WE                     9 KEY QUESTIONS                     FOR THE FASHION                     INDUSTRY                DON...
Before	  I	  present	  these	  slides	  to	  	  	  students,	  I	  would	        /agalorda	  like	  to	  know	  your	     ...
GLOBAL UNCERTAINTYSUPPLY CHAIN CONSTRAINTSCONSUMER SHOPPING MOODA NEW OPPORTUNITYJOIN THE CONVERSATION
The	  world	  has	  become	  an	  extremely	  fast-­‐moving	  place.	  
The	  global	  economy	  is	  struggling.	  	  
The	  slowdown	  in	  Europe	  is	  here	  to	  stay	  (for	  a	  while).	  
We’ve	  got	  a	  situation…	  and	  it’s	  entirely	  unpredictable.	  Where	  will	  demand	  come	  from?	             ...
This	  global	  recession	  has	  and	  will	  continue	  to	  reduce	  sales.	  	  
In	  the	  	  short	  run,	  the	  luxury	  customer	  	  is	  the	  most	  reliable	  spender.	  Should	  brands	  focus	...
GLOBAL UNCERTAINTYSUPPLY CHAIN CONSTRAINTSCONSUMER SHOPPING MOODA NEW OPPORTUNITYJOIN THE CONVERSATION
The	  spike	  in	  cost	  of	  utilities	  will	  erode	  the	  margins	  of	  companies	  that	  rely	  heavily	  on	  el...
Pricing	  volatility	  of	  raw	  materials	  make	  suppliers	  and	  buyers	  very	  cautious.	  Speed	  to	  market	  i...
Despite	  their	  economic	  slowdown,	  wages	  are	  rising…	  	  
…putting	  the	  cost	  advantage	  of	  manufacturing	  in	  China	  at	  stake.	  	  
Should	  brands	  pass	  on	  the	  cost	  increases	  to	  their	  customers	  in	  a	  recessionary	  environment?	     ...
Finding	  new	  factories	  is	  hard	  as	  it	  has	  ever	  been,	  given	  the	  lack	  of	  manufacturing	  skills..	  
Sourcing	  from	  alternative	  Asian	  countries	  might	  be	  an	  option.	  But	  infrastructures	  are	  not	  so	  e...
Some	  domestic	  producers	  are	  shifting	  towards	  supply	  to	  the	  domestic	  market	  in	  China.	  
 By	  2015,	  it	  might	  be	  just	  as	  cheap	  to	  make	  things	  in	  the	  US	  as	  to	  make	  them	  in	  Chin...
#4
Levering	  internationally	  the	  “High	  Street”	  model	  is	  not	  the	  most	  effective	  cost	  strategy	  to	  co...
…with	  the	  growth	  of	  the	  ecommerce,	  which	  demands	  high-­‐level	  service	  for	  delivery	  and	  returns.	  
Margins	  are	  diminishing	  due	  to	  a	  growing	  demand	  for	  lower	  prices.	  	  
Are	  some	  long	  successful	  fashion	  business	  models	         #5heading	  for	  the	  cliff?	  
GLOBAL UNCERNTAINTYSUPPLY CHAIN CONSTRAINTSCONSUMER SHOPPING MOODA NEW OPPORTUNITYJOIN THE CONVERSATION
We	  will	  have	  been	  controlling	  our	  buying	  impulses	  for	  so	  long	  that…	  
…by	  the	  “end”	  	  of	  the	  crisis,	  	  our	  approach	  to	  fashion	  will	  be	  more	  rational.	  	  
What	  used	  to	  be	  considered	  as	  a	  celebration,	  	  nowadays	  may	  be	  regarded	  as	  plain	  obscenity......
…given	  the	  current	  unemploy-­‐	  ment	  rates	  and	  the	  growing	  number	  of	  	  struggling	  families.	  	  
In	  this	  context,	  one	  wonders:	  	  Do	  I	  really	  need	  60	  pairs	  of	  shoes?	                             ...
The	  new	  shopping	  mood	  is	  creating	  new	  habits.	  Fashion	  won’t	  be	  so	  ‘right-­‐side’	  in	  our	  brai...
Sewing	  your	  own	  clothes	  might	  start	  to	  be	  ‘cool’.	  
And	  clothing	  exchange	  could	  be	  the	  next	  disruption.	  
Besides,	  our	  closets	  can	  barely	  store	  the	  insane	  amount	  of	  clothes	  we’ve	  bought	  in	  the	  pre-­...
And	  despite	  marketing	  efforts	  to	  reactivate	  consumption,	  we	  know…	  
…we	  don’t	  need	  more	  clothes.	  Do	  we?	                                                   #7
However,	  brands	  try	  to	  fascinate	  us	  with	  repetitive	  expensive	  formulas,	  
THE SARTORIALISTwhile	  our	  attention	  moves	  towards	  new	  low-­‐budget	  fashion	  phenomena.	  
GLOBAL UNCERNTAINTYSUPPLY CHAIN CONSTRAINTSCONSUMER SHOPPING MOODA NEW OPPORTUNITYJOIN THE CONVERSATION
A	  new	  middle	  class	  is	  growing	  in	  the	  emerging	  markets:	  2	  billion	  people	  expending	  $6,9	  trill...
And	  they	  live	  in	  a	  dozen	  emerging	  nations,	  not	  only	  in	  the	  fast-­‐growing	  BRIC	  countries.	  
These	  new	  spenders	  offer	  an	  opportunity	  for	  early	  winners	  to	  gain	  lasting	  advantages.	  
But	  multinational	  companies	  	  face	  challenging	  competition	  from	  local	  players	  with	  growing	  market	 ...
Should	  brands	  replicate	  business	  models	  designed	  for	  developed	  countries	  in	  the	  emerging	  ones?	  O...
…meeting	  the	  needs	  of	  these	  	  new	  consumers	  requires	  	                #9a	  different	  course?	  
GLOBAL UNCERNTAINTYSUPPLY CHAIN CONSTRAINTSCONSUMER SHOPPING MOODA NEW OPPORTUNITYJOIN THE CONVERSATION
Join	  the	  conversation	  at:	  	          /fashionopenclass	                /agalorda	                @agalorda	  
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WE DON'T NEED (more) CLOTHES / by @agalorda

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  • Great,what I share in my Courses but very strongly packaged,I have to improve!
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  • fashion designer
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  • This is a very interesting presentation about the problems of the fashion industry during our current economic crisis. I myself run an online fashion shop in Indonesia and see that the big majority of people want to buy very affordable fashion, because they just cannot afford to get all the branded stuff in the expensive shopping malls. Of course it would be good for our business when our customers buy very frequently. However I am also concerned about the buying habits nowadays and that many consumers buy cheap fashion to just throw it away after wearing it a few times. Second hand clothing especially in the vintage sector would be definitely an option.
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  • nice dress... i am looking these style but i did get anywhere.. now...
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  • i have a new clothing line with the combination of a vehicle and a house address on fabric. plates on fabric numbers, letters and logo's. I have copyrights( public catalog) name jolo milla band on their web site. i have patent pending . photo's at facebook name jolo milla or mocospace at jolo.m need a company that can help
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Transcript of "WE DON'T NEED (more) CLOTHES / by @agalorda"

  1. 1. WE 9 KEY QUESTIONS FOR THE FASHION INDUSTRY DON’T M ORE NEED CLOTHESBY ÁLVARO GONZÁLEZ-ALORDA @agalorda    
  2. 2. Before  I  present  these  slides  to      students,  I  would   /agalorda  like  to  know  your   @agalorda  opinion.  Join  the  conversation!  
  3. 3. GLOBAL UNCERTAINTYSUPPLY CHAIN CONSTRAINTSCONSUMER SHOPPING MOODA NEW OPPORTUNITYJOIN THE CONVERSATION
  4. 4. The  world  has  become  an  extremely  fast-­‐moving  place.  
  5. 5. The  global  economy  is  struggling.    
  6. 6. The  slowdown  in  Europe  is  here  to  stay  (for  a  while).  
  7. 7. We’ve  got  a  situation…  and  it’s  entirely  unpredictable.  Where  will  demand  come  from?   #1
  8. 8. This  global  recession  has  and  will  continue  to  reduce  sales.    
  9. 9. In  the    short  run,  the  luxury  customer    is  the  most  reliable  spender.  Should  brands  focus  on  them?   #2
  10. 10. GLOBAL UNCERTAINTYSUPPLY CHAIN CONSTRAINTSCONSUMER SHOPPING MOODA NEW OPPORTUNITYJOIN THE CONVERSATION
  11. 11. The  spike  in  cost  of  utilities  will  erode  the  margins  of  companies  that  rely  heavily  on  electricity.    
  12. 12. Pricing  volatility  of  raw  materials  make  suppliers  and  buyers  very  cautious.  Speed  to  market  is  at  risk.  
  13. 13. Despite  their  economic  slowdown,  wages  are  rising…    
  14. 14. …putting  the  cost  advantage  of  manufacturing  in  China  at  stake.    
  15. 15. Should  brands  pass  on  the  cost  increases  to  their  customers  in  a  recessionary  environment?   #3
  16. 16. Finding  new  factories  is  hard  as  it  has  ever  been,  given  the  lack  of  manufacturing  skills..  
  17. 17. Sourcing  from  alternative  Asian  countries  might  be  an  option.  But  infrastructures  are  not  so  efPicient.   BANGLADESH INDIA VIETNAM CAMBODIA SRI LANKA INDONESIA
  18. 18. Some  domestic  producers  are  shifting  towards  supply  to  the  domestic  market  in  China.  
  19. 19.  By  2015,  it  might  be  just  as  cheap  to  make  things  in  the  US  as  to  make  them  in  China  and  ship  them  back.  
  20. 20. #4
  21. 21. Levering  internationally  the  “High  Street”  model  is  not  the  most  effective  cost  strategy  to  compete…  
  22. 22. …with  the  growth  of  the  ecommerce,  which  demands  high-­‐level  service  for  delivery  and  returns.  
  23. 23. Margins  are  diminishing  due  to  a  growing  demand  for  lower  prices.    
  24. 24. Are  some  long  successful  fashion  business  models   #5heading  for  the  cliff?  
  25. 25. GLOBAL UNCERNTAINTYSUPPLY CHAIN CONSTRAINTSCONSUMER SHOPPING MOODA NEW OPPORTUNITYJOIN THE CONVERSATION
  26. 26. We  will  have  been  controlling  our  buying  impulses  for  so  long  that…  
  27. 27. …by  the  “end”    of  the  crisis,    our  approach  to  fashion  will  be  more  rational.    
  28. 28. What  used  to  be  considered  as  a  celebration,    nowadays  may  be  regarded  as  plain  obscenity...  
  29. 29. …given  the  current  unemploy-­‐  ment  rates  and  the  growing  number  of    struggling  families.    
  30. 30. In  this  context,  one  wonders:    Do  I  really  need  60  pairs  of  shoes?   #6
  31. 31. The  new  shopping  mood  is  creating  new  habits.  Fashion  won’t  be  so  ‘right-­‐side’  in  our  brain.   f f
  32. 32. Sewing  your  own  clothes  might  start  to  be  ‘cool’.  
  33. 33. And  clothing  exchange  could  be  the  next  disruption.  
  34. 34. Besides,  our  closets  can  barely  store  the  insane  amount  of  clothes  we’ve  bought  in  the  pre-­‐crisis  years.  
  35. 35. And  despite  marketing  efforts  to  reactivate  consumption,  we  know…  
  36. 36. …we  don’t  need  more  clothes.  Do  we?   #7
  37. 37. However,  brands  try  to  fascinate  us  with  repetitive  expensive  formulas,  
  38. 38. THE SARTORIALISTwhile  our  attention  moves  towards  new  low-­‐budget  fashion  phenomena.  
  39. 39. GLOBAL UNCERNTAINTYSUPPLY CHAIN CONSTRAINTSCONSUMER SHOPPING MOODA NEW OPPORTUNITYJOIN THE CONVERSATION
  40. 40. A  new  middle  class  is  growing  in  the  emerging  markets:  2  billion  people  expending  $6,9  trillion  annually.  
  41. 41. And  they  live  in  a  dozen  emerging  nations,  not  only  in  the  fast-­‐growing  BRIC  countries.  
  42. 42. These  new  spenders  offer  an  opportunity  for  early  winners  to  gain  lasting  advantages.  
  43. 43. But  multinational  companies    face  challenging  competition  from  local  players  with  growing  market  share.  
  44. 44. Should  brands  replicate  business  models  designed  for  developed  countries  in  the  emerging  ones?  Or…   #8
  45. 45. …meeting  the  needs  of  these    new  consumers  requires     #9a  different  course?  
  46. 46. GLOBAL UNCERNTAINTYSUPPLY CHAIN CONSTRAINTSCONSUMER SHOPPING MOODA NEW OPPORTUNITYJOIN THE CONVERSATION
  47. 47. Join  the  conversation  at:     /fashionopenclass   /agalorda   @agalorda  

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