How Different Parts of the Supply Chain Act in Fashion Industry in Iran

Abstract: In the current global trade, the supply chain management is very important, because in fact thesupply chains are the new rivals which are competing to take over the market. The traditionalbusiness concept in Iranian clothing industry is the reason to why it didn’t find its proper positionin the domestic markets and the international clothing trade.Manufacturing and retailing in Iran are on different sides of the same coin and could make valuefor who knows to use it. It is the small firms that play the most crucial role in Iranian clothingmanufacturing segment. A big part of the manufacturing capacity is unfilled by orders because ofindiscriminate importing of the smuggled goods which are characterized by a low price and poorquality. In fact, Iranian clothing market suffers from “trust” to the products.Nowadays, traditional wholesalers, which are named “Bonakdar” inside of Iran, drive the Iranianclothing industry in the absence of a powerful retailing segment. They are responsible to buyproducts from different manufacturers usually without any order in advance, assort differentkinds of products and price goods to sell them to the independent shops in the retail segment.The apparel retail segment in Iran consists of many independent small shops besides a few retailbranch companies. Appropriate responding to consumer’s demand, which is considered as themain goal of the value chain, is absent in this segment. In fact, there is no research and designdepartment to investigate and respond the Iranian fashion trends.Both the international clothing retailers and Iranian clothing segment have a proper opportunityto gain advantages. The international firms have the ability to rearrange the shape of thedistribution centers by presenting high quality products in an affordable price. Collaborationbetween Iranian manufacturing and retailing segments in the global supply chains ofinternational firms could solve this problem in a sustainable way.