E-COMMERCE

Topic
E-Commerce tools for Garment manufacturing Process Presented by: Amit kumar(02) Kumar ankur(09) Madan mohan(10) Uttam kumar(25)

WHAT IS E-COMMERCE?

Electronic commerce, commonly known as e-commerce, is a type of industry where the buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as email, mobile devices, social media, and telephones as well.

TYPES OF E-COMMERCE
Business-to-Business (B2B) B2B e-commerce is simply defined as e-commerce between companies Business-to-Consumer (B2C) Business-to-consumer e-commerce, or commerce between companies and consumers, involves customers gathering information; purchasing physical goods Business-to-Government (B2G) Business-to-government e-commerce or B2G is generally defined as commerce between companies and the public sector. It refers to the use of the Internet for public procurement, licensing procedures, and other governmentrelated operations

Consumer-to-Consumer (C2C) Consumer-to-consumer e-commerce or C2C is simply commerce between private individuals or consumers. This type of ecommerce is characterized by the growth of electronic marketplaces and online auctions, particularly in vertical industries where firms/businesses can bid for what they want from among multiple suppliers Mobile Commerce (m-commerce) M-commerce (mobile commerce) is the buying and selling of goods and services through wireless technology-i.e., handheld devices such as cellular telephones and personal digital assistants.

E-COMMERCE IN GARMENT MANUFACTURING

E-commerce is an exemplary concept in the future of textile and apparel industry. It is playing a major role in the present scenario of textile and apparel industry. It is also very significant that the future of textile and apparel industry is complete only with ecommerce. Diverse e-commerce applications are being implemented in the textile and apparel supply chain. Information an communication technologies (ICTs) have the capacity to make extravagant amounts of information available to users located in various parts of the world. ICTs also facilitate rapid communication between them. One application of these technologies is in the development of e-commerce to support electronic trading.

WHY E-COMMERCE REQUIRED IN GARMENT INDUSTRY?

The apparel sector continues to experience intensive competition. Challenges come from different interacting factors, such as demanding consumers, the uncertain nature of apparel demands, shifting global sourcing and powerful retailers. These challenges result in later commitments from retailers, shrinking available lead-time, and increasing information needs. Apparel manufacturers are forced to search for ways to shorten the lead-time, cut costs, and to improve product quality and customer service.

The real power of E-Commerce in the apparel industry is in the opportunities for significant improvements in supply channel management. With increasing product proliferation and shorter product life cycles, Apparel industry incurs significant excess costs in the form of inventory carrying costs, stock out costs, and markdown costs

THE ECOMMERCE BUSINESS MODEL PARADIGM SHIFT

From Traditional business characteristics Mass market Distance Supply chain management To Business characteristics Mass customisation Time Customer Relationship Management Integration Process and market

Ad Hoc Product

Short term profit

Volume Supplying customers

Long term value stream

Value Serving customers

BENEFITS OF ECOMMERCE IN GARMENT INDUSTRY

Decreasing the cost of communication in the channel - Improve the speed, accuracy, and cost of transferring data between channel partners. Improving visibility in the supply chain, thereby improving order full-filment, inventory management, forecasting, and customer service. Improving Forecasting Capability, which in turn will allow the firms in the industry to better match supply and demand.

Reducing Channel Inventories - The high cost of carrying inventory in this industry will make reduced inventory a significant benefit. Improving Design - As technology improves in representing products and components online, and as designers become more accustomed to virtual collaboration, the ability to design new products quickly will improve.

Why should garment industry Adopt an E-strategy ?

[Link] have a corporate presence [Link] have a brand presence [Link] provide information about the organisation or its products [Link] create an online market where suppliers and customers can

link with the organisation either for informational reasons and/or

transactional reasons. One recent statistic from Forrester Research stated that 80% of companies in the US have websites

but less than 20% were doing any form of e-commerce.

[Link] and advertising [Link] generate sales

[Link] go direct to the consumer avoiding usual distribution channels [Link] provide customer support [Link] allow customer feedback [Link] [Link] [Link] efficiencies in administration and communication

[Link]
[Link] provide sales force support [Link] lower risks by reducing lead times and inventories held in the supply chain

Benefits of e-commerce to the consumer

[Link] an environment in which the descriptions and prices for a range of goods and services can be quickly compared quickly and easily. This has been referred to as the commoditisation process meaning that such comparisons effectively turn the buying process into commodity purchases.
[Link] speed up transactions.

[Link] time spent on shopping important for time poor but cash rich consumers
[Link] delivery times.

5. Convenience of home delivery removing the need to visit stores i.e. virtual shopping rather than physical shopping.
6. Competition in turn creates lower prices.

Developing E-commerce Capabilities in a Garment Manufacturing Firm

Development processes suggest that, resources interact directly and indirectly with intangible resources to create ecommerce benefits. Poor-resources, social networks, trust and credibility as intangible resources form part of the medium and outcome of e-commerce capability Firms that are able to create a strategic fit between these set of resources are more likely to develop other resources which are more socially complex and have more potential value to ecommerce benefits creation

Firms may be able to achieve benefits at the firm-level, their ability to translate these benefits into broader development impacts tends to be less evident in practice.

Interactional E-commerce Capability

Interaction e-commerce capability development occurred in two stages; a first Website with minimal interactive features, and a second Website with relatively detailed product catalogue. There was also the development of a partial transactional e-commerce capability which consisted of a credit card payment facility within the firms boutique.

Informational E-commerce Capability a) Proactive steps to learn new technology at management level b) Investing in IT infrastructure c) Using external IS technical skills to address internal IS technical skills poverty. d) Pre-adoption research and learning to build ecommerce Competence

e) Identification/acquisition of valuable IS resources from internal and accessible resource portfolio f) Use of online functionality to support core activities g) Creation of complementarities between other firm resources and IS resources

Trends in e-commerce for garment industry

Bespoke Garment Ordering System
[Link] process
Choice of fabric Choice of design Choice of style

2. Garment Making [Link] Whether it fit or not [Link] fit purchase if not alterations done

Impact of E-commerce in garment industries

(a) Concern development, created employment opportunities (b)E-commerce relatively increased the revenue of the company, which contributed to the sustainability of the firm (c)capability building among tailors in the industry; vocational skills acquired by the tailors may influence their intention or the propensity to use the Internet for business.

(d)Wider market potential, export opportunity, wider customer base

(e) Heightened competition, drive towards mass production, price competition and bulk ordering and export (f)Ability to compare market values, competition and global activities, raises market awareness and therefore leads to ability to preview market trends.