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2018 From Garment Manufacturer to Licenser: Journey of Turkey’s Aydınlı Group

This paper contributes to the literature by introducing a new form of outsourcing. In 2005 France’s Pierre Cardin outsourced its licenser function to Turkey’s Aydınlı Group. This paper illustrates the journey of Aydınlı Group from a garment manufacturer to a licenser as a case study. Based on semi-structured interviews with company officials and secondary information retrieved from open sources I conclude that regional competence and local know-how as well as trust are the main factors that motivated Pierre Cardin, the brand owner, to outsource its licenser function. We further found that outsourcing licenser function provides additional benefits for brand owner such as establishing brands in new territories, better protection for trademarks and generating more revenue. In addition, outsourcing provides firms in fashion industry, which is characterized as a rapid changing industry, the ability to reduce overall costs and risks, while reaping the benefits of ideas from partners worldwide. Finally, we found that the brand reputation of Pierre Cardin is the main factor that motivated Aydınlı Group to enter into a strategic partnership with Pierre Cardin instead of building its own brand.

Business and Organization Research (International Conference)
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113 151
Subject Area: Business, Management and Accounting Broadcast Area: International Type: Oral Paper Language: English