MIS 301 Chapter Notes - Chapter 3: Affix, Uniqlo, Contract Manufacturer

• School: UT-Austin
• Department: Management Information Systems
• Course: MIS 301
• Professor: Joshua Rock

Document Summary

Zara is largest pure-play fashion retailer on the planet. Firm that"s bigger than most other fashion retailers. Zara rarely advertises or runs sales, doesn"t outsource to lower-cost countries. Zara continuing to grow while other retailers lose steam. Case example of conventional fashion retail (now failing): gap. Gap chased wrong fashion during sales downturn loyal customers fled. Race to produce @ lowest cost causes ethical problems. Fair factories clearinghouse initiated by reebok holds companies accountable for their practices. Zara has used technology to dominate the retail fashion industry as measured by sales, Excess inventory in the retail apparel industry is the kiss of death . Long profitability, and growth. manufacturing lead times require executives to guess far in advance what customers will want. Guessing wrong can be disastrous, lowering margins through markdowns and write-offs. Contract manufacturing can offer firms several advantages, including lower costs and increased profits.