By using information systems, costume companies carefully monitor consumers’ tastes and responses of products. Tokatli (2007) introduced the location choices of fast fashion industry by using Zara as the successful operating case. Instead of highly global sourcing, Zara chooses to localize its manufacturing near Europe, considering the relative low cost of labor and convenient of contribution. The enhanced design will add extra value to products and attract more thoughtful consumers. Although the extra design cost may lead to higher price, customers are willing to afford the “hot” design products that capture the latest consumer trends (Cachon and Swinney, 2011).
The company does not have to keep a huge amount of inventory in the store and they can replenish their shocks quicker than before, as a result the carrying cost will decrease (Suri, 2010). Also, because of the limited amount of inventory, the company could improve the product flexibility (Kwok & Wu, 2009). Also, the company can reduce the surplus product, the need of having season sales and the need of selling the product through factory shop outlets. Consumers are encouraged to buy the product at full price and it helps to increase the full price sales volume and also enjoy the full margin (Cachon & Swinney, 2009). According to the past data, the full price sales in Jossey Menswear had been around 50% for several years (Slack, 2002) and it is possibly to improve this figure if the company uses the QR approach.
At a lower price, Lululemon products would have targeted the market that wants quality apparel at an affordable price. If executed properly, this market could potentially be equally as profitable because there are many people that cannot afford or do not want to spend $98 on pants. Even for those loyalists that may own one or two Lululemon products, a lower price would mean that they could now buy several Lululemon products. The real difference is in the relationship between profit margin and quantity. As of now, Lululemon successfully sells a lower quantity but at a higher profit margin.
The True Cost by Andrew Morgan is a film that explores the processes that led to the uproar of fast fashion. These changes within the fashion industry have drastically affected the manufacturing process of clothing. Moreover, fast fashion has had varying economic impacts both at the micro and macro-level. The structure of our global economy has driven fast fashion to new heights via consumptionism culture along with materialism. The labour management techniques that have organized manufacturers of the global south have proven to be important in sustaining the mass production of new clothing lines.
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.
BLAZZERS GARMENTS 1.EXECUTIVE SUMMARY Blazzers garments is a world of trends, fashions and styles that concentrates on the development of the present and up-coming garments to the platform. we as a enterprise sell garments of great value and with good blend of colors to the customers. We produce goods of high quality- shirts and trousers made of pure cotton and jean cloth. We concentrate on customers of both middle class and upper class. Our products are mainly for the age group of 17-30 as these age group mainly concentrates on buying clothes of changing trends.
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.
(Ferdows, K., Lewis, M., & Machuca, J. A. D., 2003) According that, it is clear that Zara always choose prime location for their retail store, in general to rent a store in the expensive location will increase their operating cost, however, the truth is Zara reduce their advertising cost to 0 - 0.3%, the advertising cost is much lower than other brands which are usually between 3% to 4%. (Craig, Jones, Nieto, Business of Fashion Case Study Competition, 2004) Indiex group believe that spend more budge in the store is more important as well as more efficacy to do a better marketing than spend money on the advertise. Here can use Michael Porter's Five Forces Model to analysis and identify the competition of Zara and to find their position in fast fashion of the appear retail industry. Look at appendix
The ordering cost and logistics may shoot up but the advantages that Zara enjoys with this model are many. First, it understands the fashion trends and quickly caters to those demands. Second, it customizes to create new designs and analyzes the acceptance rate in the market. Third, it creates an artificial scarcity with low stock and thus gives a feeling of exclusive fashion amongst customers. Fourth, it increases the number of store visits because of periodic “new arrivals”.
It is important for fashion companies to quickly respond to changing fashion (Hayes & Jones, 2006). Fast fashion is about reducing lead-times and thereby be able to offer products to the consumer in right time. The two most important factors of fast fashion is lead-time and consumer demand. The fashion retailers are using a business strategy, which reduces the time it takes to get the fashion products into the store and in which the buying system is built on in-season buying so that the product ranges consistently are updated with new collections through the season (Barnes & Lea- Greenwood, 2010). Fast fashion is a business strategy which aims to reduce the processes involved in the buying cycle and lead times for getting new fashion product into stores, in order to satisfy consumer demand at its peak (Barnes & Lea- Greenwood, 2010, p