An Exploratory Study on Apparel Distribution system and its Countermeasure in the view of Market Liberalization

유통시장 개방에 따른 패션 유통업의 현황과 대응방안에 관한 연구

The channel of distribution exists for the purpose of moving product from the manufactuerer to the final consumer. In order to satisfy consumer needs, channels provide for the those products to arrive at the right place, at the right time and in the quantity, quality and price desired. Currently, there has been an emerging interest in the improvement of distribution system in many areas of industries and Korean government because of a market liberalizatiion begun at 1989 and still has processed step by step. In the wave of market liberalization, an understanding of the channel of distribution and structure would be very crucial when developing the opportunities of competitive advantages in Korean apparel industry. The purposes of this study were to investigate the determinants of the distribution channel and to identify how to respond to the market liberalization for developing the possible future strategies in the apparel industry. Data for this study were obtained from interviews with managers in apparel company in addition to a questionnaire mailed to over 106 middle management position of apparel company. Data were analyzed by using descriptive statistics. The results of this study were summarized as follows. 1. In the distribution channel of the apparel industry, a vertical marketing system, comprising producer, apparel company, retailer, prevailed without intermediaries such as wholesalers or vendors. Especially, the apparel company controlled marketing channel members. This type of system may reflect added product cost and may be not advantageous to retailers and consumers because most apparel companies are responsible for its own transfortation, storage and stocks after season. 2. In the view of market liberalization, most apparrel companies showed double-edged viewpoints. In terms of positive aspect, it would give stimulus to broaden variety of fashion merchandise and to improve product quality of fashion merchanise which were the most disadvantageous factors in competing with oversea's brands. In terms of negative aspect, it would bring the bankruptcy of small or medium sized apparel firms and the foreign products' penetration in domestic market. From this study, severel recommedations were suggested forward to improve the present condition in apparel industry. They included eliminating the power of apparel company and reinforcing middlemen for more efficient distribution system and for satisfying consumer needs in rapidly changing environment. Also it included government supports, reinforcement of information system, improvement in channel structure, and career development program in conjunction with apparel companies and academic society for improving scientific management and future potential strategies in Korean apparal industry.