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Νέα εγγραφή 5

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Νέα εγγραφή 5

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Unfair Advantages

Ethic Star Clothing has just as all companies do many disadvantages. Cloathing is one of the largest industries today and for sure there is plenty of competition. One main disadvantage that Ethic Star Clothing faces is mainstream competition from well known clothing companies like Nike, Adidas, New Balance, Reebok and many other companies that have been out there far more years in this type of industry.  Most of these companies were established before the 1950s like Adiddas since 1949 1. and New Balance with more than 100 years from 1906 2.  Ethic Star Ltd has been trading for only 25 years and not just in clothing as its main source but in other divisions3.

Another quite large disadvantage that Ethic Star faces is the production material they use in order to be ecological friendly is limited. Unlike other companies that may not be as environmentally conscience and have the abundance of all materials, Ethic Star tries to use 100% ecological and natural products such as cotton and natural dyes. However this creates the difficulty that access to material can be limited due to where the source or origin of products is based. For example, it is easy to find artificial dyes from almost anywhere for other companies but for Ethic Star to find ecological natural dyes from a country that could face economic crisis or problems such as international affairs or tariffs may limit access. This could delay production even possibly stop it entirely.

In addition, Ethic Star has a strong belief in Ethics and in order to protect not just the environment from wastes and pollutions but most importantly its image. Unlike many companies in its competition that have cheaper quality materials that are sold at large prices for high profit incomes, Ethic Star sells high quality products for reasonable prices that still make a decent profit. However, the disadvantage to this, is that costs of high quality material are higher for the company and materials must be bought depending on sales. If too much expensive material is bought and sales are low the company will have an imbalance with expenses and decrease in net profits.  Another disadvantage Ethic Star faces is the high costs of recycling and filtering pollutants and wastes that the factory creates. In order to be environmentally conscience, the factory must invest in extra machinery and systems that filter pollutants and limit the usage of materials like water. How ever this may have high costs and limitations to productivity.

Yes Ethic Star Ltd is an exemplary company with good ethics and responsibility using sustainable materials for the better of the environment. Regardless to this ethical companies like them have more disadvantages than those in the competition. In the end companies that are not as eco-conscience succeed in higher profits and are more well known. It isn’t always easy to be on the right side.

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There would be compassionate support from the organisation by which customers can be supplied the modern dresses of Fast-fashion. Again the need of the potential backup of the customers would be possible through the analysis of segmenting the people based on demographic view-point and the other perspective of modern-day businesses.

Figure: Creating Value by EthicStar; Source: (Geller, 2015)
• Exchange offers are easier to have if any dress is not admired by the customers. The two parts of the value-delivery related activities, one is to tackle the brand connection with the customers and the other is touch points that are known as channels (George, 2013) to reach the customers have been covered through this presentation. Indeed, connecting through the digital place marketing and getting more solid contact with the customers with greater product over the years in this case for EthicStar. For the most part, nearby and online-based clients would be associated with the initiation and they should be centre pay savvy or above to be the clients.
• The clients that are focused on would be the gainers from this profiling. Tapping the customers has been possible through three ways and these strategies are taken directly by the EthicStar. Firstly, it did bring quality product at lower price and meet the satisfaction of the college-going and Teens with the fast fashion trends (Goldman and Callaghan, 2015). Secondly, the people who had customised demand can have access to it with a bulk order and sending the design to the Facsimile numbers. And finally, through the feed-back acknowledgement, the business of the EthicStar has continuously been a point of attraction among the young boys and girls and females are more expressive to have their fashion sense with the brand.

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The channels are to be placed to make the connection with the inbound and outbound logistics and in the case of this brand, both customers and production hubs are connected through supply-chain integrated all the parties (Goldman and Callaghan, 2015). First of all, shipping towards the other nations has been availed as EU market has been proliferating and taking orders with Email and authentic Business Fax-number made the business more promising towards the customers (David, 2016). In the event that you are searching for more modest orders for individual use, we will guide you to our retail site. Purchase and make instalments through Card is dispatched that very day. On the other hand, Google advertisement with the SEO has been a sensible marketing of the business to cover the sales target as a channel to reaches broader market amidst of Global age of e-commerce.

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Baden-Fuller, C. and Mangematin, V. (2013). Business models: A challenging agenda. Strategic Organization, 11(4), pp.418–427.
Bocken, N.M.P., Miller, K., Weissbrod, I., Holgado, M. and Evans, S. (2017). Business model experimentation for circularity: Driving sustainability in a large international clothing retailer. ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, (1), pp.85–122.
Caro, F. and Martínez de Albéniz Margalef, V. (2014). How Fast Fashion Works: Can It Work for You, Too?: Operational Innovation. IESE Insight, (21), pp.58–65.
Fassin, Y., Van Rossem, A. and Buelens, M. (2010). Small-Business Owner-Managers’ Perceptions of Business Ethics and CSR-Related Concepts. Journal of Business Ethics, 98(3), pp.425–453.
Hvass, K.K. (2015). Business Model Innovation through Second Hand Retailing: A Fashion Industry Case. Journal of Corporate Citizenship, 2015(57), pp.11–32.
Dobrosavljević, A. and Urošević, S. (2020). CONTEMPORARY MANAGEMENT OF BUSINESS PROCESSES WITHIN THE SUPPLY CHAIN OF FASHION INDUSTRY. Fashion Industry, (2), pp.36–39.
Onken, M. and Campeau, D., 2016. Lean startups: Using the business model canvas. Journal of Case Studies, 34(1), p.95 .

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EthicStar provides quality cloths for both women and men including kids wear with a wide range of hoodies, sweatshirts, T-shirts etc. in whole sale. There are fewer local websites and stores which provide such a wide range of clothes on wholesale prices as EthicStar provides for all the kids, men and women. These clothes are of different styles including emo fashion, decent clothes, party wear, comfy cloths, PJ’s and much more (Jin, et.al, pp. 193 - 211). Plant Faced is a sustainable clothing brand having a mission (Saicheua, et al., 2011). This brand reach to the customers with the help of the website which is basically a user-friendly, concerti centric, aesthetically pleasing, and forwards their message of the sustainability. The entirety of our dress is reasonably made in little clusters to guarantee no overabundance stock at any point goes to landfill. We attempt to make superior grade, flawlessly made pieces of clothing intended to last the trial of time. We do request our clients to take care from their EthicStar  pieces to assist us with this.
EthicStar is also engaged in the fashion blogging from where a user can easily find the trending topics and the content related to the fashion.
Ethic Star is concerned in selling the clothes which are 100% sustainable

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The key activities of EthicStar includes the, Quality Control, Supply Chain and Exports within UK (Bocken, et.al, 2017). These activities are performed by the online stores and factory outlets as well. From the chemical free dyes, 100% organic fabrics, recyclables, sustainability, and nitty-gritty of the fashion to the conservation of the water, and the eco-friendly fashion. EthicStar is one of the most affordable ethical fashion industries (Saicheua, et al., 2011). Ethicstar is  an ethical and high-end fashion brand, working with an appropriate fair-trade practices and ethics in the fashion. Having the belief to deal with the fashion trends and their effects on the environment.EthicStar is basically an eco-friendly brand which is attract to the values of environmentally friendly clothing and sustainability. EthicStar introduces the sustainable clothing for the women’s apparel which are the super stylish and the comfortable. It provides t-shirts , tops, vests, bottom wears, hoodies .EthicStar Ltd has been exchanging for 25 a long time managing and providing printers, embroiders clear pieces of clothing as well as working with prestigious retailers and marketing companies. The company is based in East London, UK. The company has included the Emo clothing extend to its collection. emo clothing, goth clothing, punk clothing, rockabilly clothing and Emo Drainpipe Thin Pants. The Thin drainpipe pants have been overhauled on our site to show the all over printed thin extend denim run.

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Revenue Stream is usually termed as the monitory costs that does not include profit. This revenue is obtained directly from the customer segment (Fassin, et.al, 2011, pp. 425 - 453). This revenue can also include the one time pay from the buyer or the repeating revenues. The funds or discounts given by the authorities or the bigger companies also counts as the revenue streams.

The pricing technique of Ethic Star is market oriented so the cost is adjusted for keeping in mind the markets such as the prices are high in the global market due to the longer distribution channels, however they are low in the terms of the domestic markets.
Various mechanisms and  procedures are adopted by Ethic Star for the revenue streams including fixed list costs,discounts and cupon codes.
The revenue streams for Ethic Star are  Online Bank, Letter of Credits, tailor services, purchasing good profits and sales tax (Jin, et. al,pp 193-211). There is also a 5% to 6% cost of advertising  and marketing of the final product.
The CSR authorities also funds the small companies in order to grow their business.

Ethic Star has the low level of an inventory.

Sources of Revenue

Online Sales =    £1,000,800

In-store Sales =  £2,100,200

Total Revenue = £3,200,000.

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The cost structure is utilized to define the cash inflows and outflows of a company. The out flow includes the rents, tailor prices, researches, technical advantagements, service cost of the machines, employee insurance and daily office cost. The other hand, the main inflows that a company has are the direct goods prices, funds by the government etc. The cost structure and plan for EthicStar is not unique from the other famous big clothing stores. The change is in the policies and the leniencies provided by the government of UK for SME that includes, lower taxes, lower electricity per unit price and many more (Jin, et.al, pp. 193 - 211). These costs are more or less same for the online purchases, retail stores and the exports to other cities of UK.  The cost structure is defined as the relative proportions of the variable and the fixed costs which a business incurs (Bedford, et al., 2011). The concept is expressed in the smaller units like the service, customer, product, division, or the location.
The structure of the cost is below described :

Raw Fabric and other raw material = 60% to 70%;
Staff salaries = 10 % to 15%
Governamental Taxes and the electicity bill - 15 % to 20%

These costs are more or less the same for the online puchases ,retail stores and the exports to other cities of UK.

Ethic Star incurs the heavy range of the cost for obtaining the material and fabric for making the clothes for its clients. So in this regard, Ethic Star also has to pay high rates to the designers and the team of the logistics for their work. Lastly, it incurs the little and manageable price on the advertising of the brand.

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The incorporation of the sustainable strategies for fabric manufacture is the only solution of this problem. By clearly defining the clothing items by tag that they are sustainable and cruelty free is the smartest solution for this problem. It might require the company to use some modern technology for this purpose and that might increase the cost of the end product. The company can also start to make the clothing from recycled cloths (Bocken, et.al, 2017). The promotion of these steps taken is also important. The greater the promotion of these things the greater number of buyers will get to know about the brand.The possible solution to this problem is to look for opportunities in this situation that can be focus at the new needs of the people at homes. They are more requiring the long wear and most comfortable clothes. Some of the promotional and advertising strategies for this problem can also work best to increase sale. The strategies can be made to encourage the wearing good clothes at homes to feel good and elevate the mood. Another strategy is the offering of discounts on clothing at online shopping platforms as the traffic at the website experienced increasing throughout the lockdown months in UK. It is not that the lockdown is continuing, but there are times when the lockdown is loosened, means, there are opportunities for EthicStar to work and increase the sale (Baden-Fuller and Mangemati, 2013, pp. 418 - 427).

The solution for the technical lag between small business like EthicStar and bog clothing business can be overcome by taking some small but effective steps. These steps could involve the hiring of IT professionals that are willing to work for low salary but are interested to go an extra mile. The second machines for the fabric manufacture can also be bought which will be less expensive than new one.

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The major problem faced by the clothing brands of these days is sustainability issue. The waste generated by the clothing manufacture company is causing a great proportion of solid waste in the urban areas. The cloths after few times wearing are becoming out of fashion these days (Baden-Fuller and Mangemati, 2013, pp. 418 - 427). Moreover, the rate of recycling of the fabric material is lesser than the production of these cloths. For sustainability demands, the quality of fabric cannot be compromised because it will reduce the company trust and lower the sales. Many international organizations are also boycotting the brands which are not adapting sustainable strategies for the manufacture of fabric. Many bloggers and influencers are demanding the sustainable fabric. The less buying of cloths is more encouraged these days. The same problem is faced by EthicStar Ltd (Baden-Fuller and Mangemati, 2013, pp. 418 - 427).
The digitalization is a major problem faced by both big and small clothing companies. Innovation in the fabric manufacture mechanism to the digital market, everything is now connected with the AI. For small business like EthicStar, there is a great room to grow by the help of technology for small business the resources are not sufficient. This hinderance while overcoming, might lead the company to compromise on the quality or other aspects in order to use sufficient resources for the digitalization (Caro and Martínez-de-Albéniz, 2015, pp. 237 - 264).

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ETHICSTAR LTD