Planning to extend a Fashion industrial business to other countries

Major trends in the environment that affect a company in the fashion Industry

     

        Globalization

After globalization took place Day by day the competition between businesses is increasing, companies are competing by products, price, promotion, place, and people. The company's target market has been widening. Since there are many companies that can be seen in the same industry or field, customers get more choices in the market. For example, if we take the footwear industry, how many companies, and brands, can be seen in the market? As customer preferences there are high-quality products, with high prices, as well as high-quality products at low prices can be seen in the market. Many foreign companies enter the market and local companies compete with them.

·         Cultural changes

In a Harvard Business Review, the writers state that Organizational culture is the collective effect of the common beliefs, behaviors, and values of the people within a company. This says how an employee performs and serves customers, how they co-operate with each other etc. day by day companies recruit employees from different areas, countries, nationalities and so on. Therefore company culture should change according to it.

·         Workforce diversity

    Workforce diversity means differences between employees. Differences can become by age, gender, culture, attitudes, status, etc. After globalization has taken place in this fast-developing business world diversity has become a common factor in an organization. Globalization allows to recruit employees from overseas and they come with different attitudes habits, and languages. By recruiting diverse employees organizations can identify qualified candidates with different ideas and talents. While the organization experiencing the benefits of a diverse workforce managing the above-mentioned employees has become an issue in the present.

·         Managing downsizing

Managing downsizing means reducing the organization's size by reducing its workforce. For various reasons, managers face such situations. Economic crisis, unnecessary workforce, change in management, poor performance of the employee or organization, disciplinary reasons, government laws, establishing new strategies, etc.

·         Changing skills requirements

Day by day technology is developing, knowledge increasing new methods are introducing, therefore the skills of the workforce also in a situation where it should change and improve continuously.

·         Continued growth in the fashion industry

Since the technology developing fast fashion industry also continuously growing.

·         Online platforms

Online platforms become a big trend in the market. Present customers are on trend to purchase their day-to-day needs and wants online.

·         Mobile obsessed

Mobile payment is a point-of-sale transaction made or received with a mobile device. This includes debit cards, prepaid cards, bank transfers, cheques, money orders, etc. the Purpose of a Mobile phone has been developed to a great extent; nowadays a huge number of services are being done through mobile phones. In that way, transactions are moving to mobile phone payments as well.

·         Getting personal

Even through the online platforms offering personalized goods and services to the customers. Nowadays when you shop online at e-commerce like Aliexpress you would be able to purchase personalized t-shirts and pillowcases as you wish. You can send images of what you wish to have in your t-shirt and the seller will design according to it.

·         Fast-changing consumer preferences

New designs are created, promoted through fashion shows, and given effect by advances in technology. Fashion changes with seasons and traditional seasons are increased and suppliers gain knowledge of changing fashions and develop production flexibility to meet the exacting deadline of the buyer.

Impact on human resources and human resource activities of the company

When a company planning to extend their business to other countries, perhaps employees do not know other languages. Therefore when working with people whose language is different from other collogues it is difficult to communicate with each other and they won’t be able to work efficiently. Their ideas cannot be announced properly. And to work in other countries, they need work permits as well as accommodations.

Cultural changes inside the company and outside may be different from each other. Businesses have their own culture inside the company while the new employees may be used to another different type of culture in their mother country. The way of viewing the same situation may differ from one another due to these cultural changes. In Sri Lanka, employees start their work early morning and work for about 8 hours, and ends while in most foreign countries working hours may flexible. They may start their work in the evening and end at midnight. Men tend to be employed in management, and supervisory roles, while females tend to be employed in operative and administrative posts.

Human Resources managers are affected by workforce changes such as employee background, age, gender, and education, etc. The current female labor force participation rate in Sri Lanka is 33.1. This means that a disproportionate majority of women still remain outside the labor market, with limited or no access to wages, pensions, and other benefits tied to gainful employment. Further unemployed population, reported in 2022 for males and females are 4.2% and 6.4% respectively. Among all age groups, the unemployment rates of females are higher than those of males.

The changing world requires different skills, when new methods and technologies introduced by the environment it is necessary to upgrade the skills as well. When the company lacks with required skills, it will be a big weakness to compete in the market. For example as a firm in the apparel industry a fashion merchandiser needs,

• Good drawing and sewing skills
• Strong communication skills
•  Eye for visualization
• Technical skills
• Customer handling skills
• Experience

Today’s fashion market is highly competitive and the a constant need to refresh product ranges.

Due to the increase in the number of startups in small online niche fashion businesses, going global, it is necessary to collaborate with big online platforms.  

How to address the above issues in order to manage human resources effectively and efficiently.

·         Increasing the language skills

English is the language of international business, therefore it is important to the company to improve English language fluency even to make deals with native and non-native English-speaking countries. It is important to have proficiency in reading, writing, speaking, and listening. As a remedy for lack of English knowledge, it is important to start conducting English Training programs for the employees in order to reach the target in the business. In the program, there can be role-play, group discussions, mock interviews, speeches, presentations, etc.

·         Employee training and development programs

Every employee is different. Nothing can beat a face-to-face learning experience. As an apparel industry company management should focus on different training and development programs for different key players in the company. Key players in yarn, textile, and cut and sew sectors and explore different types of training programs. Technical design /Product development, process management, production, technical apparel making, merchandising, and design are the main areas that are in big need of training in the company currently. And it is important to introduce and train new fashion clothes to the designers.  And it is important to invest more in training.

• More convenient and secure workplace for women

Working women need to be accommodated as working mothers and they need part-time employment, flexible work schedules, job sharing, childcare assistance, etc. In addition, because more women are working, employers are more sensitive to the growing need for policies and procedures to eliminate sexual harassment in the workplace. When the company ensures the above facilities to the current female workforce there are chances to get new qualified female employees to the company. Through websites like LinkedIn, we can get the right people to the right position.

• Introduce an Online store

 As consumers continue to seek products available digitally and locally e e-commerce and offline brick-and-mortar retailing remains important. As a startup first distributing the goods through selected offline stores with respective online stores. Then analyze the demand for the online store and decide whether an online store brings a positive impact to the company. To introduce and manage online stores IT-related skills are in demand. Therefore first the company needs to uplift staffs’ IT related skills. Giving allowances to follow courses may encourage the staff to improve the above skills.

•  Introducing new technology

Technology in all sectors are drastically improving, therefore introducing computer-aided design and computer-controlled cutting technologies can benefit from real cost and time savings helps to enhance response times, and to underpin moves towards just-in-time solution.

• Increasing the employment quality

Prevailing wage rates, overtime pay, and holiday pay should be renewed, and welfare facilities, health, and safety measures should be improved and boost the employees.

 

 

Referencing

1. Department of Census and Statistics(2022) Sri Lanka Labour Force Statistics. Available at: http://www.statistics.gov.lk/Resource/en/LabourForce/Bulletins/LFS_Q3_Bulletin_2022.pdf (Accessed 25 November 2023)
2. International HRM International HRM. Available at: https://ddceutkal.ac.in/Syllabus/IHRM_BOOK.pdf (Accessed 25 November 2023)
3. BBA115 (2019) International Human Resource Management. Lesson notes