Replies to This Discussion

Permalink Reply by Lorenz Hartung on August 22, 2010 at 8:08pm

Hey Patrick,

I think there is a trend to mass customization in the fashion industry.
The question is, whether this is a pioneering need or whether it it is already the right time for adapting mass customization to fashion industry.

Spreadshirt is just the beginning. There are other companies offering more than only shirts...
I know some start-ups in this area. I can bring you in contact with them.

Cheers,

Lenz

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Permalink Reply by Patrick Mulder on August 23, 2010 at 1:16am

thanks lorenz,
I'll contact you for more information soon.

Btw, here is an interesting link on lean manufacturing as done by Zara: http://www.just-style.com/analysis/building-the-supply-chain-of-the...

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Permalink Reply by Haider Raza on August 27, 2010 at 2:20am

Hi Patrick,

If you wish I am more than happy to be a sounding board. I have some interest in the market as I advise a luxury brand Ungaro or an ongoing basis.

So let me know specifically how I can help

Best

Haider

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Permalink Reply by Patrick Mulder on August 27, 2010 at 4:30am

Hi Haider,


thanks for the offer to share thoughts on business models in fashion.
Right now, I am still studying the general processes of a fashion business.

I extracted some numbers from the annual reports of Zara and LVHM:

* Total stores: Inditex: 4607 vs. LVHM: 1164
* Store sales: Inditex: 11 billion euro vs LVHM: 6 billion euro.
If I understand it correctly, average revenue per store is for Zara: 2,5 million vs LVHM: 5,4 million

The average price of goods at Zara are certainly lower than at LVHM. To understand profitability, I need to look at the costs. Esp. cost of sales would be interesting.

Another area that I want to understand is the way products are promoted, i.e. differences in the relationship to a customer. I guess LVHM spends tons of money on the show around the catwalks, while Zara probably has almost no cost center there, and rather transaction based relationship.

So far about my progress in BM fashion understanding.

Thanks if you can share some thoughts.

Patrick
(mulder AT mtpartners.de )

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Permalink Reply by Patrick Mulder on September 6, 2010 at 6:31pm

Hi Haider,

I made a first setup for Zara's business model.

What do you think?

Best regards,

Patrick

Attachments:

• zara_canvas.ppt, 481 KB

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Permalink Reply by Milano on October 22, 2010 at 9:52pm

Hi Patrick,

I m doing a research on Business Model Innovation of Zara and have read that you have been interested in it also. I m just collecting some material for my studies at the University.
Would appreciate very much any useful links or information.

Thanks,
Milan

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Permalink Reply by Monika Rzes on December 2, 2010 at 11:00pm

Hi Patrick,
I work in fashion industry and I study Business Administration. I would like to write my master thesis about business models of fashion retailers such as Zara, H&M, ect. However I have problems with sources of information. Could you please let me know where I could find informations about the business models, strategies of these companies? Did you purchase the book : Peter Hermann: Zara's Secret for Fast Fashion, which Thomas recomended to you? If so, is it intresting? worth to buy? I would appreciate any help, please :)
Best regards,
Monika

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Permalink Reply by Patrick Mulder on December 3, 2010 at 12:18pm

Hi Monika,
the book by Peter Herrmann is very useful, esp. for the references and some basic data about the industry.
About some interesting ideas on content and fashion, I found this podcast from experience of a publisher:
http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2480

As absence of copyright law is a huge problem/advantage in fashion, this podcast is interesting.

http://www.ted.com/talks/johanna_blakley_lessons_from_fashion_s_fre...

a great resource on textiles industry are also books by Berg Publisher:

http://www.bergpublishers.com/
:
let me know how you make progress.

best regards,
patrick
mulder@mtpartners.de

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Permalink Reply by Janine Lafayette on August 2, 2011 at 3:40am

Hi Patrick!

I'm passionate about Fashion, but novice concerning Fashion Industry Business models. I'm working on a new Business model... Giving the first steps (exploring an idea...) and doing some research in order to improve my knowledge and Business model.

Why are you interested in Business models for Fashion products?

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Permalink Reply by Patrick Mulder on August 9, 2011 at 4:08pm

Hi Janine,

 

I have interests in fashion business models as the number of new products and fashion collections asks for very interesting IT for planning and feedback in the supply-chain. The deman for ever changing and cheaper products, requires fashion companies to become even more agile and plan with a set of different options for new product lines.

In the meanwhile, I finished my Master Thesis about a new Web based planning system. However, I found some even more interesting contacts in the publishing industry in Germany. Interestingly, with publishing becoming more and more digital, I suspect my results can be valid too for supply-chains of fashion companies.

Are you interested in web based business models too?

 

Cheers,

 

Patrick

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Permalink Reply by Francisco Perez on September 1, 2011 at 12:40pm

Whenever you want, we can exchange and meet vitually in order to explore whatever interesting issues and business models for the fashion industry and its business / industry models and supply/value chains... best regards!

Fran

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Permalink Reply by wim fyen on February 24, 2012 at 6:35pm

Hi Patrick,

In addition to the nice references given by the other BM innovation colleagues earlier, I remember from past courses that the ZARA case is quite often studied at Harvard. See e.g. at:

http://cb.hbsp.harvard.edu/cb/search/zara?Ntk=HEMainSearch&N=0

(you may need to find someone in your network who can download, or you can purchase the most interesting ones, I believe they only cost a few dollars each).

Hope this can help

cheers,

Wim

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