Zara has taken into account consumer trends and with this, came up with products that are tailored to the consumers’ ever-changing needs and wants. This is Zara’s strategy and on this line of thought, the company has developed a supply chain that is able to respond quickly to a new trend and allows quick delivery of its products as well. Zara has many designs and constantly delivers them to its stores worldwide. It is able to achieve this feat through the use of machinery, which reduces the production and shipping time. H&M’s strategy combines the ones used by Uniqlo and Zara.
H&M seeks to position itself as a brand providing fast fashion at reasonable prices for all age groups. The customers at H&M are not very quality conscious as they only wear pieces while they are in fashion and tend to discard them more often once they are out of fashion. UNIQLO offers apparels for both males and females who range in age. UNIQLO has a broader target market as it sells basics that can attract everyone. People who shop at UNIQLO purchase quality products at an extremely reasonable price.
The following principles which are closely followed are the pulse of Zara and makes it a fashion forward yet affordable brand. • Prompt response to Demand – Zara follows a pull model in their inventory and supply chain management. This means that the current market trends are continuously analyzed and accordingly 900-1000 designs are created. Zara closely monitors its customer spending in stores, trending fashion and also takes in customer feedback and preferences on design changes. The store manager directly provides these inputs to the main design team and thus the altered designs roll in.
While ZARA strategies of vertical and horizontal integration also giving the great competitive advantageous. ANSWER TO Q1. Description of supply chain management The supply chain management is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. The product flow is the movement of goods and products from suppliers to customers; the information flow involves the transmission and processing of orders and delivery status; and the finances flow entails processes such as payment processing and schedules, credit terms, and invoicing. There are six months’ time of waiting for training production supplier, while for the fast fashion industry it takes only four to eight weeks that have much faster speed of supply chain productions.
Thanks to the new model, a new centralised distribution was able to cut Hershey’s order cycle time in half. The company could increase service level with better order fulfilment by improving inventory accuracy and creating a more transparent system for inventory monitoring, which is not easy for a large facility with 165000 palleted products. The central supply chain of Hershey was overseen by a new single management team. A diverse team from Marketing, Logistics, planning and manufacturing was made in order to develop a material process strategy. Focusing on fast moving product in store display packing was another key aspect to improve customer demand fulfilment and profitability of Hershey.
Newell Company: Corporate Strategy Newell Company has an advantage by following there company’s mission and philosophy. The philosophy is “Build on what we do best” started by CEO Dan Ferguson. Newell focuses on selling multiproduct to large mass retailers with high-volume and low-cost. Their mission is “Newell is a manufacturer and full-service marketer of consumer products for serving the needs of volume purchasers.” One of Newell’s main strategies is serving the mass retailer. The strategy of acquiring new businesses helps to improve manufacturing processes in order to get high-volume and low cost product.
This allows a reduction in costs and packaging. IKEA carries a collection of products, including home furniture and decorations. IKEA Damansara is the biggest eastern Asia branch. This wide choice is available in IKEA store and consumers can demand much of the range available through IKEA's website. Ordinary IKEA consumers are men/women aged 20-60 and are highlighted by the high overwhelming claim for buying fresh merchandise and items at affordable prices.
(Refer to figure 5) Using this model, Uniqlo was able to successfully differentiate itself from other retailers by developing unique products based on innovations than fashion trends. They are able to make quick adjustments to the production according to the latest sales trends and minimise store operation costs. This has allowed Uniqlo to sell high-quality clothes at affordable prices. Uniqlo is now working on a new supply chain that combines both their real and virtual business together. They have engaged one of Japan’s largest home builders, Daiwa House Industry, to help construct a state-of-the-art distribution center in Tokyo.
COMPANY PROFILE Priya Global was established in the year 2001. It has a reputation for exporting premium quality readymade garments, fashion accessories and made ups like scarves and fashion jewelry. The company’s aim is to offer quality products at the most competitive price. The bulk of company’s exports go to Italy, France, Germany, U.S.A, Canada, & Denmark. In a few years of existence, Priya Global stands proud on its accomplishment of manufacturing quality merchandise, timely deliveries & reasonable price leading to a list of satisfied customers.
Fashion is defined as an expression that is widely accepted by a group of people over time (Bhardwaj, Fairhurst, 2010). Fast fashion is the term used to indicate the set of strategies adopted by fashion retailers to respond current and emerging fashion trends quickly and effectively in current merchandise assortments (Fernie, 2004). In today's competitive environments, characterized by growing complexity, logics of innovation are imposed to organizations, capable to address companies quickly into new products, new performance but also new perspectives able of govern complexity through variety and variability of responses to environmental changes, starting with the close relation between time and competitive advantage of companies. The fashion