Fast fashion is to be blamed. The average UK shopper produces 70 kilograms of textile waste annually. The fashion industry is exhausting non-renewable energy, emitting vast amounts of greenhouse gases and injecting huge quantities of harmful chemicals into the environment Sustainability. The chemicals used in cotton production would penetrate into our bloodstream when we wear those clothes. Leather production is one of the most toxic process.
Fast fashion brands have a strong supply chain with the help of the unique SPA business model to ensure quick response. In the fast fashion industry, time is money. On average, a one-day delay for launching a new product would cause a 0. Chinese players have been learning the successful practices of foreign fashion brands and have cultivated many talents to help them speed up the growth.
For example, with the development of industrial networks, a new business model has been invented, C2M Customer-to-Manufacturer , in China. Brands with this business model are more efficient than foreign brands like Forever 21 and pose threats. Forever 21 constantly creates and acquires new sub-brands in its brand architecture intending to tailor its products to a broader group of people.
The brand is divided into ten sub-brands distinguished by styles, with all housed in typical huge Forever 21 retail stores. However, launching so many categories of clothes could only add costs, leading to problems like a pile-up of inventory and overwhelming customers with the countless options of clothes Maheshwari, Sub-brands should not steal the spotlight of the leading brand.
The brand would be less focused on developing its primary business, and competitors would grasp the chance to surpass it. LEGO and Apple went through the same problem but survived because they later returned to the very beginning and stay focused on the one product. Forever 21 failed because it overlooked the importance of e-commerce, which serves as a warning to the whole industry.
E-commerce growth demands three elements, i. Fast fashion brands should make full use of all channels to interact with consumers and sell products, which include Taobao, the Red Book, mini programmes on WeChat. Social media management and cooperation with KOLs play the role of sending messages to consumers and narrowing the gap.
Fast fashion brands should pay attention to the tone and style of their social media to ensure that their brand image is consistent with the brand identity. To analyse the performance, collecting big data like conversion, clickthrough or engage rate is necessary to measure success with brand growth. The fast fashion industry demands rapid design-to-delivery, so solid logistics and supply chain are necessary.
The company places the production of trend pieces next to it to quickly respond to orders. It also has a wide supply network, enabling it to turn around products from other countries in under two weeks. The key is to keep their buying budget flexible for fast reaction. This goal could also be realised by limiting the materials needed to produce garments so that the company could buy in bulk and reduce the turnaround time.
A robust supply chain becomes even crucial with the development of live streaming e-commerce in China. One example is C2M, fast fashion brands should think reversely, from the consumer and streaming ends to understand the real needs so that they can create a supply chain that take the order before putting into production. Companies could choose to use machine learning technology to predict trend and then decide what to produce. Smart fashion brands would make full use of data to examine the purchase process, learn the best-selling products and predict the next trend.
These algorithms have been increasingly accurate as they mature. In this way, fast fashion brands can avoid the dilemma of the insufficient supply and pressure for high inventory. Although developing new businesses could be a way to expand in the market, managing different sub-brands is challenging. Fast fashion brands need to think carefully about their product portfolio to clearly identify the strategic and supporting brands. However, blindly creating 10 sub-brands like Forever 21 is never wise as it might cause consumer confusion and add communication cost.
The best strategy is Less is More. Before adding a new sub-brand or creating a brand extension, it is critical to examine whether each brand performs a specialised role and occupies a distinct scope.
The market coverage of the sub-brands should achieve the maximum market coverage with minimal overlap. Companies should analyse their own capabilities, i. To avoid inconsistency, they need to ensure that the new sub-brands are aligned with the direction of the original brand. When opening a shop, they also act fast. It took them 6 weeks to open a new store Fifth Avenue.
No time or you could also read no money to loose. Apparently, Mrs. Chang, who is responsible for the collection of Forever 21, reviews about new designs a day. The Changs realized that change is essential.
The ideal concept for the stimulating junkies generation of today. No dead inventory, movement comes first. One important thing distinguishes Forever 21 from its main competitors: uniqueness. No fear that you will find your classmate or friend in the same outfit as yourself, Forever 21 orders small mounts and learns it shoppers to buy immediately and not wait till the next visit.
Not buying means gone. Search x. Some information, such as publication dates, may not have migrated over. Check out our topic page for the latest mobile commerce news. Forever 21 uniquely drives sales through consumer-generated outfit gallery. Author Brielle Jaekel. All rights reserved. Subscriber Account active since. To make ends meet, Jin Sook worked as a hairdresser while Don worked as a janitor, pumped gas, and served coffee.
Until he noticed that "the people who drove the nicest cars were all in the garment business. The couple took advantage of wholesale closeouts to buy merchandise from manufacturers at a discount.
Fashion 21 was initially only popular with LA's Korean American community. But the Changs leveraged their success, opening new stores every six months, which broadened the company's customer base at the same time.
They also changed the name to Forever 21 to emphasize the idea that it was "for anyone who wants to be trendy, fresh and young in spirit. The company's key to success was simple: cultivate a huge following by selling trendy clothing for low prices. While this is something that today's consumers pretty much expect, Forever 21 was one of the first to do it. And they were the fastest.
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