VALUE CREATION IN THE GLOBAL APPAREL INDUSTRY. INDUSTRY.

(OPENING CASE)

PRESENTED BY :- JUHI AGRAWAL (1010) POOJA SINGH (1005)

Q-1 What was the structure of the apparel industry?

Typical apparel manufacturer almost always located in a low wage market. In a highly labor intensive process, workers make specific pieces of clothing. More countries now make specialized products. Once assembled, finished goods are suppiled to apparel retailers.

Q-2 What changes took place in the apparel industry?

y y

Major changes took place in 2005. However retailing activities remained quite local. Later on apparel retailers pushed trading companies. For this it was needed for the retailers to avoid the forecast errors & inventory risk.

Avoiding forecast errors & inventory risks

Selling season

Testing the market

Smaller initial orders

Reordering

The final link in this chain are market & customers.

The British

Seeks stores based on SOCIALSENSITIVITIES

The Germans

PRICE SENSITIVE

In U.S

Shoppers look for MIX of VARIETY, QUALITY & PRICE

These conditions created a buyer driven chain in global apparel industry.

The operational decisions of apparel firms also instituted change.

The firms became more specific. y Eg:a) Making only zippers b) Managing logistics c) Focus on store designs d) Focus on a particular customer segment.
y y

Many advocate a strategy of Do what we do best & outsource the rest.

Q-3 Give the brief introduction about Zara.



Premiere division of the spanish firm INDITEX. Head quarters LA CORUNA Employees about 60000 people Majority of young & female workforce. Has a network of 1026 stores across 64 countries. Recently named as the GLOBAL RETAILER OF THE YEAR Its net sales increased by 22% & its net income rose 25% in 2006.

   

Q-4 Discus the unique features of Zara stores.

 Zara uses an

innovative strategy through integration of Design Speed Production Responsiveness Technology E-business latest fashion trends in as

 Zara can translate the

little as two weeks.

Cycle time in the global apparel industry.

3-4 months

4-6 weeks 4 hours 4-6 days 7-8 weeks 5-6 weeks

Design Firms infrastructure

Sourcing

Store operations

Production

Marketing

Logistics

THANK

YOU