uses language in a manner that is appropriate to the
purpose, discipline, and scope of the assignment.
10
TOTAL
150
MGT-605: Leadership Evaluation and Leadership Philosophy
Rubric
© 2014. Grand Canyon University. All Rights Reserved.
The summary
Indian Consumer Article Summary and Discussion Questions
The Indian Consumer: Apparel Clothing Involvement
In the article, “How Cosmopolitan are Indian Consumers?: A
Study on Fashion Clothing Involvement,” published in 2013
author Arpita Khare explores the possible opportunities that
await clothing manufacturers and retailers targeting the Indian
consumer. Khare has chosen to focus this study on a country
rich with culture and tradition. As one of the notable BRICS
nations, India boosts a large population, a thriving economy and
spends a substantial amount of money on luxury fashion
apparel. And yet, there is still much to be discovered about the
Indian consumer’s involvement in fashion. This study attempts
to shed a light on this particular consumer in part by addressing
the effect that cosmopolitanism has on their choices for apparel.
At first read this article presents the Indian consumer much
like any other fashion consumer from many given countries,
even western countries. For example, Khare notes in regard to
the Indian consumer “…new money is purchasing luxury
clothing as a symbol of wealth and status.” So what makes the
Indian consumer so different from other consumers in other
countries? One difference is the dichotomy of this consumer’s
fashion choices. According to this study Indian consumers
carefully balance their taste for luxury fashion with the need to
be accepted within their social environment. Although this may
be said for other countries and cultures, India is unique in this
regard.
The Indian consumer is cosmopolitan. This consumer is open
to the influence of other cultures as it desires to be regarded as
a sophisticated country by the global community. However, this
study shows the importance Indians place on tradition and
culture, and this is what makes the Indian consumer so
interesting. A good example of this is the popular Bollywood
emergence influenced by the famous Hollywood in Los Angeles.
This is an illustration of how cultural influence works in India.
India accepts the influence but merges it with Indian’s own
unique culture. Much like Hollywood’s influence on India’s
entertainment industry, the study shows that the Indian
consumer has a distinct openness toward global fashion brands,
but wants to make them their own.
However, age may be a factor. Not surprisingly, Khare’s
literature review shows that younger Indian consumers are more
cosmopolitan than older Indian consumers. Unfortunately the
ages of the participants in this study are relatively young, 18-
40, so the findings in the study cannot confirm the findings in
the review. It is interesting to note that many refused to
participate in the study so, one has to wonder if it was the older
population that declined. Does this say something about the
Indian culture?
In conclusion, understanding the Indian culture is the key to
success for apparel companies longing to tap into this
potentially lucrative market. Presenting this consumer with
luxury fashion clothing styles while honoring the Indian
collectivism tradition will most likely bring the most success.
Of course, this is easier said than done, but considering the
global sensation of Bollywood; if that unique balance is found,
the fashion consumption of the Indian consumer may surprise
everyone.
Considering the success of international food chains in India,
what are the factors or strategies required to make international
apparel brands a success? Please use specific reasons and
elaborate them accordingly.
Factors that makes international apparel brands success
includes;
Organized markets within the sector of India – These markets
are segmented to different industry thus making global apparel
brands to dominate various regions (Derne, 2008). Therefore,
Segmentation in organized markets had to win more consumers
thus increase in their success.
Changing consumption pattern of the buyers in India – The
priority market in India is the food service. It has the high
growth opportunity, and the new players in the industry are
from the international apparel brands thus can make them
success as they keep on changing the pattern to satisfy the
consumers.
Global brands need to be consistent – Dedication of operations
should emphasize on various factors such as supporting the
franchise partners, training systems and persons, marketing
launch, restaurant audits and start-up teams from other
countries. It is in this case that it will be able to create strong
appeal to consumers in India for the success of their apparel
brands.
Apparel International brands should always be available and
affordable – Most Indian’s consumer prefers’ brands that can be
available always to avoid any inconveniences that can lead to
distrust of the brand. Therefore, apparel brands for the
international producer should consider making them available
for the success of their business in the market.
Can anyone else provide examples of how global fashion is
currently influencing India and how India fashion is influencing
global fashion trends?
Global fashion has numerous and diverse global values in terms
of fashion designers from different countries thus affecting
India’s cultural values (Bliss, 2010). Designers modify clothes
according to their cultural influences, local craftsmanship, and
cutting edge designs of their particular countries (Sheth, 2011).
Indian cultural norms are affected through imparting of new
fashion design from global trends. Indian fashion designers are
striking on the international fashion arena with incomparable,
embroideries, unique age-old treasures of weaves, vibrant
colors, and various fabrics by combining innovation, creativity,
unique styles, and comfort. Therefore, it influences globally and
finally it has become a prominent fashion enough not to be
dismissed by even the most fashionably cynical designers
globally.
The summary 2
In Jin & Bennur’s (2014) empirical survey-based study, the
authors applied Kano’s theory of attractive quality to four
countries based on their level of development. India, China,
Korea, and the United States were chosen – listed in order from
least to most developed – in order to test three hypotheses
related to Kano’s theory. In its essence, Kano’s theory describes
product attributes in relation to the amount of satisfaction they
engender over time, meaning that there are descriptive and
temporal elements to the theory. The five categories in order
are indifference, attractive, performance, must-be, and at
times reverse. Each lifecycle can also be considered flavor of
the month, whereupon the cycle is quickened to the point of
indifference or stable, meaning it lives in the must-be category.
The importance of each attribute can differ by country for a
wide array of products, and according to the authors this theory
as applied to apparel is lacking in the literature despite its
potential value to international marketers and product
development teams. The authors set out to investigate three
hypotheses, quoted below:
1. The classification of apparel attributes into Kano’s
categories will differ by country.
2. Regardless of country, attributes classified in the
performance and attractive categories will contribute to
satisfaction more than attributes classified in the must-be
category.
3. Each attribute will have a different lifecycle.
The authors devised a study around jeans, given that
they are a very common item of clothing. Eight aspects of jeans
such as workmanship, quality, fitting, price, design, brand,
fashionability, and versatility were examined with three
questions related to each component. The questions gauged the
functional and dysfunctional aspects of the jeans. When the data
were analyzed, all three hypotheses were accepted, and the
results gave fascinating insights into how levels of a country’s
development play a role in what factors are important to
consumers when purchasing and using apparel items.
The authors mentioned several practical implications of
the findings of this study, including the importance of global
retailers determining the must-be attributes for products in each
market, as consumers will not purchase products when a must-
be attribute is not present regardless of market. They also
mentioned that as performance and attractive categories
contribute more to customer satisfaction more than must-be
categories – regardless of country – it is very important for
retailers to identify these attributes when looking to enter a new
market.
Here are some discussion questions that will help us to
think critically about the article’s findings and implications. It
might be easiest for you to note the number of the question you
are answering to ensure the smoothest first Moodle Discussion
possible…
2. Why do you think that performance and attractive
categories contribute most to satisfaction? Furthermore, why do
you think that this is the same for all four countries?
According to Kano’s model of product development and the
satisfaction of the customer, the customer has their preferences
when it comes to the selection of a product. Markedly, the
observations in the article propose that as a country advances
economically, the customers tend to focus more on the
versatility and the performance of the product. Performance is
an element that determines how the product will fulfill its
intended purpose. It is observed that customers prefer a product
that has a higher performance capability. This is observed to be
a common preference in most of the countries. Moreover, the
presence of attractive attributed is instrumental in influencing
the customers in must be an attribute and an attractive attribute.
Performance and attributive categories do a major consideration
for customers in the four countries because they are
the elements that significantly contribute to the satisfaction of
the customer. The implications of this finding are that some
common attributes are constant in every country despite its
level of development. Marketers should be able to include them
in their products when embarking on new global markets
(Löfgren & Witell, 2005).
The United States, China, India, and Korea differ in the
economic capabilities and level of development. As such it is
important for global retailers to have a synopsis of the must be
attributes of every distinct world market so as to be able to
satisfy the customers fully. The level of a country’s
development influences the preferences the customers have on
the products in the marker. The case of jeans is an example of
how countries that are well developed will consider attributes
such as the Brand type, the fashionability, and quality.
Moreover, the design will similarly be put into consideration. It
is commonly seen in countries such as the United States.
However, other less developed countries will have different
preferences such as the cost that will be able to meet their
economic standards. If I were starting a denim company, I
would utilize the findings of this study to do an analysis of the
customers in the country that the company would
be established. The market will be analyzed to evaluate the
attribute the customers consider when viewing their satisfaction
of a product. It will also enable me to have knowledge of the
combination of the attributes that I should put an emphasis
when designing the product.
Article Discussion-
1. What are the advantages and disadvantages of incremental
internationalization? (From the article: Internationalization
Process of Fast Fashion Retailers: Evidence of H&M and Zara)
Incremental internationalization refers to the behavior of firms
to start operations in domestic markets and later expand into
new markets. One of the advantages of this model is that it
helps the firm to establish itself in a local market before
venturing into new foreign markets. Since the new markets may
have different cultures, languages, business practices, and
industrial developments, having a stable foundation in the
domestic market helps the firms to overcome the challenges.
Another advantage of incremental internationalization is that
firms are facilitated to gather sufficient resources that enable
them to come up with effective strategies to enter the new
markets. This would not have been possible if the firms had
decided to engage in internationalization immediately after they
were founded.
It may be argued that although firms like IKEA, Gap, and Body
Shop have implemented incremental internationalization
successfully, the model has become outdated due to increased
competition that has forced companies to seek ways of faster
penetration into new markets. Since competing firms intend on
outdoing each other, the one that gains the first market entry
gets to benefit from enhanced market share. Another criticism
of the model is that firms that have not had a domestic base of
operation may surpass their competitors who have adopted the
incremental internationalization model as the latter may take
too long to internationalize. Late market entry is a disadvantage
to the internationalizing firms as it may be challenging for them
to infiltrate the market and gain market share.
2. Why are international brands first introduced as premium
brands in developing countries?(From the article: Evolution
Patterns of Apparel Brands in Asian Countries: Propositions
From an Analysis of the Apparel Industry in Korea and India)
Most developing countries have inadequate quality and design
capabilities, and international brands are positioned as premium
brands so that they can be associated with high quality and
well–designed products. This is due to the fact that local
apparels are regarded as being inferior in quality and design.
Therefore, premium brands fetch better prices, and the firm
earns a competitive advantage over other firms producing
domestic apparel. For instance, the Tommy Hilfiger brand is
considered as a premium brand in India, and it is so costly that
the price of one item is twice a worker’s monthly income. As
such, a firm may position its brand as a foreign brand so as to
gain competitive advantage.
3. Which is the best method of approaching a consumer for
retail clothing? (From the article: International Brand
Management and Strategy: Apparel Market in China)
Multiple methods of communication that are cumulated over
time are the best options for approaching consumers. When
making decisions regarding clothing items, consumers rely on
pre–existing knowledge. The information held by consumers is
aided by the firm’s efforts to create brand awareness over time.
Various communication sources should be used to get to the
consumers so as to enhance brand awareness. For instance, in
China, consumers for apparel do not take time to search for the
best clothing items that are available, as their basis for selecting
a particular brand is due to the attributes that have been
communicated to them via various communication channels. As
such, for a firm to ensure that consumers are aware of its
products, it should have a consistent message concerning its
products via different channels of communication.
FCS555:
Textiles and Apparel in the
Global Economy
*
GlobalizationAn example:Silk cocoon tradeSilk processingSilk
yarn to fabricFabric to finishingdyeingprintingCutting
Sewing/assemblyRetail sales
*
Case 1.1 & learning activity 1.1 (p. 6-7)
Example: Silk dress-silk (India)->yarn and fabric (Japan)-
>Design & Cut (US)->Sewing/Assembly (China)->Retail sales
(US)
Levels of TradeDomestic tradeInternational tradeGlobal trade
Domestic trade: exchange of goods, services, or both within the
boundaries of a specified state or country
International trade: exchange of goods involving two or more
countries-A segment of global trade
Global trade: goes beyond international trade to include the
potential interactive participation of many groups, cultures and
nations in the production and distribution of products
International – Internationalization: Involve 2 or more countries
Global – Globalization: Involve many groups, cultures, and
nations
*
Trade Balance
Trade balance=exports-imports
Trade surplus: trade balance>0 (exports>imports)
Trade deficit: trade balance<0
(exports<imports)
*
International trade and global trade are often described in terms
of exports and imports.
When a country imports more than it exports (trade deficit), its
currency loses value, inflation rises, and consumers pay more
not only for imports, but also for domestic goods.
Measuring Levels of DevelopmentDeveloped
CountriesDeveloping CountriesNewly Developing Countries
Gross National Product (GNP)GNP per capitaGross Domestic
Product (GDP)GDP per capitaPurchasing Power Parity (PPP)
Developed countries (comparatively rich, GDPs per capita is
higher than $25,000); Developing countries (less poor); Newly
developing countries (poor, GDPs per capita is less than $3,000)
Developed (or Industrialized) Countries
Developing Countries
Newly developing (or Emerging) Countries
Developing countries have primary roles in production and
developed countries have primary roles in consumption.
*
Global Economic InterdependenceDeveloped (or Industrialized)
CountriesDeveloping CountriesNewly developing (or Emerging)
Countries
Developing countries have primary roles in production and
developed countries have primary roles in consumption.
*
Apparel industry requires labor-intensive production.
Textile ComplexFigure 1.3
Textile complex is the combination of textile-related businesses
that supply soft goods to the world population.
Firms in textile complex are manufacturers, contractors,
suppliers, and retailers.
Soft goods : Products made of textile or other flexible
materials; apparel, fabrics, linens, towels, upholstery, and small
fashion accessories
*
Flow of Activities
In Production and RetailingUpstream & Downstream
ActivitiesUser & Supplier RelationshipsVertical & Horizontal
Integration of Organizational StructuresVertical -> Users &
Suppliers in the same companyHorizontal -> Similar operations
such as retailers with stores for different target
marketsSourcing, Production & Marketing
*
Upstream Activities: early stages of manufacturing/distribution
chain
Downstream Activities: Closer to end-use customers in the
manufacturing/distribution chain
Sourcing: activities performed to acquire materials, and finished
goods; selecting a country or vendor to do business with
North American Industry Classification System (NAICS)Textile
Mills (NAICS313)Textile Product Mills (NAICS314)Apparel
Manufacturing (NAICS 315)
Technology Development and the Low-Cost Labor Paradox
Trade Issues in Textiles and Apparel
*
Chapter 2 Review
Kunz, G., & Garner, M. (2007). Going Global: The Textile and
Apparel Industry, 2nd ed. New York, NY: Fairchild
Publications.
Ryan Burns and Sara Stevens
9/1/15
Consumer use of some type of textiles and apparel is universal
for:
Adornment
Protection
Non-verbal communication
The mystery component of clothing selection is fashion:
Fashion is defined as the style of dress accepted by the majority
of a group at a given time.
Textile and apparel products differ from other products due to
the perishable desirability:
Fashion makes the textile and apparel business more
unpredictable than trade in other consumer products
There are two types of apparel categories
Basic: stabilized, utilitarian, and have infrequent demand for
change
Inventories are steady, predictable, and refillable
Fashion: individualized, differentiated by style and color
Demand peaks followed by obsolescence
Consumer obsolescence is a factor in most economies
Four terms Stancliffe Davis (1945) used to understand
consumption patterns:
Consumption-commodities (goods and services)
Living-consumption and other dimensions of life
Level-implies that which is actually
experienced/enjoyed/suffered
Standard-what is “urgently desired and striven for…” (Davis,
1945)
Level of Consumption includes:
The overall amount of food, fuel and other non-measurable
goods consumed
The use of house, car, clothing
The use of services
Standard of Living is:
The level of consumption urgently desired and strived for
inherently human to want more, but what “more” looks like
varies based on age, gender, culture, income, etc.
Typically the standard is higher than the level
Developed and Developing Countries:In poorer countries, the
fashion cycle is slow due to lack of purchasing powerFashions
available in developed countries are known to consumers around
the world due to increased communication technologyThe desire
for fashion appears to be universal Gap between rich and poor
widening:Levels and standards of consumption and living are
commonly used measures of well-being (a good or satisfactory
condition of existence)
Sustainability of supply chains:Skewed distribution of economic
development among participating nationsDeterioration of the
environmentDecline of nonrenewable natural resources
Income elasticity of demand:
Related to consumer
Superior goods
(economic luxury)
Example?
Normal goods
(economic necessity)
Example?
Inferior goods
(inadequate income)
Example?
What does income elasticity look like?
Price elasticity of clothing expenditure
Important to understand for profitability of business
Does the demand for the good change according to price?
Positive yet non-elastic
Indicates normal good
% change in clothing expenditure /% change in price
What does price elasticity of demand look like?
Many definitions for income! Most important for fashion
purchases is discretionary income (disposable – consumption
expenditure)
How do we measure consumption (really)?
Expenditure patterns (China vs. U.S.)
Food vs. Apparel
Rural vs. Urban
Consumer Price Index (CPI)
Inflation
High cost of other expenses vs. apparel
Progressive vs. Regressive Taxes
Acquisition
InventoryUse (Substitutes and Complements)RenovationDiscard
What factors speed up this cycle?What factors slow it down?
What is the most relevant information you learned in this
chapter? Why is it relevant to you?

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REQUIREMENTS POSSIBLEACTUALThe evaluation discusses a.docx

  • 1. REQUIREMENTS: POSSIBLE ACTUAL The evaluation discusses a leadership issue that revolves around ethics or ethical decision making and addresses the following: 1. The power bases used by the leader. 2. The influence tactics used by the leader. 3. The leadership style of the leader. 4. The outcome (or potential outcome) of the situation. 30 The student justifies whether or not the leader acted effectively and ethically. 20 The leadership issue is discussed from a servant leadership perspective and includes an explanation of how the situation would be different if the student, as a servant leader, were appointed into the leadership position. The discussion addresses the four criteria: 1. The power bases used by the leader. 2. The influence tactics used by the leader. 3. The leadership style of the leader. 4. The outcome (or potential outcome) of the situation. 30
  • 2. Leadership Philosophy is attached as an appendix and includes a discussion of: 1. Personal values and beliefs that influence leadership style. 2. Past experiences and/or people that have influenced the development of those values. 3. Expectations of self and others. 4. Leadership style and influence tactics. 40 Evaluation is prepared according to the APA guidelines found in the APA Style Guide, located in the Student Success Center. 10 Mechanics of Writing: · Student is clearly in control of standard, written American English. · All work includes correct spelling, punctuation, and grammar. 10 Language Use and Audience Awareness: · Student uses correct sentence construction, word choice, etc. · Student uses language in a manner that is appropriate to the purpose, discipline, and scope of the assignment. 10 TOTAL 150 MGT-605: Leadership Evaluation and Leadership Philosophy Rubric
  • 3. © 2014. Grand Canyon University. All Rights Reserved. The summary Indian Consumer Article Summary and Discussion Questions The Indian Consumer: Apparel Clothing Involvement In the article, “How Cosmopolitan are Indian Consumers?: A Study on Fashion Clothing Involvement,” published in 2013 author Arpita Khare explores the possible opportunities that await clothing manufacturers and retailers targeting the Indian consumer. Khare has chosen to focus this study on a country rich with culture and tradition. As one of the notable BRICS nations, India boosts a large population, a thriving economy and spends a substantial amount of money on luxury fashion apparel. And yet, there is still much to be discovered about the Indian consumer’s involvement in fashion. This study attempts to shed a light on this particular consumer in part by addressing the effect that cosmopolitanism has on their choices for apparel. At first read this article presents the Indian consumer much like any other fashion consumer from many given countries, even western countries. For example, Khare notes in regard to the Indian consumer “…new money is purchasing luxury clothing as a symbol of wealth and status.” So what makes the Indian consumer so different from other consumers in other countries? One difference is the dichotomy of this consumer’s fashion choices. According to this study Indian consumers carefully balance their taste for luxury fashion with the need to be accepted within their social environment. Although this may be said for other countries and cultures, India is unique in this regard. The Indian consumer is cosmopolitan. This consumer is open to the influence of other cultures as it desires to be regarded as a sophisticated country by the global community. However, this
  • 4. study shows the importance Indians place on tradition and culture, and this is what makes the Indian consumer so interesting. A good example of this is the popular Bollywood emergence influenced by the famous Hollywood in Los Angeles. This is an illustration of how cultural influence works in India. India accepts the influence but merges it with Indian’s own unique culture. Much like Hollywood’s influence on India’s entertainment industry, the study shows that the Indian consumer has a distinct openness toward global fashion brands, but wants to make them their own. However, age may be a factor. Not surprisingly, Khare’s literature review shows that younger Indian consumers are more cosmopolitan than older Indian consumers. Unfortunately the ages of the participants in this study are relatively young, 18- 40, so the findings in the study cannot confirm the findings in the review. It is interesting to note that many refused to participate in the study so, one has to wonder if it was the older population that declined. Does this say something about the Indian culture? In conclusion, understanding the Indian culture is the key to success for apparel companies longing to tap into this potentially lucrative market. Presenting this consumer with luxury fashion clothing styles while honoring the Indian collectivism tradition will most likely bring the most success. Of course, this is easier said than done, but considering the global sensation of Bollywood; if that unique balance is found, the fashion consumption of the Indian consumer may surprise everyone. Considering the success of international food chains in India, what are the factors or strategies required to make international apparel brands a success? Please use specific reasons and elaborate them accordingly. Factors that makes international apparel brands success includes; Organized markets within the sector of India – These markets are segmented to different industry thus making global apparel
  • 5. brands to dominate various regions (Derne, 2008). Therefore, Segmentation in organized markets had to win more consumers thus increase in their success. Changing consumption pattern of the buyers in India – The priority market in India is the food service. It has the high growth opportunity, and the new players in the industry are from the international apparel brands thus can make them success as they keep on changing the pattern to satisfy the consumers. Global brands need to be consistent – Dedication of operations should emphasize on various factors such as supporting the franchise partners, training systems and persons, marketing launch, restaurant audits and start-up teams from other countries. It is in this case that it will be able to create strong appeal to consumers in India for the success of their apparel brands. Apparel International brands should always be available and affordable – Most Indian’s consumer prefers’ brands that can be available always to avoid any inconveniences that can lead to distrust of the brand. Therefore, apparel brands for the international producer should consider making them available for the success of their business in the market. Can anyone else provide examples of how global fashion is currently influencing India and how India fashion is influencing global fashion trends? Global fashion has numerous and diverse global values in terms of fashion designers from different countries thus affecting India’s cultural values (Bliss, 2010). Designers modify clothes according to their cultural influences, local craftsmanship, and cutting edge designs of their particular countries (Sheth, 2011). Indian cultural norms are affected through imparting of new fashion design from global trends. Indian fashion designers are striking on the international fashion arena with incomparable, embroideries, unique age-old treasures of weaves, vibrant
  • 6. colors, and various fabrics by combining innovation, creativity, unique styles, and comfort. Therefore, it influences globally and finally it has become a prominent fashion enough not to be dismissed by even the most fashionably cynical designers globally. The summary 2 In Jin & Bennur’s (2014) empirical survey-based study, the authors applied Kano’s theory of attractive quality to four countries based on their level of development. India, China, Korea, and the United States were chosen – listed in order from least to most developed – in order to test three hypotheses related to Kano’s theory. In its essence, Kano’s theory describes product attributes in relation to the amount of satisfaction they engender over time, meaning that there are descriptive and temporal elements to the theory. The five categories in order are indifference, attractive, performance, must-be, and at times reverse. Each lifecycle can also be considered flavor of the month, whereupon the cycle is quickened to the point of
  • 7. indifference or stable, meaning it lives in the must-be category. The importance of each attribute can differ by country for a wide array of products, and according to the authors this theory as applied to apparel is lacking in the literature despite its potential value to international marketers and product development teams. The authors set out to investigate three hypotheses, quoted below: 1. The classification of apparel attributes into Kano’s categories will differ by country. 2. Regardless of country, attributes classified in the performance and attractive categories will contribute to satisfaction more than attributes classified in the must-be category. 3. Each attribute will have a different lifecycle. The authors devised a study around jeans, given that they are a very common item of clothing. Eight aspects of jeans such as workmanship, quality, fitting, price, design, brand, fashionability, and versatility were examined with three questions related to each component. The questions gauged the functional and dysfunctional aspects of the jeans. When the data were analyzed, all three hypotheses were accepted, and the results gave fascinating insights into how levels of a country’s development play a role in what factors are important to consumers when purchasing and using apparel items. The authors mentioned several practical implications of the findings of this study, including the importance of global retailers determining the must-be attributes for products in each market, as consumers will not purchase products when a must- be attribute is not present regardless of market. They also mentioned that as performance and attractive categories contribute more to customer satisfaction more than must-be
  • 8. categories – regardless of country – it is very important for retailers to identify these attributes when looking to enter a new market. Here are some discussion questions that will help us to think critically about the article’s findings and implications. It might be easiest for you to note the number of the question you are answering to ensure the smoothest first Moodle Discussion possible… 2. Why do you think that performance and attractive categories contribute most to satisfaction? Furthermore, why do you think that this is the same for all four countries? According to Kano’s model of product development and the satisfaction of the customer, the customer has their preferences when it comes to the selection of a product. Markedly, the observations in the article propose that as a country advances economically, the customers tend to focus more on the versatility and the performance of the product. Performance is an element that determines how the product will fulfill its intended purpose. It is observed that customers prefer a product that has a higher performance capability. This is observed to be a common preference in most of the countries. Moreover, the presence of attractive attributed is instrumental in influencing the customers in must be an attribute and an attractive attribute. Performance and attributive categories do a major consideration for customers in the four countries because they are the elements that significantly contribute to the satisfaction of the customer. The implications of this finding are that some common attributes are constant in every country despite its level of development. Marketers should be able to include them in their products when embarking on new global markets (Löfgren & Witell, 2005).
  • 9. The United States, China, India, and Korea differ in the economic capabilities and level of development. As such it is important for global retailers to have a synopsis of the must be attributes of every distinct world market so as to be able to satisfy the customers fully. The level of a country’s development influences the preferences the customers have on the products in the marker. The case of jeans is an example of how countries that are well developed will consider attributes such as the Brand type, the fashionability, and quality. Moreover, the design will similarly be put into consideration. It is commonly seen in countries such as the United States. However, other less developed countries will have different preferences such as the cost that will be able to meet their economic standards. If I were starting a denim company, I would utilize the findings of this study to do an analysis of the customers in the country that the company would be established. The market will be analyzed to evaluate the attribute the customers consider when viewing their satisfaction of a product. It will also enable me to have knowledge of the combination of the attributes that I should put an emphasis when designing the product. Article Discussion- 1. What are the advantages and disadvantages of incremental internationalization? (From the article: Internationalization Process of Fast Fashion Retailers: Evidence of H&M and Zara) Incremental internationalization refers to the behavior of firms to start operations in domestic markets and later expand into new markets. One of the advantages of this model is that it
  • 10. helps the firm to establish itself in a local market before venturing into new foreign markets. Since the new markets may have different cultures, languages, business practices, and industrial developments, having a stable foundation in the domestic market helps the firms to overcome the challenges. Another advantage of incremental internationalization is that firms are facilitated to gather sufficient resources that enable them to come up with effective strategies to enter the new markets. This would not have been possible if the firms had decided to engage in internationalization immediately after they were founded. It may be argued that although firms like IKEA, Gap, and Body Shop have implemented incremental internationalization successfully, the model has become outdated due to increased competition that has forced companies to seek ways of faster penetration into new markets. Since competing firms intend on outdoing each other, the one that gains the first market entry gets to benefit from enhanced market share. Another criticism of the model is that firms that have not had a domestic base of operation may surpass their competitors who have adopted the incremental internationalization model as the latter may take too long to internationalize. Late market entry is a disadvantage to the internationalizing firms as it may be challenging for them to infiltrate the market and gain market share. 2. Why are international brands first introduced as premium brands in developing countries?(From the article: Evolution Patterns of Apparel Brands in Asian Countries: Propositions From an Analysis of the Apparel Industry in Korea and India) Most developing countries have inadequate quality and design capabilities, and international brands are positioned as premium brands so that they can be associated with high quality and well–designed products. This is due to the fact that local apparels are regarded as being inferior in quality and design. Therefore, premium brands fetch better prices, and the firm earns a competitive advantage over other firms producing domestic apparel. For instance, the Tommy Hilfiger brand is
  • 11. considered as a premium brand in India, and it is so costly that the price of one item is twice a worker’s monthly income. As such, a firm may position its brand as a foreign brand so as to gain competitive advantage. 3. Which is the best method of approaching a consumer for retail clothing? (From the article: International Brand Management and Strategy: Apparel Market in China) Multiple methods of communication that are cumulated over time are the best options for approaching consumers. When making decisions regarding clothing items, consumers rely on pre–existing knowledge. The information held by consumers is aided by the firm’s efforts to create brand awareness over time. Various communication sources should be used to get to the consumers so as to enhance brand awareness. For instance, in China, consumers for apparel do not take time to search for the best clothing items that are available, as their basis for selecting a particular brand is due to the attributes that have been communicated to them via various communication channels. As such, for a firm to ensure that consumers are aware of its products, it should have a consistent message concerning its products via different channels of communication.
  • 12. FCS555: Textiles and Apparel in the Global Economy * GlobalizationAn example:Silk cocoon tradeSilk processingSilk yarn to fabricFabric to finishingdyeingprintingCutting Sewing/assemblyRetail sales * Case 1.1 & learning activity 1.1 (p. 6-7) Example: Silk dress-silk (India)->yarn and fabric (Japan)- >Design & Cut (US)->Sewing/Assembly (China)->Retail sales (US) Levels of TradeDomestic tradeInternational tradeGlobal trade Domestic trade: exchange of goods, services, or both within the boundaries of a specified state or country International trade: exchange of goods involving two or more
  • 13. countries-A segment of global trade Global trade: goes beyond international trade to include the potential interactive participation of many groups, cultures and nations in the production and distribution of products International – Internationalization: Involve 2 or more countries Global – Globalization: Involve many groups, cultures, and nations * Trade Balance Trade balance=exports-imports Trade surplus: trade balance>0 (exports>imports) Trade deficit: trade balance<0 (exports<imports) * International trade and global trade are often described in terms of exports and imports. When a country imports more than it exports (trade deficit), its currency loses value, inflation rises, and consumers pay more not only for imports, but also for domestic goods. Measuring Levels of DevelopmentDeveloped CountriesDeveloping CountriesNewly Developing Countries
  • 14. Gross National Product (GNP)GNP per capitaGross Domestic Product (GDP)GDP per capitaPurchasing Power Parity (PPP) Developed countries (comparatively rich, GDPs per capita is higher than $25,000); Developing countries (less poor); Newly developing countries (poor, GDPs per capita is less than $3,000) Developed (or Industrialized) Countries Developing Countries Newly developing (or Emerging) Countries Developing countries have primary roles in production and developed countries have primary roles in consumption. * Global Economic InterdependenceDeveloped (or Industrialized) CountriesDeveloping CountriesNewly developing (or Emerging) Countries Developing countries have primary roles in production and developed countries have primary roles in consumption. * Apparel industry requires labor-intensive production. Textile ComplexFigure 1.3 Textile complex is the combination of textile-related businesses that supply soft goods to the world population.
  • 15. Firms in textile complex are manufacturers, contractors, suppliers, and retailers. Soft goods : Products made of textile or other flexible materials; apparel, fabrics, linens, towels, upholstery, and small fashion accessories * Flow of Activities In Production and RetailingUpstream & Downstream ActivitiesUser & Supplier RelationshipsVertical & Horizontal Integration of Organizational StructuresVertical -> Users & Suppliers in the same companyHorizontal -> Similar operations such as retailers with stores for different target marketsSourcing, Production & Marketing * Upstream Activities: early stages of manufacturing/distribution chain Downstream Activities: Closer to end-use customers in the manufacturing/distribution chain Sourcing: activities performed to acquire materials, and finished goods; selecting a country or vendor to do business with North American Industry Classification System (NAICS)Textile Mills (NAICS313)Textile Product Mills (NAICS314)Apparel Manufacturing (NAICS 315)
  • 16. Technology Development and the Low-Cost Labor Paradox Trade Issues in Textiles and Apparel * Chapter 2 Review Kunz, G., & Garner, M. (2007). Going Global: The Textile and Apparel Industry, 2nd ed. New York, NY: Fairchild Publications. Ryan Burns and Sara Stevens 9/1/15 Consumer use of some type of textiles and apparel is universal for: Adornment Protection Non-verbal communication The mystery component of clothing selection is fashion: Fashion is defined as the style of dress accepted by the majority of a group at a given time. Textile and apparel products differ from other products due to the perishable desirability: Fashion makes the textile and apparel business more unpredictable than trade in other consumer products
  • 17. There are two types of apparel categories Basic: stabilized, utilitarian, and have infrequent demand for change Inventories are steady, predictable, and refillable Fashion: individualized, differentiated by style and color Demand peaks followed by obsolescence Consumer obsolescence is a factor in most economies Four terms Stancliffe Davis (1945) used to understand consumption patterns: Consumption-commodities (goods and services) Living-consumption and other dimensions of life Level-implies that which is actually experienced/enjoyed/suffered Standard-what is “urgently desired and striven for…” (Davis, 1945) Level of Consumption includes: The overall amount of food, fuel and other non-measurable goods consumed The use of house, car, clothing The use of services Standard of Living is: The level of consumption urgently desired and strived for inherently human to want more, but what “more” looks like varies based on age, gender, culture, income, etc. Typically the standard is higher than the level
  • 18. Developed and Developing Countries:In poorer countries, the fashion cycle is slow due to lack of purchasing powerFashions available in developed countries are known to consumers around the world due to increased communication technologyThe desire for fashion appears to be universal Gap between rich and poor widening:Levels and standards of consumption and living are commonly used measures of well-being (a good or satisfactory condition of existence) Sustainability of supply chains:Skewed distribution of economic development among participating nationsDeterioration of the environmentDecline of nonrenewable natural resources Income elasticity of demand: Related to consumer Superior goods (economic luxury) Example? Normal goods (economic necessity) Example? Inferior goods (inadequate income) Example? What does income elasticity look like?
  • 19. Price elasticity of clothing expenditure Important to understand for profitability of business Does the demand for the good change according to price? Positive yet non-elastic Indicates normal good % change in clothing expenditure /% change in price What does price elasticity of demand look like? Many definitions for income! Most important for fashion purchases is discretionary income (disposable – consumption expenditure) How do we measure consumption (really)? Expenditure patterns (China vs. U.S.) Food vs. Apparel Rural vs. Urban Consumer Price Index (CPI) Inflation High cost of other expenses vs. apparel Progressive vs. Regressive Taxes Acquisition InventoryUse (Substitutes and Complements)RenovationDiscard What factors speed up this cycle?What factors slow it down?
  • 20. What is the most relevant information you learned in this chapter? Why is it relevant to you?