CASE STUDY 2: FAST FASHION

ASPECT CHOSEN: PRODUCTION

MANAGEMENT
Situation: A new trend in terms of fashion: Fast fashion
1/Volume
A new strategy of fast fashion makes the cycle development
over 6 times more successful, it’s the case of Zara and HM.
 When the last season clothes are outdated, they will be
moved to retail outlet stores.

Benetton:
110 million garments a year and the majority ( 90%) is in
Europe
6000 stores – 1.6B Euros of revenue
Contractors and factories of its own
HM:
1000 stores in over 20 countries
40 000 employees, revenues SEK around 60 000 million
The biggest markets are Germany, Sweden, and the UK.
No factories but 750 suppliers in the EU and Asia
21 production offices coordinating half a billion items per year
Zara:
Inditex-Group of Zara: 2000 stores in over 100 countries and its
revenue of about 11,5B Euros
Biggest market: North West Spain with 40 000 employees
 A qualified crew can respond to the client's demand which leads
to the minimum stock
 40 000 items per year of which 10K go into a production
Catwalk to the rack: 15 days for a design/production
50% of products are made in 20 Spanish factories and with the help
of subcontractors like Benetton
5/Quality
Minutes clothes with a low price
 Quality is only for one season
Benetton:
Design is taking care of his sister across Europe
Selling casual garments under its UCB and its fashion orientated by Sisley Brands
Image: Seen as less fast fashion products but with the high quality and durability but the
price is higher than HM and Zara.
300 designers with a strategy international specific to each country
Production based on its Italian plants=> lower price
HM:
The fashion and quality at the best price followed by the main
concept of the brand: “They know how to sell which product to each
client “.
2004 HM recruited a high fashion designer Karl Lagerfeld
Products come from over 100 designers in Stockholm with a team of
50 pattern designers
Zara:
With a very well-integrated group of employees, Zara can be confident
that the brand can respond to the various demands of clients
3 ways to design: designers, market specialists, and buyers who place
orders to suppliers