Global sourcing of ready-to-wear garments : a case study: Vietnam as sourcing market for Naisten Pukutehdas Oy
Nguyen, Duyen (2010)
Nguyen, Duyen
Lahden ammattikorkeakoulu
2010
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201002081984
https://urn.fi/URN:NBN:fi:amk-201002081984
Tiivistelmä
This thesis is a single case study that analyzes and evaluates Vietnam as a sourcing market of ready-to-wear garments for Naisten Pukutehdas Oy. The main purpose of the study is to analyse whether Vietnamese garment suppliers generally can meet the requirements and criteria of the case company.
The theoretical part introduces background information about the apparel industry. It is one of the most global industries of the world and has production in mostly developing and least developed countries. Its consuming markets are mainly in developed countries. Global sourcing has been increasingly a common practice in the industry. The industry is also featured with rather intense competition, both in retailing and producing. However, not all the supplying markets are suitable for every buying firm. Instead, the supply market has to be analyzed carefully before a sourcing decision is made. The criteria that the buyers have to consider are cost, product quality, time-to-market, and country factors.
The empirical part of the study is conducted using qualitative method, including both secondary and primary data. Secondary data are collected through contemporary reports and articles. Primary data are gathered through interviews and field observation. The conceptual model guiding the collection of data is derived from the reviewed theories.
The case company is interviewed for their requirements and criteria regarding sourcing location. The most important issues are ranked as product quality, time-to-market, country factors, and finally cost. Vietnamese garment industry is currently competitive in low market segments though the product quality is satisfactory. The industry is expected to grow further into higher value added production in the near future.
It is concluded that Vietnam is currently not a potential supplier for NP. However, the company is recommended to keep on closely monitoring the development of the country in the future as it is expected that the market develops fast and therefore will become an attractive source of garments. In addition, fashion accessories are the potential items which NP is recommended to work with Vietnamese suppliers.
The theoretical part introduces background information about the apparel industry. It is one of the most global industries of the world and has production in mostly developing and least developed countries. Its consuming markets are mainly in developed countries. Global sourcing has been increasingly a common practice in the industry. The industry is also featured with rather intense competition, both in retailing and producing. However, not all the supplying markets are suitable for every buying firm. Instead, the supply market has to be analyzed carefully before a sourcing decision is made. The criteria that the buyers have to consider are cost, product quality, time-to-market, and country factors.
The empirical part of the study is conducted using qualitative method, including both secondary and primary data. Secondary data are collected through contemporary reports and articles. Primary data are gathered through interviews and field observation. The conceptual model guiding the collection of data is derived from the reviewed theories.
The case company is interviewed for their requirements and criteria regarding sourcing location. The most important issues are ranked as product quality, time-to-market, country factors, and finally cost. Vietnamese garment industry is currently competitive in low market segments though the product quality is satisfactory. The industry is expected to grow further into higher value added production in the near future.
It is concluded that Vietnam is currently not a potential supplier for NP. However, the company is recommended to keep on closely monitoring the development of the country in the future as it is expected that the market develops fast and therefore will become an attractive source of garments. In addition, fashion accessories are the potential items which NP is recommended to work with Vietnamese suppliers.