Fashion Marketing: Contemporary Issues, Second edition - Pr School

Supply chain strategies, structures and relationships 43
Table 2.3 Differences between traditional and fast fashion business model
Characteristics Traditional apparel retailing Fast fashion retailing
business model
business model
Supply strategy Efficiency-driven large Responsive to customer
volumes planned at lowest demand. Small- and mediumtotal
cost.
sized volumes in response to
customer demand identified
by store data.
Manufacturing Outsourced to a number Backward vertical integration
operations of different supplying enables organizations like
contractors based on best Zara to manage closely the
prices (often globally). Do different supply chain
not own their supply chain operations from design
but need to try and control through to store. Owning
it through standardized much of their supply chain.
systems, policies and
What they do not own is
procedures. Larger
closely controlled and
organizations are able to relatively local in Spain,
exert pressure.
Portugal and Morocco with
short lead times.
Lead times Long lead times 12–16 Short lead times 8–10 days
weeks fabric, 6–10 weeks on some lines, most within
apparel production, 2–3 15 days including store
weeks shipping times.
shipment.
Demand based on Forecasts well in advance Forecast much closer to
of the selling season.
season and heavily
influenced by real time
demand data transmitted
from stores.
Replenishment Inventory levels trigger No replenishment – when it’s
automatic replenishment gone it’s gone and move onto
orders from suppliers at the next hot fashion.
pre-agreed contract prices.
Designs Based on trend forecasts Based on current catwalk
18–24 months in advance of shows. Digital photography
selling seasons.
and information and
communication technology
used to transmit visual
data back to in-house design
team to sample and cost.
‘Knock-offs’ as they are
called in the trade for obvious
reasons.
Fabrics (textile Various fabrics produced Mainly standard ‘greige’
chain) to specification by Textile fabrics piece dyed to
Mills 12–16 weeks lead seasonal colours in demand.
times, production has to
be booked well in advance.
Source: Hines (2004).