Womens Fashion – They Effectively Export Their Scandinavian Or Mediterranean Lifestyle Globally
admin 
Figure out whether the pieces are cleaned and your shoes been shined. With that said, this has vast implications for apparel companies across that value chain.
It entails a complete rethinking of functions and processes.
Environmentally friendly products require the right commodities like organic cotton, that is in scarce supply, or a complete overhaul of the manufacturing processes to reduce the huge quantity of water typically used for apparel. Core functions need to be adapted to make and market more sustainable products. Anyway, ethical products require appropriate working conditions and a fair share of gains across the supply chain. Of course, at a baseline level, So there’s the fast moving nature of fashion, that requires companies to jump on trends promptly, never taking the fast follower approach. Few industries require companies to stay as nimble and on their es as the global apparel business. That alone gives the apparel business an unique set of challenges. Mostly there’s double economic pressure on stores these days. While declining traffic, and competition from new formats and competitors -particularly on the Internet, on one hand, profit margins and sales per square meter are decreasing, thanks to larger and larger stores.
For many companies it’s not a description of the future but a current reality.
Global players will need to prepare for far more agile local competitors, like it or not.
At very similar time, however, consumers in the new markets are gaining selfconfidence and demanding local brands and local products. Large fashion chains like HM and Zara rely on an internationally uniform brand identity. So this works well as long as customers in the growth countries are primarily oriented ward Western role models -at least looking at the fashion. They effectively export their Scandinavian or Mediterranean lifestyle across the world. I’m sure it sounds familiar.
Prior to this comes the challenge of processing huge volumes of data in real time. Deluge of data. That’s interesting right? One leading textiles retailer in South Africa been actually able to boost its operating margin by 5 percentage points thanks to the Actually the key lever in doing so was more targeted pricing depending on customer and competitor data.
On the basis of this data, sophisticated algorithms can calculate the time, type, and scope of the customer’s next purchase with high precision and probability.
Manufacturers, retailers, and service providers are compiling more customer data anyway kinds of new uch points -from user accounts to and after all have the capabilities and organizational structure in place to use it. Therefore this can yield diverse ways of personalizing advertising, new customer interactions, and product offerings. Certainly, nordstrom sublets a portion of its space to originally pure Internet retailers to cover their demands for physical showrooms and to simultaneously increase its own contribution margin. Yes, that’s right! While managing director of John Lewis, we can now consider opening shops in areas that were not always thought feasible for a traditional John Lewis building, says Andy Street.
There’re a few ways we’re seeing companies deal with the double store squeeze. Besides, the UK department store John Lewis, for sake of example, was experimenting with significantly smaller stores in which customers can place online orders. Besides, the German based online retailer Zalando, let’s say, has expanded its convenient, nocost shipping, no hassle returns brand of ecommerce to 15 countries in just six years. I know that the apparel business also hosts a lot of the world’s most rapidly growing companies. Under Armour, the sportswear and footwear company, has tripled its revenue in the past five years. Heaps of smaller entrants, both online and offline, are growing at the speed of light, quickly bringing their banner to global scale.
For established players, therefore this can feel like looking in the rear view mirror and watching a car approach at 400mph.
They are armed with online research and are more demanding than ever, when customers do find their way into brick and mortar stores.
At similar time, shopper expectations are growing being that online sites are 24/7 7, have most SKUs in stock, feature intuitive site navigation, often have ‘noquestionsasked’ returns policies, and offer reduced costs and shopping excitement features like daily deals and auctions. Normally, a holistic rethinking of what a store is. Nevertheless, this starts with retailers asking themselves the following questions in three critical areas. Probably not. Eventually, could you ever cash in doing it? Thus, established brands and department store retailers should take a critical look at the shopping experience they offer and modernize it.
Imagine all that and apply it to a store. Internet ain’t only growing its share of the market against offline retail and shrinking ‘in store’ traffic due to online fulfillment, it’s also raising expectations -both those of consumers and of the brands featured within department stores. Particularly, most of us are aware that there are four disciplines in which companies will need to find new answers to old questions. Against the backdrop of these trends, global fashion companies will need to develop new patterns for success to grow further, remain successful, or regain lost ground. Basically the size of the global apparel business is growing and is expected to generate double digit growth between now and Much of this growth is coming from developing markets, notably from the exploding buying power among Asian consumers, who are migrating into the middle class and starting to view clothes as an extension and expression of their new lifestyle. These consumers are also increasingly travelling -and shopping -abroad. With more than half of that being spent outside of China, in the luxury goods segment, 75 all percent sales gonna be from Chinese consumers. Besides, whenever taling $ 600 billion, by 2020, foreign spending of ‘AsianPacific’ residents outside of their home countries will triple.
All of the challenges come with great opportunities.
Zara pursues a similar strategy in the mass market.
Even within one country there’re often huge differences in buying power and customer preferences. Do you know an answer to a following question. Can a global brand really live up to the needs of diverse cultures from Latin America to Eastern Europe all the way to Asia without putting its identity on the line?
