Fashion is the imitation of a given example and satisfies the demand for social adaption, the more an article

becomes subject to rapid changes of fashion, the greater the demand of cheap products of its kind. In case of ZARA the leading retail outlet around the world, the concept of global apparel chain is used, which is characterized as a prototypical example of a buyer-driven global chain, in which profits derived from unique combinations of high-value research, design, sales, marketing, and financial services that allow retailers, branded marketers, and branded manufacturers to act as strategic brokers in linking overseas factories with markets. Apparel production was very fragmented. On average, individual apparel manufacturing firms employed only a few dozen people, although internationally traded production, in particular, could feature tiered production chains comprising as many as hundreds of firms spread across dozens of countries. About 30% of world production of apparel was exported, with developing countries generating an unusually large share, about one-half, of all exports. These large cross-border flows of apparel reflected cheaper labor and inputs partly because of cascading labor efficienciesin developing countries. Despite extensive investments in substituting capital for labor, apparel production remained highly labor-intensive so that even relatively large manufacturers in developed countries outsourced labor-intensive production steps (e.g., sewing) to lower-cost labor sources nearby. China is expected to become the supplier of choice for most U.S. importers (the large apparel companies and retailers) because of Its ability to make almost any type of textile and apparel product at any quality level at a competitive price. Although many countries may see their share of the U.S. market decline, a large number of countries likely will become second-tier suppliers to U.S. apparel companies and retailers in niche goods and service. For every Giorgio Armani one might think of there are more brands such as Levi, Lee, Wrangler, and private labels such as Brooks Brothers, Lands End and L.L.Bean. It is tempting to think of clothing from any of the last six as American, and apparel with the Armani tag as Italian. However, although the design and merchandising of the product is likely to be American or Italian, the actual garments are often sewn outside of the U.S.

and Italy. Because apparel manufacturing is labor intensive, wage rates are clearly a major factor in sourcing decisions. This gives an immediate competitive advantage to producers in developing countries, including China and India Modern retailers no longer have warehouses full of apparel products ready for the selling floor. Rather they have become lean retailers owning just the products on the selling floor. As a result, suppliers warehouses and distribution centers act in many ways as virtual warehouses and distribution centers for the retailers. At least once a week, most often on Sunday evening after the weekend sales are known, retailers have their computer inventory system order replenishment products from their suppliers. For the supplier, this evolving role in the supply chain has led to an increased focus on inventory carrying costs and risks, and manufacturers making global sourcing decisions have begun to account for these expenses. The most obvious of these is the work-in-process inventory (WIP), which increases with the lead time on a direct basis. WIP costs are carried by the supplier and represent capital tied up in the production process itself. Given the low capitalization of many apparel suppliers, the consequences of large amounts of WIP can be substantial, and born increasingly by companies upstream of retailers and branded apparel producers. The traditional marketing and management of fast fashion industry is experiencing a revolution because of the emerging of e-commerce. Since the birth of e-commerce, businesses have been able to make use of the Internet in reducing costs associated with purchasing, managing supplier relationships, streamlining logistics and inventory, and developing strategic advantage and successful implementation of business re-engineering. E-commerce allows companies to improve communications within the supply chain and enhance service offering, thus providing chances for competitive differentiation. Consumers are reluctant to spend on discretionary items, and when they do, they expect fashion, quality and low cost items. The apparel products are designed and manufactured quickly and cheaply to allow the mainstream consumer to take advantage of current clothing styles at a lower price. Since the primary objective of the fast fashion is to quickly produce a product in a cost efficient manner, most

companies in fast fashion industry appear as a vertical integration of design, justin-time production, delivery and sales. Apart from the supply chain management, contributing to Zara's success is its focus on a limited range, basic shapes and small sizes, so that it deals with a rather narrow product range. Zara avoids over supply. Although some stock is replenished, its clothing, for both men and women, is deliberately made in small batches. This helps create a scarce value. It also keeps shops looking fresh and reduces markdowns. At Zara, the number of items that end up in a sale is about half the industry average. The result is that Zara's production cycles are much faster than its rival, H&M. A well-known brand takes a great deal of time to createpartly because, unlike manufacturers, whose products are promoted by shops, retailers must do all the promoting themselves. A CASE ON VANCL IN CHINA PRODUCT POSITIONING BY VANCL What leads to success in the first place is Vancls right choice of the first entry point into the market--- Men's shirts. Since users have indirect contact with the online products, Vancl must provide standardized products to improve customer satisfaction and try its best to meet needs of user experience. As criteria for men's shirts are relatively simple, shirts are easier to reach the requirement. Most of the time, shirts appear as a kind of essential clothing for men, resulting in a high demand in men's shirts. Trends of urban white-collar clients are subject to foreign influence. Men get used to wear a different shirt every day, thus increasing consumer demand in shirts, which provides Vancl a broad market. Most of men would haste in shopping, making the demands for shirts relatively simple. Thus, shirts may have similar designs but distinguish by patterns and colors. In view of the above characteristics of men's shirts consumer market, Vancl creates a model in full compliance with the consuming habits of men on shirts, while providing a more abundant and convenient option. HIGH QUALITY PRODUCT

Vancl have greatly invested in the selection of suppliers in the upstream, the establishment of the tracking system and the introduction of the design team. Highly trained quality checking staff, usually stationed in the plant of OEM to monitor the entire production process and make product sampling tests occasionally. B2C DIRECT SELLING Vancl sells goods directly through the website, phone orders and catalog mail, hence eliminating the need for the traditional maternity shops. Hence, consumers could enjoy a much lower price of commodity at Vancl than other conventional purchasing channels. Thats how Vancl shortens the production cycle and save amounts of money on stock, leading to reduction in cost of products. Therefore, B2C online direct selling model could be regarded as one key ingredient of Vancls success. A well-known brand takes a great deal of time to createpartly because, unlike manufacturers, whose products are promoted by shops, retailers must do all the promoting themselves. To compete with Gap, Zara keeps its inventories very lean, meaning it avoids profit-damaging promotions and sales. It avoids advertising in order to cut down on costs. In consideration of promotion, Zara is parsimonious with advertising and discounts. It spends just 0.3% of sales on ads, compared with the 3-4% typically spent by rivals. In todays apparel market, consumers desire to personalize the style, fit and color of the clothes they buy. Most of todays consumers require high-quality customize products at low prices with faster delivery. In the apparel industry, several new technologies have helped mass customization operations. First of all, precise measurements of individual consumers are required to customize apparel products. Usually, in the store, a trained sales person processes the body measurements. A consumer can be measured by hand, by laser body scanner, or by video camera. Then, body measurement software modifies a stored pattern prototype by using specific individual measurements.

There was also significant local variation in customers attributes and preferences, even within a region or a country. Just within Western Europe, for instance, one study concluded that the British sought out stores based on social affinity, that the French focused on variety/quality, and that Germans were more pricesensitive. The French and the Italians were considered more fashion-forward than the Germans or the British. Spaniards were exceptional in buying apparel only seven times a year, compared with a European average of nine times a year, and higher-than-average levels for the Italians and French, among others.12 Differences between regions were even greater than within regions: Japan, while generally traditional, also had a teenage market segment that was considered the trendiest in the world on many measures, and the U.S. market was, from the perspective of many European retailers, significantly less trendy except in a few, generally coastal pockets.