EOC: Chapter 5 Discussion

1.  The advantage that Zara has in the market can also be a weakness. Zara has a quick response time which allows it to manufacture new products in short runs when a new luxury trend is adopted. Making quick runs of new styles allows Zara to maximize sales by offering a product long before the competition and selling during the peak of a trend. "Zara, which manages through a vertically integrated system to reduce the production cycle, control quantity produced, and minimize inventory so that they can offer new styles in their stores almost every week" (Fashion Branding Unraveled). The problem with short runs is that there might not be a large enough quantity produced to meet demand. If items are sold out for a significant amount of time, the retailer has missed out on potential sales. The challenge for a retailer is having the right amount of product in stock.
2. "Many premium brands such as Zara adopt a fast response concept of production and distribution" (Fashion Branding Unraveled). The fast response strategy adopted by the retailer would fit in this company because many of the people that shop in the high end destinations are tourists. Fast response ensures that luxury trends will be adopted quickly and that the items will be on shelves in time for interested consumers. "Most products are produced in small quantities to minimize stock and reduce the need to discount their prices" (Fashion Branding Unraveled). Urban Outfitters targets a completely different consumers segment but it is possible that high end retailers could use some of their distribution methods. UO allows consumers to order items right from their store if they are not in stock. The items ordered are redirected from shipments that are already on their way. It saves the company money because items dont have to be shipped individually and it creates a sale at the same time.