In this presentation I have covered 7Ps of Marketing Mix of Google
1 Product
2 Price
3 Promotion
4 Place
#adidas4ps, #adidas7ps, #adidasadsense, #adidasmarketing, #adidaspresentation, #adidasprice, #adidasproducts
CASE 3-4 Continued Growth for Zara and InditexCIRCA 2008.docxwendolynhalbert
CASE 3-4 Continued Growth for Zara and Inditex
CIRCA 2008
ARTEIXO, Spain—Zara stores have set the pace for retailers
around the world in making and shipping trendy clothing. Now
Pablo Isla, chief executive of parent company Inditex SA, says
Zara needs to speed up. As rivals catch up, Mr. Isla is attempting
one of the fastest global expansions the fashion world has ever
seen, opening hundreds of new stores and entering new markets.
To do that, as an economic downturn threatens sales, Inditex is
changing the systems that have driven its success at Zara and its
other store brands, to save time and money. Among the innova-
tions, it is introducing new methods to enable store managers to
order and display merchandise faster and adding cargo routes for
shipping goods. “There has been a clear change of mentality in
the company,” Mr. Isla, a former tobacco executive who arrived
at Inditex in 2005, said in an interview at the company’s head-
quarters here.
The world’s second largest clothing retailer by sales after Gap
Inc., Inditex is responding to a predicament shared by other com-
panies that come up with game-changing formulas: Eventually
competitors catch up, forcing the pioneers to do even better to keep
their edge. Low-cost carrier Southwest Airlines Co. is making big
changes to fend off rivals that have copied its efficient operat-
ing model. Inventory-control methods at Walmart Stores Inc. are
being mimicked around the world, and Google Inc. is updating its
search engine to keep users loyal.
The consumer slowdown is adding pressure. Inditex shares
have fallen nearly 24 percent in the last 12 months, in large part
because investors are worried about an economic downturn in
Spain, where Inditex generates over a third of its $12 billion in
annual sales. The company is pressing ahead with its expansion
plans even as consumers are slowing down. In the U.S., retail-
ers had their worst monthly sales results in nearly five years in
January, and some chains are planning to close stores and cut jobs.
U.K. retailer Marks & Spencer PLC recently reported its worst
quarterly sales performance in two years, and warned the pain
could extend into 2009.
The industry is watching the company’s logistical makeover.
Though it sells inexpensive trendy clothing—“fast fashion” in
industry parlance—Zara has been so successful in luring high-
paying customers that luxury fashion brands such as Gucci,
Burberry and Louis Vuitton have overhauled their own prac-
tices to send new fashions to stores more frequently. “They’re a
fantastic case study in terms of how they manage to get product
to their stores so fast,” Stacey Cartwright, chief financial officer
of Burberry Group PLC, says of Zara. “We are mindful of their
techniques.”
In recent years, competitors across the globe have adopted
Zara’s methods. Italy’s Benetton Group SpA now replenishes
stores up to once a week. Los Angeles- ...
In this presentation I have covered 7Ps of Marketing Mix of Google
1 Product
2 Price
3 Promotion
4 Place
#adidas4ps, #adidas7ps, #adidasadsense, #adidasmarketing, #adidaspresentation, #adidasprice, #adidasproducts
CASE 3-4 Continued Growth for Zara and InditexCIRCA 2008.docxwendolynhalbert
CASE 3-4 Continued Growth for Zara and Inditex
CIRCA 2008
ARTEIXO, Spain—Zara stores have set the pace for retailers
around the world in making and shipping trendy clothing. Now
Pablo Isla, chief executive of parent company Inditex SA, says
Zara needs to speed up. As rivals catch up, Mr. Isla is attempting
one of the fastest global expansions the fashion world has ever
seen, opening hundreds of new stores and entering new markets.
To do that, as an economic downturn threatens sales, Inditex is
changing the systems that have driven its success at Zara and its
other store brands, to save time and money. Among the innova-
tions, it is introducing new methods to enable store managers to
order and display merchandise faster and adding cargo routes for
shipping goods. “There has been a clear change of mentality in
the company,” Mr. Isla, a former tobacco executive who arrived
at Inditex in 2005, said in an interview at the company’s head-
quarters here.
The world’s second largest clothing retailer by sales after Gap
Inc., Inditex is responding to a predicament shared by other com-
panies that come up with game-changing formulas: Eventually
competitors catch up, forcing the pioneers to do even better to keep
their edge. Low-cost carrier Southwest Airlines Co. is making big
changes to fend off rivals that have copied its efficient operat-
ing model. Inventory-control methods at Walmart Stores Inc. are
being mimicked around the world, and Google Inc. is updating its
search engine to keep users loyal.
The consumer slowdown is adding pressure. Inditex shares
have fallen nearly 24 percent in the last 12 months, in large part
because investors are worried about an economic downturn in
Spain, where Inditex generates over a third of its $12 billion in
annual sales. The company is pressing ahead with its expansion
plans even as consumers are slowing down. In the U.S., retail-
ers had their worst monthly sales results in nearly five years in
January, and some chains are planning to close stores and cut jobs.
U.K. retailer Marks & Spencer PLC recently reported its worst
quarterly sales performance in two years, and warned the pain
could extend into 2009.
The industry is watching the company’s logistical makeover.
Though it sells inexpensive trendy clothing—“fast fashion” in
industry parlance—Zara has been so successful in luring high-
paying customers that luxury fashion brands such as Gucci,
Burberry and Louis Vuitton have overhauled their own prac-
tices to send new fashions to stores more frequently. “They’re a
fantastic case study in terms of how they manage to get product
to their stores so fast,” Stacey Cartwright, chief financial officer
of Burberry Group PLC, says of Zara. “We are mindful of their
techniques.”
In recent years, competitors across the globe have adopted
Zara’s methods. Italy’s Benetton Group SpA now replenishes
stores up to once a week. Los Angeles- ...
Denim Club Newsletter : Issue February 05, 2014denimclub
Denim Club compiles the latest news and updates related to denim business and industry from all across the globe and brings these to you in the form of the Denim Club Newsletter.
OPR 300 – Operations Management Case Study Supplying Fas.docxjacksnathalie
OPR 300 – Operations Management
Case Study
Supplying Fast Fashion
Contrast the approaches taken by H&M, Benetton and Zara in managing their supply chains.
Consider the following focus points:
1. How do they differ in terms of their approach to design stage of the supply chain?
2. How do they differ in terms of the manufacturing stage of the supply chain?
3. How do they differ in terms of the distribution stage of the supply chain?
4. How do they differ in terms of the retail stage of the supply chain?
5. For each brand, Identify and explain a SCM strategy or trend utilized in its supply chain.
6. In your opinion, which of the three companies have the best SCM and why?
Working individually, analyze the “supplying Fast Fashion” case study and present your analysis
in a report. Your work will be assessed according to the linked rubrics on blackboard. You are
encouraged to use online sources to support your analysis/recommendation. Make sure to
properly reference those sources in your report. The report should address all the questions
raised in the case study. Please use appropriate headings and subheadings where necessary. The
report should consist of the following sections:
Title page
Executive Summary
Introduction
Discussion
Recommendations
References
Please conform to the following:
• The report should be limited to 3-4 pages (700-1000 words) excluding title page and
references
• Use Times New Roman 12-pts font and 1.5-line spacing
• Use the APA referencing style
• Number each page consequently
2
Supplying Fast Fashion
Garment retailing has changed. No longer is there a standard look that all retailers adhere to for
a whole season. Fashion is fast, complex and furious. Different trends overlap and fashion ideas
that are not even on a store’s radar screen can become “must haves” within six months. Many
retail businesses with their own brands, such as H&M and Zara, sell up-to-the-minute
fashionability at low prices, in stores that are clearly focused on one particular market. In the
world of fast fashion, catwalk designs speed their way into high-street stores at prices anyone
can afford. The quality of the garment means that it may only last one season, but fast-fashion
customers don’t want yesterday’s trends. As Newsweek puts it, “being a quicker picker-upper” is
what made fashion retailers H&M and Zara successful. They thrive by practicing the new science
of “fast fashion”, compressing product development cycles as much as six times. But the retail
operations that customers see are only the end part of the supply chains that feeds them. And
these have also changed.
At its simplest level, the fast-fashion supply chain has four stages. First, the garments are
designed, after which they are manufactured. They are then distributed to the retail outlets,
where they are displayed and sold in retail operations designed to reflect the busi.
Adidas emulates 'fast fashion' model to get back on trend
| Reuters
1. Adidas emulates 'fast fashion' model to get back on trend |
Reuters
FUERTH, Germany Battling new competition from fashion chains as well as traditional sportswear
rivals, Adidas is eyeing the "fast fashion" model as a way of pepping up its three-striped ranges of
tops, leggings and sneakers.
That means producing more items closer to its main markets, just as fashion chain Zara quickly
turns out new designs from factories in Spain, but the German group sees the benefits outweighing
any cost increases.
Sportswear makers traditionally operate on a seasonal business model, designing two main
collections a year to 18 months before they hit the shelves.
But Adidas, which has lagged Nike in recent years in its ability to set trends, wants to shift towards
fast fashion as pioneered by Inditex's Zara, which delivers new styles to its stores twice a week.
"In the athletic industry, no-one is fast at what they are doing, so there is an opportunity to gain a
competitive advantage by being faster at what we do," Glenn Bennett, head of global operations for
Adidas, told Reuters in an interview.
"We're not out there to compete with the likes of HM and Zara in the pure sense, but if they are
going to dig into our territory ... we are going to dig into that territory with what we have to offer."
As running tights and sneakers move from track to catwalk, chains like HM and Gap have launched
their own sportswear lines, just as Adidas and Puma push into casual streetwear.
Adidas has been using teen label NEO, only five years old but targeting sales of 1 billion euros ($1
billion) in 2015, to test the new approach, both by delivering a stream of fresh styles and responding
to demand by restocking top sellers.
MORE PROFITABLE
NEO can get new products into stores within 45 days as it sources more items closer to its main
markets in Europe and North America rather than in Asia. In the event you want to have further
facts which involves SITE TOPIC GOES HERE , travel to and even promptly.Adidas is also speeding
up processes in Asian factories and increasing automation.
When it saw early signs that a colorful sneaker called NEO Groove was selling well, the company
quickly ordered more shoes which arrived in stores within weeks.
2. Bennett said this kind of fast fashion sells three times more quickly than seasonal products, making
it more profitable.
"You can imagine if they are buying it three times faster we are not discounting ... They are buying it
at full price," he said. "A 20 percent improvement of full-price sales could add tens of millions to the
bottom line."
Such an improvement could be vital given criticism from shareholders of Adidas efforts to far to
catch market leader Nike.
As part of a strategy launched in March, Adidas said it wants half of its ranges to be produced on the
fast fashion model by 2020 as it seeks to lift its operating margin above 10. any person eager about
SITE TOPIC GOES HERE read together with .
percent, still behind the 13 percent Nike recorded last year and the around 17 percent enjoyed by
HM and Indice.
Bennett said speeding up clothing delivery was relatively easy as garment factories are already
spread around the world, including in Turkey and eastern Europe which could service western
Europe. But moving footwear production away from Asia was harder as plants cost more.
"The breakthrough will probably happen in finishing the product close to the consumer," he said.
"Not moving the whole of the operation".
(Editing by David Holmes)