Fashion Case Study: The Fast Fashion Business Model

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The Fast Fashion Business Model
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 …show more content…

When a customer purchases an item the data is directly imputed into the company’s mainframe and schedules each of the stores replenishment cycles depending on demand. This keeps the supply chain lean, and nothing moves unless it has to. This is all made possible with an effective IT department utilizing the latest methods to keep Zara and H&M the leading fashion outlets in the world.
4. What are the integration requirements between partners in this strategy?
An early and constant communication between customer and supplier can ensure a better management of the supply chain, and a more agile supply chain. Another rule is if a customer treats his suppliers well, inform them, being involved with their process is likely that less issues raise and usually is a guarantee for a longtime partnership. These facts are well known by Zara and used in its daily operations. Zara’s designers gather data on sales and inventory from each of its stores on a daily basis and use this to inform their view of the situation.
This in turn brings great flexibility to Zara and H&M, allowing them to cope with the sudden changes in customer demand. Zara, in comparison to its larger competitors like Old Navy, only has 20 strong supplier partnerships compared to Zara’s much larger competitor with 65 suppliers

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