production/outsourced in the UK and its exit from European

production/outsourced to countries
for manufacturing such as Bangladesh and Cambodia in order to cut costs in the
production and the wages for labour (Bhardwaj & Fairhurst, 2010; Johansson, 2010; Joy,
Sherry, Venkatesh, Wang & Chan, 2012).

 

Moreover, the more seasons added implies the
continuous delivery of a smaller merchandise with shorten lead time, that
causes the supply chain to be under constant pressure (Tyler, Heeley,
and Bhamra 2006). Thus, despite being of immense advantage, outsourcing also
lead to requirement of more complex supply chain caused by the distances in
terms of geography, long cycle of the order and multiple
relationships in the supply channels (Hines and
Bruce, 2001). Inconsistency in end products and the variability of
the processes in the various ends of the chain, also the complexities of the
import/export requirements (Birtwistle, Siddhiqui, and Fiorito 2003; Bruce and
Daly 2006).

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The idea of cost saving by the means
of outsourcing of the manufacturing process to the lower labor wage nations
became complex and somewhat deceptive. Because when the cost saving is compared
with the costs of mark downs, obsolescence of products. The cost of carrying
the inventory the advantages are low (Christopher, Lowson, and Peck 2004). We
can understand that the product development causing longer lead times is a
weakness in the chain.

2.3.1.    
Economic and Global Volatility

 

Such profound
developments over the past few years, as political changes due to referendum in
the UK and its exit from European single market and the convocation of all
American manufacturer from abroad and trade protectionism initiated by
president election in US still cause concerns for many companies and increase
uncertainty in the global market. As a result, the slowdown in global trade,
the support of the protectionist measures can be seen around the world and
confirm the inevitability of globalization (BoF, 2016).

 

 

·       The slowing global trade in context
of geopolitical instabilities

One of the
primary factors affecting the shift of global economy is Geopolitical, which
accompanied by uneven and unstable growth of developed world due to recent
political changes. The emerging economies are also monitoring the Intensifying
instability in the wider geopolitical context, has given the ongoing impact of political changes across
developed countries, such as recent presidential election in the US, referendum
in the UK(Brexit), campaigns due to elections in Germany and France (Amed et al., 2016).

That has given rise to trade protectionism
and downturns in world GDP forecasts and that macroeconomic indicators such as
oil and commodity prices are highly speculative nowadays. These factors
are overall slowing global trade in general, so companies must
determine the impact of barriers to trade and capital flows generally. Whereas
developing countries in Asia are undergoing the rise of business activities and
e-commerce, due to economic and consumption growth of their population, which
are united within one trade belt of such countries such as China’s OBOR and
agreement with countries in specific regions like ASEAN, SAARC etc. Which works
in contrary to the more closed and nationalistic models the western countries
are taking up (Sustainability, 2017).

·       The decline and aging
in developed world

In the developed economies of the world the urban population in the
countries such as United States and Canada grew at annual rate of 2.2 percent.
But this population is going to decline over the coming years for a current 1
percent to just around 0.8 percent by the year 2035. The same is expected out
of the other developed countries in Asia and western Europe (Woetzel
et al., 2016)

Some of the factors causing such trend include the growing aging
population which is dependent on the economies than contribute to them (Dobbs et al., 2012). This can be understood from
the McKinsey study that by the year 2030 222 million people will be dependent
on the economy from the 164 million in the year 2015. This is more severe if we
take into consideration that the working age group which actually contributed
to the economy will grow very modestly and in some developed countries even
negatively in the same time frame (Dobbs et al., 2016).

Hence, the 60 plus years old population will soon be 50 to 60 % of the
consuming population in the developed countries. Specifically taken in fashion
industry terms the over 60 population range is not considered to be the group
which is very much into trendy fashion and not of much potential. We can
understand further by analyzing the McKinsey’s study to understand that the
number of elderly people and retired population will have a growth to about one
third of the total population by the year 2025, In the same time the population
above 60 years should reach approximately about 30% in the developed economies.
In the same time frame the same population in the emerging economies will be
just 13 percent.

·      
lower spending power
in developed countries

According to the McKinsey’s report, incomes of more
than 70% of households in Western countries have decreased during the last
decade. And it is
interesting to note that in today’s scenario in developed countries the younger consumers are under
more of income pressure and poorer than their parent’s generation – to take
this in comparison in 2005, 98% of the population was doing better than their
parents, but today it is barely 30%, this will definitely give rise to a larger
segment of the society which will have less spending power (Dobbs et
al., 2012). So, the
gr?wing group of poor in
the developed world, untie the political discontent, that is the root of s?me social impacts on economic
activity.

 

è
The lack of Sustainability

 

The fast fashion business
model can be understood to be the pinnacle of unsustainability. Primarily fast
fashion aims at producing garments at the mass scale very rapidly and this has
generated a segment in the consumers known as the ‘throwaway Society’ (Pal, 2016a, p. 128). The low prices which ensure that the production
volumes are very high, yet at the same time the textile and stitching quality
is very low. From studies it can be understood that the products that are sold
in the fast fashion industry ideally can be used till 10 washing and after that
disposed. (Joy et al., 2012)

 

As was explained above the
fast fashion industry aims to continuously produce garments in a very large
volume and this has created a segment of the consumers known as the ‘Throwaway
Society’. It’s appeared as a result overconsumption in the fast fashion
industry, which creates for larger amounts of waste and encourages environment
of disposability amongst the customers (Pookulangara & Shephard, 2013). From the perspective of older or conservative
consumers the fast fashion industry can be seen as a ‘waste’ because instead of
buying one item of high-quality and using it over a period of time the fast
fashion enables to buying multiple merchandise of low quality and throwing away
as quickly as possible (Sydney, 2008.)