A Comparative Study on Distribution Channels of Textile
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1 FacultyofEconomicSciences,CommunicationandIT MuhammadUsmanKhan Acomparativestudyondistribution channelsoftextileandgarment industryinPakistanandVietnam: TherolesofIntermediaries Marketing Datum/Termin: 2010/05/20 Handledare: LarsHaglund Karlstads universitet 651 88 Karlstad Tfn 054-700 10 00 Fax 054-700 14 60 [email protected] www.kau.se 2 Table of Contents 1. Introduction ......................................................................................................................................... 5 2. Background .......................................................................................................................................... 5 2.1 Why Pakistan ................................................................................................................................. 5 2.2 Why textile industry in Pakistan .................................................................................................... 6 2.3 Pakistan Competitive Advantages ................................................................................................. 6 2.3 Why Vietnam ................................................................................................................................. 6 2.4 Why middle man ............................................................................................................................ 6 2.5 International Distribution channel in Connection with Pakistani and Vietnamese distribution channel ................................................................................................................................................ 7 Figure 1 Global Supply Chain Structure: Domestic and Global Sourcing .............................. 8 Figure 2 Global Supply Chain Structure – Sourcing Directly with Offshore ......................................... 9 Manufacturer or Sourcing Agent ......................................................................................................... 9 2.6 Purpose ........................................................................................................................................ 11 2.7 Limitations ................................................................................................................................... 11 2.8 Disposition ................................................................................................................................... 11 3. Literature review ............................................................................................................................... 12 3.1. Distribution channels .................................................................................................................. 12 3.2. Channel structure ....................................................................................................................... 13 3.3. The intermediaries ...................................................................................................................... 14 Role of intermediary: ..................................................................................................................... 15 Types of intermediaries: ................................................................................................................ 15 Intermediaries’ services ................................................................................................................. 16 Figure 5 Export Intermediaries (Balabanis, 2003) ............................................................................. 17 3.4. Channel management ................................................................................................................. 19 3.5. Supply chain Management ......................................................................................................... 20 Continuously improvement ............................................................................................................... 21 Figure 6 Components of Supply chain management (Robinson, 2005) ............................................ 21 4. Problem Discussion and Research Question ..................................................................................... 22 4.1. Problem Discussion ..................................................................................................................... 22 4.2 Methodology of research ............................................................................................................ 22 Type of Research ............................................................................................................................ 22 4.3 Sample Selection .......................................................................................................................... 23 4.5 Data Collection process ............................................................................................................... 24 3 4.6 Analysis of Data ........................................................................................................................... 25 4.7 Research Questions ..................................................................................................................... 26 5. Empirical data .................................................................................................................................... 26 5.1. Pakistan Case .............................................................................................................................. 26 5.1.1 Pakistani Textile Industry ...................................................................................................... 26 Source: (Pakistan Economic Survey, 2006-07) .................................................................................. 27 5.1.2 Different types of textile industry in Pakistan .............................................................................. 27 Figure 7 Structure of Pakistan Textile Industry.............................................................................. 27 5.1.3 Distribution channel in Pakistan ........................................................................................... 27 Figure 8 (Khan, 2010) ......................................................................................................................... 28 5.1.5 APTMA .......................................................................................................................................... 29 Figure 9 (Khan, Structure of Aptma, 2010) ........................................................................................ 29 Artist mills manager comments on role of Aptma ............................................................................ 30 5.1.6 Chamber of commerce in Pakistan ............................................................................................... 30 Figure 10 (Khan, Comparative Study between of Textile Industry, 2011) ......................................... 30 Artistic mills Manager Mr Ahsan Raza on Chamber of commerce .................................................... 30 5.1.7 Trade development authority Pakistan ........................................................................................ 30 For Importers ......................................................................................................................................... 31 5.1.8 Ministry of Textile (Government of Pakistan) .............................................................................. 31 Figure 11 (Pakistan, (19th may 2010)) ............................................................................................... 31 Roles of ministry of Textile Government of Pakistan ........................................................................ 32 5.1.9 Other Associations: ....................................................................................................................... 32 5.2 Private Companies ........................................................................................................................... 32 5.2.1 Artistic Mills Pakistan ................................................................................................................ 33 Figure working of Artistic Textile mills (Usman Tariq bhatti 2010) ................................................... 34 5.2.2 Sadaqat Textile mills Faisalabad Pakistan ................................................................................. 34 5.3 Case of Vietnam textile and garment industry ............................................................................ 35 Distribution channel of textile industry in Vietnam ...................................................................... 36 5.3.1 VINATEX – The Viet Nam National Textile & Garment Group .................................................. 37 5.3.2 VITAS - Vietnam Textile & Apparel Association ........................................................................ 37 5.3.2 AGTEK - Association of Garments, Textiles, Embroidery and Knitting ..................................... 37 5.3.3 Textile Chains management ................................................................................................. 37 5.3.4 Role of Vinatex in developing the global chains ................................................................... 40 5.4 Common Intermediaries .................................................................................................................. 42 4 5.4.1 Shipping