Managing Demand and Supply Networks of the Chinese Fashion Apparel Industry under the Complexity of the New Economy Transition

Purpose: The purpose of this study is to explore the impacts of the latest Chinese economy transition, which commenced in 2010, on the local Fashion Apparel (FA) industry. It investigates the current supply chain practices of the FA firms in responding and adapting to the economic changes. A dynamic supply chain alignment approach (Gattorna 2012), which stresses the inclusive concept of marketing, supply chain management and business administration, has been adopted in the investigation. Research Problem: Based on (Chorn 1991) alignment theory and (Gattorna 1998) dynamic network alignment practice, this study investigated how the new economy transition in China had impacted on its FA industry in market management, organizational adjustment and supply chain operation. Research Methodology: Qualitative multiple case study with semi-structured interview was chosen to adopt due to the nature of the study. Working-in-process Findings: Results of the case studies suggest that optimal trade-off between supply chain efficiency and effectiveness could be achieved through proper alignment of marketing demand management, supply network building, and organizational culture reconfiguration. Chinese FA industry is confronting the need for specialized supply chain innovations and business ideology review based on the new economy environment in China. Originality/Value: Demand and supply management of the Chinese fashion industry in the post-Mao era under local dualist economy is a field, which has not been investigated in research academia. By summarizing the Chinese economy transformation chronologically and investigating the impact of the current forth economy transition on the local FA market, this study sheds new lights on both the local and the global FA industry.