SM-I Fashion Industry Group7

8/13/2019 SM-I Fashion Industry Group7

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Strategic Management IFast-Fashion Companies


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Fast Fashion: Fast fashion has revolutionized the Fashion industry

Earlier clothing companies sent their designers to fashion shows to

identify trends

They would then return and design/produce clothes 6-9 months inadvance according to the trends they thought would be successful

Fast fashion has turned this process on its head and now the lead

times have dropped to a matter of a few weeks.

IntroductionPerformance Criteria and Companies

Criteria for

Performance

Companies under Study


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Fast Fashion CompaniesUniqlo

Does not chase fashion trends

Identify styles that dont go out of fashion quickly,

differentiates these styles and delivers to customers

Focus more on quality and value

Primary offerings are basic items like jackets, denims and

thermals

Long development cycles in which they test new designs

and materials

Encourages customers to update wardrobes based on

changes in technology, not just in response to fashion

trends

Reasons for

Success

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High inventory turnover: Introduces a minimum of 2 designs per week

Takes only 3 weeksto identify a trend and move into production

Only 15-20 % of the total production is pre-made, the rest is made

according to market reaction

Just In Time inventory management : avoids risk of oversupply

Unsold items < 10% , Industry average17-20%

Internalises production thus eliminating reliance on other companies

Also secures raw material in advance

Eye-catching layouts designed by stylists

Each store identical to others regardless of location

Uniformity achieved through distribution of instruction manuals and

VMD (Visual Merchandising Display)

Fast Fashion CompaniesZara

Reasons for

Success

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Offers diversified items on children and accessories

Store Management

Locally customized VMD

Wait until available for the best store location

Supply Chain Management

No company-owned factories

700 Partner companies secure fabric and produce

Production

Like ZARA, Produces 80% of its clothes in advance and introduces

remaining 20% based on the most current market trend

Trend Analysis

Utilize global fashion trend forecaster such as WGSN

Fast Fashion CompaniesHnM

Reasons for

Success

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Fast Fashion CompaniesKey Learnings from Companies

Key

Learnings

Lastly, a well-designed, strong and well managed supply

chain to ensure fast fashion

Store layout must be given as much emphasis as the product

design in fashion retail

Understanding customers wants and needs, and the market

reaction to new fashions is essential

All of them have dedicated teams that research and predict

emerging trends


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Thank You

Documents

SM-I Fashion Industry Group7