The Sewing Factory on the Supply-side, the Answer to Overcome the Crisis is Nothing but Innovation

“Dongdaemun market is one of the world’s leading business system with one-stop supply chain that includes design, fabric and parts procurement, sewing and physical distribution.” Professor Janice H. Hammond from Harvard Business School explained. +

As everyone knows, Dongdaemun market immediately sells fashion products manufactured by many sewing factories around the market. On the other hand, few people know the story of the birth of such a sewing factory.

After the Korean war, which lasted for three years from 1950, the Pyeonghwa Market with such a business system was first created on this marketplace. In the Pyeonghwa Market, shops were open on the first floor, and sewing factories were located on the second and third floors. When designing the market building, some of sewing factories were also put together. 

According to this unique business system, merchants in Dongdaemun market produced and sold fashion products in one place. It was a wonderful thing. Since then, the sewing factories scattered widely in north of the Han river, Seoul, have grown more and more due to increased market demand for Dongdaemun fashion products.

That’s a business system of Dongdaemun style, which sells designer fashion products at low prices and continuously obtains management performance.

In the late stage of development & growth, however, many sewing factories are under pressure due to rising wages and various high cost factors. The number of sewing factories that closed is even increasing. Of course, the Dongdaemun market has also become difficult to continue with strategic alternatives to sell designer fashion products at low prices.

Then, is there any new strategy to improve the productivity of the sewing factory and reduce its production cost? 

One of the strategic alternatives is smart management, which means is a fast, intelligent, powerful strategic tool, and its management technique. 

We need it yesterday. 

 

-Some of the popular Dongdaemun fashion items we exported last week, seoulclick.com-


At present, the Korean government is pursuing a new industrial policy to the 4th industrial revolution based on ICT technologies such as AI and Un-tact business, and Robot, and so on. Such a government’s new industrial policy can be a great opportunity for factory innovation for many small sewing factories in Gangbuk, Seoul. 

More than needs, fashion and its sewing industry are suitable for urban industrialization, and can lead the progress of the 4th industrial revolution toward the future than any other sector. The praise of a young gentleman who says “The pearls looked good against her tanned neck” is never exaggerated.

Sewing factories around Dongdaemun market are no longer able to maintain a low-wage, labor-intensive business system. The change is really urgent.

“Change is not a threat, it’s an opportunity. Survival is not the goal, transformative success is.”

Seth Godin, a columnist from Entrepreneur, an American business magazine said. He’s quite right. We are sure that the sewing factory on the supply-side, the answer to overcome the crisis is nothing but innovation.

All sewing factories need to focus on the employment of young workers with ICT technology, as well as the improvement of productivity through their dreams and passions. 

As the ‘people-made Korea’s economic development has shown, if the quality of work life improves, the sewing factories will also increase management performance by improving labor productivity.

In addition, the sewing factories must follow innovation in the system such as specialization, division of labor, networking as well as outsourcing, and all that jazz. They have many things to do. People are always saying this.

“A miss is as good as a mile.”

Accept it and if necessary, be the whole man at the work!

+ www.youngnam.com 

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Bong Sul (Advisor, SeoulClick)

 Read more: Bong (Bong Sik) Sul, Dongdaemun Style, ebook.kstudy.com, Seoul, 2019. 


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