E-COMMERCE ON CLOTHING INDUSTRY IN UK
PART I
THE PROBLEM AND ITS BACKGROUND
INTRODUCTION
With the inventions of computer, we can say that we have achieved the modern and the advance way of living. Computer is the most reliable and efficient gadget humans have invented. Innovations in computer technology have touched all fields of life. The rapid growth and changes in information technology have influenced the business world. The birth of electronic commerce or e-commerce had brought the great wave of changes in business transactions. (2006) defines electronic commerce or e-commerce as a process that includes the buying and selling, or the distribution of products or services through electronic systems like the Internet and other computer network. It is an electronic business application aimed in doing commercial transactions. “Electronic commerce is the exchange of information across electronic networks, at any stage in the supply chain, whether within an organization, between businesses, between businesses and consumers, or between the public and private sectors, whether paid or unpaid”
According to (1999) this Internet-based technology, allow the online application to integrate several business functions such as accounting, banking, finance, management and administrative control, supply chain management, selling chain management, data collection system, marketing, and also fund transfer. The transactions are made using electronic communications technology such as the database, e-books, e-mail, extranets, Internet, and even with mobile phones. Before electronic commercial transactions is done using Electronic Data Interchange. In this process commercial documents like purchase orders (commercial document that indicates the quantities and prices of the products or services, usually issued by a Buyer to a Seller) or invoices is send electronically. Later on, the “Web commerce” has been developed. In Web commerce, goods and services are purchase over the World Wide Web via https. Costumer can use e-shopping carts and with electronic paying services using credit card payment authorizations. Between 1998 and 2000, large number of businesses in the United States and Western Europe had created their own Web sites.
Such technological innovation makes office works and commercial transactions viable in just a single click on your computer. Nowadays companies worldwide are engaged in e-commerce. E-commerce has become the medium for trade of manufacturing and retail industries. (2000) of the Gartner Group estimated that e-commerce revenues in 2000 had generated at least 9 billion dollars and at least $ 2,584 billion in 2004 in business-to-business (B2B) and business-to-consumer (B2C) that is in the United States alone. According to (2003) of Forrester Research, electronic commerce generated sales worth of .2 billion in 2003. E-commerce has become well established in different countries in America, Asia, Europe, and in other industrialized countries around the world. E-commerce is similar to a real mall because it offers variety of products; from books, ticket reservations, school supplies, clothing, etc.
STATEMENT OF THE PROBLEM
Most companies in UK have transformed their businesses to enable them for e-commerce. Now e-commerce is becoming the hearth of textile and clothing industries in UK. (2001) reported that UK clothing manufacturing sector is now experiencing an increasing international competition unlike with the fashion design and branded clothing sector that are performing comparatively strong. In the summary of the report, the clothing industry is facing major problems with the competition from firms in different countries and changing customer needs. For fashion design and branded clothing company’s competition from abroad is less threatening compared to the issue on changing customer needs and difficulty accessing capital. Manufacturers are looking to transfer their production facilities abroad where labor costs are much lower due to the increasing competition from low priced imports. In relation to this, the study then intends to delve with the following questions:
1) What are the potential impacts of e-commerce on the different sector of UK clothing industry?
2) What are the present problems and challenges facing UK clothing industry with the use of e-commerce?
3) What are possible solutions to overcome the limitations of e-commerce on clothing industry?
4) What are the assistances provided by UK government to help resolve the issues on clothing industry?
GOALS
Several studies in the past had acknowledged that UK had all the advantages that favor the development of e-commerce. This is because it has a liberalized and competitive telecommunications market. However, there have been limited studies which proven the benefits of e-commerce on UK clothing industry. Thus, this study will identify the specific effects of e-commerce on clothing industry. The descriptive research design will be used to attain the ultimate goals of this study. This study also aims to prove the following:
1) E-commerce has positive and negative effects on UK clothing industry.
2) UK clothing industry is experiencing problems with the use of e-commerce.
3) There are solutions to overcome the limitations of e-commerce on clothing industry.
4) The UK government is providing assistance to help clothing industry to surpass their challenges concerning e-commerce.
OBJECTIVES
As the guide for the researcher, the following objectives for this study has been laid down:
1. This study will identify the impact of e-commerce on UK clothing industry. This objective will be achieved through a descriptive research design. The results will be derived from the initial and post interviews.
2. This study will examine the problems and challenges facing UK clothing industry with the use of e-commerce. This aim will be achieved through the data gathered from the interviews and surveys. In order to guide the researcher with the interview process, a structured interview schedule will be prepared.
3. This study will determine the possible solutions to overcome the limitations of e-commerce on clothing industry. The data that will help attain this objective will be based on the interview.
4. This study will also discuss the assistance of UK government to clothing industry that helps resolve the issues on e-commerce.
SCOPE AND DELIMITATION
This study was narrowed down to four aspects due to time constraints. First, the impact of e-commerce on UK clothing industry. This study will focus on the three clothing sector namely: fashion design and branded clothing, knitwear and made to order clothing. Second, the problems encountered by UK clothing industry concerning e-commerce. Third, the possible solutions to overcome the limitations of e-commerce on clothing industry. Lastly, the different assistance provided by the UK government to clothing industry that helps resolve the issues on e-commerce. This study will not attempt to compare the status of e-commerce on clothing industry in different countries in the world.
SIGNIFICANCE OF THE STUDY
The clothing industry in UK is facing a tight competition in the international market. To stay ahead of the competition a better understanding on e-commerce has to be provided. This study will promote a greater awareness and understanding of the impact and potential of e-commerce on clothing industry. Encourage the sector to innovate e-commerce to improve their competitiveness in the market. In addition, this will increase the awareness of the companies to transform the sector for e-commerce. Furthermore, this study will provide them ways to reduce the development and maintenance costs for e-commerce solutions. This study will challenge the government to improve e-commerce awareness by educating and training the companies in the industry. This will also promote the take-up of e-commerce technologies in schools.
PART II
RESEARCH METHODOLOGY
In this study, the researcher will be using descriptive method. Descriptive method seeks to describe systematically a situation or area of interest factually and accurately. The impact of e-commerce on UK clothing industry will be taken into account. Desk research will also be used to understand the problems affecting the UK clothing industry and in its different sector. Interviews with trade associations and sector companies will also be conducted for a wider understanding of their use of e-commerce. Finally, a telephone survey to companies, costumers and suppliers engage in clothing industry will be planned to be taken.
The evaluation of materials will include the determination of the sources of information. It is convenient to think that information is classified into primary sources or the firsthand and the secondary sources. Primary sources are documents in which the individual describing the event was present when it occurred. Secondary sources are documents in which the individual describing the event but obtained his description from someone else that may or may not have been a direct observer. Analysis of the documents will carry out the external and internal criticism of each document. External criticism is concerned primarily with questions related to whether or not the source is genuine. Internal criticism involves evaluating the probable accuracy of the statements obtained in the document.
PART III
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
The data gathered from the research, interviews, and survey will be subjected to analysis. The analysis will be characterized by descriptive and comparative approaches. Qualitative data that will be gathered from the research and interviews will be presented in text formats. The summary of the data from the survey will be converted to percentages and presented in graphs.
REFERENCES
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