We make things possible in apparel and accessory industry.
Where and how we make things possible?
1. In Joint ventures
What is a joint venture?
An association of two or more individuals or companies engaged in a solitary business enterprise for profit without actual partnership or incorporation; also called a joint adventure.
A joint venture is a contractual business undertaking between two or more parties. It is similar to a business partnership, with one key difference: a partnership generally involves an ongoing, long-term business relationship, whereas a joint venture is based on a single business transaction. Individuals or companies choose to enter joint ventures in order to share strengths, minimize risks, and increase competitive advantages in the marketplace. Joint ventures can be distinct business units (a new business entity may be created for the joint venture) or collaborations between businesses. In a collaboration, for example, a high-technology firm may contract with a manufacturer to bring its idea for a product to market; the former provides the know-how, the latter the means.
All joint ventures are initiated by the parties' entering a contract or an agreement that specifies their mutual responsibilities and goals. The contract is crucial for avoiding trouble later; so the Nest Trading UK take care of the parties on specific intentions of their joint ventures as well as we aware of its limitations. All joint ventures also involve certain rights and duties. The parties have a mutual right to control the enterprise, a right to share in the profits and dividends, Each joint venturer has a fiduciary responsibility, owes a standard of care to the other members, and has the duty to act in Good Faith in matters that concern the common interest or the enterprise. A fiduciary responsibility is a duty to act for someone else's benefit while subordinating one's personal interests to those of the other person. A joint venture can terminate at a time specified in the contract, upon the accomplishment of its purpose, upon the death of an active member, or if a court decides that serious disagreements between the members make its continuation impractical.
Joint ventures have existed for centuries. In the United States, their use began with the railroads in the late 1800s. Throughout the middle part of the twentieth century they were common in the manufacturing sector. By the late 1980s, joint ventures increasingly appeared in the service industries as businesses looked for new, competitive strategies. This expansion of joint ventures was particularly interesting to regulators and lawmakers.
In present world, joint ventures are very popular, profitable and sustainable . Especially in apparel sector there are lots of joint partnerships are taking place due to the reason of remoteness or the different geographical locations between the manufacturer and the buyer. Manufacturers are far away from brand head offices unless the brand operates a local office in manufacturer's geographic location. We as Nest Trading UK make this easy for brands as well to manufacturers, we can make the bridge between parties, because we can find the right partner/supplier from Bangladesh, China ( Hong Kong), Vietnam, Sri Lanka... Through our head office in London.
The main concern with joint ventures is that they can restrict competition, especially when they are formed by businesses that are otherwise competitors or potential competitors. Another concern is that joint ventures can reduce the entry of others into a given market.
We have list of factories, list of buyers, list of brands, list of land & factory owners, List of non nominated label & apparel manufacturers, list of nominated apparel & label manufacturers in our data base. So we can meet your requirement in J/V better than anyone else in the same field.
Nest Trading has a proven track record on joint ventures in UK, Bangladesh and Hong Kong. Our experts will find you something you never thought before.
We are Woking from Bangladesh, China, Hong Kong , Sri Lanka and Vietnam for your opportunities.
2. In Value additions.
Adding value in the textiles and apparel including trimming and accessory businesses.
The concept of adding value or “economic upgrading” is a central part of the ( Global Value Chain) GVC analysis. Most of our work on GVCs focus on the economic dimensions of upgrading, which we refer to as economic upgrading to apparel sector and accessory sector.
Economic upgrading can be achieved by improving the efficiency of the production processes (process upgrading); adding new product lines that are of higher value-added because of improvements in designs or technical specifications (product upgrading); increasing value addition by moving up the value chain and taking on new functions which are of higher skills and knowledge intensity (functional upgrading); or switching to a different sector which final products are more technologically sophisticated and of higher value-added (inter-sectoral upgrading)
In the textiles and apparel industry, firms from developing countries usually find their ways into GVCs through labour intensive functions of relatively low knowledge intensity; cutting, making (sewing), and trimming (CMT). Under CMT arrangements, international buyers supply manufacturing firms with most of the input materials including yarns, fabrics and accessories, free of charge. Suppliers use these inputs to produce apparels based on specifications from buyers, and export the products under buyer arrangements in exchange for processing (CMT) fees.
Suppliers in the CMT production modality assume no responsibility for the more knowledge-intensive functions, such as product design, sourcing decisions of input materials, distribution arrangements, and marketing. Within this functional area, upgrading could happen in terms of process and product. We as nest Trading take the duty of upgrading suppliers and also the sourcing factories. We can guide and upgrade the buyer's business too in correct way to add a value to the business.
Process upgrading in the apparel value chain can be achieved by applying new technology or rearranging existing production systems. Innovation in production technology has occurred mostly in the per-assembly stages such as pattern making and fabrics cutting. Sewing operations remain labor-intensive as sustainability between labour and capital is limited, Nevertheless, Nest Trading is skilled to balance these two resources. Namely required labour and limited capital.
Our team of research work agreed that transfer of advanced technologies through linkages with production and distribution networks coordinated by international buyers have become important in process and product upgrading (Goto, Natsuda and Thoburn, 2011; Schmitz and Knorringa, 2000).
Product upgrading involves a shift into higher value-added product lines, which are normally more difficult to produce because of differences in technical specification and input materials. For instance, a supplier may upgrade product-wise by shifting from the production of casual woven shirts to expensive suits. The suppliers’ ability to produce products of higher value-added is highly correlated to the extent of upgrading in production processes.
Upgrading can also be functional, e.g. where a business moves into more complex functions in a particular value chain. In essence, functional upgrading has to do with shifting towards more knowledge and skill-intensive functions in the GVC, which enables reaping higher value-added and also embeds more risks in its transaction In the apparel industry, such functions include product design, material sourcing, branding, and marketing. More specifically, when the sourcing and procurement functions are added to the assembly function, this production modality is often referred to as original equipment manufacturing (OEM) When product design functions are integrated by suppliers, this is referred to as original design manufacturing (ODM), and when suppliers further integrate branding and marketing functions, it is called original brand-name manufacturing (OBM). Functional upgrading, however, does not always entail “integration” of functions. As has been the case of textiles and apparel industries in many East Asian countries.
We can address all these complicated theories and practical situations in sourcing factories in better, simple and profitable way. Our team is trained from very bottom to top to identify the requirement of value addition. We work from both ends to make this happen.
If you are a brand/retailer or a manufacture/supplier we can assist to your business objectives to increase your profits and also add a better value to your business.
Below are Further areas Nest Trading deals with