Innovation would be of great use to Coach now that its industry is becoming saturated courtesy of the traditional and haute couture luxury fashion brands. Innovation would have enabled the company to come up with a value proposition which neutralizes the competitive advantage which emanates from the brand equity of the aforementioned brands. Risk benefit
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).
Innovation capability Throughout the collaboration history of H&M, there is a common characteristic shared by collaborating brands is that these brands are all luxury designer brands. This is a continuance of H&M in spirit of innovation. In apparel industry, designer is always the core innovation power and image of a brand, therefore, the collaboration of H&M and these luxury brands brings a positive influence in enhancing its innovation capability. In the past, in-house designers of H&M shoulder subtotal innovation work, it is a great challenge to internal human resources because apparel industry acquires sustainable innovation and high feasibility in production. Compared with other resources, the VIRO performance of innovation and human
The linkages reflect different processes and activities that produce value in the form of products and services delivered to the end customer". (Christopher, 2005, P.13) A) Supply Chain: Zara had the most effectiveness supply chain in clothing industry, adding to that, they are recognize as the fastest bran in terms of design to supply the final cloth to the outlets when two to three weeks. The amazing thing a design in Zara could initiated from a call or email received from the outlets. This is positive act had added extra value to Zara to have big share market.
As an industry leader in fast fashion, H&M is facing crucial competition, other retailers are also rest no effect to take as much as market share, to keep its granddaddy first place position, H&M has been conducted a series value added collaboration initiatives. High-end designer collaboration H&M have worked with a lot of great designers. Back to 2004 they started to collaborat high-end designers like Karl Lagerfeld, recently Alexander Wang, Isabel Marant and Maison Martin Margiela have become H&M’s friendly partners. Not only collaborated with Karl Lagerfeld and Alexander Wang, H&M has a smart strategy that partnering with at least one high-end designer and launching a new collection each year since 2004, and at the same time, they create
Key success factors (KSF) are the attributes in the business’s products, process, technology, etc. that puts the firm in a superior position over the competitors. Analysing the environment of Coach Inc., following conclusions can be made about its KSF: • Distinctive & broad product line: product distinction is a key characteristic of the luxury goods industry. Because of the fact that the buyers of luxury goods tend to differentiate themselves from other individuals, there is a high need of differentiation. Every competitor therefore targets a differentiation strategy that is realized by diverse meanings.
Case of Zara, the Leading Clothing Retailer University Student University of the People Abstract This paper examines a case of Zara, the leader in clothing retailer industry which worked against all odds to become a giant during recession times. It is an innovative company with well-organized production systems, logistical systems and strives to create competitive advantage through good relationship with customers and by employing high end technology and communication systems. Its operations are centralized in Spain but communicates to other parts of the world like Europe in the shortest time possible. Reasons for the competitors not to perform well have been addressed and possible strategies elucidated. Keywords: Project Management Office Zara, the Leading Clothing Retailer Case description The case is about Zara Clothing Fashion
So, with such large price tags who buys these extravagant garments? In more recent times new clientele have come from the Middle East, Russia, China, Korea, and Brazil. Jeffry Aronsson, Chief Executive of Emanuel Ungaro, (2011) told Reuters “Women from the Middle East are our top buyers and they are likely to remain so”. In order to avoid numerous trips to Paris for fittings, many of Haute Couture’s clients have a mannequin made of their measurements so that it is not necessary for them to be present. This is a service that would be of great convince for the growing number of Middle Eastern
Another way to differentiate between the definitions of luxury is by looking at the criteria that different individuals use to distinguish one luxury product from another. • In terms of production, the manufacturers themselves decide whether they want their products to be a part of the luxury world. Accordingly, they make sure a luxury product is the work of a careful craftsman, sold in a sophisticated environment and promoted in an exclusive way with major emphasis on the description of the brand and its core values. However, at a different level, Hugo Boss is perceived by the general management of the brand as a very sophisticated way of manufacturing and selling slightly upscale fashion products. And from the point of view of Zara management,
In Hong Kong, some of the brands are adding experiential elements to their stores to encourage shopping. Such as Chanel Coco Café. 4.3 Finance in feasibility study In the finance aspect, will evaluate the cost and benefit incurred for the addition of facilities,