Fashion Company Description

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Fast Fashion: Business Model Overview and Research Opportunities Felipe Caro∗ Victor Martı́nez-de-Albéniz† April 25, 2014 To appear in Retail Supply Chain Management: Quantitative Models and Empirical Studies, 2nd Edition, Narendra Agrawal and Stephen A.. Specialty apparel retailer H M Zara/Inditex Gap Uniqlo/Fast Retailing Topshop Forever 21 Mango Wet Seal Benetton New Look Esprit C A American Apparel Urban Outfitters Peacocks Charlotte Russe Armani Exchange number of appearances in Factiva search rank appearances 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 31.7 29.2 11.9 9.9 9.3 7.5 4.3 3.2 3.1 2.8 2.8 1.9 1.2 0.9 0.5 0.5 0.3 number of appearances in PDF online search appearances rank 41.0 45.9 18.2 9.4 13.7 11.2 12.4 0.6 10.1 6.2 4.7 4.7 2.6 2.8 1.1 0.2 1.5 2 1 3 8 4 6 5 16 7 9 10 11 13 12 15 17 14 Table 1: Frequency count of specialty apparel retailers in media publications that mention fast fashion (data retrieved 26-Aug-2013).. But if early sales d1 are available, 2 2 the demand forecast becomes normally distributed with mean µ(d1 ) = σ2σ+τ 2 µ + σ2τ+τ 2 d1 and q √ standard deviation σ 2 + ρ1 where ρ = 1/τ 2 + 1/σ 2 , i.e., smaller than σ 2 + τ 2 .. Specifically, letting q1 be the early order quantity and q2 the QR order quantity, and assuming that QR orders can be placed after demand D is realized, we can formulate the problem as follows: h i max ED p min D, q1 + q2 (D) − c1 q1 − c2 q2 (D) where p is the revenue per unit, and c1 ≤ c2 the per-unit production cost of early and QR orders respectively, both less than p.. Deciding where to produce a garment usually depends on three aspects: (i) there are technical capabilities that are product-specific, e.g., treatment of leather requires significant expertise and access to water (ii) lead time requirements may eliminate some possible sourcing origins, although nowadays air transportation has mostly removed such constraints and finally (iii) cost competitiveness, including materials costs, energy costs, wages and

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