RISK MANAGEMENT IN EMERGING FASHION MARKETS
C. Arvaniti
Manchester Metropolitan University (UNITED KINGDOM)
During the last decade there have been major changes in the logistical strategies adopted by companies and it is reasonable to assume that these changes have impacted on the fashion industry. Textile and apparel industries act globally, taking into consideration many kinds of risks associated with operations all over the world .The main purpose of this research is to identify and analyse the supply chain risks in European emerging markets (including new entrants to EU) and to evaluate ways of managing these risks (financial, operational, political, natural, procedural, technical and so forth) in order for a fashion company to be able to gain competitive advantage and establish its business in countries which often have complex regulations and difficult bureaucracies.
The decision processes that fashion businesses go through in order to accept the risks in entering these markets will be explored to identify the strategies that will produce effective risk management. Once the threats are identified, the next step is usually to work out the likelihood of the threat being realised and to assess its impact. Enabling the business to evaluate the risks and assess the extent to which they match their risk appetite. The contribution of this research to knowledge will be concentrated on the challenges a firm faces when entering these emergent European member states. Moreover, by creating an expansion strategy, companies must consider many important differences between mature and emerging markets and they have to develop a specific communication strategy according to the domestic culture. On the other hand a part of the internationalisation process is the development of the technology and e-business which can create levels of expectations previously undreamed and lead a firm to a competitive advantage. It is obvious that the technology has become an important enabler of accuracy, accountability and efficiency in managing the challenge of the new markets, especially in Eastern Europe and European Union.