In addition fast fashion brand help to grow the clothing industry. Fast fashion brand is the brand provides cheap and fashionable clothes. According to According to the Bureau of Labor Statistics (BLS) 2014 Consumer Survey (qtd. Josephson), Apparel and services increased 11% between from 2013 to 2014 in the United States. However, clothing industry is oligopoly market because famous brand dominate the industry.
Its VMS helps it to achieve many benefits which includes to control over supply chain; to make fast design and send it to stores quickly; to manufactures more items; quick shipments and lower inventories. So it can be said that it is flexible, faster, and efficient than any other fashion house due to its
Reasons for choose this manager – ZARA HRM’s importance has grown dramatically in the last two decades. This new importance stems from increased legal complexities and the recognition that human resources are a valuable means for improving productivity, the awareness today of the costs associated with poor human resource management. The report will discuss the ZARA company about the human resource. ZARA is a subsidiary of the Spanish Inditex group, which is not only the clothing brand, but also the franchise ZARA brand clothing retail chain brand. Inditex is ranked first in Spain, the world's third largest clothing retailer, in 2005 its global sales of EUR 6 billion 741 million, sales of up to 429 million, net profit of $803 million.
COMPETITORS The fact that the fast fashion industry has a promising outlook for profitability makes it an extremely competitive field with newcomers entering the market and new collections from famous names being launched on a regular basis. As a matter of fact, Zara has a number of rivals competing to attract customers and gain market share. The biggest threats to the market share of Zara are H&M, Gap and Uniqlo. In addition to these four dominating names, the global market of fast fashion has also witnessed the strong growth of around 39 other retailers, such as Pull & Bear, Next, Mango, Forever 21, etc. Even though Zara has managed to maintain its position as the leader in the industry, its competitors are also continuously increasing their sales and receiving positive results.
2.1. Introduction According to statistics, the population of Western Europe spends on the purchase of goods of the fashion industry about 10% of their income, in the USA 5%. If to include all types of goods into the fashion industry’s economy, mainly satisfying the aesthetic and social-prestige needs rather than narrowly utilitarian, on their acquisition, in accordance with experts estimations, accounts approximately 40% of expenses of developed countries citizen’s family budget’s. 2.1.1. Historical Background Nowadays, the fashion industry is one of the rapidly growing industries around the world.
2015:8). Fast fashion is further explored in the work of Bhardwaj and Fairhurst (2010). Bhardwaj and Fairhurst (2010) provide a neutral viewpoint towards the fashion industry, as well as looking into fast fashion from the supplier and consumer perspective. They provide information about the changes that have occurred within the fashion industry in the last twenty-some odd years. Bhardwaj and Fairhurst (2010) point out that in the late 1980’s, retailers used to predict what the fashion trends would be long before they were made public, which allowed them to manufacture the clothing items in advance.
Company showed tremendous growth rate by growing more than 400% three year in a row and being among fastest growing 500 companies of the USA in 2005. In 2007 company sold 125 million dollar local produced clothes outside of the America. The company continued showing dramatic increase and remained as an ideal for other fashion retailing companies until 2010. From 2010 on company started losing its power and strength in the market. Moreover, company’s CEO Dov Charney was considered as unreliable and he faced harassment allegations.
While supercenters and megastores ruled the past two decades, more and more consumers are looking for a change. They’re searching to support smaller, local businesses. SWOT ANALYSIS Strengths Experience and understanding of the fashion industry Exceptional customer service The clothing industry is a large and growing consumer base Our clothing appeals to a large market Weaknesses No online store
2). Shunning Plus-Size Consumers: Lululemon does not offer sizes beyond a size 12, ignoring the "$14 billion plus-size apparel industry” (Bhasin, 2013). 3). Lack of celebrity endorsements: Lululemon has an ambassador program of local influencers and athletes (Fernandez, 2016), but does not invest in celebrity endorsement, hindering themselves from a further increase in international presence. 4).
With developed economies retail markets looking less attractive, especially the European retailers, because of the financial crisis, emerging markets’ retail sectors are in the sights of foreign retailers who want to expand their turnover and improve sales. These retailers will compete directly with local retailers, which means that we will have to be innovative to protect our market share. Cotton On has opened over 100 stores across 3 brands and South Africa is its fastest growing market of the 17 countries it operates in. they were able to identify a niche market that exists between Mr Price and Woolworths. Zara is another retailer who has entered South Africa with great results, it is claimed that Zara needs just one week to develop a new product and get it to stores, compared to the six-month (seasonal) industry average, and launches around 12,000 new designs each year.