1. Ram
Rocio
Sherif
FAST FASHION
‘Fast Fashion’
Exploring how retailers get affordable
fashion on to the high street
2. Introduction
Central
Components
Place and
Distribution A fashion is merely a form of ugliness so unbearable
that we are compelled to alter it every six months.
Channel Strategy
& Management --Oscar Wilde
Supply Chain
Management
Postponement
Conclusion
3. Introduction
Central
Components
Traditional Retailer
Place and
Distribution
Channel Strategy Seasonal Autumn Collections Spring Collections
& Management Classification
Supply Chain
Management
Postponement
Production lead times ranged from 6 months to a year
Conclusion
Retailers would buy for their collections a year in advance
5. Introduction
Central
Production lead times ranged from a matter ofto a year
Production lead times reduced to 6 months WEEKS
Components
Place and
Distribution
Channel Strategy
& Management
Supply Chain
Management
Postponement
Conclusion
Retailers would buy for their collections a yearfor advance month
Retailers would only buy their collections in the next
6. Introduction
Central
Production lead times reduced to a matter of WEEKS
Components
Place and
Distribution
Channel Strategy
& Management
Supply Chain
Management
Postponement
Conclusion
Retailers would only buy their collections for the next month
7. Introduction
Central
Production lead times reduced to a matter of WEEKS
Components
Place and
Distribution More
Revenue
Channel Strategy
& Management
More footfall to the stores
Supply Chain (Mostly the same customers)
Management
Postponement More New products
Conclusion
Retailers would only buy their collections for the next month
8. Introduction
Central Traditional
Fast fashion
Components fashion
Place and
Sales Growth
Distribution 12%
Channel Strategy 10%
& Management
8%
Supply Chain
Management 6%
Postponement 4%
Conclusion 2%
0%
Traditional fast
Fashion fashion
Retail market retail market
9. Fast Fashion
It is a new concept adopted by industry pioneers
(e.g. Zara, H&M) which has revolutionized the
fashion retail industry.
10. Introduction
Central
Components
Fast fashion
Place and
Distribution
Channel Strategy
& Management
Excellent Leveraging
Marketing advanced
information
Supply Chain IT systems
systems
Management
Postponement Logistics
operations Excellent
Conclusion communication
& within
Flexible supply chain
production
11. Introduction
Central Excellent Marketing information systems
Components
Place and
Distribution
Channel Strategy
& Management Market Information Systems are information systems
Supply Chain
used in gathering, analyzing and disseminating
Management information about prices and other information
relevant to end users and others involved in handling
Postponement products.
Conclusion
fast
fashion
12. Introduction
Central Logistics operations & Flexible production
Components
Place and
Logistics is the management of the flow of the goods,
Distribution
information and other resources between the point of origin
Channel Strategy and the point of consumption in order to meet the
& Management requirements of customers.
Supply Chain
Management
Postponement
Conclusion
13. Introduction
Central Excellent communication within supply chain
Components
Place and
Distribution A supply chain is a system of organizations, people, technology, activities,
information and resources involved in moving a product or service from supplier to
Channel Strategy customer.
& Management
Supply Chain
Management
Postponement
Conclusion
fast
fashion
14. Introduction
Central Leveraging advanced IT systems
Components
Place and
Distribution
Customer
Experience
Channel Strategy Transformation
& Management
Supply Chain
Management
Postponement
Conclusion
fast
fashion
15. Introduction The 4 P’s of Marketing
Central Product
Components
Price
Place and Promotion
Distribution
Channel Strategy
Place
Supply Chain
Management „Products need to be
available in adequate
Postponement
quantities, in
Conclusion convenient locations
and at times when
customers want to
buy them“.
16. Introduction
Distribution Channel
Central
Components The means by which products are moved from the producer to
the ultimate consumer.
Place and
Consumer Channels of Distribution:
Distribution
Fast Fashion Retailers
Channel
Strategy Producer Consumer
Supply Chain
Management Producer Retailer Consumer
Postponement
Producer Wholesaler Retailer Consumer
Conclusion
Producer Agent Wholesaler Retailer Consumer
Traditional Fashion Retailers
17. Distribution Channel Selection
Product characteristics
(easy to handle, bulky) Buyer expectations may
may affect the dictate that a product be
distribution channel sold in a certain way
selected Product Market
Factors Factors
Own distribution channels
Producer Competitive Retailers may look to see
or outsource to
Factors Factors what their competitors
independent distributors?
are doing, and either use
Push product through the
the same channels as
distribution channel orlet
they are or do
customers „pull“ the
something completely
product through the
different.
channel?
18. Fast Fashion’s Market-Driven Supply
The original business idea was very simple.
Link customer demand to manufacturing,
and link manufacturing to distribution. That
is the idea we still live by.
Jose Maria Castellano Rios,
Inditex CEO
19. Introduction
Fast Fashion’s Market-Driven Supply
Central Fast fashion retailers
Components can move a product
through design,
Place and
production, and the
Distribution
distribution channels
Channel Strategy in as little as TWO
WEEKS
Supply Chain Retail stores are used
Management as gages of what
customers really
Postponement want.
Customers essentially
Conclusion PULL the product
through the retailer‘s
design, production,
and logistics
channels.
20. Introduction
Fast Fashion’s Market-Driven Supply
Central
Components
Merits :
Place and Company produces exactly what customers want
Distribution
80% of items are sold for the full ticket price
Channel Strategy
Pitfalls:
Supply Chain Customers become more demanding and fickle
Management Risk of boredom and alienation
Postponement
Conclusion
21. Introduction
Integration of Distribution Channels
Central
Independent producer and channel
Components
intermediaries
Place and
Distribution
Channel Strategy
Supply Chain
Management
Postponement Ownership: Retailer owns the channels
Conclusion
22. Introduction
Low Inventory Concept
Central
Components
Low Inventory
Place and
Distribution
Channel Strategy
Highly Fast
& Management
Low Lead Time Automated Merchandise
Supply Chain System Flow
Management
Postponement • Benetton rely on fully automated shipping and
Conclusion Information system.
• Manages 110 million item a year with only 24
staff members (4.5 million item / Person).
23.
24. Introduction
Low Inventory Concept
Central
Components
Place and Hybrid Approach
Distribution
Channel Strategy
& Management
Fashion
Supply Chain Basics
Oriented
Management
Postponement
Conclusion Far East Closer Sources
25. Introduction
Central
Components
Place and
Distribution Delayed configuration of final design until the final market
destination and/or customer requirement is known. Once it’s
Channel Strategy
known, the product is assembled or customized.
& Management
Supply Chain Keeping material and styles as generic as possible before final
Management customization
Postponement
Conclusion
30. Postponement
Excellent Marketing Flexible Production
Information System
Design
• Vertical
Retail Production • Sourcing
Integration
Store & Supply
• Outsourcing
• Franchising
Logistics
Excellent
Leveraging Advanced Communication
IT System within the Supply
Chain
Low Inventory
