production/outsourced more seasons added implies the continuous delivery

production/outsourced to countriesfor manufacturing such as Bangladesh and Cambodia in order to cut costs in theproduction and the wages for labour (Bhardwaj & Fairhurst, 2010; Johansson, 2010; Joy,Sherry, Venkatesh, Wang & Chan, 2012). Moreover, the more seasons added implies thecontinuous delivery of a smaller merchandise with shorten lead time, thatcauses the supply chain to be under constant pressure (Tyler, Heeley,and Bhamra 2006). Thus, despite being of immense advantage, outsourcing alsolead to requirement of more complex supply chain caused by the distances interms of geography, long cycle of the order and multiplerelationships in the supply channels (Hines andBruce, 2001). Inconsistency in end products and the variability ofthe processes in the various ends of the chain, also the complexities of theimport/export requirements (Birtwistle, Siddhiqui, and Fiorito 2003; Bruce andDaly 2006). The idea of cost saving by the meansof outsourcing of the manufacturing process to the lower labor wage nationsbecame complex and somewhat deceptive. Because when the cost saving is comparedwith the costs of mark downs, obsolescence of products. The cost of carryingthe inventory the advantages are low (Christopher, Lowson, and Peck 2004).

Wecan understand that the product development causing longer lead times is aweakness in the chain.2.3.1.    Economic and Global Volatility Such profounddevelopments over the past few years, as political changes due to referendum inthe UK and its exit from European single market and the convocation of allAmerican manufacturer from abroad and trade protectionism initiated bypresident election in US still cause concerns for many companies and increaseuncertainty in the global market. As a result, the slowdown in global trade,the support of the protectionist measures can be seen around the world andconfirm the inevitability of globalization (BoF, 2016).

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

  ·       The slowing global trade in contextof geopolitical instabilitiesOne of theprimary factors affecting the shift of global economy is Geopolitical, whichaccompanied by uneven and unstable growth of developed world due to recentpolitical changes. The emerging economies are also monitoring the Intensifyinginstability in the wider geopolitical context, has given the ongoing impact of political changes acrossdeveloped countries, such as recent presidential election in the US, referendumin the UK(Brexit), campaigns due to elections in Germany and France (Amed et al., 2016).That has given rise to trade protectionismand downturns in world GDP forecasts and that macroeconomic indicators such asoil and commodity prices are highly speculative nowadays. These factorsare overall slowing global trade in general, so companies mustdetermine the impact of barriers to trade and capital flows generally. Whereasdeveloping countries in Asia are undergoing the rise of business activities ande-commerce, due to economic and consumption growth of their population, whichare united within one trade belt of such countries such as China’s OBOR andagreement with countries in specific regions like ASEAN, SAARC etc.

Which worksin contrary to the more closed and nationalistic models the western countriesare taking up (Sustainability, 2017).·       The decline and agingin developed worldIn the developed economies of the world the urban population in thecountries 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 1percent to just around 0.8 percent by the year 2035. The same is expected outof the other developed countries in Asia and western Europe (Woetzelet al., 2016)Some of the factors causing such trend include the growing agingpopulation which is dependent on the economies than contribute to them (Dobbs et al.

, 2012). This can be understood fromthe McKinsey study that by the year 2030 222 million people will be dependenton the economy from the 164 million in the year 2015. This is more severe if wetake into consideration that the working age group which actually contributedto the economy will grow very modestly and in some developed countries evennegatively in the same time frame (Dobbs et al., 2016).Hence, the 60 plus years old population will soon be 50 to 60 % of theconsuming population in the developed countries.

Specifically taken in fashionindustry terms the over 60 population range is not considered to be the groupwhich is very much into trendy fashion and not of much potential. We canunderstand further by analyzing the McKinsey’s study to understand that thenumber of elderly people and retired population will have a growth to about onethird of the total population by the year 2025, In the same time the populationabove 60 years should reach approximately about 30% in the developed economies.In the same time frame the same population in the emerging economies will bejust 13 percent.·      lower spending powerin developed countriesAccording to the McKinsey’s report, incomes of morethan 70% of households in Western countries have decreased during the lastdecade. And it isinteresting to note that in today’s scenario in developed countries the younger consumers are undermore of income pressure and poorer than their parent’s generation – to takethis in comparison in 2005, 98% of the population was doing better than theirparents, but today it is barely 30%, this will definitely give rise to a largersegment of the society which will have less spending power (Dobbs etal., 2012).

So, thegr?wing group of poor inthe developed world, untie the political discontent, that is the root of s?me social impacts on economicactivity.  èThe lack of Sustainability The fast fashion businessmodel can be understood to be the pinnacle of unsustainability. Primarily fastfashion aims at producing garments at the mass scale very rapidly and this hasgenerated a segment in the consumers known as the ‘throwaway Society’ (Pal, 2016a, p. 128). The low prices which ensure that the productionvolumes are very high, yet at the same time the textile and stitching qualityis very low.

From studies it can be understood that the products that are soldin the fast fashion industry ideally can be used till 10 washing and after thatdisposed. (Joy et al., 2012) As was explained above thefast fashion industry aims to continuously produce garments in a very largevolume and this has created a segment of the consumers known as the ‘ThrowawaySociety’. It’s appeared as a result overconsumption in the fast fashionindustry, which creates for larger amounts of waste and encourages environmentof disposability amongst the customers (Pookulangara & Shephard, 2013). From the perspective of older or conservativeconsumers the fast fashion industry can be seen as a ‘waste’ because instead ofbuying one item of high-quality and using it over a period of time the fastfashion enables to buying multiple merchandise of low quality and throwing awayas quickly as possible (Sydney, 2008.)


I'm Mary!

Would you like to get a custom essay? How about receiving a customized one?

Check it out