FAST FASHION. How Fast is Fast Fashion?
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1 FAST FASHION How Fast is Fast Fashion? All Rights Reserved. Whitepaper - Dec. 2015
2 Image Source: Google On high streets, shopping centers across the globe, Spain s most powerful clothing retailer, Inditex - popularly known for its Zara outlets, Sweden s H&M, Britain s Topshop, L.A. s Forever 21, and Japan s Uniqlo are trailblazing fast fashion world. Fast fashion is a multi-billion dollar industry and it s growing, a significant contrast to the slow decline of the traditional apparel retail market. Irony in Fast Fashion Many retailers to achieve 6-8 weeks cycle are required to take more risks up-front so ironically actually committing around 9 months earlier than everyone else would. Fast fashion has brought fresh air into the textile and apparel industries and it quickly struck a chord with the consumers. Today s fashion market is highly competitive and there is constant need to refresh product ranges. Fashion retailers are encouraging consumers to visit their stores more frequently with the idea of Here Today, Gone Tomorrow. Many retailers to achieve 6-8 weeks cycle are required to take more risks up-front so ironically actually committing around 9 months earlier than everyone else would. Careful design planning to use fabrics across multiple styles requires big investments in design, fabric and developers team. Often material is bought in bulk, as greige goods and dyed to a given color or pattern, in any given amount. They then collaborate with store managers to figure out what customers are asking for.this kind of power is relatively new for the industry, but it gives an advantage to turn things around faster. Successful retailers ensures product availability of their merchandise to the right store exactly when their consumers demand it. This comes only by accurately allocating the merchandise by style, colour, and size as there is zero margin for error. The trailblazers introduce styles as often as every two weeks. The constant replenishment keeps fashion conscious customers coming back for the generally low-priced goods. All Rights Reserved. Whitepaper - Dec
3 Traditional V/s Fast Fashion: lead time Image Source: Google Traditional Supply Chain Source to Store lead time is around 6 months whereas Fast Fashion lead time is between 6-8 weeks, but requires major amount of pre-planning 9 months in advance. Product Launch - Jan 2016 DESIGN Concept Sample Present Collection PRODUCTION/ PACKAGING Production Order Fabric Production Fabric Treatment Cutting Sewing Ship to W/house DISTRIBUTION Initial Loading Replenishment SALES At Full Price At discount TRADITIONAL FAST FASHION 7/15 8/15 9/15 10/15 11/15 12/15 1/16 2/16 3/16 11/15 12/15 1/16 NA Product Launch Product Launch Traditional V/s Fast Fashion Source to Store lead time is around 6 months v/s 6-8 weeks Fast Fashion goods are mostly sold at full price unlike Traditional * Fast Fashion requires major amount of pre-planning 9 months in advance All Rights Reserved. Whitepaper - Dec
4 5 Goals of Fast Fashion Retailers: Image Source: Google The Fast Fashion approach has the potential to increase revenues and sales. In Zara s case, the company reports that it has the ability to sell about 85% of its merchandise at full retail price, compared with the industry average of just 50%. Increase Sales Fast Fashion aims to make every sale an impulse sale driven by current trends and affordability. To trend right, repeat successful lines in season and create continous supply of inventory, is the symbol of increased sales. Reduce markdowns Accurate demand forecasting, sending right sizes to the stores enables selling of products at full price and meeting the merchandise margins which will reduce the markdowns. Reduce Cost of Ownership Retailers to reduce cost of ownership in the product lifecyle. Lower stock levels With shoppers driving the supply chain, retailers need to react to changing trends instantly. Analysing and forecasting the demand allows lower stock and inventory levels at the warehouse and distribution centres. Improve Cashflow Merchandise planning is the foundation and basis for performance analysis, stores sales, stock level management, and cash flow control. More products sold at full price better the margins which directly helps the cashflow. All Rights Reserved. Whitepaper - Dec
5 How fast is Fast Fashion? Technology: Backbone of Supply Chain Fast fashion retail business has seen a major shift. Retailers are no more interested in technology for technology s sake. They tend to ask valid questions, Why do I need it? What s the real benefit? They need a supply chain system to automate decisions based on business rules, present data in easy to understand form, provide connectivity to share real time information to make quick and accurate decisions. At adjuno, our unique technology models the entire supply chain network to determine how source to shelf decisions will affect the business as a whole. To ensure fast fashion process acheives the 5 goals and runs effectively, right technology support is essential. Why implement adjuno systems? Responsive Critical Path Cloud-based connectivity Raw Material Monitoring Product Flow Management Store Pick and Pack Fabric Tracking Vendor Portal to share sales, inventory and forecast designs Ask What if? to design alternatives and create multiple route-to-market Alerts and warning messages are triggered at key stages of product lifecyle All Rights Reserved. Whitepaper - Dec
6 Business Intelligence and Dashboard snapshot If you can t measure it, you can t manage it. - Peter Drucker Visual scrutiny for management executive to analyse and manage inventory Quick snap shot allows dynamic drill down to relevant information An insight into performance of supply chain network any time, anywhere Intutive Dashboards filtered by user Quick Preview of Top 5 Vendors With this type of information at your fingertips, having access to right information anytime and anywhere is a breeze. Decisions can be made on the spot. Make your supply chain data work for you and get the most out of the information unlocked by powerful supply chain tools. All Rights Reserved. Whitepaper - Dec
7 About Us We are a leading provider of cloud-based software solutions focused on Product Sourcing & PLM, Supply Chain Management and B2B ecommerce. We also provide a suite of ERP plug-ins that enable businesses to trade with their partner network. Our products are designed for the specific needs of Brands, Retailers and Manufacturers. We've been successfully delivering and supporting our agile applications over fifteen years. We understand the details that makes each client unique and tailor an exact solution fit. Our powerful solutions built upon the robust technology infrastructure, are easy to customize and implement. Cloud computing enables anytime, anywhere connectivity between all parties in the supply chain making it an important part of success in getting the right amount of the right stuff to the right place at the right time in the right condition. At Adjuno, we enable you to understand answers of your supply chain network. To read more visit All Rights Reserved. Whitepaper - Dec
8 Contact Us All Rights Reserved. Whitepaper - Dec
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