The development of an apparel industry business model for Canada

Abstract

Purpose– Earlier attempts to develop a strategy for the apparel industry in Canada to counter the adverse effects of trade liberalisation on Canadian apparel suppliers have been based on the concept of clustering. However, despite the support from government-supported industry bodies, clustering has not been forthcoming and this situation has created a pressing need for the development of an alternative to the clustering strategy. A study by the Canadian Apparel Human Resources Council offered up several different strategies including clustering, that the Canadian apparel industry might pursue, but these have not been taken up. Evidence gained from government reports on the industry and its performance, industry case studies, an experience survey and questionnaire reported earlier, leads to a radically different alternative with a more direct relationship between Canadian apparel suppliers and retailer. The purpose of this paper is to report and construct an evidence-based collaborative strategy together with its accompanying apparel industry business model.Design/methodology/approach– The evidence gained from case studies of Canadian apparel businesses, a secondary data search, an experience survey and an online questionnaire has been followed and combined with retailer requirements from apparel suppliers.Findings– The information gained from apparel industry representatives, government sources and industry reports has enabled step-by-step construction of an evidence-based business model centred on the formation of collaborative partnerships between apparel suppliers and retailers.Originality/value– The model reflects the fact that Canadian apparel retailers have taken the leading role in the supplier/retailer relationship and shows how Canadian apparel suppliers might better position themselves to combat competition from offshore suppliers through the formation of closer links with retail partners. It points not only to a requirement for Canadian apparel suppliers to become integrated into their retail partner’s retail management systems and technology, but also demonstrates the need for the formation of strong alliances through collaborative partnerships between supplier and retailer to address the needs of the apparel market.