Digital value chain restructuring and labour process transformations in the fast‐fashion sector: Evidence from the value chains of Zara & H&M

Abstract

In this article, we combine a workplace‐centred Labour Process Theory approach with a multi‐level Global Value Chain perspective to link digital labour process transformations in the fast‐fashion value chain to broader dynamics of digital value chain restructuring. Drawing on a case study of H&M and Zara, we show how these retailers’ digital supply chain management strategies are linked to the de‐skilling, standardization and rationalization of tasks and to the emergence of new digital forms of labour control in production, logistics and retail. At the same time, we find that the effects of these transformations on working conditions are mediated by workers’ position in the value chain as well as by gender and capital‐labour power relations. The article contributes to debates on value chains and digitalization by revealing how, under digital capitalism, the ability to control and digitally integrate labour processes in complex store, logistics and manufacturing networks represents a key source of power in buyer‐driven value chains.

Digital transformation and value chains: Introduction

“…Lechowski and Krzywdzinski (2022) focus on the role of data in industrial value chains as well, by showing how competition about the control of data and the struggles to avoid proprietary lock-ins are shaping the strategies of actors and become an important theme of industrial policies. In the garment industry, as analysed by López et al (2021), and the fresh fruits industry, as described by , the capture of data is instrumental for matchmaking and distributive functions that are key competences in supply chains that are geared towards greater responsiveness to fluctuations in market demand. Also in the 3D printing industry, the trajectory of which is investigated by Johns (2021), the capture of data and the ability to control design processes is of critical importance for competitiveness in the evolving value chains.…”

“…They constitute a form of specialized service provider rather than a new kind of lead firm. López et al (2021) analyse fast-fashion retailers' digital supply chain management strategies directed at enhancing supply chain speed, responsiveness and cost-efficiency, and at advancing the integration of offline and online sales channels. They highlight how, as a consequence, labour process transformations in garment manufacturing, logistic and retail heightened work intensity, not only in manufacturing, but also in logistics and sales functions.…”

“…In the garment industry, as analysed by López et al . (2021), and the fresh fruits industry, as described by Yang (2021), the capture of data is instrumental for matchmaking and distributive functions that are key competences in supply chains that are geared towards greater responsiveness to fluctuations in market demand. Also in the 3D printing industry, the trajectory of which is investigated by Johns (2021), the capture of data and the ability to control design processes is of critical importance for competitiveness in the evolving value chains.…”

Deglobalisierung, Rekonfiguration oder Business as Usual? COVID-19 und die Grenzen der Rückverlagerung globalisierter Produktion

“…Automatisierung und Digitalisierung bei Textilproduktion, Logistik und Konsumtrends sowie beim Management von Qualität und Compliance gehören beim Geschäftsmodell des Fast Fashion zu den Kernstrategien von (Leit‑)Unternehmen des Bekleidungssektors (López et al. 2021 ). Da die Automatisierung der Produktion im Bekleidungssektor (im Gegensatz zum Textilsektor) trotz erster Experimente im Bereich der Robotik noch eine geringe Rolle spielt, gilt das vor allem für das Monitoring und die Steuerung der Lieferketten.…”

Politics by Automatic Means? A Critique of Artificial Intelligence Ethics at Work

“…Workers represented by the German union ver.di expressed concerns over the use of RFID technology and algorithmic management by multinational retail corporation H&M. The risk of negative impacts such as deskilling, work intensification, unwarranted increases in managerial control, workforce segmentation, and increases in precarity were significant for them. Using their works council, retail workers were able to delay the introduction of the new technology pending further negotiations over risk mitigation measures (López et al, 2021). Here, the unilateral implementation of new forms of AI in the face of ethical concerns was avoided because collective worker power was exercised to assert co-determination rights.…”