Analysis of value chain and sources of differentiation in international fashion markets

Abstract

This paper analyzes the value chain of the Galician textile-clothing sector and the main sources of differentiation. To respond to these objectives, 40 in-depth interviews with executives were carried out followed up by a questionnaire. Results indicate that the differentiation focused on specific segments must be the foundation on which companies compete in international fashion markets. Among the variables that contribute most to the creation of that differentiation are the brand and the design. The latter is a strategic variable of the value chain that should not be subcontracted. Galician companies need to have better control of the operations in the value chain, especially the finishes and control of end quality.