Vertical Aliances between Retail and Manufacturer Companies in the Fashion Industry

Abstract

While vertical firms dominate the fashion markets worldwide since years, only little research is done on vertical alliances between non-vertical retailer and manufacturing companies in this sector. These paper analyses vertical alliances from the perspective of 98 traditional fashion retailers and 104 fashion manufacturers. Based on a process oriented value chain approach, the results show how primary market and supply chain oriented value chain activities are viewed in the context of alliances, particularly in terms of own competence, perceived potential for co-operation, and the level of co-operation achieved. The data show that retailers and manufacturers see co-operation potentials in value chain activities with both low and high levels of own competence. Secondly the data show that co-operation potentials identified by both partners and the co-operation levels achieved differ. Third the data show the relation between the co-operation levels achieved in the value chain activities and the degree of success in turnover, costs, and time-to- market.

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