Beruflich Dokumente
Kultur Dokumente
OBM Creative
Conceptualization
BRANDING
ODM R&D
OEM
(Supply Chain)
© Minder Chen, 1993-2011 Demand Chain - 9 -
Net Worth
• Net Worth $31 B As of March 2011
• The richest person in Spain
• The #2 richest person in Europe
• The #7 richest person in the world
Sales in 2000
• Inditex $2.43 billion
• H&M $3.2 billion
• Gap $13.6 billion - 11 -
© Minder Chen, 1993-2011
Gap versus Inditex at a Glance
€12.5 billion in global sales 2010
What is the
similarity?
Jobs fostered an approach to product design that
evoked haute couture as much as high-tech.
Trends setter?
Instead of setting the trends,
Zara follows them.
2-18 - 18 -
© Minder Chen, 1993-2011
What Is Fashion?
Trend
Fashion is the imitation of a
given example and satisfies the
demand for social adaptation. .
The more an article becomes
subject to rapid changes of
fashion,
the greater the demand for Classic
cheap products of its kind.
60s-70s
http://www.eurbanista.com/the-history-of-fashion-diffusion-in-pictures/
© Minder Chen, 1993-2011
- 20 -
Innovation
"Zara is possibly the most innovative
and devastating retailer in the world."
-- Louis Vuitton Fashion Director Daniel Piette
Apple Commercial
http://www.youtube.com/watch?v=WyGT2F74p_A&feature=related
http://news.xinhuanet.com/english2010/entertainment/2010-06/22/c_13363544.htm - 24 -
© Minder Chen, 1993-2011
Zara as a Rule Breaker
• Markdown?
– Markdown legend (?)
– 50% vs. 15%
• Frequency of new products arrival & store layout?
– Ship twice a week (Z-Day)
– Like walking into a new store every two weeks (with store layout
changed – directed from the Cube)
• Out of stock (Good or Bad)?
– Encourages customers to visit often(# of store visit per year 3 vs. 17)
• Store product mix decision
– Zara retail store managers, not headquarters, determine their own
store’s product mix.
© Minder Chen, 1993-2011
- 25 -
Markdown
http://www.innovel.net/?cat=6
© Minder Chen, 1993-2011
- 30 -
The Apparel Lifecylce
• Watch the BBC
news video
below!
http://www.fashionnetasia.com/en/IndustryNews/BusinessResources/Detail.html?id=1891
© Minder Chen, 1993-2011
- 31 -
Fashion Reconnaissance
• Spotting trends
everywhere from the
street to movies to
couture fashion
shows and,
• Information from its
customers to keep its
merchandise fresh.
Design/
Production/ Store Customer
Logistics
Leverage Close
Your Assets communication/
information loop
Stick to a
rhythm
© Minder Chen, 1993-2011
- 39 -
Communication Loops
• Close the communication loop:
• Customer Store Manager/Staff
Market Specialists (i.e., Fashion
Buyer)Designer Production Staff
Buyer (Procurement Specialist)
Subcontractor Warehouse
Managers/Distributor
2-44 - 44 -
© Minder Chen, 1993-2011
Capacity Utilization
• For Faster Response,
• Have Extra Capacity
on Hand
Waiting Time
Capacity Utilization
© Minder Chen, 1993-2011
- 45 -
Zara Global Presence
• Zara welcomes shoppers in 78 countries to its
network of 1.557 stores in upscale locations in
the world's largest cities.
• The retailer's international footprint proves that
national borders are no hindrance to a shared
fashion culture.
“There's no such
thing as borders
when it comes to
sharing a single
fashion culture.”
Read more:
http://online.wsj.com/article/SB10001424053111903895904576546651628934210.html#ixzz1bZd2uqxM
Read more:
http://online.wsj.com/article/SB10001424053111903895904576546651628934210.html#ixzz1bZdM1Bet