Dongdaemun Fashion and Supply-side Management
We often discuss whether the source of any fashion product is a design lab and a sewing factory, or a market to meet consumers. The issue of debate is whether it is a push on the supply side or a pull on the demand side. In fact, accounts differ.
Of course, designers’ creative designs, production in sewing factories, and supply and shipment to the wholesale market are made according to the consumer needs or preferences, and their desires. Some of suppliers, however, act as a driving force to stimulate and induce fashion consumers’ preferences and willingness to buy.
In Dongdaemun market, many designers, entrepreneurial wholesalers, and many small and medium-sized sewing factories scattered in Gangbuk, Seoul, as well as shops of an innumerable number of textiles and various fashion parts, are focused mainly on supply- side management.
They make decisions together or separately. They are partners, but sometimes competitors. Business behavior between these partners is quite positive. All right. Not only the cooperation between them, but also the competition of them is making a remarkable contribution ‘to supplying good fashion products at lower prices.’
Among them, Dongdaemun wholesalers have a multifunctional power to pursue creative designing, prediction of fashion and trend, and adoption of rational marketing strategies. One article mentions the case of Dongdaemun market where designers are often the owners or CEOs of wholesale shops.
“A South Korean designer’s role ranges from creating designs to planning production processes and marketing the brand, and this variety can be either an advantage or a disadvantage.” +
As a designer, wholesalers are also play roles as researcher, manufacturer, entrepreneur, and problem solver, and so on. In particular, their supply-side management like SCM is quite excellent.
Here the keyword Supply Chain Management (SCM) is not a new terminology. It is a supply-side management system that rationalizes the flow of products between producers and wholesalers or retailers.
In general, the strategy of SCM can achieve various management performances that could not be expected in traditional business systems. This management strategy can reduce inventory costs and shorten lead times by maintaining optimal volume of inventory. This strategy can also increase the efficiency of various other tasks, and eliminate wasteful input of material and human resources.
Particularly, Electronic Supply Chain Management(e-SCM) appears due to the emergence of the Internet and informational communication that enabled companies to be more responsive to their business partners. The advantages of such a SCM are no different from the case of supply-side management in Dongdaemun market.
“Fashion supply chain management is characterized by an increasing global competition and pressure to improve product quality, and respond quickly to changing customer needs with a shortened product lifecycle.” ++
The SCM strategy in Dongdaemun market is to manage the supply for fabrics and parts, manufacturing and trading fashion products, and physical distribution.
When one thinks about it, merchants in Dongdaemun market do not sell products, but they are doing a great job in producing and supplying so-called customized products that customers want and need. Maybe, Dongdaemun market is not only the marketplace that ‘sell fashion products’ but it is a place to ‘produce and supply the commodities’ that customers want and need.
For Dongdaemun merchants who mainly manage the supply side, partnerships with customers are also important in the demand side, such as domestic and foreign buyers and distributors. There is a proverb that is often spoken among merchants.
“No customers will kill us.”
Amid COVID-19 pandemic, fashion retail stores around the world are facing a management crisis with the shortage of supply and demand. Rather, it is true that the market is in a shutdown state as if it is empty.
Even under this crisis, as in Dongdaemun market, if suppliers sell better fashion products at a lower cost through online and Un-tact commerce, it will be possible to normalize the management of their fashion retailers.
McKinsey & Company also pointed out that a demand-driven, flexible supply chain is more important than ever. Both fashion retailers and its suppliers fighting for survival are finally facing a period of big change.
+ Hwang Ja-young, “Fashion designers’ decision-making process: The influence of cultural values and personal experience in the creative design process,” Graduate Theses and Dissertation, Iowa State University, 2013.
++ www.google.com
<33>
Bong Sul (Advisor, SeoulClick)
Read more: Bong (Bong Sik) Sul, Dongdaemun Style, ebook.kstudy.com, Seoul, 2019.
Of course, designers’ creative designs, production in sewing factories, and supply and shipment to the wholesale market are made according to the consumer needs or preferences, and their desires. Some of suppliers, however, act as a driving force to stimulate and induce fashion consumers’ preferences and willingness to buy.
In Dongdaemun market, many designers, entrepreneurial wholesalers, and many small and medium-sized sewing factories scattered in Gangbuk, Seoul, as well as shops of an innumerable number of textiles and various fashion parts, are focused mainly on supply- side management.
They make decisions together or separately. They are partners, but sometimes competitors. Business behavior between these partners is quite positive. All right. Not only the cooperation between them, but also the competition of them is making a remarkable contribution ‘to supplying good fashion products at lower prices.’
Among them, Dongdaemun wholesalers have a multifunctional power to pursue creative designing, prediction of fashion and trend, and adoption of rational marketing strategies. One article mentions the case of Dongdaemun market where designers are often the owners or CEOs of wholesale shops.
“A South Korean designer’s role ranges from creating designs to planning production processes and marketing the brand, and this variety can be either an advantage or a disadvantage.” +
As a designer, wholesalers are also play roles as researcher, manufacturer, entrepreneur, and problem solver, and so on. In particular, their supply-side management like SCM is quite excellent.
Here the keyword Supply Chain Management (SCM) is not a new terminology. It is a supply-side management system that rationalizes the flow of products between producers and wholesalers or retailers.
-Some of the popular Dongdaemun fashion items we exported last week, seoulclick.com-
In general, the strategy of SCM can achieve various management performances that could not be expected in traditional business systems. This management strategy can reduce inventory costs and shorten lead times by maintaining optimal volume of inventory. This strategy can also increase the efficiency of various other tasks, and eliminate wasteful input of material and human resources.
Particularly, Electronic Supply Chain Management(e-SCM) appears due to the emergence of the Internet and informational communication that enabled companies to be more responsive to their business partners. The advantages of such a SCM are no different from the case of supply-side management in Dongdaemun market.
“Fashion supply chain management is characterized by an increasing global competition and pressure to improve product quality, and respond quickly to changing customer needs with a shortened product lifecycle.” ++
The SCM strategy in Dongdaemun market is to manage the supply for fabrics and parts, manufacturing and trading fashion products, and physical distribution.
When one thinks about it, merchants in Dongdaemun market do not sell products, but they are doing a great job in producing and supplying so-called customized products that customers want and need. Maybe, Dongdaemun market is not only the marketplace that ‘sell fashion products’ but it is a place to ‘produce and supply the commodities’ that customers want and need.
For Dongdaemun merchants who mainly manage the supply side, partnerships with customers are also important in the demand side, such as domestic and foreign buyers and distributors. There is a proverb that is often spoken among merchants.
“No customers will kill us.”
Amid COVID-19 pandemic, fashion retail stores around the world are facing a management crisis with the shortage of supply and demand. Rather, it is true that the market is in a shutdown state as if it is empty.
Even under this crisis, as in Dongdaemun market, if suppliers sell better fashion products at a lower cost through online and Un-tact commerce, it will be possible to normalize the management of their fashion retailers.
McKinsey & Company also pointed out that a demand-driven, flexible supply chain is more important than ever. Both fashion retailers and its suppliers fighting for survival are finally facing a period of big change.
+ Hwang Ja-young, “Fashion designers’ decision-making process: The influence of cultural values and personal experience in the creative design process,” Graduate Theses and Dissertation, Iowa State University, 2013.
++ www.google.com
<33>
Bong Sul (Advisor, SeoulClick)
Read more: Bong (Bong Sik) Sul, Dongdaemun Style, ebook.kstudy.com, Seoul, 2019.
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