Branded? Fashion Counterfeiting Essay

Branded? Fashion Counterfeiting Essay.

A lot of leisurely items to date have been somewhat remodeled or refashioned into something that is more cost-friendly for consumers. These are counterfeited items, more popularly known as “pirated” goods, which are illegal, as authorities would suggest. However, there are a growing number of consumers for pirated goods, especially in developing or underdeveloped countries; even developed countries have their share of consumers of pirated goods. In the fashion industry, most apparels (e.g., T-shirts, pants, blouses, etc.) and textiles are apparently being produced in many developing countries—some underdeveloped—as the multinational conglomerates believe that labor is cheaper in these places.

These countries, in turn, have benefited from the decision of many multinational conglomerates: “The clear winners given all of these industry trends are China and India with their long history in textiles, Pakistan with its current capacity for textile production” (Mead 423). With the production of apparels and textiles shifting from the developed regions like the United States and Europe to underdeveloped or developing countries, it would be so hard to assume that the occurrence of counterfeiting these products will be low.

The consumers that could not seem to afford the expensive prices of high-end brands would generally resort to replicas of the same high-end brands. However, all of these multinational apparel-producing industries abhor the existence of pirated versions of their products, bidding for these “copycats” to be divulged and incarcerated. As a common thing on a global scale, stopping fashion counterfeiting could cause another economic downturn but its proliferation could lead to severe job cutting by companies that believe that they are losing money.

The overseas production of the various apparels of American and European brands could be the best opportunity for “pirates” as these products are exposed and minimally guarded. Usually, people would assume that these pirates operate underground—some controlled by syndicates or any organized group.

However, it could also be certain that some of these pirates work from inside the textile or apparel factories. After all, it can produce a better replica of the product. Such acts are despised by the multinational corporations as it breaches trade policies and laws as well as patent, copyright, and license laws. However, the existence of pirated goods prompts consumers to spend more as these products are considerably cheaper than the seemingly overpriced originals.

It is believed that producers of pirated goods work underground under a syndicate or some organized group. However, these pirated goods are sometimes sold out in the open for people to see, as in the case of some developing (e.g. India and China) and underdeveloped (e.g. Philippines and Thailand) nations, and in some developed countries—although, rarely do these exchanges happen under the public’s watchful eye. The preconceived notion that consumers coming from developed countries abhor the consumption of pirated goods has been proved false.

The following is an example from an article entitled “Consumption of Counterfeit Goods: ‘Here Be Pirates?’” which proves that consumers can also come from developed countries: “In France, the most common counterfeit products confiscated are shoes, representing 21 per cent of items, followed by clothes and watches;

In Germany, clothes account for 90 per cent of impounded fakes” (Wischermann qtd. in Rutter and Bryce 1155). As unbelievable as it may seem, these circumstances can occur even in developed countries like the United States and European nations. However, the consumption of such products should not be regarded as a crime, or such products must not be confiscated from the owner. Even though it is a pirated good, it was still his or her money that purchased the good. Buying pirated goods does not also necessarily point out as a support for pirated goods nor does it entail any political ideology like an anti-capitalist movement against the multinational brands and their seemingly overpriced goods.

Fashion Counterfeiting is considered a battle between the multinational capitalist companies that aim to make another hundred million or billion in sales and the pirates or syndicates that wanted to make money especially during a global economic crisis. It is an epic battle indeed, but which of the two started it?

The trail from its origin does not seem too far off. Counterfeiting is an old trade that dates back as early as Ancient Rome (Rutter and Bryce 1147). As ancient as it may be, the act has been considered illegal through international trade policies and copyright laws that it seemed to breach. The cause that promoted the pirating of known fashion brands was the decision of these international apparel companies to build more factories overseas for cheap labor.

Labor from the developing and underdeveloped countries attracted these multinational companies because it was cheap: “this drove down the price of labor around the world as firms relocated operations to China (soon, South Asia as well) because labor is cheaper” (Mead 419). This move resulted in the rebirth of an age-old illegal practice—only this time, it covered and affected the fashion industry. Syndicates and other organized group exploited the existence of factories in these areas—especially that they live under the “developing-nation state.”

Then the process moved onto other parts of the region, usually in places where such prohibiting laws were rarely applied. Thus, the ones at fault were the multinational companies themselves as they gave an opportunity for these pirates to replicate their products.

However, sometimes, their presence is not a cause for promoting this kind of piracy. The products can be bought by the pirates themselves—usually they do have the money—from legitimate stores and replicate these after analyzing the products. After all, fashion counterfeiting is simpler than that of software (music, games, programs, albums, videos) piracy. Whichever the case, the reason behind the existence of such products in the market is its affordability since its original counterparts are way more expensive.

The production of these pirated apparels will continue as long as someone would consume them. However, is the piracy of these apparels—some of which people really do need—really a problem, especially with the world experiencing another global economic downturn? What happens to those who cannot afford the legitimate and original apparels? It seems they would have to walk around naked or in shabby clothing, or even resort to tailoring their own clothes.

Branded? Fashion Counterfeiting Essay

Why Vintage Fashion Will Always Be Popular Essay

Why Vintage Fashion Will Always Be Popular Essay.

Old style fashions have observed a robust resurrection in the previous pair decades, starting with the grunge design in the early on 90′s. Functioning class rock rings out there of towns like Dallas aided release thrift-store throwback items into the national limelight. The fashion started as a direct end result of economic challenges and mellow attitudes in the pop culture movement. By the past due 1990s, thrift-store trends acquired gained an eclectic but popular representation in the generation X market. Over the earlier ten years, numerous of these types of low-budget style alternatives became the goal for high-fashion designers as vintage relocated off Primary St and on 5th opportunity.

Vintage Fashion Becomes Mainstream

Many popular creative designers went retro at the change of the century, bringing back classic appears like pleated corduroy pants from the 70s. Actually the bell-bottomed jeans appear prominent in the course of the hippie era created it’s way into popular department stores. Today, vintage clothing is associated with unique, classic appears which have stood the test of time.

A developing number of nationwide restaurants specialize in reprocessed clothes. These retailers run like second hand stores yet are highly discerning. As an alternative of following the music model of selling contributed clothes, vintage and recycled clothing stores spend substantial charges for special posts that seize a fascinating or even nostalgic item of fashion history.

One legendary designer that demonstrates the benefit of vintage is Yves St Laurent. The developer produced drinking straw hats that fetched more than $5,000 a item at Christie’s auction house. A 60s Mondrian mini dress simply by Laurent offers for more than $10,000. Why Vintage Designs Will Always Be Around

Exterior of high fashion, the music shop style retains the strong recognition that found in the 1990s. There are a handful of factors this particular fashion trend might by no means fade: * Recycled clothes are environmentally friendly or even “green” that is chic in itself. * The encounter of looking for rare and valuable items on discount shelves provides a treasure-hunt experience that remains exciting. * The point is constantly a concern also. Vintage clothes are frequently more affordable than big-box retailer attire. * There is a “scene” for thrift store searching and vintage enthusiasts. There is a whole movement of social networking, online groups, sites and other collectives which are committed to the vintage fashion tradition. What’s New About Vintage?

One of the main modifications in the vintage fashion landscape more than the past 10 years will be the incorporation of aged and new. Several vintage types are used to exaggerate modern items. For example, big sunglasses and classic wind-breaker jackets taking up in modern hip hop music movies and shows. Today’s vintage clothes includes whatever is two or maybe more decades outdated. The genre should go all the method back to the 1920s, before which clothing is regarded old-fashioned. Along with nearly a century of styles to pick from the options are endless.

Why Vintage Fashion Will Always Be Popular Essay

The Negative Impact of Celebrity Fashion on Teens Essay

The Negative Impact of Celebrity Fashion on Teens Essay.

Teens find brands to be something that will make them look “classy” as many teens say today at school. Teisha-Vonique Hood from SMU stated that when people associate themselves with a particular brand or branded image, they immediately assume a new identity that is in some sense, confined to the societal points of that brand. They classify themselves through the brands they wear and it makes them feel like they fit in. There is always that new shirt or those new jeans or just some new trend that happens to begin.

Teens may feel like if they don’t have the latest brands, they aren’t worthy or not able to fit in and be themselves.

Also, teens find themselves to be a little under-confident or intimidated by other people in their school. Ehow contributor, Ashton Pittman said that many teens pick up on fashion trends in an effort to stave off humiliation and mocking from peers. The majority of teens in high school have a fear of getting bullied or excluded.

They use fashion to hide their fear and to feel more confident on who they are, or who they are trying to be.

Their attitude towards fashion and the way society shows it to be can change a lot of teens’ opinions. Stated in SMU study, as a result of this need for peer acceptance, teenagers are receptive to characteristics such as character, personality, etc. Since a lot of teens try to find their identity through high school and fashion, it can ultimately change not only their personality, but their character towards other people and family. Tying into this, celebrities are a big impact on teen fashion. Ashton Pittman also states that often, fashion for teenagers is the result of the desire to be like a celebrity. Teens look at celebrities and say “Oh well if they can wear that, then why can’t I” and most of the time they end up giving the wrong idea to their friends and people around them.

Have you ever tried to dress some way so that others accept you? A lot of teens don’t realize that this is an issue on their everyday life because they are so caught up with trying to fit in. Just because other teens have the latest brand and you don’t, doesn’t mean that you aren’t unique.

The Negative Impact of Celebrity Fashion on Teens Essay

Calvin Klein Essay

Calvin Klein Essay.

Calvin Richard Klein was born and raised in New York City’s borough of the Bronx. He decided he wanted to be a fashion designer at an early age, most probably as a result of the influence of his grandmother. Leo and Flora Klein were his parents. They both worked in the grocery business. Flora’s mother, Molly Stern was an accomplished seamstress. She operated a notions shop and tailoring business where Calvin spent a lot of time as a child.

(Marsh) Calvin attended P.S 80, a public school that a lot of other famous people attended including Penny and Gary Marshall and Ralph Lauren. (Marsh) At P.S 80 he excelled in art and drawing and upon graduation went to the High School of Industrial Art. After that he attended the Fashion Institute of Technology. (Marsh) After graduating from the Fashion Institute of Technology in 1963, he worked for women’s coat and suit manufacturers in Manhattan’s garment district before opening his own business in 1968.

He did not study with any other notable designers but he relied on his childhood friend Barry Schwartz for career advice. Schwartz loaned him $10,000 in start-up funds and joined the firm a month later, after the family supermarket in Harlem that Schwartz had inherited was gutted in the riots that followed the assassination of Martin Luther King. (Int’l Directory) Klein rented an unimpressive showroom to exhibit a small line of samples. His big break came when a vice-president at Bonwit Teller stopped at the wrong floor of the building, liked what she saw, and invited Klein to bring his samples to the president’s office.

Klein wheeled the rack of clothes uptown personally. She placed an order for $50 thousand, which was a huge amount at that time. Encouraged by favorable reviews from the fashion press and the support of store executives, Klein expanded his line to include women’s sportswear. Bonwit’s gave the merchandise incredible exposure, with window displays in its flagship Fifth Avenue store and full page advertisements in the New York Times. Soon after, Calvin Klein was bombarded by orders. The fledgling company booked $1 million worth of business in its first year, reaching sales volume of $5 million by 1971. (Int’l Directory)

Klein’s world soon included his couture line, Calvin Klein Collection for men and women, CK sportswear for men and women, and CK jeans. He also licensed arrangements for his menswear, coats, accessories, intimate apparel, hosiery, swimwear, eyewear, furs, socks, and fragrances, all under his careful control and management. (Gaines) Of the many categories licensed, denim jeans, along with fragrances, built a large following among consumers, who sought an affordable way to attain the Calvin Klein look. By 1997 sales of Calvin Klein Jeans approached half a billion dollars. (Gaines) Advertising was the key to Klein’s success. He kept the media talking about him by creating controversial ad campaigns. He was the first to design women’s underwear that looked like men’s jockey shorts.

His television ads for jeans starred Brooke Shields (1965–), who proclaimed: “Nothing comes between me and my Calvins.” (Marsh) Klein developed a reputation for pushing the boundaries of acceptability in his campaigns. Ads of the mid-1990s featured young teenagers in provocative poses that many regarded as socially irresponsible. Klein eventually cancelled these ads, but not before the accompanying publicity had made the Calvin Klein brand name a part of everyday conversation.(Gaines) Klein’s three major fragrances, Obsession, Eternity, and Escape, were huge successes, also due in part to sexually-suggestive advertising. Advertising for his fragrances, CK One and CK Be, continued to challenge the public. Some ads showed teens taking part in what some regarded as an idealized drug culture. At this time, President Bill Clinton (1946–) admonished the fashion industry not to glamorize addiction. Klein replied that these ads represented a departure from phony airbrushed images that were not connected to the reality of today’s world. (Gaines) Klein’s design philosophy is rooted in minimalism.

This is what he is known for. He typically uses neutral colors or earth tones and designs separates that work in many different ensembles, from day to night and season to season. At the same time his advertising for jeans and fragrances was being criticized, Calvin Klein clothing was receiving critical acclaim for its clean, modern lines. (Gaines) Time magazine named Klein one of the twenty-five most influential Americans in 1996. Klein won the prestigious Coty Award three times in a row (1973–1975), becoming the youngest designer to ever have that honor. In 1982, 1983, and 1986 he also captured the Council of Fashion Designers of America Award. In addition Klein built a financially strong company with the continued advice and help of partner Barry Schwartz, who guided the company through tough financial times in the late 1980s.

Few designers have rivaled his worldwide empire. (Gaines) In late 2002, Calvin Klein, Inc. caught the eye of Phillips-Van Heusen Corporation (PVH), a company looking to acquire a major brand. As the largest shirt maker in the United States, PVH owned the Van Heusen, IZOD, and G.H Bass brands and had licensing agreements with Geoffrey Beene, Arrow, DKNY, and Kenneth Cole. Under the leadership of CEO Bruce Klatsky, PVH made a play for Calvin Klein and eventually won the battle. Under the terms of the deal, Klein remained a design consultant for Calvin Klein, Inc. while PVH retained 100 percent ownership of the firm. The $430 million cash and stock deal also included royalty payments to Klein through 2018. Completed in February 2003, the acquisition marked a new era for the brand.

For the first time, Klein did not have complete control over the products sold under his name, and his partner Schwartz had retired. (Int’l Directory) Currently, Francisco Costa is the women’s creative director of Calvin Klein collection. He came to New York from Brazil in 1985 and spoke no English. He worked during the day and went to school at Hunters College, then FIT. He won the CFDA award for womenswear designer of the year in 2006. He took over creative leadership of Calvin Klein in 2004. (Vogue UK) Calvin Klein’s charitable contributions include donating to the Calvin Klein Foundation.

It has distributed nearly $200,000 to charities including the Gay Men’s Health Crisis Center in New York. He has also donated $2 million to the Fashion Institute of Technology (FIT) in New York. This is the largest gift received to date from an FIT alumnus. Calvin Klein, Inc. now owned by Philip Van Heusen matched this donation by donating $1 million to FIT. The funds will support the college’s annual spring runway show, which showcases the capstone designs of students about to graduate with a Bachelor of Fine Arts (BFA) degree in Fashion Design. (bwf.com)

Works Cited

Gaines, Steven, and Sharon Churcher. Obsession: The Lives and Times of Calvin Klein. New York: Carol Pubishing Group, 1994. Print.
Marsh, Lisa. House Of Klein : Fashion, Controversy, And A Business Obsession. n.p.: John Wiley, 2003. eBook Collection (EBSCOhost). Web. 16 Sept. 2012. Fortune. 1997: n. page. Print.
“Volume 55.” International Directory of Company Histories. St. james Press, 2003. Print. http://www.notablebiographies.com/Ki-Lo/Klein-Calvin.html. N.p., n.d. Web. 7 Oct 2012. http://www.vogue.co.uk/spy/biographies/francisco-costa-biography. N.p., n.d. Web. 7 Oct 2012. http://www.givingback.org/Programs_Services/GivingBack30_2010.html. N.p., n.d. Web. 7 Oct 2012. http://www.bwf.com/philanthropy-news-report/fit-announces-2-million-gift-from-calvin-klein-largest-gift-received-from-an-fit-alumnus/. N.p., n.d. Web. 7 Oct 2012.. N.p., n.d. Web. 7 Oct 2012.

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Calvin Klein Essay

Meerza Fashion Essay

Meerza Fashion Essay.

I. The Summary

Meerza Fashion Essay. Meerza’s Tailoring Fashion house has been in the marketplace for more than 10 years. She started in Paris from “bricks and mortar” studio and has grown her business to gain an award for Best Female Entrepreneur in France. She offers specially made suits, mostly for senior executives, at €750 per suit, which is considered a fair price in Paris. As the business was growing, she employed staff in London, Paris and Brussels to facilitate fabrication and delivery. The online-service she’s providing should simplify and fasten the process of taking measures and making orders, however it often does not.

Meerza Fashion Essay

The customers unsatisfied with the service and thinking their clothes are neither specially-made, nor made properly so they fit well, post complaints which hurt the image and the reputation of the retailer.

II. The problem

An online tailored-clothing retailer wants to improve its business and brand reputation.

III. The Cast of characters

* The Meerza Tailoring Fashions
* Complaining consumers
* Different organizations

V. The Issues

* Consumer trust is radically declining (more complaints) * Poor connection with labor union (some of the customers assume the clothes are being made in sweatshops) * Problems with online measuring system (the clothes still do not fit well) * Problems with uniqueness (the clothes are no longer considered to be specially-made)

VI. The Options

There are several options to overtake the issues:

1) Partial repositioning with strong PR and social media support (Go a bit more mass-market, but with strong quality control and still holding balance with clothes specially made, which means that you can still order the clothes through online-service, but now some of the parameters are more standardized, but yet the quality is one of the highest + smartly dealing with complaints and making the customer understand that he or she is taken care of at the best rate. Giving more information to the public about production in other countries but positioning it as an additional benefit for the customer, as he gets his clothes faster etc.)

Pros:

* Creating a new and better image in the eyes of the customer
* Gaining new clients and entering new markets
* Positive word of mouth
* Bigger profits, larger perspectives

Cons:

* Could lose some customers that really care about wearing unique peace of garment

2) Employment of a social media manager
Pros:
* Better working with objections
* Better brand reputation

Cons:
* Does not solve the problem of bad-fitting and uniqueness

3) Website services improvement:

Pros:
* Solves the problem of bad-fitting

Cons:
* The customer still feels fooled
* The brand image is still low
* Quality of the product is still considered low

VII. Recommendation

My recommendation is Option #1 for the benefits listed previously. The situation is that Meerza Fashion cannot remain as unique as it used to. It should become more global and a bit less unique. Sure, it could lose some of the customers, but it will gain much more if the right PR and social media approach is chosen. A repositioning is needed to save the good name of the company and gain new title as a company which is global, but still pays attention to every single customer it deals with. It sure is a challenge, but it is worth taking this risk.

VIII. The Plan of Actions

1-Work out new methods of measuring, think over every little step in this process. Organize results in better-working online service 2-Before online-publication, make a trial project. Ask a few street walkers to do a self-measurement. Compare results. Choose the best one, that is easy to follow and have greater accuracy. 3-Hire PR manager and social media manager 4-Work out a repositioning plan and implement it 5-Plan and open stores in other cities/countries and deliver the news to the public 6-Build brand loyalty through constant quality control and smart media strategy 7-Get bigger profits

IX. Conclusion

Having taken the steps described above, Meerza Fashion can change its path in the market and go in slightly other direction, which opens new perspectives for the retailer to go global.

Meerza Fashion Essay

Zara’s Fast Fashion Essay

Zara’s Fast Fashion Essay.

Absrtact

This paper was written for the purpose of researching and illustrating fast fashion strategies which include strategic integrated supply chain, manufacturing and sourcing methods. Fast fashion is explained as a system that involves more control over operations and customer “strategic behavior” by using the combined benefits of both the “quick response production capabilities” or “short production and distribution lead times”, which minimizes clearance items by finding more reasonable balances between supply and demand, and the “enhanced product design capabilities” or “highly fashionable product designs”, which plays homage to customer values.

This paper also analyzes methods used by fast fashion leader, the Spanish, Inditex owned Zara. A closer look at Zara’s supply chain, market responsiveness, flexibility, technology, pricing and costs strategies and methods are examined and compared to other fast fashion retailers that can appropriately be deemed as competition for Zara. Also, globalization and other operational strategies are discussed that all come together to show the remarkable success of the Spanish company.

When thinking of the term fast fashion, one may think of the change in fashion trends and how quickly certain styles can be deemed as in, and the next second, those same styles are no longer looked at as having any resemblance of being fashionable. That would be the definition of a trend or fad in itself; “an intense but short-lived fashion; craze” (Dictionary.com 2012) . However, “the phrase ‘fast fashion’ refers to low-cost clothing collections that mimic current luxury fashion trends” (Joy, Sherry, Venkatesh, Wang, & Chan, 2012) . It is a system that enables young, trendy customers to quickly attain and keep up with the ever changing latest fashions and trends from the runway, celebrity styles and other trendy inspirations for reasonable prices.

Fast fashion is a system that involves more control over customer “strategic behavior” by using the combined benefits of both the “quick response production capabilities” or “short production and distribution lead times”, which minimizes clearance items by finding more reasonable balances between supply and demand, and the “enhanced product design capabilities” or “highly fashionable product designs”, which plays homage to customer values, which in-turn persuades customers to purchase full priced items rather than shopping around or waiting for items to go on-sale (Cachon & Swinney, 2011, p. 778) .

Globalization, Manufacturing and Sourcing Strategies for Fast Fashion Firms

According to Mihm (2010) , supply chain, market responsiveness, flexibility, technology, pricing and labor costs are all factors in globalization and manufacturing and sourcing strategies. For instance, firms that are mainly involved with outsourcing and other third parties have less control of their supply chain and hands control to those third parties. On the other hand, firms that predominantly sell their own brands and designs are generally more vertically integrated and have minimal involvement with third parties. These firms can have control over all aspects of their supply chain and are also capable of controlling their sourcing. Fast fashion firms are generally vertically integrated. Mihm (2010) also states that “fast fashion and market responsiveness seem to be inseparable” and stresses the importance of supplying correct quantities in order to support demand for each individual store. In terms of fast fashion, market responsiveness refers to the speed of responding to consumer demand and accurately distributing and supplying appropriate quantities and styles in each store at the right times (p. 56) .

Firms can achieve this by research and development (R & D), technology, and forecasting. R & D normally is in charge of coming up with new products and innovations and an alternative to research is “imitation” or copying outside products and ideas (Meredith & Shafer, 2010) . The imitations strategy is one that mirrors the strategies of fast fashion firms in that ideas and designs for new merchandise often come from runway designs, celebrity fashions and customer input and ideas. Furthermore, fast fashion firms often allow individual stores and locations to have control over store merchandise by using a pull system rather than a push system. The pull system uses the just-in-time (JIT) concept mentioned by Meredith & Shafer (2010) . The JIT system lowers lead times and merchandise orders by allowing quick and instant deliveries of exact order quantities, which eradicates having over stock and the need for “safety stocks” (p. 258) .

With many fast fashion firms implementing major globalization initiatives, technology is a key factor in communication, efficient logistics, and business success. Information technology (IT) systems provide the ability to collect and share important information, such as trends, orders, “production and shipping data”, using constant transfer and communication throughout the entire supply chain. IT systems help mitigate “real-time” communication from consumers to store managers to market specialists and designers, to suppliers and to manufacturing and production facilities, then to distributors, and back to stores and the customers (Mihm, 2010, p. 56) . Moreover, IT systems product lifecycle management (PLM) software, and sourcing programs can keep track of all sourcing and development activities and are designed to react to and handle change and conflict, which helps with flexible suppliers and positively effects production.

These technologies speeds up production time, placing communication and processes in real time and allows an ease to the supply chain (Speer, 2006) . Mihm (2010) states that firms in the fashion industry use a technology known as computer-aided design (CAD), which includes laser cutting machines and automated sewing machines that ultimately “eliminates wasted fabric” and cuts production time; allowing companies to be more efficient by saving time and money. Another way fast fashion firms make use of flexibility “also includes changes in the construction and coloring processes used to make garments.” “For example, garments are often dyed after they are constructed thus allowing the manufacturer to produce the best selling colors quickly” (Mihm, 2010, p. 56) . Furthermore, “improved logistical programs including air freight and expedited customs clearance for imports also fall within the technology factor.”

Many fast fashion companies are leaning towards globalization and have highly vertically integrated supply chains and therefore provide their own world-wide souring, and manage their own design, manufacturing, and logistics models. “All of these influences have dramatically changed the way the apparel business operates in the age of globalization, making the fashion industry appear borderless” (Mihm, 2010, p. 56) . Mihm (2010) states that “lower labor costs are a major contributing factor to fast fashion since cutting, sewing and fitting are labor intensive, and are integral parts in constructing need high levels of education” and therefore do not require salary or high wages. For example, in China, labor rates are only around 60 cents per hour. “Additionally, capital equipment costs are very low, making it easy to open an apparel plant almost anywhere” (p. 56) . Along with lower labor costs, it is also important to manage labor times to further minimize labor costs and increase efficiency and profitability (Desai, Nasar, & Chertow, 2012, pp. 71- 72) .

Lastly, a major factor influencing fast fashion and fast fashion retail strategies has to do with keeping merchandise prices at least moderately low. Mihm (2010) mentions that a key factor in keeping prices low is by maintaining low labor costs (p. 56) . Additionally, Desai et al. (2012) discusses the impacts and importance of maintaining control over all costs including; production, materials, labor, transportation, manufacturing and overhead and other costs. Maintaining control over all costs is essential to efficiency, maintaining low product costs and business success. However, many items that may be considered basic and require less production costs, and labor costs and time may still be sold for premium price points do to customer perceived value and brand value (pp. 64-72) .

All about Zara

Zara, the Spanish fast-fashion retailer belonging to “Inditex, one of the world’s largest distribution groups”, is one of the leading international fashion companies in the world (Zara, 2012). In 1975, Chairman and founder of Inditex, Amancio Ortega, opened the first Zara shop in Spain and he came up with a philosophy for business success which states, “‘you need to have five fingers touching the factory and five touching the customer’” (Ferdows, Lewis, & Machuca, 2004, p. 106). The philosophy can be said to be the basis for Zara’s business model and retail strategy that successfully runs a fully vertically integrated supply chain by vertically integrating all features of the sourcing and manufacturing process (Mihm, 2010) including, design, production, distribution and sales. By providing constant information about consumer’s demands and desires, customer actions and feedback are the soul of the Zara model (Inditex, 2012), which ultimately allows the company to maintain control of its products from the design stage until the customer purchase stage. Zara has taken retail globalization by storm and now has 1,721 stores all in prime locations in great cities spread across eighty-seven countries.

A Closer Look into the Zara Model

Because Zara has full control over its supply chain, their sourcing strategy differs from the strategies normally used by companies in the industry (Mihm, 2010). For instance, Zara purchases many of its fabrics and other supplies from Inditex owned companies. The company also owns its own manufacturing and production facilities, which allows the majority of profits stay within Zara and the Inditex group; it also boosts overall company flexibility and allows the full control over the supply chain system that would otherwise be unattainable if the firm did not embody the fast fashion method and mainly outsourced to third parties (Ferdows, 2004, p. 109) .

Moreover, only basic items like T-shirts and common woolens are out sourced to, or bought from, manufactures in low- cost areas like Asia, Africa and Eastern Europe (Capell, 2008); the rest of Zara’s products, which are more fashion sensitive, are designed by the 300 in-house designers and are manufactured in Zara manufacturing facilities. “All finished products pass through the five-story, 500,000-square-meter distribution center in La Corufia, which ships approximately 2.5 million items per week” (Ferdows, 2004, p. 109). Furthermore, Zara production facilities maintain stock piles of neutral fabrics that can be dyed, printed on, or altered for the purpose of speed and convenience to help mitigate design and production times (Mihm, 2010).

In terms of production and labor times and costs, Zara has the ability to easily adjust production to the change in demand. The company is able to do this because many of their facilities are highly innovated and specialized, and normally run one single shift per day (Ferdows, 2004, p.109) . It seems that Zara operates its manufacturing facilities using a combination of transformation systems to maximize efficiency. For instance, job shops would be used for smaller facilities that produce more basic and/or custom items. Cellular production systems, that also utilizes JIT, would largely be used for a fast fashion firm like Zara because the system allows the facility to reduce production time and costs, reduce labor time and costs and increase flexibility and market responsiveness and minimizes waste and excess stock. For instance, Meredith & Shafer (2010) state that the advantages of cellular production include; reduced setup times, increased equipment capacity that results in lower equipment and maintenance costs, and increased floor space. The system also allows increased efficiency to produce small batches of varieties, which ultimately increases flexibility to respond to customer demand, reduces over stock and excess inventory that can take up space, and minimizes lead times and increases throughput times, which improves forecasting and market responsiveness and enhances revenues.

Other advantages include greater operational control, lower overall costs and an exclusivity value sense from customers that discourages purchase postponement (pp. 71-72) . Furthermore, like other fast fashion firms, Zara utilizes innovation and IT systems to communicate information through every part of the organization. These IT communication systems are especially important to Zara because their products go from the design stage to store shelves in as little as two weeks. To make this happen, store managers record selling trends, determine customer desires and quickly sends the information to the design headquarters where ideas, innovations and designs for new fashions are created and more appropriate forecasting can be made. The speed and this system automatically gives “Zara a competitive advantage” (Capell, 2008) .

Competition and Competitive Advantage

The term competitive advantage refers to any factor that will give a firm a lead on its competitors. This can mean anything ranging from new innovations, ideas and products, costs and pricing, locations and market share, to marketing and operational strategies, and so on. Zara is recognized as being a leader in the fast fashion retail industry and has steam rolled ahead of competitors such as Gap, Express, Uniqlo, and H & M. Compared to its competitors, Zara is completely vertically integrated and uses sophisticated IT communication systems for constant and speedy communication, whereas competitors are less involved in ease of communication and still heavily outsource to third parties, which significantly reduces their control over process, time and quality (Desai, 2012 ). This is where Zara gains their biggest competitive advantages, which are speed, quality and customer value. Customer value is a huge advantage for Zara wherein the receive customer support, repeat, satisfied customers, and increase revenue.

The fact that Zara often produces trends at super speeds, even before they show up in luxury shops, induces Zara as an innovative firm which further attracts “early adopters” who desire the freshest looks and don’t mind paying higher prices for items that they may value as exclusive (Meredith & Shafer, 2010, pp. 14-15). Additionally, Inditex and Zara factory workers are paid more that the industry average (Capell, 2008) . Also, with the smaller quantities of vast varieties of the freshest trends, Zara gains “85% of the full ticket price on its retail clothing, while the industry average is 60% to 70%.” Because of this, Zara is also able to gain “higher net margins on sales than its competitors”. For instance, in 2001, Inditex’s net margin was 10.5%, Benetton’s was only 7%, H&M’s was 9.5%, and Gap’s near zero (Ferdows, 2004, p. 106) .

Conclusion and Recommendations

Overall, Zara is the perfect example for fast fashion retailing. The company truly has taken a step forward in strategies for successful operations, management, globalization and supplying and selling the latest trends at lightning fast speeds with minimal costs and wastes. The only negative that I find with Zara is with their pricing strategy in nations outside of Spain. According to Kumar & Linguri (2006) , Zara is considered a low-cost retailer, whereas in countries such as the US, Japan and Mexico, Zara is considered more of a luxury retailer due to pricing differences (p. 82) . Even though pricing differences are based on individual country economics, there still should not be such a disparity in pricing and perceived value between countries. One final suggestion is for Inditex to consider investing in opening distribution centers and/or manufacturing facilities in other market areas to continue the speed in supply chain and lead times in all markets throughout the world.

References
Capell, K. (2008). Zara Thrives By Breaking All the Rules. Businessweek, (4104), 066. Cachon, G. P., & Swinney, R. (2011). The Value of Fast Fashion:
Quick Response, Enhanced Design, and Strategic Consumer Behavior. Management Science, 57(4), 778-795. Desai, A., Nassar, N., & Chertow, M. (2012). American Seams: An Exploration of Hybrid Fast Fashion and Domestic Manufacturing Models in Relocalised Apparel Production. Journal Of Corporate Citizenship, (45), 53-78. Dictionary.com. (2012). Retrieved from http://dictionary.reference.com/browse/fad Ferdows, K., Lewis, M.A., Machuca, J.A.D. (November 2004). Rapid-fire fulfillment. Harvard Business Review, 82(11), 104-110 Inditex. (2012). Investors. Retrieved from http://www.inditex.com/en Joy, A., Sherry Jr, J.F., Venkatesh, A., Wang, J., & Chan, R. (2012). Fast fashion, sustainability, and the ethical appeal of luxury brands. Fashion Theory: The Journal of Dress, Body & Culture, 16(3), 273-295. doi:10.2752/175174112X13340749707123 Meredith, J.R., & Shafer, S. M., (2010). Operations management for mbas, 4. Hoboken, NJ: John Wiley & Sons, Inc. Mihm, B., (2010). Fast fashion in a flat world: Global Sourcing Strategies. International Business & Economics Research Journal, 9(6), 55-63 Speer, J. K., (2006). Top 5 sourcing strategies. Apparel Magazine , 47(12), 32-35. Retrieved from http://ezproxy.limcollege.edu:2357/ehost/detail?sid=4b23db26-6002-4704-9709-23540fa18525%40sessionmgr111&vid=1&hid=127&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#db=bth&AN=22112593 Zara. (2012). Investors. Retrieved from http://www.zara.com

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Zara’s Fast Fashion Essay

Comme des Garcons Essay

Comme des Garcons Essay.

Comme des Garcons is a fashion label that was founded in Tokyo, Japan. It is headed by Rei Kawakubo, who owns the company with her husband Adrian Joffe. Rei Kawakubo is an untrained designer who studied fine arts and literature at Keio University. After she graduated she began working for a textile company and shortly after became a freelance designer. In 1973, she established her own company Comme des Garcons Co. Ltd and opened a boutique. At first it was clothing only for women but three years later she added men’s line.

It became very successful in Japan and in 1980 Comme des Garcons had its own show in Paris, France and immediately attracted public by its predominant use of black and distressed fabrics. Comme des Garcons specializes in anti-fashion and deconstructed fabrics. During 1980 the garments were usually black, dark grey or white. The clothing was often wrapped around the body, had unfinished edges and asymmetrical shape. Commes des Garcons was a popular line that often took on the notion of color and sex-appeal in clothing, as had Issey Miyake and Yohji Yamamoto during the same time period.

Eventually, the line would introduce more colors and styles, but not on the same scale as its American and European counterparts. Additionally, in 1994 Comme des Garcons released its own fragrance. Their perfume is truly a unique product. What makes them so special is the scent, which is blended with scents that are usually not common for perfumes. Most of the perfumes have the hints of flowers or chocolate but not Comme des Garcons. Their first fragrance that was self-titled had hints of nail polish, burnt rubber and sand dunes. This is what makes these fragrances stand out from the crowd of other brands.

It cannot be mistaken for any other perfume on the market. This is the part of its allure, which creates the sense of individuality on anyone who wears it. The majority of Comme des Garcons fragrances have scents that no one would think of wearing, but the blend overall creates a whole different scent that has made it famous. Rei Kawakubo has made an interesting comment about the perfume: “It shouldn’t be necessary to pick a flower or a fruit or to disturb any organic material. ” For example, Comme des Garcons Odeur 53, a fragrance composed of 53 entirely synthetic smells, including burnt rubber and laundry hanging on a clothing rack.

The packaging of the perfume totally reflects the smell. It is large, cold and clear. Rei Kawakubo mentioned that she wants a bottle be as big as all outdoors because that’s exactly what the fragrance is. The bottle is square which doesn’t look like something special at all but it looks very elegant and structural at the same time. You have to grab the bottle with two hands and it is very “Here comes the scent! ”. Comme des Garcons have collaborated with a variety of international brands including Nike, Speedo, Lacoste, Fred Perry, Chrome Hearts, Levi’s, Louis Vuitton.

In addition Comme des Garcons created a line for H&M, which was released in 2008. Comme des Garcons collections are designed in the studio in Aoyama, Tokyo and are made in Japan, France, Spain and Turkey. The company has its studio in Tokyo as well as in Paris in the prestigeous Place Vendome. Since 2004 Comme des Garcons have developed a market based department store concept, stocking their main collections, their other brands, such as Shirt and Play and a wide range of international designers, their original market store called Dover Street Market is in Mayfair in London.

In 2010 they opened I. T Beijing Market Comme des Garcons, which will be followed by a new market store in Ginza, Tokyo in 2011. Comme des Garcons is a very popular and successful brand among all its customer segments. They have variable designs which are applicable to basically everyone. What makes the shopping experience special at Comme des Garcons is their stores. Signature boutiques are located in London (Dover Street Market), Paris, New York City, Beijing, Hong Kong, Seoul, St. Petersburg, Tokyo, Kyoto, Osaka, Fukuoka.

What makes the shopping experience different than at the other stores I will give an example of their store in New York City located on West 22 Street in Chelsea. At first there will be a problem in finding the entrance as it is well hidden among the usual scenery of dull brick walls but when you finally find the entrance you start wondering whether it is an actual store or somehow you have made a mistake. The catch is that from outside it looks nothing special but as soon as the door opens a customer is overwhelmed by the unique design of the entrance.

At first what might look like a space-like cylinder-shaped tunnel is actually an entrance that leads to the store. It has the silver color and creates a unique experience for a shopper and creates a feeling of ‘one minute surprise’. It actually looks more like an artwork in the museum of modern art and that is what makes the shopping experience at Comme des Garcons so interesting and different from other stores. They have used a very successful sensory design, combining odd shapes, simple colors, simple layouts so that it will all look holistic.

Inside of the store, the positioning of clothing is very simple, there are not too many things on the hangers and on the shelves but not too less at the same time. It creates a feeling of spatial balance, so the customer will not feel overwhelmed with all of the clothing that he or she has to look through. Comme des Garcons store designs are famous all over the world. Another good example of the sensory design is the store in Paris. Rei Kawakubo has chosen red color for her Comme des Garsons shop.

White shell in an historic structure, red molded fiberglass glares and pulses off the walls, often curving onto the ceiling, only to reappear as display furniture in this “new building within an old building”. Public have always been surprised by Kawakubo’s designs and have contradicted it and this space designed in collaboration with Takao Kawasaki and Paris’ Architecture Associes is no exception. Despite of the store’s catchy and attention demanding hues it is completely hidden from the street. When a customer enters a long corridor that empties into a courtyard.

Once there, any clues of the store’s existence are vanishing to the rectangles of red visible through exterior windows, in fact, the back of an interior fiber glass wall, a red sliding door that serves the shop’s entrance and importantly a pavilion. The pavilion is a completely small and separate room located across the courtyard from the main retail space. The design of the store gives a feeling of contemplation – free of products, food and drink- with mechanically mobile cubic seats that gently revolve and floor to ceiling fiberglass.

The red interior of the store symbolizes the heart and the essence of the store, which any customer can feel upon the entrance. The use of red gives a warm and a strong feeling, it is a great clarifier – bright, cleansing and revealing, it makes other colors stand out and look beautiful. After looking into the designs of Comme des Garcons two stores in Paris and New York we can notice some similarities although they are absolutely different. Rei Kawakubo incorporates large empty spaces with bright or transparent colors and that creates the effect of something other than a retail store.

It is not a usual shopping experience anymore and people love it, they love that such a great experience comes with nice and fashionable clothing. Comme des Garcons has multiple lines, Play is one of the most famous and successful. The concept of the play brand is design by not designing. A collection of basis items that don’t have to be new (the exact opposite of Comme des Garcons’ values). Through the strength of iconic character logo, play brand has a strong personality without the burden of design. Accordingly, play perfume uses extremely simple and classic ingredients with typical Comme des Garcons construction.

The packaging uses a standard bottle and a prototypal cardboard box. The goal of Play brand is simplicity, the more simple it is, the better. The brand includes an abstract heart with eyes. It is an interesting image that immediately recognizable and attention demanding. On my own example I can say that this is a very successful use of imagery because it quickly gets in your head and next time you will see this heart somewhere on a shirt, shoes or jacket, you will instantly know that this is Comme des Garcons Play.

It is important for a brand to be easily recognizable so that the customers will develop a brand loyalty. As to Comme des Garcons line I do not think it is successful because of the lack of something to remember it by, but the Play brand is more affluent. Usually the heart is red with white eyes, this gives a feeling of personality. They use it on their shirts, shoes and perfume, sometimes even in graffiti.

Comme des Garcons Essay

Punk Fashion Essay

Punk Fashion Essay.

Punk Fashion

Punk fashion is the clothing, hairstyles, cosmetics, jewelry, and body modifications of the punk subculture. Punk fashion varies widely, ranging from Vivienne Westwood designs to styles modeled on bands like The Exploited. The distinct social dress of other subcultures and art movements, including glam rock, skinheads, rude boys, greasers, and mods have influenced punk fashion. Punk fashion has likewise influenced the styles of these groups, as well as those of popular culture. Many punks use clothing as a way of making a statement.

Punk fashion has been extremely commercialized at various times, and many well-established fashion designers — such as Vivienne Westwood and Jean Paul Gaultier — have used punk elements in their production. Punk clothing, which was initially handmade, became mass produced and sold in record stores and some smaller specialty clothing stores by the 1980s.

Punk rock was an intentional rebuttal of the perceived excess and pretension found in mainstream culture as a whole, and early punk artists’ fashion was defiantly anti-materialistic.

In the United States, dirty, simple clothes – ranging from the T-shirt/jeans/leather jacket Ramones look to the low-class, second-hand “dress” clothes were preferred over the expensive or colorful clothing popular in the disco scene. In the United Kingdom, a great deal of punk fashion from the 1970s was based on the designs of Vivienne Westwood and Malcolm McLaren and the Bromley Contingent. Mainstream punk style was influenced by clothes sold in Malcolm McLaren’s shop. Deliberately offensive T-shirts were popular in the early punk scene. These T-shirts, like other punk clothing items, were often torn on purpose.

Other items in early British punk fashion included: leather jackets; customised blazers; and dress shirts randomly covered in slogans, blood, patches and controversial images. Other accoutrements worn by some punks included: BDSM fashions; fishnet stockings (sometimes ripped); spike bands and other studded or spiked jewelry; safety pins (in clothes and as body piercings); silver bracelets and heavy eyeliner worn by both men and women. Many female punks rebelled against the stereotypical image of a woman by combining clothes that were delicate or pretty with clothes that were considered masculine, such as combining a Ballet tutu with big, clunky boots.

Punk clothing sometimes incorporated everyday objects for aesthetic effect. Purposely ripped clothes were held together by safety pins or wrapped with tape; black bin liners (garbage bags) became dresses, shirts and skirts. Other items added to clothing or as jewellery included razor blades and chains. Leather, rubber and vinyl clothing have been common, possibly due to their connection with transgressive sexual practices, such as bondage and S&M. Preferred footwear included military boots, motorcycle boots, brothel creepers, Puma Clydes (suede), Chuck Taylor All-Stars and later, Dr. Martens boots. Tapered jeans, tight leather pants, trousers with leopard patterns and bondage pants were popular choices. Other early punks (most notably The Adicts) imitated the Droogs from A Clockwork Orange by wearing bowler hats and braces. Hair was cropped and deliberately made to look messy, and was often dyed bright unnatural colors. Although provocative, these hairstyles were not as extreme as later punk hairstyles.

In the 1980s, new fashion styles developed as parallel resurgences occurred in the United States and United Kingdom. What many recognize as typical punk fashions today emerged from the 1980s British scene, when punk underwent its Oi!/street punk, and UK82 renaissance. The US scene was exemplified by hardcore bands such as Black Flag, Minor Threat, and Fear. The 1980s American scene spawned a utilitarian anti-fashion that was nonetheless raw, angry, and intimidating. However, elements of the 1970s punk look never fully died away. Some of the following clothing items were common on both sides of the Atlantic Ocean, and some were unique to certain geographic areas. Footwear that was common in the 1980s punk scene included Dr. Martens boots, motorcycle boots and combat boots; sometimes adorned with bandanas, chains or studded leather bands.

Jeans (sometimes dirty, torn or splattered with bleach) and tartan kilts or skirts were commonly worn. Leather skirts became a popular item for female punks. Heavy chains were sometimes used as belts. Bullet belts, and studded belts (sometimes more than one worn at a time) also became common. Some punks bought T-shirts or plaid flannel shirts and wrote political slogans, band names or other punk-related phrases on them with marker pens. Silkscreened T-shirts with band logos or other punk-related logos or slogans were also popular.

Studded, painted and otherwise customised leather jackets or denim vests became more popular during this era, as the popularity of the earlier customized blazers waned. Hair was either shaved, spiked or in a crew cut or Mohawk hairstyle. Tall mohawks and spiked hair, either bleached or in bright colors, took on a more extreme character than in the 1970s. Charged hair, in which all of one’s hair stands on end but is not styled into distinct spikes, also emerged. A hairstyle similar to The Misfits’ devilocks was popular. This involved cutting a mohawk but leaving a longer tuft of hair at the front of the head. It is still popular to this day in the Horror-Punk scene. Body piercings and extensive tattoos became very popular during this era, as did spike bands and studded chokers. Some hardcore punk women reacted to the earlier 1970s movement’s coquettish vibe by adopting an asexual style.

Anarcho-punk

Anarcho-punk fashion usually features all-black militaristic clothing, a style that was pioneered by the English punk band Crass. A prominent feature is the heavy use of anarchist symbols and slogans on clothing items. Some who define themselves as anarcho-punks opt to wear clothing similar to traditional punk fashions or that of crust punks, but not often to the extreme of either subculture. Mohawk hairstyles and liberty spikes are seen. Tight trousers, bands T-shirts and boots are common. Hairstyling products often are used only if the company that manufactures it did not test them on animals. Leather, often avoided due to veganism, may be replaced with imitation leather or cloth in a similar design as leather products.

Celtic punk

Fans of Celtic punk and Gaelic punk often mix various punk fashions with traditional Irish or Scottish clothing styles, sometimes incorporating elements of highland dress. Common items include boots, sneakers, jeans, work trousers, kilts, grandfather shirts, T-shirts, hoodies, black leather jackets, peacoats, donkey jackets, football shirts, flat caps, tuques, Tam O’Shanter caps and Trilby hats. Hair is usually cut relatively short.

Cowpunk

Fans of cowpunk base their look on Southern United States poor boys: vintage western wear-like checked shirts, Perfecto motorcycle jackets, wifebeaters, overalls, trucker hats, work boots, acid wash jeans, and cowboy boots. Hair can be a short quiff, crew cut, long, or a psychobilly-style mohawk, and facial hair is acceptable for males.

Crust punk

Crust punk or gutter punk fashion is heavily influenced by bands such as Doom, Amebix and Antisect. Typical crust punk fashion includes black or camouflage trousers or shorts(heavy work pants are popular for their durability), torn band T-shirts or hoodies, skintight black jeans, vests and jackets (commonly black denim), bullet belts, jewellery made from hemp or found objects, and sometimes bum flaps. Many items of clothing are covered in patches and/or metal studs. Often the patches display a political message. Clothing tends to be unsanitary by conventional standards, and dreadlocks are popular. Crust punks sometimes sew articles of clothing with found or cheaply bought materials, such as dental floss. Pants are sometimes held up with string, hemp, or vegan-friendly imitation leather.

Dance punk

Dance punk fashions include day-glo colors, phat pants, glowsticks, leather studded jackets, chains and combat boots. Typical haircuts include spiky hair bleached blond, short mohawks and synthetic dreadlocks.

Garage punk

Garage punk bands of the 1970s like MC5, Iggy and the Stooges, the Flamin’ Groovies and the Ramones often wore secondhand clothing from the mid-late 1960s, such as velvet jackets, slim-fitting grey suits, black leather jackets, winklepickers and drainpipe jeans, in reaction to the flared trousers worn by hippies and disco fans.Their hair was generally worn long, as was then fashionable in the 1970s, but some fans opted for buzzcuts or Caesar cuts, previously associated with hard mods and bootboys. Following the 1980s garage rock revival, garage punk bands tended to dress more casually, with less overtly 1960s clothing. However, the original garage punk look remained a big influence among British indie rock groups during the mid and late-2000s.

Glam punk

Contemporary to the garage bands of the early 1970s, glam punk fashion, pioneered by bands like the New York Dolls, includes glitter, androgynous make-up, brightly dyed hair, drainpipe jeans, bright colours like electric blue, elements of leather fetish wear, and unusual costumes like leopard print, spandex, or satin shirts. Leftover baroque pop clothing like ruffled pirate shirts or brocade were also worn, together with more typical glam rock fashions like platform boots, tartan, kipper ties, and metallic silver clothing like jumpsuits.

Gothic rock, deathrock and horror punk

Deathrock and horror punk fashion is similar to goth fashion. Black is the predominant shade. Deathrock and horror punk incorporates a sexier image, incorporating fishnets, corsets and elaborate make-up for men and women. The use of occult and horror imagery is prevalent on T-shirts, buttons, patches and jewellery. Other common adornments include band names painted on jackets or bleached into clothes, as well as buttons or patches indicating cities. The initials D and R (for Death Rock) is sometimes part of a crossbone logo, accompanied by other initials, such as C and A for California, N and Y for New York, or G and R for Germany. Hair may be in a deathhawk style (a wider teased-out variant of the mohawk hairstyle), an angled bangs style, or a devilock style.

Hardcore

There are several styles of dress within the hardcore scene, and styles have changed since the genre started as hardcore punk in the late 1970s. What is fashionable in one branch of the hardcore scene may be frowned upon in another. Personal comfort and the ability to mosh are highly influential in this style. For this reason, jewellery, spikes, chains and spiky hair are highly uncommon and discouraged in hardcore fashion. Plain working class dress and short hair (with the exception of dreadlocks) are usually associated with hardcore punk. Mute colors and minimal adornment are usually common. Elements of hardcore clothing include baggy jeans or work pants, athletic wear, cargo or military shorts, khakis or cargo pants, band T-shirts, plain T-shirts, muscle shirts, and band hoodies. Common sneakers include classic Adidas Originals, Puma, Pony, Nike, Converse high-tops, and Vans shoes. Boots are also somewhat common, especially Dr. Martens.

Pop punk

Contemporary pop punk fashion sometimes overlaps with skater punk fashion. Originally this consisted of black or tartan baggy pants (sometimes fitted with studs and eyelets), band hoodies, wristbands, patrol caps, pyramid stud belts, dress shirts with thin ties or scarves, blazers and spiky hair or fohawks. In the mid 2000s (decade), pop punk fashion, influenced by indie rock, hip-hop and emo fashions, evolved to include cartoon print hoodies, Converse shoes, keffiyehs and skinny jeans. Spiky hair was gradually replaced by skater styles with long fringes or bangs. In the 2010s, pop punk fans took on a more hardcore look, with shorter hair (including a wide Mohawk combined with a fringe), plain hoodies and straight-leg jeans.

Psychobilly

Psychobilly fashion combines elements of punk with 1950s Greaser and British Teddy Boy fashions. Brothel creepers are frequently worn, as well as leather jackets, gas-station shirts, black or white retro T-shirts, dark-colored drape jackets and vintage motorcycle/work boots. Hair consists of a quiff or pompadour, usually with the sides shaved into a mohawk. Clothing is usually adorned with motifs inspired by classic American horror films or art-styles inspired by Ed “Big Daddy” Roth. This subculture is strongly associated with the Kustom Kulture movement.

Ska punk

Ska punk fans typically dress in a style that mixes typical ska- or 2 Tone-related fashions, with various types of punk fashions, including street punk, pop punk, skate punk or hardcore punk. Braces are popular, as are Harrington jackets with Royal Stewart tartan lining, thin ties, Doc Martens, mohair suits, pork pie hats, tonik suits (especially in the early years of the 1980s ska revival), tank tops, Ben Sherman or Fred Perry polo shirts, hoodies, and checkerboard patterns. Hair is cropped very short in imitation of hardcore punk bands and early 1960s rude boys.

Skate punk

Skate punk is a derivative of hardcore fashion, chosen with comfort and practicality in mind. Common skate punk clothing items include: T-shirts, flannel button-down shirts, hooded sweatshirts, webbing belts, and khaki shorts, pants or jeans. Some punks, especially in Southern California, mirror Latino gang styles, including khaki Dickies work pants, white T-shirts and colored bandanas. While some skateboarders have long and messy hair, skate punks usually have short hair, often shaved into a buzzcut, and wear little jewellery.

Street punk and Oi!

In general, contemporary street punks wear leather, denim, metal spikes or studs, chains and military-style boots. They often wear elements of early punk fashion, such as kutten vests, bondage trousers (often plaid) and torn clothing. There is a large influence by DIY-created and modified clothing, such as ripped or stitched-together trousers or shirts, or trousers that are tightly tapered. Jackets and vests often have patches or are painted with logos that express musical tastes or political views. Bullet belts and belts with metal studs are popular. Hair is often spiked and/or dyed in bright, unnatural colours and arranged into a mohawk or liberty spikes. Hair could also be cut very short or shaved. Oi! skinheads, sometimes known as skunks or punk-skinheads, fuse traditional skinhead style with street punk fashions.

The look is characterised by Doc Martens boots (or similar boots made by a different brand), braces, and tight rolled-up jeans, sometimes splattered with bleach. Other common items are T-shirts (featuring band names, political beliefs or other text/images relevant to skinhead culture) and denim jackets or flight jackets. These jackets are often decorated with buttons or patches, and in the case of the denim jackets, sometimes splattered with bleach. Hair is typically shaved shorter than with traditional skinheads. Other items from traditional skinhead fashion (e.g. Fred Perry and Ben Sherman shirts) and, to a lesser extent, punk fashion (e.g. short mohawk hairstyles, metal studs on jackets) are also worn.

Punk Fashion Essay

Zara’s Supply Chain Managment Essay

Zara’s Supply Chain Managment Essay.

Abstract

This case essay provides a business analysis on Zara–the most profitable and well-known fast fashion brand under the world’s largest fashion distributor Inditex Group. The analysis will evaluate Zara by using Porter Models, looking at its Supply Chain Management and defining its current IT challenges. Then, the essay will discuss the costs and benefits of upgrading to the new OS systems. The essay will give recommendations on whether Zara should upgrade its POS terminals after considering all above factors.

Case Summary

Founded by Amancio Ortega, the richest man in Spain and its biggest shareholder, Zara is a clothing and accessories retailer that opened its first store in La Coruna, Spain in 1975. Zara has been operated under Inditex Group, the world’s largest fashion distributor, since 1985. Zara was originated on a simple business idea explained by the CEO of the company Jose Maria Castellano Rois who joined Inditex in 1997 that: Link customer demand to manufacturing, and link manufacturing to distribution.

(McAfee, Dessain, & Sjoman, 2007) As a flagship chain store of the company, Zara plays a very important role in the Inditex Group. By 2003, Inditex has 1558 stores in 45 countries which nearly one third of them were part of the Zara Chain. For the fiscal year of 2002, Inditex’s net income was posted as €438 million on €3,974 million revenue, which Zara alone generated nearly three quarters of sales. Women clothing accounts for 60% of Zara’s sales, and Men’s and Children’s segment each accounts for about 20%. (McAfee, Dessain, & Sjoman, 2007) Zara’s operation system is very critical.

Compare to other companies that it takes them about six months to develop a product and deliver it to the store, Zara only needs three weeks to complete the whole procedure. And Zara launches about 11,000 garment items on average each year. (Business Week, 2006) Only the fast speed of Supply Chain Management (SCM) can assure Zara to respond very quickly to the demand of target customers who are young, fashion-conscious city dwellers. And to reach its goal to quickly respond to customer demand, Zara developed three cyclical processes from ordering to fulfillment to design and manufacturing. Zara’s Information Technology has matches its preferences for speed and decentralized decision-making. There’s no CIO within Zara, but instead, Salgado and Castellano are on board of the technology committee who makes decisions around IT.

Due to Zara’s business uniqueness, most of its IT applications are established internally by its IS department rather than buying commercially available software or outsourcing. At August 2003, Salgado and Sanchez must make a decision on whether Zara should upgrade its operating system or not. In every Zara store, there are basically two technological systems that are used—PDAs (short for Personal Digital Assistant) and POS (Point of Sales) terminals. PDAs are handhelds that were used primarily for ordering and were upgraded constantly.

POS terminals are cashier computer systems with Zara’s own application installed and had remained unchanged for over a decade. Zara, at 2003, was using the DOS operating system that was no longer supported by Microsoft. The POS application that was ran on top of the DOS system worked very fine and efficient for Zara so Sanchez insists on not changing it. Salgado, on the other hand, thinks that there are potential problems with the outdated system and there are rooms for improvement if they upgrade it with a new system. As far as the debate could go, the two men need to agree on a decision and come up with a solution for this challenge.

Business Analysis

To help Mr. Salgado and Mr. Sanchez to solve this tough problem, we need to firstly understand Zara’s business model. I will use Michael Porter’s Generic Strategies, Five Forces and Value Chain to analyze Zara Company.

Generic Strategy

Among the three generic business strategies Dr. Porter identified, which are (1) broad cost leadership, (2) broad differentiation, and (3) focused strategy, I think Zara inherited both cost leadership strategy the differentiation strategy. Zara differentiates itself from the rest of the clothing industry not only by offering unique products but also by having full control of its operation processes. As Daniel Piette, LVMH’s fashion director, described as “Possibly the most innovative and devastating retailer in the world”, Zara truly has its unique business philosophy. (CNN Business, 2001) Zara meets its customers’ expectation by delivering the latest fashion lines at affordable prices the soonest it can. This concept itself is unique enough. Unlike high-end designer brands that offer limited exclusive lines at big prices, or like some other clothing retailers that offer trendy styles at low costs but poor qualities, Zara is able to bring the newest fashion into mass production and deliver them to people with a normal quality for very good prices.

While most of the clothing or textile companies rely on outsourcing and cheap labors from China, Zara established a vertically integrated operation system. (Osterwalder, 2005) Customer demands are Zara’s heavenly goal, and Zara collects them from its stores throughout the world. Zara has its own “commercials” that make decisions on what to design and produce. Zara owns a group of factories around La Coruna and near Spain to finish manufacture and production quickly. Zara is able to use this network to move a new design from concept through production and into the Distribution Center in as little as three weeks. And deliveries to the store usually take only one to two days via various transportation methods. Jeffrey Ballinger, a Harvard researcher and director of pressure group Press of Change, said that. “Zara has turned control over garment factories into a competitive advantage.” (CNN Business, 2001) Zara’s differentiation strategy results in a low cost strategy.

Zara uses a low cost structure than its competitors to cut cost. Unlike fashion brands that creates or used well-known designers or design groups that cost millions of dollars, and produce with exotic, rare to find fabrics. Zara takes its designs from its “commercials” and use easy to find textile to not only react to changes quickly but also cut the majority of the cost, therefore, Zara can always offers a lower price. Zara’s generic strategies—both differentiation strategy and low cost strategy are due to Zara’s closeness to its customers. Zara’s designs are generated from preferences collected in the store, and Zara is able to satisfy its customer by taking full control of the operation process and therefore, fulfilling customers’ demand quickly. The ability to transform this close relationship into a value proposition gives Zara complete advantage over its competitors. (Osterwalder, 2005)

Five Forces

Michael Porter’s Five Forces can be used to identify Zara’s competitive forces within the environment to assess the potential profitability in the clothing retail industry. According to Paige Baltzan, Five Forces’ purpose is to “combat these competitive forces by identifying opportunities, competitive advantages, and competitive intelligence. If the forces are strong, they can increase competition.” (Baltzan, 2010) Below, I will discuss Zara’s competitiveness from the five forces.

1, Buyer Power—is the ability of buyers to affect the price they must pay for an item. (Baltzan, 2010) Buyer power is not very strong in Zara’s case. Customers who buy from Zara know exactly what kind of merchandises they are purchasing from this brand—trendy fashionable items with a normal quality for a good price. Since Zara has 531 stores over the world, it has a large number of customers. Since Zara’s garments have “fairly short life spans” (McAfee, Dessain, & Sjoman, 2007), it creates a sense of urgency for customers. Customers know that if they don’t buy the item this time because they are hesitating on the price, they may not even be able to find it next time they visit the store. This gives Zara power to name its own price, but of course, within a reasonable “Zara price range”. Although there are brands like Gap, H&M, Benetton and so on to compete with Zara, the unique fashionable items that are offered at Zara, which change constantly, makes the switching costs high for Zara. There are definitely loyalties in Zara’s customers who check out the store frequently hunting for new items as soon as they are available.

2, Supplier Power—consists of all parties involved, directly or indirectly, in obtaining raw materials or a products. (Baltzan, 2010) Zara’s operation structure gives it a comparably lower supplier power. Clothing retail industries rely on their manufactories to produce their garments, so usually their suppliers have high bargaining power. If the price of cotton goes up, the whole industry is likely to be influenced and therefore, their cost will go up, their merchant price will rise as well. However, since Zara owns its factories, Zara is its own supplier. Supplier power is comparably lower than its competitors.

3, Threat of Substitute Products or Service—is high when there are many alternatives to a product or service. (Baltzan, 2010) The thread of substitutes is low for Zara. Even the fashion industry is very unpredictable and Zara has a lot of competitors wanting to make the next big fashion trend, Zara is still distinctive because it is known for constant innovations and designs for the latest fashion. No competitors of Zara could catch up its speed on producing so many items a year and deliver that fast.

4, Threat of New Entrants—is high when it is easy for new competitors to enter a market. (Baltzan, 2010) The enter barrier to create a company that is similar to Zara is high so the threat of new entrant to Zara is low. Profitability always attracts investment to enter the industry, and in fact, there are new entrants all the time. However, Zara’s business model is quite unique and difficult to copy. Zara has already built its reputation, and is the leading company in the industry. It will be hard to achieve what Zara has. It also takes time and capital to establish a successful company like Zara. It is hard to gather all the resources including talented people like what Zara has to create an industry giant. There are going to be some threats of new entrants but not that big of the influence to Zara.

5, Rivalry among Existing Competitors—is high when competition is fierce in a market. (Baltzan, 2010) Since there is not many similar fast fashion stores in the market, Zara’s rivalry is low among existing competitors. Zara’s existing competitions come from sharing the same clothing retail industry, but not so much from what Zara is specialized in—fast fashion. So again, Zara distinguishes from other competitors for its products and speed, and so far competition for Zara is not that fierce within the market.

Value Chain Analysis

Support Value Activities

Value Added

Michael Porter created value chain analysis to identify competitive advantages by viewing a firm as a series of business processes that each adds value to the product or service. (Baltzan, 2010) By identifying Zara’s value chain, we can determine the ways in which Zara can implement IT or add value to its products and services.

Primary Value Activities

As it was described in the case, Zara’s primary value activities are Ordering, Fulfillment, Design and Manufacturing, Distribution and Store Operations. Store managers at Zara place an order to La Coruna twice a week encompassing both replenishment of existing items and initial requests for newly available garments. Commercials at La Coruna then fulfill and ship clothes to stores to satisfy their orders. Zara has its own team of design who amazingly produce approximately 11,000 new items a year. Zara also has a vertically integrated manufacturing operation system that moves its design to production quickly. Zara’s distribution center then transport and distribute Zara products to stores. Zara stores are responsible for selling items and collecting customer preference for fashion trends. These primary activities consist all basic business activities happen within the company everyday.

Zara’s Support Value Activities, like many other companies, are Administration, Information Technology, Human Resources and Procurement. Zara’s approach to IT is consistent with its preference for speed and decentralized decision making. (McAfee, Dessain, & Sjoman, 2007) IT team, who creates most of the applications that Zara uses internally, supports Zara to function the best way it can and supports well. Zara’s IT is used in store operations, logistics, administrations and so on. It has reduced the overhead cost in many areas, and therefore, has helped Zara to achieve a cost advantage.

Implementations of Porter Models

Zara differentiates itself from the rest of the industry for its concept of fast fashion at an affordable price. And this is done and supported by not only Zara’s talented employees such as powerful store managers and commercials but also by the IT Zara employs. Information plays an important role through Zara’s supply chain management. Information of customer preference was collected from the store and transferred to commercials so that they can generate the right products quickly. Information of SKUs (stock-keeping-units) was communicated so that the Distribution Center knows what to replenish to stores twice a week. IT adds value to Zara in almost every primary and supportive activity in the value chain. Zara used IT in terms of functional processes and decision level.

Even Mr. Sanchez states that the current system is stable, effective and easy to use, there are still many potential risks and problems and there is a big room for Zara’s IT to improve so that the operation could perform even better. Zara POS terminals are run on DOS operating system that is not supported by Microsoft any more. Zara also uses the PDAs to make orders and handle returns. (McAfee, Dessain, & Sjoman, 2007) As important as sales information is, Zara’s POS terminals were not connected to one another via any in-store network, so employees have to transport all the information on a disk and to the one modem-equipped terminal to accomplish transaction.

This process is inefficient and has many potential risks of losing the information. PDAs also use the same terminal’s modem to receive the offer and transmit the order. Within a store, POS terminals and PDAs could not share information. That being said, one the terminal modem is dead or has some kind of flaws, the whole store operation will be delayed or stopped. Then, Zara will lose its competitive advantages from its five forces in the market and less value will be added to the value chain. As a result, its generic strategy won’t work as well.

Solution Evaluation

The question is: should Zara choose to upgrade its POS system? Nicholas G. Carr explained in his article It Doesn’t Matter that IT has lost its ability to create a sustainable competitive advantage and suggested companies not to try new technologies but follow the ones that have been tested to reduce risks. (Carr, 2003) But from the study of all publically traded companies in the article Investing in the IT we learned that there is an industry concentration that large share of the market is concentrated from a small number of companies. (AcAfee & Brynjolfsson, 2008)

As where Zara stands in the clothing company, it definitely doesn’t want to lose its competitiveness as one of the small group of companies who hold a large piece of pie from the market. The case problem is a semi-structured one since we only know some of the valuables and it is hard to measure the future value of the result. Peter Drucker said that “If you can’t measure it, don’t do it.” Within Zara company, Salgado and Castellano were only involved early in discussion of initiative that might include computerization. They only determine what new system there is department should purchase or who should work on them without further conductions for cost/benefit analyses. However, I will give a financial forecast using the numbers given in the case to show whether upgrading the system would add value to Zara or not.

Cost analysis

From Exhibit 13 of the case, we can collect some data and ideas of how much it will cost Zara if it decides to upgrade the system. The company can try the new system in a few stores first to test the efficiency. However, my calculation is based on installing the Windows Operating System throughout all 531 Zara stores average five terminals per store within a year. (Despite new store openings) Total cost to purchase and maintain the Windows OS system per terminal is €170. Hardware required to install in the store including POS terminals, wireless router and wireless Ethernet card cost €5,430. High-speed Internet connection will cost €240 per store annually.

Time required per store to install new POS terminals with new POS application, establish wireless network and train staff is 32 hours, which convert to four days of work. Cost per day will be €2,000 times four days, and that gives €8,000 expenditure per store. So, total cost per store to completely install the new OS system with new POS application ready to perform daily tasks is €14,520. Total programming time required to port existing POS application to new OS and expand POS application to include some new features is 20,000 hours. Assuming that computer programs can be run on the machines 24 hours a day, each day cost €450, total cost will be €375,000. As a result, 531 Zara stores will cost €7,710,120 to install the program, plus €375,000 expenses from the IS department, total cost to upgrade the POS system will be €8,085,120. (See Exhibit 1)

Since Zara generated 73.3% of the Inditex Group’s sales, Zara’s Net Operating Revenues can be estimated at €2,913 million in 2002. And assume all companies under Inditex Group operate in the same way and share expenses equally as sales, Zara will make €313.8 million Net Income. (See Exhibit 2) The €8 million upgrading expenses will count for a 3% investment for Zara.

Benefit Analysis

A €8 million IT upgrade is not a small investment, we need to look at potential benefits that can be made out of the system to measure if it makes a profit for Zara. In another word, we need to forecast future returns to see if the new system will add value to Zara or not. I will use some Key Performance Indicators (KPI) and some Critical Success Factors (CSF) to analyze the outcome.

Financial Forecast

There are some tangible KPIs we can measure to see if Zara benefit from the new system. I will use Revenue, number of garment, percentage of time saved using the new system as my KPIs. Every business is about making money. If the new system cannot bring Zara extra revenue, why invest? Let’s suppose that the system runs smoothly and well once it is installed. Hopefully it will link up the POS terminals and PDAs that are used in each store to headquarter automatically using the wireless Internet. Added new features are supposed to enable staff to check theoretical inventories from the store as well as all other Zara stores near it. The system will minimize faulty transactions from human errors. Staff in the store does not have to record sales numbers and transport it from one terminal to another.

More information from customers and store managers can be collected and sent back to commercial teams quicker and more accurately. Distribution Center will be able to see store inventories from the system simultaneously so replenishment can be made without making an order. Shipment can arrive more frequently to the stores. Let’s say the system accelerate the whole operation process by 10% of the total time, and the design group is able to make 10% more garment items a year due to the time they saved. That will make a total of 12,100 items a year compared to 11,000 before. Revenue can be increased to €3,204.23 million from €2,912.94 million. Although the number may be too positive, it gives us an idea that multi-million of revenues can be made due to the increased efficiency of the system.

Another important fact is that the new system installed will last for a period of time, not just one year. The current DOS system has been used for over a decade, and I believe the new system can be run for about the same period. The IT investment expenses can be distributed over the next few years and Zara will continuously benefit from the uses of the system.

Other benefits

There are also some intangible values that can be added from the new system. Some Critical Success Factors include market competitions, Supply Chain Management, Customer Relationship Management and Material Resource Planning II.

The new OS system will help Zara to be competitive in the industry. As an innovative company, Zara has its unique and simple business model that has a proven success. The IS department of Zara that create program application for Zara to use is a valuable Proprietary Technology benefit that Zara owns. It is beneficial because no other competitors have access to the technology. Infrastructural Technology such as this DOS or new OS system has better value when more users are taking advantage of it. (AcAfee & Brynjolfsson, 2008) Zara should take the advantage by also applying the new OS system as many other competitors in the industry have already used it. Thus, Zara will have both benefits from both proprietary and infrastructural technologies and stay competitive in the market.

New OS system will link Zara’s supply chain better and faster. Zara’s business model decides that the company wants to exchange information and it wants the information to be exchanged fast. Zara’s supply chain links from Supplier to Manufacture to Distributor to Stores and to Customers are tighter than many other companies because its products turn over more frequently. Zara needs a good system to perform operation than any other companies. Having an upgraded system will help Zara to achieve its business goal.

New system will bring more customer satisfaction to Zara. A lot of Zara’s customers have some degrees of loyalty to the company and their satisfaction is important to Zara. Despite chatting with customers for their fashion sense when they are in the store, Zara doesn’t make much networking effort with customers. Product says it all. Zara simply keeps its customers coming by offering their favorite items. These fashion-forward, young city dwellers come to Zara enthusiastically want to buy what they like. So, being able to check inventories in nearby stores when a customer’s size runs out is very important. The new system will let Zara do that.

Material Resource Planning and Labor will also be better off with the new system. Zara’s vendors have promised to follow Zara’s IT system so it was not really problem. Yet, Zara shouldn’t be standing on the passive side to wait until when it has to switch to a more up-to-date system. By taking the lead, Zara gains more flexibility and comfort to utilize resources it needs. The new system will also fix and install some new features that Zara’s employees have being requesting for. Keeping the labor force happy is essential since talents (people) are the key factor that makes it hard for other companies to copy and apply the same IT and business model Zara has successfully. (AcAfee & Brynjolfsson, 2008)

Auditing

Some main reasons that Sanchez pointed out to support his idea of not upgrading and some other factors that need to be considered are discussed below.  Mr. Sanchez worries that switching to the new system will turbulent the stable usage of the current system and cause troubles. We have to admit that what he said could happen. That’s why we take close consideration of it to prevent it from happening rather than not to do it. The current system is effective, stable and rolls out easy to use for employees because it has been tested and run for more than ten years. Staff is familiar with the system, and IS department knows how to fix it when there’s a problem. However, this shouldn’t stop Zara from innovations. Zara can plan on installing the new system and test it with a small number of stores first and slowly transformed the rest of the company to use the new system.

Zara may also face the difficulties to train employees to use the new system, or the system doesn’t work perfectly for Zara at the beginning phase, and therefore, causing systematic troubles that affect the business negatively. Yet, generally speaking, these software interfaces for businesses are easy to use. Not to mention that Zara has a strong IS department that can support its technology uses.

In the process of new system development, Operation/Maintenance consists 80% of the time and cost while User Acceptance only contains 20%. That being said, maintaining the system and Auditing the system after it has been installed is crucial. Zara’s IS department should pay more attention to them.

Overall, there are more benefits and predictable profits than shortcomings to upgrade the outdated DOS system for Zara. Conclusion and Recommendations

Taking into considerations of all possible factors, I believe that this case analysis is in favor for Zara to consider upgrading its outdated DOS system to OS system. As a successful fast fashion clothing retailer, Zara’s business idea, which links customer demand to manufacturing, and links manufacturing to distribution, works very well and keeps Zara a flagship chain store for Inditex Group. Zara’s generic strategy is to differentiate and save cost. Since Zara has a strong demand for speed in the operation process and tight links in Supply Chain Management, its requirement for IT is high. The evaluation of the solution shows us that there are more predictable advantages than disadvantages for Zara to upgrade its system. With thoughtful considerations and backup remediation plans, Mr. Bruno Sanchez shouldn’t be so conservative and against the idea to upgrade the system. I am confident that upgrading the system will meet Zara’s business goal to be the most innovative and profitable fast fashion retailer in the industry.

References
AcAfeeAndrew, & BrynjolfssonErik. (June-August, 2008). Investing in the IT. Harvard Business Review. BaltzanPaige. (2010). Business Driven Information Systems (3rd Edition). New York, NY, USA: McGraw-Hill Irwin. Business Week. (Arip 4th, 2006). Zara-Taking the Lead in Fast Fashion. CarrNicholas G. (May 2003). IT Doesn’t Matter. Harvard Business Review. Castellano RiosMariaJose. (1975). Business idea for Zara. Spain. CNN Business. (June 15th, 2001). Zara, a Spanish sucess story. McAfeeAndrew, DessainVincent, & SjomanAnders. (2007). Zara: IT for Fast Fashion. USA: Harvard Business School. OsterwalderAlexander. (June 23rd, 2005). Business Model Alchemist. http://www.businessmodelalchemist.com/2005/06/zaras-business-model.html

Zara’s Supply Chain Managment Essay

Report for Fashion House in Bangladesh Essay

Report for Fashion House in Bangladesh Essay.

It is a great plea-sure and humble opportunity for me that I am assigned for doing my internship in Artisti Collection Limited. During my Internship, I have been fortunate to get the support, assistance and encouragement from a number of individuals.

Firstly, I would like to express my grateful appreciation to The Almighty Allah for enabling me to complete this internship program successfully. I want to convey my heartfelt respect and cordial thanks to my honorable Academic Supervisor of BUS 400 (Internship) course Mr.

Muhammad Intisar Alam, BRAC University, for giving me an opportunity to carry out my internship and I also like to thank for his generous cooperation and constant guidance that made me really confident about the desired outcome of my internship project.

I am grateful to my Organizational Supervisor Mr. Joyanta Paul, Branch Coordinator of Artisti Collection Limited, for his invaluable support and guidance that led to the successfully completion of my internship project.

Special thanks to my colleagues who helped me by providing informative instructions.

Without them this report would have been very difficult to prepare. Finally, my sincerest thanks go to my friends, my family members, and all the others who were involved and helped directly and indirectly in preparing this report as well as faculties of BRAC University for all the support and giving me the opportunity to prepare this report as a part of my BBA program.

Executive Summary

Artisti Collection Limited is one of the leading and fastest growing ready-made clothing brands in Bangladesh. Artisti Collection Limited was founded in the year 1992 as a sole proprietorship business by Mr. Tariqur Rahman with a vision to be a leader in readymade outfits in Bangladesh with professionalism, quality, reliability and trust. Artisti firmly emphasizes on real internal growth and it is growing from year to year. The company is also proud of the fact that its growth of sales is sustainable, is increasing always. Artisti marketing strictly maintains the international quality parameter in relation to customer’s requirement. Its strong brands image and having a full control both on their production, distribution and market outlet are their greatest strength. On the other hand, their very small market size in clothing industry due to less product variety is their greatest weakness.

They have good opportunities as they can grow in the existing market w i t h s u c h a h i g h q u a l i t y b r a n d i m a g e and launch new products like sports wears and sports shoes, they can also target international market by going global. Stock market failure and high import taxes on raw materials and finished products. The purpose of this report is to give our readers a practical insight on Artisti‟s marketing mix, market segmentation, products‟ position, competitor‟s profile, the changes that took place in the organization, company‟s competitive work place, organizational quality assurance, and Artisti‟s safeties and securities. It was quiet difficult for me in preparing this report because of the insufficient source of primary and secondary data, inaccessibility of data due to information confidentiality, and lot of the calculations and numerical data could not be included i n t h i s r e p o r t a s I w o u l d n o t a c c e s s t o t h e m p r o p e r l y .

I n t h e i r marketing mix, they offer almost all kinds of products to create a complete fashion house, price is not their main concern to be focused in their promotional activities but to build their quality and reliability attributes on consumers mind, they have eleven market outlets all over the country among which nine in Dhaka, one in Chittagong, and one in Sylhet. They mainly follow cost-plus and psychological pricing or odd pricing in setting their products price. Their potential consumers are those who acknowledge the quality of Artisti brand and most importantly those who can afford the products. They develop their products for the targeted market based on clothing culture as well as from the religious perspective of Bangladesh. Their target market areas are Dhaka, Chittagong and Sylhet where the population density is high, per capita income is higher comparatively.

The Company fall under the Question Marks in The Boston Matrix which means their market growth is high and on the other hand their market share is low. Among the major competitors of Artisti in the market such as Vasavi, Zara, and Shoppers World, only Shoppers World is the strongest competitors in terms of market share. However, Artisti is a price winner in the market as they have cheapest price for men‟s wear comparatively. The company brings changes both in their management and in their products variety. They have one of the best work place in the country. They are one of the rear companies in Bangladesh who owns a quality plan, compliant to international quality code/standards. They follow proper rules and regulations in following their safety and security measures.

Report for Fashion House in Bangladesh Essay