Electronic commerce: a business model for Hong Kong clothing SMEs

Hong Kong clothing manufacturers, especially small- and medium-sized enterprises (SMEs), are currently facing challenges from low-cost producers, change of consumer shopping behaviours and growth of overseas buyers' bargaining power. In response to these threats, SMEs are advised to exploit the largest untapped opportunity in business today - electronic commerce. The key to success lies in the adoption of a business model to add value in the physical supply chain and extract value from marketspace at the same time. By forming and expanding a dynamic network organisation and by integrating physical and virtual value chains, SMEs could take the full advantage of information technology and the web to compete with their large counterparts. Application of the business model in the clothing industry is described and research implications are given.