How to do fashion everywhere

1. h o w t o d o f a s h i o n
e v e r y w h e r e
T o m o r r o w ,
t h e w o r l d :
Tomorrow,
the world:
how to do fashion everywhere

2. © 2 0 1 5 SA P SE o r a n SA P a f f i l i at e c o m pa n y | 2
T o m o r r o w , t h e W o r l d :
H o w t o D o F a s h i o n E v e r y w h e r e
T o m o r r o w, T h e W o r l d
Building an adaptable global business is incredibly complex.
Style might travel, but domestic operational and supply chain models
simply don’t work abroad, forcing retailers to create new processes
that are often unprofitable.
This guide shows businesses how to overcome the challenges
of international expansion by using technology to support agile
operations than can drive engagement in each market.
Well-known brands pursuing this approach are already seeing early
benefits from it.
Fa s h i o n h a s t h e st r o n g e st i n t e r n at i o n a l a pp e a l o f a n y b u s i n e s s . St y l e c a n t r a n s c e n d
g eo g r a p h i c a l , c u lt u r a l , a n d ec o n o m i c b a r r i e r s – s o h o w d o fa s h i o n b r a n d s e n s u r e t h e i r
b u s i n e s s n e t wo r k d o e s t h e s a m e ?

3. L o n g - t e r m s u c c e s s
r e l i e s o n i n t e r n a t i o n a l e x p a n s i o n
T o m o r r o w, T h e W o r l d
Saturated home markets are increasingly leading fashion brands to
go where the growth is, especially those under shareholder pressure.
As a result, high potential growth markets such as Brazil, China, India,
the Middle East, and Mexico are seeing new interest and investment.
The potential for global expansion is greater than ever because of the
new flexibility in routes to market. Fashion retailers can use a number
of channels and partnerships to explore new territories – from opening
new stores, franchises, or department store concessions to launching
e-commerce sites and online marketplaces. Acquisitions, joint ventures,
distribution deals, and wholesale operations can also provide
opportunities for expansion.
While all of these routes present opportunities for revenue growth, they
will prove successful only if retailers can generate profit, and that means
responding to market conditions.
To succeed in new territories, retail operations must be sustainable,
while supply chains must be fast and flexible to adapt within a customer
engagement strategy.
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H i g h p ot e n t i a l g r ow t h m a r k e ts fo r 2 0 1 5 :
C h i n a | T h e M i d d l e E a st | I n d i a
B r a z i l | M e x i c o
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4. T h e c o m p l e x i t i e s o f t r a d i n g
i n n e w m a r k e t s
T o m o r r o w, T h e W o r l d
Any attempt to simply “lift and shift” domestic operating models can lead to logistical challenges when entering new markets.
Market barriers to entry:
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Overcoming these barriers to entry raises a number of fundamental
questions for fashion brands:
• Are any of these barriers cost prohibitive in the markets
we’re targeting?
• Which channels are we going to pursue for our entry strategy?
• Could we benefit from working with a partner as our
market-entry model?
• What supply chain and logistics infrastructure will be
needed to enable commerce?
• Which systems will be required to support operational
and customer-facing activity?
• Is our strategy scalable for long-term prosperity in this region?
Lo c a l ta x at i o n
L eg a l a n d c o m p l i a n c e f r a m e wo r k
L a n g u ag e
C u r r e n c y
C u lt u r a l d i ff e r e n c e
L ac k o f l o c a l k n o w l e d g e
N o s u i ta b l e m o d e l f o r pay m e n ts
o r m a r k e t i n g
Ov e r a l l , b r a n d s a n d r e ta i l e r s m u st c o n s i d e r t h e a d d e d p r e s s u r e a n d c o m p l i c at i o n p l ac e d o n t h e i r
c u r r e n t o p e r at i n g n e t wo r k s b y g lo b a l e x pa n s i o n , a n d h o w t h i s c o u l d p ot e n t i a l ly i m pact t h e i r
a b i l i t y to d e l i v e r p r o m p t ly a n d s e r v e c u sto m e r n e e d s i n e x i st i n g – a s w e l l a s n e w – m a r k e ts .

5. W a n t t o b u i l d a n a d a p t a b l e g l o b a l b u s i n e s s ?
T h i n k l i k e a s t a r t u p !
T o m o r r o w, T h e W o r l d
Rather than trying to make a square peg fit into a round hole, it is better for
fashion houses to focus on dynamic ways to engage consumers – like a
startup company.
Thinking like a startup relies on bringing the data and processes currently
available into consistent, integrated working practices. This creates the
platform on which to develop tailored models for each region.
The visibility created by this integrated model also facilitates fast approvals,
updates, and management of key information, through which fashion retailers
can respond efficiently to market conditions and demands.
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Business function Solutions
Supplier
relationships
Web trading communities, drop-ship model,
and real-time communications
Global
supply chain
Global inventory visibility, customs compliance,
store as distribution center (DC), DC as store,
and endless aisle
Channel
hybrids
Wholesale, franchise, concession, online marketplace,
online direct, and pop-up shops
Multichannel
merchandising
Inventory visibility, available to ship, shopper
marketing, and store-to-online connection
Customer
insight
Affiliate marketing, digital engagement in store,
electronic shelf-edge label, digital promotion,
and responsive advertising
Changing retail demands a more intelligent response.

6. B u i l d i n g a c o n s i s t e n t g l o b a l b r a n d i d e n t i t y
T o m o r r o w, T h e W o r l d
Many retailers worry that tailoring their offering to individual regions erodes their
international brand identity, as their brand value and proposition are translated differently
in new markets.
However, integrating operational systems to produce one set of master data enables
fashion houses to adopt a global/local approach, giving shoppers a “best of both worlds”
experience.
On a global scale, having complete inventory visibility and a total customer overview
allows retailers to stay connected in their activities – essential for cohesion and
common brand identity. But being able to mine data in each market also permits them
to understand local conditions to create experiences that engage with consumers while
maintaining international brand integrity.
Using a cloud-based solution to start in new markets limits risk, while providing the
flexibility to run as fast as needed, depending on the opportunities available. It also
presents the agility to build a road map for long-term success, so that fashion retailers
can adapt or scale operations as their brand grows overseas.
I t ’s a c a s e o f b e i n g s i m p l e e n o u g h to r u n e f f i c i e n t ly, b u t s u f f i c i e n t ly ag i l e
to m a x i m i z e p r o f i ta b i l i t y.
© 2 0 1 5 SA P SE o r a n SA P a f f i l i at e c o m pa n y | 6

7. T o m o r r o w, T h e W o r l d
© 2 0 1 5 SA P SE o r a n SA P a f f i l i at e c o m pa n y | 7
B u i l d y o u r a d a p t a b l e g l o b a l b u s i n e s s
Created in partnership with leading fashion retailers,
SAP Fashion Management helps companies create
internationally successful businesses by:
About SAP
SAP’s vision is to help the world run better and improve
people’s lives. Our solutions are used by more than 12,200
international retailers, including 10 of the top 10 most admired
apparel and footwear retailers in the world.*
Learn more:
www.sap.com/cmp/dg/crm-xu14-ret-fascamdm/index.html
*Source: SAP analysis of Forbes 2000 rankings
(May 2013) and SAP customer database as of March 2014.
The SAP® Fashion Management application offers a
complete fashion solution that helps retailers run simpler
right now. It enables businesses to remove organizational
siloes, establish best-business processes, and create an
information-driven culture.
• Breaking down the barriers and inefficiencies across
sales channels with a single, real-time solution
• Increasing the speed of range introduction and
improving targeting to channels and sales locations to
maximize sales potential
• Providing up-to-the-minute visibility across all partners
to expedite deliveries to match customer need

8. www.sap.com/contactsap
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