RMG Industry: A Case Study

We cannot disregard the importance of the textile and clothing industry as it is regarded as the fundamental part of everyday life and an essential employment source in the global economy. More than 300 million people around the world are employed in this sector along the value chain and generating more than USD 1.3 trillion a year. In the modern consumer based society, the endless willingness structure is driving further manufacturing using huge quantities of raw resources and power to produce millions of goods and consumption that leads to the natural system of Earth.

sustainable management and marketing
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Executive Summary
Here we are going to take a case to consider from RMG (Readymade Garments) industry.
We cannot disregard the importance of the textile and clothing industry as it is regarded as the
fundamental part of everyday life and an essential employment source in the global economy. It
is almost impossible to think about a world without the RMG industry. More than 300 million
people around the world are employed in this sector along the value chain and generating more
than USD 1.3 trillion a year. The production and distribution of cotton account for almost 7% of
all employment in the emerging markets. According to recent WTO findings, clothing
production in the last 15 years has approximately doubled. In the modern consumer
based society, the endless willingness structure is driving further manufacturing using huge
quantities of raw resources and power to produce millions of goods and consumption that leads
to the natural system of Earth. Here we are going to also see how many leading international
brands manage their waste, and how they should be trying to do better for society and the earth.
We will study tables, strategies more about the actual approach of companies.
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Table of Contents
Choosing the brands........................................................................................................................4
Issue of resources and how they are used and managed in a business............................................4
3 Fundamental Approaches.............................................................................................................9
Whether each one uses all 3 or 1 of the loops.................................................................................9
How they can use their waste, any other way to use other perspective.........................................10
Reference.......................................................................................................................................12
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Choosing the brands
BURBERRY, GAP Inc., Adidas, PRIMARK, Aditya Birla Fashion and Retail, asos.
Issue of resources and how they are used and managed in a business.
Every year approximately 20 pieces of clothes are produced per individual. "Fast fashion"
has fuelled the growth of the multi-trillion-dollar clothing sector, which makes garments with a
small price tag cheap and quick. These visuals demonstrate why a fresh strategy needs to be
adopted in the clothing sector in order to satisfy demand in the markets of tomorrow (Abdullah
& Islam, 2018). Cotton is the most prevalent natural fibres, accounting for approximately 33
percent of all textile fibres. Cotton is also a very sedative plant that needs 2,700 litres of water—
what an individual drink in 2.5 years— to create one shirt of cotton. Cotton manufacturing can
be particularly harmful in fields that are already exposed to water stress. The Aral Sea has nearly
vanished in Central Asia, for example, as cotton farmers are excessively drawn from Amu Darya
and Syr Darya. Although about 3 percent of the world's arable land is used, cotton farming is
liable for 24 percent insecticides and 11 percent of pesticides. Also during clothing
manufacturing, water use and pollution occur. Approximately 20 percent of the pollution caused
by industrial water is the product of clothing and, worldwide, 5 trillion-litre water is used for the
dyeing of fabrics alone every year, sufficient to fill the two million Olympic pools (Rashid &
Taibb, 2016). A garment's carbon footprint relies mainly on the fabric. Although synthetic fibers
such as polyesters affect less water and soil than cultivated products such as cotton, more
greenhouse gases are emitted per kilogram. The carbon footprint of a shirt is over double (5.5 kg
versus 2.1 kg or 12.2 versus 4.6 pounds) in a polyester Shirt. Approximately 706 billion
kilograms in 2015, equal to the yearly emittances by 185 coal-fired power plants, were released
from polyesters for textile manufacturing in greenhouse gas. Assuming endless resources is not a
sustainable economic model in a finite globe (Chowdhury, Alam, & Chowdhury, 2016).
Unchecked consumption will undermine the financial and social objectives of the world,
beyond environmental concerns. Some clothing businesses disregard these signals and continue
traditional business models for taking waste. Others will adopt innovative fresh designs that
operate within global borders and are more suitable for the economies of tomorrow. Many
enterprises are conscious of and willing to act on environmental hazards.
The first step is for businesses to assess and comprehend regions where they can enhance
their impact on the environment. The Higg Index of the Sustainable Clothes Coalition allows
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businesses to measure the effects on the environment, society and operate on their products and
services (Shumon, Rahman and Ahsan, 2017).
Some businesses work towards improving the effectiveness of their resources. Burberry
GAP Inc., both quick fashion providers, have agreed to expand their apparel recycling by 2020
with 33 other fashion businesses and collect and recycle used garments from many of their
shops. Reformation, a smaller, more popular Los Angeles-based apparel brand, says they
manufacture their clothing with much less water and emissions than typical clothing businesses
and even publish in every product's website spared water and emission volumes (Jahan, 2017).
The next step is to acknowledge that firms have to do more to satisfy demand in the years ahead
than enhance effectiveness sustainably. They have to make fewer things. This has been
recognized and is being tested by several businesses, but these instances are still not the rule but
the exception.
Company
Name
What Value Proposed to whom
Burberry A globally acclaimed brand with
quintessentially British charm and
authenticity
Clients.
GAP Inc., A leading global retailing brand that
offers accessories, clothing, personal
care product for men, women and
children.
The clients.
Adidas, Leading global brand that offers shoes
and apparel for athletic and leisure
activities. Also, their functional and
attractive design of the product. With
that they provide the Parsley Logo.
Customers.
PRIMARK
,
Globally acclaimed brand that provides
really low prices and quality
products(Koh et al., 2017).
Customers.
Aditya Cost reduced to enhance profitability Stakeholders
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Birla
Fashion
and Retail,
and overcome the drop in profitability
of Pantaloons in March. With GST the
business of the company only
strengthens.
asos The global brand provide price, cost
reduction, brand status, convenience,
accessibility and customization as
strengths of their value
proposition(Yadlapalli, Rahman &
Gunasekaran, 2018).
Stakeholders
Company
name
Key activity Key resources Key partners Channels
Burberry Designing,
Supply chain
improvement,
transparency
creation
Designer, one of
a kind material,
physical store
presence
Production site
managers,
wholesale
partners, fashion
show managers
and models.
Own retail
network
GAP Inc., Segmentation
into company
chains based on
production, cost,
product type, etc.
Omni-
channelled
customer
service, external
disclosures,
policies
Apparel Impact
Insititute, Better
Cotton Initiative,
Buiness for Social
responsibility,
American Apparel
& Footwear
Association
Retail stores under
the names of
banana republic,
atheleta, old navy,
gap, intermix
Adidas, Designing sport
garments and
Physical
resources in
partnerships with
athletes,
Official outlets for
retailing
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other sport items
for customers
and retailing the
products
terms of groups
to study latest
materials,
customers’
rights,
production
procedures and
to come up with
new ideas,
production sites
in various
nations
universities,
governments,
companies for
reserach purpose,
and third-party
dealers for
manufacturing
products
specifically for the
franchises, e-
commerce sites
and apps, and
social media
platforms, TV/
radio for
marketing
PRIMARK, Availing latest
trend
merchandise for
display in stores,
ensuring safety,
filling shelves
and guiding
customers
Fully functional
local factories
for
manufacturing,
suppliers, and
international
level experts to
guide the
business
Partnership with
several apparel
companies such as
Accord, Cotton
Connect, and
Delivering Good
as delivery
partners, Elevate,
Ethical Trading
Initiative, Ecap,
Department for
International
Development
Retail stores,
displaying stores,
online
applications
Aditya
Birla
Fashion
and Retail,
Acquiring
fashion brands to
release latest
trends and
boutiques for
retailing
Retail stores and
merchandise
boutiques of
several brands
In-house brands
such as Allen
Solly, Peter
England, Louis
Phillipe, Forever
21, Van Heusen
Own retail stores,
multi brand retail
outlets, retail
chain store
Pantaloons
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asos Designing its
products,
outsourcing
suppliers and
factories for
manufacturing,
sustaining a
balance between
fashion and
consumer
requirements
its human
resources of
customer
support service
centres of over
650 employees,
warehouse
facility in
Europe, China,
US, and return
storage facilities
in Australia, and
Swiebodzin(Ara,
Leen,& Hassan,
2019).
e-commerce
websites,
applications and
social media
platforms in
several nations,
and partners for
events and brand
promotions .
Own official
website, mobile
applications,
social media, and
McLauren
Formula One team
Value capture
Company Name Cost Revenue flows Customer loyalty
Burberry Expensive clothing 237.28 crores Lagging due to
digital gaps
GAP Inc., Expensive and
medium priced items
$16.6 billion Exceptional because
of its loyalty
incentives
Adidas, Expensive 2,191.5 crores EUR Excellent loyalty due
to its customer
obsessed mindsets
PRIMARK, Cheap 594.9 crores GBP Lagging due to its no
policies catering to
customer loyalty
Aditya Birla Fashion
and Retail,
Medium priced and
expensive
2,552 crores INR Exceptional due to
loyalty initiatives
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asos Medium priced and
cheap
2,417.3 crores GBP Rewarding scheme
and customer loyalty
programmes
producing loyalty
3 Fundamental Approaches
It is essential to integrate circular economy issues at an early point of the product design
process, because only minor modifications are generally feasible when product requirements are
produced. It is hard to create modifications once resources, infrastructure and operations are
committed to a given product design. A basic strategy for approach is creating the value of the
products to the consumers. It is easy to put a price on an item but its quality and authenticity
should speak for the price. if the prices don’t match its value to the consumers, it is not possible
to earn their confidence and solidify the brand name in the market (Majumdar & Sinha, 2018).
Niche marketing is also appealing in this scenario. for a garment company, it is always better to
choose a specific set of demographic traits and other characteristics for its customers who will be
targeted for marketing. This is niche marketing. For a company which only produces sports
wears for men and women should specify their niche consumers. Thus, it is easy for the brand to
be remembered remarkably to its consumers for its niche.
Whether each one uses all 3 or 1 of the loops
Burberry uses slowing loops to rebrand its garments to the consumers with new designs
and modifications. It also uses closing loop by pulling out all the fur items from the stores
(Carlson & Bitsch, 2018).
Gaps inc. uses narrowing loops for its energy saving vehicles and closed loop systems to
prolong the reuse of their goods.
Adidas is on the verge of making a breakthrough by using closed loop in its creation
processes. It is committed to recycling its old items.
Primark emphasises on recycling objects and materials for years as a part of its
supportive programme for the planet. Thus, it utilised closed loop system.
Aditya birla fashion and retailing uses slowing loops for the customers’ shopping
experiences.
asos only utilises slow loop system (Nath, Eweje & Bathurst, 2019).
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How they can use their waste, any other way to use other perspective.
In accordance with studies on Anthropocene, we are shipping massive wastes to the
ecosystem, the waters, the land and even the environment as a result of this vicious production
run. The criticism of the linear economic systems is a powerful argument against all the current
business system. The manufacturing of a huge number of products as waste uses materials and
power consumption (Dissanayake, Perera & Wanniarachchi, 2017). The RMG sector integrates
almost completely linear manufacture, dispersal or even disposal of activities, that also use large
quantities of non-renewable resources obtained to manufacture the clothes in several cases.
Research shows that many more than half of the produced fast fashion is disposed of in less than
one year or less. The linear program has many challenges, such as putting pressure on the
resources and untapped economic opportunities and, in addition, putting pollution and
degradation on the natural world is a dangerous situation. In addition to this, we have different
negative impacts on society both locally and worldwide. It is difficult to quantify the economic
value of these adverse externalities. Fewer than 1 per cent, which represents a yearly loss of far
more than 100 billion dollars, of the fabric used to manufacture clothing is reprocessed in new
clothing. However, it’s not complicated, or even much more circular to use a better and sound
business model (Bick, Halsey & Ekenga, 2018). The circular economic system can generate
different advantages. With much less investment, the industry can gain much more value. By
using a sound approach such as the circular economy, we can reduce the burden through a
reduction in the consumption of materials and energy. Now, for the very first time in a campaign
to protect clothing from deposit in different regions of the world, home of the most prestigious
names in fashion. The Aditya Birla Fashion and Retail is one of the agencies that collaborates in
the development of a restaurateur and regenerative economy with business and government. It
was set up in 2010 to speed up the transition to a circular financial system. The organization has
surfaced as an international leader in notion since its inception, creating the circular economy in
the corporate and government decision-making agenda.
Make Fashion Circular
At the Copenhagen Fashion Summit in May 2017, Make Fashion Circular was launched
as the Circular material Initiative (Garg, 2019). leading companies from across the including
brands, fashion industry, philanthropists, towns, innovators and NGOs came together. It will
encourage the level of cooperation and innovation needed to create a new textile economy
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aligned with circular economic principles. The Circular Fibres Initiative entered its second phase,
Make Fashion Circular, a year later at the 2018 Copenhagen Fashion Summit. In order to thrive
and not only survive, the fashion industry needs to radically redesign its operating model. The
industry can open a huge economic potential by switching to a circular system, where we
maintain safe components in use. Business, innovators, governments, and the public need to
work together to make fashion circular (Karaosman, Brun & Morales-Alonso, 2017). As core
partners, Make Fashion Circular brings together leaders in the industry, including Burberry, Gap
Inc., M Group, HSBC, NIKE Inc. and Stella McCartney.
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