operational needs of its enterprise.” (Sikulu, Chong, Braun & Sikula, 2010: 3) insourcing refers to production done inside the company structure, maintaining full control over the production plants, either internationally produced or in the home country. According to Gereffi (2005) international retailers are the driving force behind globalization in the apparel industry. Therefore a comparison is made between two of the largest globally active retail groups, namely H&M group and Inditex. H&M does not own any production facilities and therefore operates, using a fully vertically disintegrated supply chain. Meaning they outsource the production of all their clothing produced.
As everyone known, H&M is a ‘fast-fashion’ retailer. As the case mentioned, currently H&M had 2,206 stores around the world. The business model for H&M is provided latest fashion trend, good quality product with affordable price to its customer. One of the smart strategies of H&M is collaboration with many world class designers, such as Alexander Wang, Balmain designer Olivier Rousteing and Versace designer Sonia Rykiel. The collaboration with world class designer made the customer feel they are purchasing high fashion shirt that they normally cannot afford.
In stores you will not meet intrusive salespeople; there are only helpdesks for more information about particular furniture. Customers can walk freely around the store and select items by themselves. Having success and positive growth in Sweden IKEA continued its expansion to outside of home country to increase sales what was consecutive decision. IKEA started its entry in Japan and China after internalization experience in Europe and America. These two countries are very different from the point of culture, lifestyle, economic and political features and that's why the new strategy was demanded.
The Impact of Technology on the Fashion Industry The fashion industry has been a creation of the modern age. Before the 19th Century the majority of clothing was custom made. Hand crafted work was more common for those that could afford it. Clothing was hand made for individuals who met the expense of dressmakers and tailors. However technology today has allowed for a progression in the fashion industry.
Be specific. Wal-Mart gives Chinese suppliers the specifications for Wal-Mart products. Wal-Mart teaches its suppliers on how to meet its specifications by giving them information about the price, quality and delivery schedule. Wal-Mart also keeps a very low inventory and has a fast turnaround. This forces its suppliers to speed up its production.
Most of manufacturing is produced in Spain or in proximity markets. Marketing and Sales: Zara’s marketing strategy relies on word-of-mouth communication and the low price appeal it makes to the customers. A Goldman Sachs analyst has described Zara as “Armani at moderate prices”. The most important channel to communicate the brand image is its stores windows displays which are changed twice a week, creating a sense of scarcity for brands clothing. So, executives invest in company-owned stores located in highly trafficked, high-end retail locations.
22.214.171.124 Copyright Issues: Major fashion shops like Zara price their company equity while they develop your bond using their customers by way of their brands and images. But at times, it becomes impossible for the organization so that you can implement copyright laws law. It is true that Zara release its completely new design, you'll discover the similar design at lower cost at several local stores. But sometimes this company itself faces few copyright issues, your recent one with overseas brand Fendi. Roman way brand Fendi maintained that Zara had unlawfully applied their photographs that had been taken out of Fundi’s show inside the 2013 manner week.
Internationally, the apparel industry has defied a lot of odds. Clothes and clothing items are produced for consumption in the global market for all countries. Clothes are produced in factories that are clustered around a seaport or free trade or industrial zones and factories spread around inland capital cities, as well as sent to the nearest ports through containers. In those countries which enjoy preferential or free trade relations in their markets, apparel industry is thriving (Marlon, Webber, and Dagher 163). The international apparel industry is going through the process of tremendous consolidation, especially after the elimination of multilateral quotas on apparel and textile trade in 2005.
Preface Zara is a successful multinational clothing company, having most of its shops in Europe. Since opening the first store in Spain, Zara now has over 1,700 stores all over the world and is famous for being able to develop products and have them available in stores within two weeks, way above the average rate for the fashion industry of around six months. The company operates on a zero advertising policy which means that it has to keep attracting customers in other ways in order to keep making profits and stay relevant in face of tough competition from similar companies. Requirements for the IT System During the analysis of the case, several functional and non-functional requirements for the new IT system were identified. The fact that