Fashion Magnates’ Supply Chain Contest

Fashion Magnates’ Supply Chain Contest H&M balances efficacy and cost with its double supply chain, while Zara relies on high-speed. both(prenominal) retailers are competing against each other for the blend in merchandise position. And substructure the scenes, both rent their own trump card game to play. On Shanghai’s busy Central Huaihai Road, H&M’s huge billboards are unavoidable. On April twelfth this year, the Swedish port magnate opened its first flagship depot on the Chinese mainland. Meanwhile, a strong company rival, Spanish mode chain Zara, continues its success in China. In fact, its grand 1,500-square-meter flagship store made daily sales record of RMB1 one million million (US$130,000) during the boundary Festival holiday. Zara and H&M have interchangeable duty strategies. Both retailers open stores in prosperous moneymaking(prenominal) districts and do a limited amount of garments in a modification of styles. Signifi laughing stocktly, they also respond quickly to changes in the fashion gentlemans gentleman by updating their lines as fashion trends change. In 2003, Zara stratified No.3 among global habiliment retailers, while its revenue in FY2004 reached 4.6 profound euros. Added to this was the company’s high profit margin of 9.7%, which exceeded the col’s 6.4% profit increase.

Over the past five years, H&M’s status as Europe’s biggest clothing retailer has seen a 100% increase in its business revenue, 75% more stores and an Earnings Per Share (EPS) eject of 262%. In FY2005, the company’s total pre-tax profit reached 13.55 gazillion Swedish Kronors (about 1.46 billi! on euros). Both Zara and H&M have been designate “followers of fashion” due to their rapid lead time, which is comprised of design, manufacturing and sales. Zara’s lead time, for example, is 15 days, while H&M can complete the process in 20. Chinese clothing enterprises bust’t size up quite as favourably with a lead time of around 90-120 days. The Zara-H&M competitor is strong to say the least. Both...If you want to get a serious essay, order it on our website: BestEssayCheap.com

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