“You need to have
five fingers touching the factory
and five touching the customer”
SCM
Flexibility
Responsiveness
ZARA have a short SCM.
So they have a ability to respond in quick changing
market’s Need.
in media advertising, it shows its products first in its stores than ready-to-wear fashion shows, because concerns about overexposure
The Result : Faster response in procurement because theinvolvement oftheproduct Development Area and image creation of scarcity that makes easier theproductto differentiate.
3. SCM, Responsivenss, Flexibility
SCM
ZARA have a short SCM.
So they have a a
than vertical integration pursued by Zara, H&M outsources all of its production and operates a single format which increases operating expenses. Such choice of outsourcing all production is reflected in a relatively low PPE to sales ratio of 15.5% which contributes to higher capital turnover, andthereby, higher ROIC. On the other hand, Inditex which sticks to vertical integration needs its own p
the spring andthe fall of every year. These trends are designed and manufactured quickly and cheaply to allow the mainstream consumer to take advantage of current clothing styles at a lower price. This philosophy of quick manufacturing at an affordable price is used in large retailers such as H&M, Forever 21, Zara, and GAP. The primary objective of most companies is to quickly produce a product
and collaboration with Korea’s top designers. Different from other fast fashion brands such as Mango andZara which introduce new products on monthly or seasonal-basis, SPAO follows weekly review and planning ofproducts. Such quick response system allows the company to respond more quickly to changing trends in a competitive clothing industry. Moreover in SPAO, more than one thousand designers