Fashion Case>
1. With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Its relative capital efficiency?
GAP H&M Benetton Inditex
ROIC -0.15% 24.16% 11.20% 27.24%
Return on sales -0.06% 9.60% 7.05% 10.46%
COGS/sales 7
fashion, changes in consumer behavior, and the segmentation of the fashion market. To cope with this harsh reality, many fashion enterprises have paid much attention to the SPA (Specialty Retailer′s Store of Private Label Apparel) brand as a promising fashion marketing strategy in terms of which they can survive in the extremely competing fashion market. SPA proposed short product supply cycle,
6. Competitors in Men’s fashion industry
(1) Bean Pole
1989년 출범 ‘그녀의 자전거가 내 가슴에 들어왔다’로 강력한 브랜드 이미지 구축
2003년 인천공항 면세점 입점. 해외시장 공략의 기반 마련
패밀리 브랜드-플래그쉽 스토어(Flagship Store)
2005년 중국 상하이 푸둥지구의 빤빠이
Design, Fast Production, and Saving costs
Strategies
Growth strategy – Concentration
Company is still growing and selling single item
Competitive strategy – Different
‘Storytelling’ strategy
Core Competencies :
New Trend
Before –
Consumers recognized socks as consummer goods.
Now –
Consumers have begun to recognize socks as fashion items.
fashion house Louis Vuitton to create what is now the world’s largest luxury goods business –LVMH.
Now LVMH has a great empire in the luxury arena. It is competing With Gucci, Richemont (known as Cartier), and Bugari – the world’s best luxury groups. But LVMH definitely has the leading position and its growing doesn’t know stopping.
Complementing weakness and using oppor