Sourcing Journal recently quoted John Thornbeck, Change Capital's president, saying that fast fashion translates design trends into multi-channel volume. Fast fashion is the most crucial disruption in retail today. He also noted that disruptive innovation, or changing an existing market by introducing a product or service that offers simplicity, convenience, accessibility, and affordability, has the most positive impact on a company.
Zara, the flagship brand of Inditex, is a breakthrough in quickly bringing new fashions, designs, and ideas to its stores. Zara's relentless push into the supply chain pipeline keeps its stores stocked with the latest styles at sale prices in transit. Many fresh ideas from fashion shows in New York, Paris, and Milan will soon be on Zara's racks. Mango is another successful Spanish fashion company that delivers fast fashion.
Zara has created clothes that are not only affordable but also in the latest trends... [+] (Craig Varga/Bloomberg)
The idea of moving goods quickly from the designer's catalog to the retail floor has affected the entire global retail industry and attracted competition. Companies like H&M and Forever 21 have also turned fast fashion into big business. Their consumer appreciates a "new look" that can be worn for the time being and sees merchandise as a temporary treasure, Not something you keep forever.
A few years ago, companies like J.C.Penney, Kohl's, and Macy's took a page from Zara's book and began expediting the delivery of fashion goods from the Far East to their stores. Delivery times were cut by more than half by consolidating production and streamlining the supply chain. Technology has helped with speed and the realization that new fashions must be on the sales floor in time before the consumer's attention moves on to the next. I.N.C., the private brand of Macy's and Bloomingdale's, reflects the latest fashion ideas quickly and effectively, making it a massive success for both chains. Client Inc. Merchandise as an on-trend fashion brand.
The benefits are enormous. Zara stores have lower markdowns because the inventory is "just in time," with speed creating demand and ensuring quick turnover. The company does not replenish but instead replaces sold styles with new looks. Consumers know they want to buy a product as soon as they see it because they will never see it again. This approach resulted in Zara's profits rising due to lower markdowns and more substantial gross margins.
New entries in fast fashion will again challenge the industry. Primark will be tough. It operates 298 stores in Europe and will have two in the U.S. this year. Six more are planned for next year. This Irish company, which I've written about, thrives on selling large quantities of essential goods at meager prices. It supplements its basic assortment with startling on-trend fashions. Two U.S. The stores, one in Boston, MA, are now open, and the King of Prussia, PA, opening in 32 days, will be the first of several U.S. locations. Primark stores are generally unattractive; Management believes the merchandise should speak for itself.
Adopting a fast fashion approach allows retailers to be more fashion-forward, innovative with new ideas, and service-oriented. Fast fashion does more than ensure survival; It represents a way to grow at a time when growth is stunted by customer apathy.