Matching format strategy and sourcing strategy in clothing retail. A conceptual representation

This paper examines the relation between format strategy and sourcing strategy with reference to the specific field of clothing retail. More precisely, the retail format adopted by the firm to compete in the clothing retail business is analysed as a factor which can strongly influence the sourcing behaviour of textiles and clothing goods. The study proposes a framework based on the concept of the indifference curve to represent conditions of buyer-supplier negotiation and the match between sourcing alternatives and retail format strategy. Although it is the retail format that plays a central role as the factor which crucially determines the purchasing requirements (represented by the shape of the buyer’s indifference curve), it should be noted that the sourcing opportunities (described by the shape of the supply alternative curve) can likewise contribute to shaping the characteristics of the retail format as a source of innovative solutions.