Introduction
The Singapore fashion industry is one of the most developing industries in the world, where the focus on quality fabric and fashion has grown over the years. One of the significant contributors to this industry is the company called Biro Fashions which was founded in the year 2013. The company is owned by two brothers, Kenghow and Chong, and has specialized in manufacturing and selling denim for men’s wear (Koh, 2018). The company operates in the fashion industry, where quality and authenticity guide success. Therefore, as a startup, the company faced substantial competition from existing brands with a vast market share in Singapore. Therefore, the company owners, the brothers, had to conduct massive market research to source the best raw materials for the industry. These brothers looked for different areas to access such products until they came to Japan, where they acquired the best raw materials for manufacturing men’s wear. As a result, the company has been able to manufacture quality clothes of different designs as they can use the best raw materials for manufacture; this aspect has enabled the company to acquire a competitive advantage over other fashion firms in Singapore, such as beyond the Vines, Love & Bravery, Ong Shunmugam, and Benjamin Barker among others (Joheari, 2021). The company’s supply chains for the cloth manufacture raw materials have led to the manufacture of clothes of high quality combined with the differentiated designs from the brothers leading to addressing consumer needs which leads to a higher market share.
Singapore consumers have a taste for quality and originality in designs, and consumers are keen to look for the quality of the materials for the wear. Therefore, Biro has been very keen on sourcing the raw materials and designing the clothes. At the same time, another aspect of competitiveness in the market is the differentiation of the products, where companies need to offer different designs of male apparel according to customer needs. The company has succeeded in differentiating all of its designs, helping improve consumer preferences. The companies also compete in terms of the pricing of the apparel. The pricing is a product of the cost analysis of the company. Therefore, firms must leverage the most negligible costs in producing and delivering goods to end users to offer better prices. Hence the company has developed a good supply chain management strategy which ensures efficiency in all the production steps and minimizes cost ensuring better pricing (Hugos, 2018). The industry falls subject to the legislations in the competition, where there are laws of registration of the companies that limit entry, as well as the employee laws that help protect the workers from exploitation to reduce company costs. At the same time, consumer laws protect consumers from exploitation by these companies, ensuring fair competition in the market.
Company’s Inputs
Its success in the fashion industry for the company has been a product of its ability to source the best raw materials for the designs of clothes. Before the start of the organization, the two brothers took more than three years of research and planning, which involved visiting different manufacturers of cloth materials in the country. After research in the country, the two brothers did not get the quality raw materials they needed. Therefore, the company shifted its efforts to external sourcing, mainly in Japan, the centre of its manufacturing. The company’s primary focus is selecting the best material and rare materials with a human touch in their manufacture. Therefore the company chose Japan to be the source due to its reputation for quality work and commitment to delivering the best products.
The company also gets its raw materials in Japan as it is the only place with one of the rarest material fabrics commonly known as Tsuriami. The fabric is currently only available in two to three factories in Japan. At the same time, the company sources its other line inputs from local factories in Japan, where after further research, it has established ten factories for the supplies. Comme Des Garcon and Vivvine Westwood are some of these companies (Massiveoutfitstore. 2017). These are located in the suburban regions of Japan. The company uses the concept of vested interest to acquire the supplies and negotiate the materials’ terms. Biro uses this approach to negotiate where the suppliers also have a stake in the gains as the manufacture and delivery of quality materials results in higher quality clothes. The approach focuses on the outcomes of the partnerships and not the transactions (Crano, 2014). It makes both parties aware of what is required for a successful business. At the same time, the company’s primary focus is building relationships with the suppliers, ensuring long-term business and quality of raw materials. The concept guarantees the performance of the suppliers in their duties, which reduces the chances of supply deficits in the company.
The company uses what is in it for our (WIIFW) strategy in negotiating partnerships with the suppliers for the inputs. The strategy looks beyond the gains of the individual party and focuses on the gains of all the partners (Stadtler, 2014). The approach ensures that the suppliers can get better terms from the suppliers of different products. The strategy also helps to ensure that the suppliers can meet their supply targets as it outlines the terms of agreement for the agreement with the company. It ensures mutual benefits for the company and supplier, allowing them to renegotiate business terms during changes in demand or other market factors.
The input acquisition also succeeds due to the implementation of modern technologies in inventory management. Also, with big data analytics, the company can forecast the demand ensuring prior acquisition to meet any market changes. At the same time, the success comes from the excellent management skills of Kage Chong, one of the brothers who foresees operations in Japan. Chong can monitor sourcing raw materials from different factories, ensuring quality is maintained. At the same time, the company’s available choices of ten factories allow them to have the bargaining power for the product’s raw materials. At the same time, the excellent management skills of Chong ensures the delivery of these inputs to the manufacturing areas for designing the clothes. The choice of the location of operations in Japan reduces the cost of the movement of raw materials, which ensures efficiency in the process of production.
Company’s Operations
The company’s complex operations involve developing new designs according to consumer needs. The company’s operations include developing designs sourcing the raw materials, manufacturing the clothes, and delivering to the store and end users. The designing process involves a team of the best designers who are creative enough in male fashion. The company utilizes online ordering and in-house ordering, which is in the store in Singapore (Fraser, 2020). The company can use an advanced inventory management system to account for its daily inventory and keep it updated according to consumer demand. At the same time, the company uses big data analytics to forecast the demand for men’s wear, which helps in better planning for the production process. Therefore the company can manufacture more products for the segments with a higher demand to keep the supply available for the markets.
The company schedule its production of these products immediately after the designs and the sourcing of the raw materials. There is a high need to manage the worker’s and suppliers’ performance to ensure the finished goods meet the consumer needs. Therefore the company uses Ray Kroc’s three-legged system tool to ensure the performance of the parties involved in the production. The system involves the collaboration of the franchise, the workers, and the suppliers for successful product development. The company is keen to ensure that the suppliers and workers deliver their optimum performance, and the company supports the players’ efforts, eventually resulting in better performance. At the same time, the company has set up a performance management strategy that clearly defines the employees’ goals and informs the team of the targets to achieve. This ensures that all the organization’s members work towards achieving their targets.
The company also employs the WIIFW strategy to encourage high performance from various production process participants. The firm guarantees that every one of the gatherings gains from their commitment to the association, which encourages a feeling of inspiration from the providers and the specialist in accomplishing the interest focuses of the customers.
The organization’s capacity to deal with its inbound and outbound operations helps its prosperity. Inbound logistics guarantees cost savings and the delivery of high-quality goods. The outbound coordinated factors incorporate two methodologies, the utilization of retail in-store buys and the web-based offer of the completed items.
Company Output
The company has a very efficient warehouse management system which ensures better management of the supplies for the company. The company’s manufactured goods are stored in the warehouse in Japan, awaiting transportation to the company’s leading shop. The company has also leveraged modern technology to ensure warehouse automation, allowing better inventory management in this location. The company also ensures it can deliver the products per the market needs within the shortest period. The brand has its leading shop in Singapore, which is accessible to the consumers for the products. Consumers can order the goods online on the website or by visiting the store (Guo, 2019). The use of online means comes as a result of changing consumer needs, where there has been growth in e-commerce after the pandemic. The company has invested in good customer service, which allows them to process consumer orders in the shop within the shortest period. The company also uses the online ordering process, which involves the selection of the items on the website, then detailing the address and then the payment of the items together with the delivery cost. After the orders are completed, the company can deliver these products either from the store or request the manufacture in the operations centre in Japan (Granger, 2022). The company’s use of superior inventory management systems allows it continually to have updated inventory for high-demand goods, which prevents cases of delay during manufacture which may occur. Therefore, this saves much time for the consumers and the company and the costs involved in transporting the products in case of a supply deficit.
The company’s transportation strategy involves the use of third-party means for the transport of the products. This includes transporting the finished products from the operation centre in Japan to the Singapore shop. These come with the help of e-commerce logistics companies which help ensure the products’ delivery to the consumers (Saini & Lee, 2020). However, the delivery process of these products is not within the control of the brand. Therefore, the company cannot guarantee the product delivery time, especially for consumers from a different country. At the same time, the consumers assume the cost of delivery for the products, which is subject to the import/export charges of the country of delivery. In terms of the distribution channels, the original on-shop method of delivery had higher demand; however, after the pandemic, there has been a rise in online distribution channel use. An analysis of the brand’s performance shows an upward rise in performance over the years of operation. The company has been growing in terms of its volume and the scale of its operation, where there has been improved consumer preference and market share, especially in Singapore. The company has also begun attracting international attention, where the demand for its products has exceeded national borders. Further, a rise in revenue and profitability is a clear indication of the ability to meet the needs of the consumers.
References
Crano, W. D. (2014). Attitude strength and vested interest. Attitude strength, pp. 131–157.
Fraser, K. (2020, August 5). The Biro brothers on building their brand.
FashionUnited. https://fashionunited.com/news/fashion/the-biro-brothers-on-building-their-brand/2020080534819
Granger, K. (2022, April 13). Developing a supply chain strategy. Www.eazystock.com. https://www.eazystock.com/blog/why-you-need-a-good-supply-chain-strategy/#:~:text=A%20supply%20chain%20strategy%20explains
Guo, A. (2019, February 13). Looking for raw denim jeans with modern European cuts? Biro Company is the local label to go to. Her World Singapore. https://www.herworld.com/fashion/raw-denim-jeans-singapore-biro-company/
Hugos, M. H. (2018). Essentials of supply chain management. John Wiley & Sons.
Johari, F. (2021). 15 Singaporean Fashion Brands You Should Know. 15 Singaporean Fashion Brands You Should Know. https://merewards.sg/stories-details/438/best-local-fashion-clothing-brands-in-singapore
Koh, A. (2018). Creative Capital: The Singaporean brothers built a Japanese fashion brand. CNA Lifestyle. https://cnalifestyle.channelnewsasia.com/entertainment/creative-capital-singaporean-brothers-behind-japanese-brand-biro-232266
Massiveoutfitstore. (2017, October 9). The Made In Japan Factor. Massiveoutfitstore.https://www.massiveoutfitstore.com/blogs/journal/the-made-in-japan-factor?_pos=3&_sid=2f9642528&_ss=r
Saini, N., & Lee, C. (2020). Prestige picks: Singapore fashion labels and designers we’re proud of. Prestige. Prestige picks: Prestige Picks: Singapore Fashion Labels We’re Proud Of (prestigeonline.com)
Stadtler, H. (2014). Supply chain management: An overview. Supply chain management and advanced planning: Concepts, models, software, and case studies, 3-28.
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