In this quick video, Professor Richard Wilding from the Cranfield School of Managemet discusses his research on managing risks in outsourcing garment production in China. A very informative read from an expert in the field. You can also read a PDF summary of the video by clicking here.
- Defining what value your brand wants to bring to market is crucial. If it is Product Quality, emphasis must be taken on manufacturer selection and diligent process control contract. If it is variety and ‘fast fashion’, emphasis must be taken on speed of production and flexibility of the manufacturer.
- Outsourcing in China does come with many risks which can be mitigated by partnering with a local firm who has a strong understanding and experience in the conduct of business and social relationships in China, a process called Guanxi.
- Brands must be incredibly clear with the technical requirements of their production at the outset; one cannot rely on the informal networks of Guanxi.