Disintermediation in the apparel supply chain

Disintermediation and Branding Designers

Disintermediation is the direct sale of goods to clients by manufacturers, without the need of intermediaries such as wholesalers, retailers, brokers, and agents (Oxborrow 2014, pp. 253). Disintermediation is used by branding designers to reduce the costs paid when intermediaries are involved in a transaction within a supply chain. Branding designers, on the other hand, are currently employing direct interaction with clients to deliver efficiently by collecting quick feedback and making the necessary revisions.

The Role of the Internet in Disintermediation

The internet provides consumers with a diverse range of products and services, as well as relevant information, allowing individuals to make purchasing decisions without relying on intermediaries. E-commerce facilitates online shopping, where consumers do not have to visit physical shops. Consequently, branding designers have moved a notch higher to provide goods and services to their esteemed customers using online platforms – the direct access of information about goods and services offered by designers through the internet allows customers to place an order for goods online at their conveniences without necessarily moving to the stores to purchase goods. Notably, the internet services act as an intermediary by providing a platform through which buyers and sellers can meet and do the exchange.

Advantages of Disintermediation

Disintermediation is advantageous since it results in the low prices of goods and services by scrapping the costs that would otherwise be spent on taking care of the intermediaries in a supply chain (Clemons 2002, pp. 74). Branding designers are now coming up with strategic measures or approaches that make their products easily acceptable among the consumers without the help of the intermediaries. Notably, certain products are complicated to use hence the need to provide further information that can only be done through face-to-face communication. However, by adopting easy to read and understand concepts in their branding, designers now reach out to many customers who can now purchase particular products or services without difficulties.

The Impact of Social Media in Disintermediation

With the emergence of social media platforms such as Facebook, Instagram, Twitter, and Snapchat, among others, businesses now find it easy to reach out to their targeted market. Such platforms make it easy for firms to sell their products and services to consumers without necessarily hiring intermediaries. However, it must be noted that successful adverts via the platforms mentioned above require excellent approaches in the branding of products and services. Branding designers contribute significantly to ensuring that the firm’s products have the best impression in the market to attract high sales. While intermediaries have in the past played a critical role in reaching out to customers, the new technology now eliminates the services of the middlemen. Consequently, the appealing brands now sell easily in the market using social media and even television.

Improved Communication and Customer Participation

Other than the great brands, branding designers now ensure that there is constant communication between the consumers and the producer or seller. In most cases, customers tend to get bored over time following the slow response or just no response at all. Branding designers now create relevant platforms/sites that facilitate regular interactions between the seller and the buyer, thus providing immediate feedback, which is crucial to both parties. Participation enables the customers to take control of the discussion by actively contributing to the issues tabled by the manufacturers. Branding designers collect useful information that they utilize in decision-making on the quality and quantity of goods to manufacture and services to offer to realize a positive feedback in the enterprise. Managing customer participation is another tool that designers use by advancing from simple concepts to strategic measures, giving customers ample chance to contribute what they actually need to be delivered to them by the manufacturers.

References

Clemons, E.K., Hitt, L.M., Gu, B., Thatcher, M.E. and Weber, B.W., 2002. Impacts of e-commerce and enhanced information endowments on financial services: A quantitative analysis of transparency, differential pricing, and disintermediation. Journal of Financial Services Research, 22(1), pp.73-90.

Oxborrow, L. and Brindley, C., 2014. Disintermediation in the apparel supply chain. Journal of Fashion Marketing and Management, 18(3), pp.252-268.