The apparel aftermarket in India – a case study focusing on reverse logistics

Abstract

PurposeThis paper aims to map and understand the reverse logistics systems in the apparel aftermarket in India. It clarifies the processes involved from the procurement of used clothing until its resale in the aftermarket. The paper identifies that collaboration between stakeholders can improve logistics, business predictability and margins.Design/methodology/approachIn total, 93 in‐depth interviews were conducted with stakeholders. Questions revolved around strategic and operational factors of reverse logistics in the aftermarket.FindingsThis fragmentation and isolation of stakeholders' businesses is identified as the cause of most stakeholder inefficiencies. It was found that benefits accrued by collaboration in the reverse logistics chain are increased market knowledge, more predictable business and better margins.Research limitations/implicationsMapping and understanding of the reverse logistics were the primary aims of this paper. Researchers are encouraged to look at a value‐addition model based on this paper which could help evaluate further business decisions. Additionally a study of the sustainability aspects of this reverse logistics process would be a valuable addition to knowledge in this area.Practical implicationsCollaborative initiatives can be used as a way to reduce multiplicity of activity, increase predictability and expand business.Originality/valueThis paper fulfills the need of understanding the apparel aftermarket in India and how reverse logistics may be looked on as a tool to manage the post‐first consumer apparel market.