Why Zara is a 'Fast Fashion' Pioneer - Wall Street Journal (blog)

How long does it take Inditex headquarters in Coruna, Spain, to fill a clothing order from a store in Hong Kong?


Forty-eight hours, according to a video shown during a media tour of Zara’s new 55,000-square-foot flagship store in Hong Kong, which illustrated just why Zara is known as a pioneer of “fast fashion.”


Twice weekly, each of the more than 1,900 Zara stores around the world places clothing orders with headquarters in Spain, based on what has been selling well in that store. Within eight hours of the order being placed, the clothes are ready for shipment, according to the video. Within 48 hours, the hot-selling products are in the store.


It’s not just about speed but about making sure that every store gets the correct shipment, said Jesus Echevarria, an Inditex spokesman.


“What we usually consider as fast fashion is not that fast,” said Mr. Echevarria. “It also has to be accurate.”


He added that a new collection can be conceived by the company’s 350 designers and made by its factories in just three to four weeks.


Speed and agility in responding to consumers’ fashion demands have been key drivers behind the success of companies such as Spain’s Inditex and Japan’s Fast Retailing Co., which owns the Uniqlo brand.


Inditex currently ranks as the world’s largest fashion retailer by revenue. But in Asia, Fast Retailing is the top apparel retailer, and it aims to be the world’s largest by 2020.


Inditex, meanwhile, is working to expand in Asia. The Hong Kong flagship store, which stretches over six levels, is the biggest in the region.


Other retailers are trying to adapt. Last year, Esprit Chief Executive Jose Manuel Martinez Gutierrez, an Inditex veteran, said that shrinking the time that it takes from design to sale of the clothes is the “most complicated but critical part of the business.”


Separately, Inditex’s Mr. Echevarria said he expects the opening of Zara’s virtual storefront on Alibaba Group Holding Ltd.’s Tmall shopping site during the 2014 autumn-winter season to be a “complement rather than competition” for its stores in China.


Zara is still working out the details, and will release more information on its online strategy in China in September, he said. Tmall will be the first time that Zara is using a third-party site to sell its clothes.






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