Fashion markets are synonymous with rapid change and as a result commercial success or failure in those markets is largely determined by the organization’s flexibility and responsiveness.
Fashion market is worth more than $30 billion to UK economy alone according to a study released on the eve of London fashion week.
The global apparel and fashion market by 2020 is expected to grow to 1.1 trillion euro. However the growth is slowing down in developed markets. Emerging economies in the east will fuel growth in fashion market.
The demand for fashion products cannot be forecasted. In such situations managerial effort is better expended on devising strategies and structures that enable products to be created, manufactured and delivered on the basis of real time demand.
The issues of Traditional SC are
Traditional SC are forecast driven (inventory based). Agile SC are shorter and seek to be demand driven (information based).Fashion market is worth more than $30 billion to UK economy alone according to a study released on the eve of London fashion week.
The global apparel and fashion market by 2020 is expected to grow to 1.1 trillion euro. However the growth is slowing down in developed markets. Emerging economies in the east will fuel growth in fashion market.
The demand for fashion products cannot be forecasted. In such situations managerial effort is better expended on devising strategies and structures that enable products to be created, manufactured and delivered on the basis of real time demand.
The issues of Traditional SC are
- Total SC cost
- Cost of obsolesce
- Forced markdowns
- Inventory carrying costs
The biggest item among the issues is forced markdowns, mainly at retail with total losses amounting to over 14% of retail sales.
The issues that are addressed by Agile SC are
- Reducing the lead time, expenditure, cost and inventory
- Sharing of information
- Product diversification
- Logistics problem- frequent stock outs of fast moving goods and gross over stocking of slow moving goods
