Supply Chain Management in Fast Fashion Companies (Zara & H&M) - Literature review Example

Comments (1) Cite this document
Supply Chain Management in Fast Fashion Companies (Zara & H&M).
The information included in this analysis is primarily based on studies and literature relating to fast fashion and supply chain management, as well as the theories and strategies involved in supply chain management…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.1% of users find it useful
Supply Chain Management in Fast Fashion Companies (Zara & H&M)
Read TextPreview

Extract of sample "Supply Chain Management in Fast Fashion Companies (Zara & H&M)"

Download file to see previous pages Barnes and Lea-Greenwood's (2006) article on fast fashion and supply chain management has revealed significant information in regard to the so called fast fashion phenomenon. Their research on fast fashion and its relation to supply chain management have even caught the attention of well known fashion companies, enthusiasts and the business press. Although the concept is new in the fashion industry, the authors were able to explore widely and expound briefly the strategy that led Zara and H&M to where they are now. The authors have defined fast fashion as a form of business strategy that targets to lessen the number of processes that are undergone in a buying cycle and lead times to deliver new fashion products in stores. When this happens, customer satisfaction is met, and this satisfaction is being driven by the speed in delivering fashion products that are in line with the current trends. Fast fashion is a concept that is considered a "mainstay in UK's fashion industry" (Barnes & Lea-Greenwood, 2006). To modern fashion retailers such as Zara and H&M, fast fashion is a key strategy that has helped them attain success. The two well known fashion companies have adopted this strategy and have continuously changed their clothing styles and product ranges to adapt to what is "in" at any moment. Rapid changes are made attracting more buyers of apparels under the brands Zara and H&M. Furthermore, Barnes and Lea-Greenwood (2006) have inferred that fast fashion is associated with supply chain management. For instance, it has been proposed, in reference to the said perspective, that the framework of a fast fashion business is dependent to vertical integration. Vertical integration, according to Welters and Lillethun (2011), centralizes the supply chain allowing buyers to obtain goods in a short span of time and at an affordable price. In a fashion business, there is pressure in defeating the previous years' performance and this cycle is a usual scenario. In the modern times, success in retailing is being attributed to supply chains instead of companies (Hines, 2004 cited in Barnes and & Lea-Greenwood, 2006). On the other hand, the authors (Barnes & Lea-Greenwood, 2006) have contended that, in spite of being connected to supply chain management, fast fashion is not totally affiliated with the strategy. Findings of the study conducted by Barnes and Lea-Greenwood (2006) have identified fast fashion as a consumer-driven process. Many things were taken into serious consideration prior to arriving at this judgment. First, they were able to observe that, at present, individuality has already become the trend for the buyer's fashion demands. Most consumers want to set a trend, and this behavior increases the demand for fast fashion. Many designers consider quick access to the media as a means for the young consumers to gain knowledge in regard to the new fashion trends. Respondents of the survey conducted by the two authors have also conceded to their judgment and have stated that progress in fast fashion is being driven by the changing consumer demand making it a crucial aspect of fashion and fashion retailing. Hence, fast fashion is the answer to the changing consumer demand of modern times. Furthermore, the supply chain has to adjust for it to respond to inconstant consumer demands. The fast fashion business paradigm relies on the capacity of an individual to acquire and react positively to changes in consumer tastes. Responses to these changes in the fast fashion business model are quick since connections to fashion markets, and fashion makers are in proximity (Doeringer & Crean, 2006 cited in Welters & ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Supply Chain Management in Fast Fashion Companies (Zara & H&M) Literature review”, n.d.)
Retrieved from
(Supply Chain Management in Fast Fashion Companies (Zara & H&M) Literature Review)
“Supply Chain Management in Fast Fashion Companies (Zara & H&M) Literature Review”, n.d.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
vbahringer added comment 1 year ago
Student rated this paper as
The topic of "Supply Chain Management in Fast Fashion Companies (Zara & H&M)." was hard to find. I spent hours to find it. Here at StudentShare, I got the finest example. Many thanks!

CHECK THESE SAMPLES OF Supply Chain Management in Fast Fashion Companies (Zara & H&M)

Zara - The Fast Fashion Leader

..., especially with the increasing support of technologies and strategic alliances along the international supply chain. There are no guarantees that Zara will be able to maintain this advantage over the long-run without risks of competitive responses that are more aligned with fast fashion methodology. Because of these risks, Zara should consider the potential opportunities for recruiting celebrities that are considered aspirational in foreign, diverse markets to gain more consumer interest. It was established by Taylor and Brown (1988) and Suls et al. (2002) that consumers make social comparisons and the aspirational aspects of a...
18 Pages(4500 words)Essay

Supply chain management at Zara

...?Supply Chain Management at Zara Introduction Supply chain management is the management of the network used to acquire raw materials, production and distribution to the customers. It can be said to be the process of attaining raw materials, production, storage and supply to the end users. Every business or company has to employ a good purchasing and supply chain management if it has to succeed in its production. Supply chain management is important to...
6 Pages(1500 words)Essay

Supply Chain Management

...Supply Chain Management 1.0 Company Profile Zara has emerged to be the most commercial and money making brand of the Inditex Group – a Spanish clothing group. The first store of Zara was opened in the year 1975 at La Coruña, Spain; which is now the headquarters of the Zara fashion chain. With its operations based in more than 45 countries and 535 stores all the over the globe, Zara has strived to become one of the most successful fashion brands in the Fashion industry. It has also assisted its parent company – Inditex...
6 Pages(1500 words)Essay

Supply Chain Management in Zara & H&M

...of the behavior of people, which has an impact on their preferences. In order for one to identify these behavioral differences observation is needed, and eventually to justify the results of the observation a textual analysis must be initiated. Research Design: Selection of Company as Subject for Case Study As mentioned in the earlier chapter, the purpose of this dissertation is to describe, identify, and investigate the strategies and practices applied in supply chain management. Thus, this will include the study of fast fashion and the factors that have led to its application in a manufacturing organization like the...
6 Pages(1500 words)Dissertation

Zara IT for Fast fashion the market to ensure its IT is current. References Caro, F and Gallien, J 2010, ‘Inventory Management of a Fast Fashion Retail Network,’ Operations Research, 58, 2, pp. 257-273. Caro, F, Gallien, J, Diaz M, Garcia, J, Corredoira, JM, Montes, M, and Ramos, JA 2010, ‘Zara Uses Operations research to Reengineer its Global Process,’ Interfaces, 40, 1, pp. 71-84. Christopher, M and Towill, D 2001, ‘An Integrated Model for the Design of Agile Supply Chains,’ International Journal of Physical Distribution & Logistics Management, 13, 4, pp. 235-246 Lu, Y and Ramamurthy, K...
4 Pages(1000 words)Essay

Supply chain Theory of Zara fashion retail shop

...) in the attainment of business success. III. Supply Chain Management in Zara Zara, the flagship brand by the Spanish group Inditex, has become a ?2.5billion business (as of 2011) thanks to its strong differentiation and copy-proof competitive advantage (Pearson, n.d.). With over 650 stories in 50 countries worldwide, Zara’s brand positioning that is anchored on fast-fashion has proven to be both profitable and sustainable to the company through the integration of image-driven promotional strategies into its supply chain management. In...
5 Pages(1250 words)Essay

Supply Chain Management and Fashion Industry: The Case of Zara

...Systems. Retrieved from Galluagher: Ghemawat, P., & Nueno, J. L. (2006). ZARA: Fast Fashion. Harvard Business Review, 1-35. Leach, A. (2011, September 17). Zara tightens oversight of Brazilian supply chain . Retrieved from Supply Management: Lee, H. L., Padmanabhan, V., & Whang, S. (1997). The Bullwhip Effect in Supply Chains. Sloan Management...
9 Pages(2250 words)Research Paper

Competitive Growth Strategy ZARA and H&M

...earn gross margins of 53%, close analyses of their financial status show that in some cases, the profit for one fast fashion could have been lower than the actual amount invested. Zara recorded a sales growth of 21% in 2005 bringing to $8.115 billion putting it ahead of H & M which had $7.87 billion. A close analysis of H & M shows that in 2003 its financial status was not quite gainful since its operating costs in USA were very high while its margins were small as a result of high labour turnover. It embarked on reducing operating cost which saw it reducing its losses by about $6million. However, financially...
6 Pages(1500 words)Essay

Zara - IT for Fast Fashion

...The company started by Amancio Ortega at the Northern part of Spain continually enjoyed growth in the Spanish market through strategic prepositions. Initially, the chain served the needs of the local consumer in the young feminine segment. Within the last ten years, the company grew proportionately to increased revenues and consumer loyalty through the modernized approaches that it employed. The company preserves the strengths of analyzing the customer targets in the market as serving the entire fashion market poses more threats than opportunities. The company defines that the youthful female consumer depicts a standardized behavior...
4 Pages(1000 words)Case Study

Zara IT for Fast Fashion

...or proceed with the current DOS-based system that is devoid of compatibility to the future improvements. Case Study Zara: IT for Fast Fashion Introduction The case study focuses on Zara, the largest retail chain for Inditex, Spanish retail giant, and the manner in which it has been successful due to its flexibility, excellent fashions and application of a simple business model (McAfee, Dessain and Sjoman, 2007). The head of the IT department in the company, Salgado, is grappling with a dilemma on whether to upgrade the IT capabilities and infrastructure for the retailers or retain the current system. The case study...
8 Pages(2000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Literature review on topic Supply Chain Management in Fast Fashion Companies (Zara & H&M) for FREE!

Contact Us