Case Studies – Zara V.S. H&M

According to the International Trade Statistics 2010 published by the do main(prenominal) Trade Organization, in 2009, the international export in enclothe could account for $316 billion dollars, approximately 2.6 percent of the worlds merchandise trade. Without doubt, the vogue business is being affected by the Globalization. The retailing as well as the sourcing activities are greatly sphericalized nowadays. When formulating the sourcing strategies, due to the complexities of global situation, the brands of ten dollar bill encounter challenges about how and where to kickoff the products. Besides, in recent years, the emergence of unshakable fashion has changed the global apparel industry, shortening the attention span of clothing consumers. Traditionally, retailers were utilise to deliver four fashion collections a year; plainly now, they are under growing pressure to deliver ten collections a year. Zara and H&M both are leading(a) companies in retail clothing industry. Although both of them are fast fashion brands, they adopt different sourcing approaches. In fast fashion principle, new products will be offered to the market within both to four weeks. Therefore, the sourcing of products in the supply chain management plays an of the essence(p) role to facilitate the global delivery of products.

Zara sources fabric and otherwise raw materials from external suppliers globally through the purchasing offices in Barcelona and Hong Kong. On the other hand, the brand has kept more than 70% of its production in Europe, earning the reputation of being one of the exceptions to globalization of production. This exception grants Zara a public recognition of high-quality fashion garments. close of the factories are owned by Zara so it has an entire controller over its own logistic centre. This vertical integration greatly enhances the rapidity and flexibility of product delivery of Zara. For H&M, the main difference in sourcing strategy from Zara is that H&M source all of their production globally to nearly 700 suppliers.... If you want to waste ones time a full essay, order it on our website: Orderessay

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