Fast Fashion - 3100 Words

Introduction The clothing industry, as one of the most globalized industries in the world (Bonacich et al 1994), is currently undergoing a restructuring, especially the fast fashion sector. Fashion markets are synonymous with rapid changes and short product life cycles. Therefore, changes in consumer demand for newness and fashion trend force the emergence of ‘fast fashion’ strategy in retailers like Zara and Hamp;M and shifts in the focus of competitive advantage from price towards quick response. That is to say, clothing firms, which are adopting global or offshore sourcing strategy, are not considered to have more competitive advantages as before. However, the question is: should fast fashion retailers adopt quick response†¦show more content†¦Hypothesis: In an era of fast fashion, companies that adopt both global sourcing strategy and quick response strategy have better chance to succeed in the fashion clothing market. 2. Cost, the most basic consideration. In order to have higher profit margin, one of the most effective ways is to cut down production costs. In view of the low labor cost in developing countries, global sourcing seems to be a good choice to reduce costs. With the development of global production networks and the increasing competition, fast all fashion clothing firms have shifted their manufacturing operations to low lost locations over the past decades. The shifts in the jeans manufacturer Levi Strauss’s global strategy could vividly demonstrate how global sourcing strategy works and affect its supply chain. At first, the company was created in the USA. As it developed and became a global company, they began to employ workers all over the world. However, in face of fierce competition, Levi Strauss started to shift its operation to lower-cost countries in the late 1980s. By the year 2003, Levi Strauss closed the last four plants in North American and ‘has become an entirely offshore producer’ (Dicken 2011 p.318). The German fashion company Hugo Boss also provides similar example. In face of high production cost, namely high labor cost in domestic market, more and more fashion retailers choose to outsource their production. Moreover, some fastShow MoreRelatedFast Fashion7521 Words   |  31 PagesJournal of Fashion Marketing and Management Emerald Article: Fast fashion: a financial snapshot S.G. Hayes, Nicola Jones Article information: To cite this document: S.G. Hayes, Nicola Jones, (2006),Fast fashion: a financial snapshot, Journal of Fashion Marketing and Management, Vol. 10 Iss: 3 pp. 282 - 300 Permanent link to this document: http://dx.doi.org/10.1108/13612020610679277 Downloaded on: 07-08-2012 References: This document contains references to 40 other documents To copy this document:Read MoreFast Fashion1699 Words   |  7 PagesFAST FASHION Over the past few years there has been an apparent change in the fashion retail industry which is taking control of it‘s speed. ‘Fast Fashion’ is the new 21st century phenomenon currently dominating high-street retail. Stores like HM and New Look have become the masters of the quick turnaround and are closing in on trends at such a speed that they can have fresh looks on their shelves for the customer, months before the original designer can get their garments shipped out of theRead MoreFast Fashion On The Fashion Industry1148 Words   |  5 PagesThe popularity of cheap and fashionable clothing has been on the rise since the introduction of fast fashion to major clothing companies. The fashion world has become one of the dominating parts of consumer culture. However, the affordable clothing movement, in addition to the fast-paced garment work, has affected more than just our wallets. Advancement of new practices and clothing availability have contributed to many garment factories and businesses for clothing manufacturing. Nonetheless, itRead MoreThe Fast Fashion Business Model1317 Words   |  6 PagesThe Fast Fashion Business Model 1.What are the key characteristics associated with the fashion markets that support this model? Because of the continuous change in consumer demand in a very short span of time creating high complexity for the supply chain, the demand for apparel in fast fashion industry is volatile. A fast fashion retailing company can optimize its performance and remain competitive by creating agile supply chain. Agile supply chain is paramount to achieving the ultimate in profitRead MoreThe Negatives Of Fast Fashion747 Words   |  3 PagesThere are many large companies that we see every day, many fashion garments that we buy monthly, weekly or daily, and many people cannot seem to deal with how we manage to get clothing from India, China and Bangladesh and into our day to day lives. 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Note that while the electronic version of Exhibit 6 automates some of the comparisons, you will probably want to dig further into them. Background: Inditex is an international fashion retailer that designed, manufactured and sold apparel, footwear, and accessories for women, men, and children through Zara and other five chains around the world. The six retailing chains were organized as separate business units within an overallRead MoreSpeech On Fast Fashion964 Words   |  4 Pagesdeeper in the world of fast fashion I found out of the vicious cycles that our clothing is manufactured in. B. Relevance: The brands I researched are some many of you have probably heard of. C. Credibility statement: A university of Georgia professor gave an hour-long ted talk talking about her experiences of working and traveling to different countries seeing the fast fashion industry at first hands. She now teaches about fashion sustainability and the cycles of the fast fashion market. D. CentralRead MoreMarket Research Fast Fashion1600 Words   |  7 Pagesï » ¿ Fast Fashion Brands 　 　　　　 By Sehee An ID: 376050211 Due Date: 8/09/2014 Background research and short explanation Although the global economic crisis has weakened consumer confidence there is a remarkable consumption phenomenon in fashion market. Fast fashion is a new word used in fashion scene to say that designs move from runaway speedily so as to take the latest fashion at Fashion Week in both the spring and the fall of every year. These trends are designed and produced fastRead MoreZara: It for Fast Fashion1266 Words   |  6 Pagesinfrastructure being antiquated and the possibility that hardware vendors will upgrade their machines leaving them incompatible with DOS. Because Zara’s core business model is vertically integrated, it could specialize in speed and efficiency and the fast fashion trend. By assessing the pros and cons of the new IT infrastructure with Zara’s brand image, they determined that implementing the new POS networking system is beneficial for Zara because 1) it creates a more robust and scalable system that is