ADDIS ABABA UNIVERSITY SCHOOL OF GRADUATE STUDIES FACULTY OF TECHNOLOGY DEPARTMENT OF MECHANICAL ENGINEERING INDUSTRIAL ENGINEERING STREAM Enhancing Competitiveness Ethiopian Fashion Industry through Color Forecasting Techniques By: Anwar Mohammed Advisor Dr. Netsanet Jote (PhD) Co-Advisor: Mr. Shimelis T. (PhD. Candidate) A Thesis Submitted to Addis Ababa University, Faculty of Technology, Department of Mechanical Engineering, in Partial Fulfillment for the Award of the Degree of Master of Science in Mechanical Engineering (Industrial Engineering) October, 2018 Enhancing Competitiveness Ethiopian Fashion Industry through Color Forecasting Techniques Anwar Mohammed A Thesis Submitted to the School of Graduate Studies of Addis Ababa University in Partial Fulfillment of the Degree of Master of Science in Mechanical Engineering Industrial Engineering Stream Advisor Dr. Netsanet Jote (PhD) Co-Advisor: Mr. Shimelis T. (PhD. Candidate) Addis Ababa University Addis Ababa Institute of Technology (AAIT) School of Mechanical and Industrial Engineering (SMIE) October, 2018 ii iii iv ADDIS ABABA UNIVERSITY SCHOOL OF GRADUATE STUDIES POSTGRADUATE PROGRAM IN INDUSTRIAL ENGINEERING ENHANCING COMPETITIVENESS ETHIOPIAN FASHION INDUSTRIES THROUGH COLOUR FORECASTING By. Anwar Mohammed Approved by Board of Examiners: Advisor: Dr. Netsanet Jote Signature _______________ Date ______________ Co-Advisor: Mr. Shimelis T. Signature _________________ Date ______________ Internal Examiner: Dr. Kasu Jilcha Signature _________________ Date _____________ External Examiner: Dr. Amare Matebu Signature _______________ Date______________ School Dean: Dr. Yilma T. Signature __________________ Date _____________ v DECLARATION I hereby declare that the work which is being presented in this thesis proposal entitled, “Enhancing Competitiveness Ethiopian Fashion Industries Through Colour Forecasting” is original work of my own, has not been presented for a degree of any other university and all the resource of materials uses for this thesis have been duly acknowledged. _______________________ _________________ Anwar Mohammed Date This is to certify that the above declaration made by the candidate is correct to the best of my knowledge. Advisor: Dr. Netsanet Jote Signature_____________ Date vi ACKNOWLEDGMENT Praise and thanks must be given first to Allah, who has provided me with health, patience, courage, and knowledge to complete this research. I want to be grateful for my advisor Dr.-Netsanet Jote. for her noticeable cooperation and devotion. My deepest appreciation goes to Ato Shimels.T, my co-advisor, for his priceless advice, supervision and follow-up throughout the works of the study. He has been always available and contactable for me any time. I have learnt a lot from his experience and I owe him a great deal. Words cannot express all I would have liked to say in gratitude to him. Finally yet importantly, I would like to thank all members of my family, especially my parents, my sisters, and my brothers; I owe a lot to their encouragement, support and prayers. vii ABSTRACT The aim of this research is to explore the enhancing competitiveness Ethiopian fashion industry through colour forecasting techniques. This thesis developed a model of colour forecasting and competitiveness factors based on a review of the literature to empirically investigate in one single model: the effect of colour forecasting factors on fashion industry practices; the effect of competitiveness factors on fashion industry practices; and the effect of competitiveness of colour forecasting techniques on fashion industry practices. The sampling method which will be applied in this study is the simple random sampling method. The researcher designed a questionnaire to investigate attitudes of members towards fashion industry within their industry, and their concerns about colour forecasting practice. One hundred questionnaires were distributed to member’s fashion industry. The data collected for the purpose of this study is analyzed. The analysis includes two parts: First, descriptive analysis is presented. Second, factor analysis is conducted using the Structural Equation Model (SEM), applying Exploratory Factor Analysis in the first stage to identify the model that contains the factors that have the most significant impact on competitiveness of colour forecasting techniques using SPSS -20, then in the second stage the fitness of the model is tested through Confirmatory Factor Analysis using AMOS. Before implementing the SEM, the data is tested for reliability and consistency, in order to ensure its validity for the analysis. The finding of this thesis largely support hypothesis relationship proposed in the theoretical model. The model suggests some correlation to compliment these factors and work together to influence of competitiveness through colour forecasting, correlation are suggested to be implemented regarding the dimension of market, technology, market demand on competitiveness, social, environmental, psychological, market demand, as interaction those factors could be considered as new dimension. Those results also provide strong evidence relationship between colour forecasting and competitiveness dimensions. This thesis contributes to theoretical and practical knowledge about relationship colour forecasting techniques and competitiveness dimensions. Key word: Color forecasting techniques, Fashion Competitiveness, Competitiveness viii Contents DECLARATION ............................................................................. Error! Bookmark not defined. ACKNOWLEDGMENT................................................................................................................. vi ABSTRACT ................................................................................................................................... viii List of Tables ................................................................................................................................. xii List of Figures ............................................................................................................................... xiv List of Abbreviations ..................................................................................................................... xv Chapter One .................................................................................................................................... 1 Back Ground ............................................................................................................................... 1 1.1 Introduction ...................................................................................................................... 1 1.2 Problem Statements ............................................................................................................... 3 1.3 Research Question ................................................................................................................. 4 1.4 Objectives the study .............................................................................................................. 4 1.4.1 General Objective ........................................................................................................... 4 1.4.2 Specific Objective ........................................................................................................... 4 1.5 Significance of the Study ...................................................................................................... 4 Literature Review............................................................................................................................ 5 2.1 Introduction of Color Forecasting ......................................................................................... 5 2.1 Challenges in the Fashion Industry ....................................................................................... 6 2.3 Color Forecasting and Supple Chain Management ............................................................... 7 2.4 Competitiveness .................................................................................................................. 11 2.5 Fashion Competitiveness..................................................................................................... 14 2.6 Fast Fashion......................................................................................................................... 21 2.7 Role of Colour Forecasting on Fashion Competitiveness ................................................... 21 2.7.1 Culture On the Fashion Industry .................................................................................. 21 2.7.2 Cultural Values ............................................................................................................. 22 2.7.3 Culture and color preferences ....................................................................................... 22 2.7.4 Market and Color Forecasting ...................................................................................... 23 ix 2.7.5 Sustainability on Social Contract ................................................................................. 23 2.7.6 Sustainable Clothing Behaviour ................................................................................... 24 2.7.7 Colours and Sustainable Product .................................................................................. 24 2.7.8 Consumer Perception .................................................................................................... 25 2.7.9 Colour to ward Brand market ....................................................................................... 25 2.7.10 Brand Logo ................................................................................................................. 26 2.7.11 Personality and Consumers Perception of Colours .................................................... 26 3.8 Art Sequence of Colour ....................................................................................................... 28 2.9 Research Gaps on Competitive Advantage ......................................................................... 30 Chapter Three ............................................................................................................................. 31 Research Methodology ................................................................................................................. 31 3.1 Introduction ......................................................................................................................... 31 3.2 Research methods ................................................................................................................ 31 3.2.1 Quantitative approach ................................................................................................... 31 3.2.2 Qualitative approach ..................................................................................................... 31 3.3 Research design ................................................................................................................... 32 3.3.1 Sampling Design........................................................................................................... 32 3.3.2 Sampling Technique ..................................................................................................... 32 3.4 Data Collection Methods ..................................................................................................... 33 3.4.1 Secondary Data ........................................................................................................... 33 3.4.2 Primary Data Collection ............................................................................................. 33 3.5 Data Analysis Methods ....................................................................................................... 34 3.6 The SEM Model and Hypotheses ..................................................................................... 37 3.6.1 The SEM Model ........................................................................................................... 37 3.6.2 Model Specification ...................................................................................................... 38 3.7 Surveyed Data for Competitiveness and color forecasting ................................................. 38 x