1. What are the key characteristics associated with the fashion markets that support this model?
The fashion industry is synonymous with rapid changes and for a company to have success in the fashion industry the organization needs to be fast and flexible. The nature of the industry is discussed in terms of its volatility, complexity and dynamism. Companies like Zara, the retailer H&M and GAP have to keep up with the every changing trends in the fashion industry. One day skinny jeans will be all the rage and the next day they will be out of style. The fashion industry changes with the popular styles of its day, and it changes day by day, month by month.
The Fashion industry manufactures cloths that have a short life cycle. Fashion typically exhibits the following characteristics: short life cycle, these products are designed to capture present moment of the market and they have to constantly update. This means that life of product is short, seasonal and it can be measured in months or even weeks. High volatility of the market demand for these products are not stable, it might get influenced by weather, as in the time of year or location even celebrities have a great influence on the fashion industry as well. Low predictability, due to high volatility in demand it is difficult to forecast if this demand is for a particular item or is it going to last a month. High impulse purchases, most of the buying decisions made by customers on these items are done at the point of purchase, so availability of the product is a critical factor.
2. What are the 3 lead times to be concerned with an agile supply chain?
The distribution network for the fast fashion supply chain is an issue because costs are dire...
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...lady, R. (2006). “Zara: Taking the Lead in Fast Fashion”, BusinessWeek, April 4, 2006.
Margaret Bruce, Lucy Daly (2006). Buyer behaviour for fast fashion, Journal of Fashion Marketing and Management, Vol. 10 No. 3, pp. 329-344
Hansen, S. (2012, November 25). How Zara Grew Into the World’s Largest Fashion Retailer. Retrieved August 20, 2014, from http://www.nytimes.com/2012/11/11/magazine/how-zara-grew-into-the-worlds-largest-fashion-retailer.html?pagewanted=all&_r=0
Liz Barnes, Gaynor Lea-Greenwood (2006). Fast fashioning the supply chain:
shaping the research agenda , Journal of Fashion Marketing and Management , Vol. 10 No. 3, pp. 259-271
David, F. (2013). Strategic Management: Concepts and Cases. New Jersey: Pearson International Edition
Ghemawat, P., & Nueno, J. L. (2012). ZARA: Fast Fashion.
Harvard Business Journal, 1-35
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