Supply Chain Transparency for apparel by Bruno Pieters in honestby

The fashion apparel store (http://www.honestby.com) by Bruno Pieters promises to provide a full description of the supply chain associated with the garment including prices paid at each stage, material details etc. An example look at a 100% silk short sleeved tunic shirt with side slits, sold for 451.73 euros, shows that the cost was 69.14 euros, wholesale markup 200% and retail markup 270 %. The cost in turn is broken down into fabric cost of 11.88 euros, with sewing thread, buttons etc specified along with manufacturing costs of 24 euros. The store believes that this transparency enables customers to understand the product supply chain better and generates demand. Given such transparency, will it generate customer demand or get them to worry about justification of wholesale and retail markups ? Is sourcing information of components necessary for consumers to appreciate the global supply chain associated with their purchase ? Will such details be required of products in the future ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , . Bookmark the permalink.

2 Responses to Supply Chain Transparency for apparel by Bruno Pieters in honestby

  1. If I saw costs spelled out like that, I’d be fine buying the shirt… if there weren’t two 200%+ markups! I don’t think most consumers understand the risk involved in fashion products, so that price would seem outrageous.

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