Fashion Magnates’ Supply Chain Contest

Fashion Magnates’ Supply Chain Contest H&M balances efficacy and cost with its double supply chain, while Zara relies on high-speed. both(prenominal) retailers are competing against each other for the blend in trade position. And substructure the scenes, both rent their own trump card game to play. On Shanghai’s busy Central Huaihai Road, H&M’s huge billboards are unavoidable. On April twelfth this year, the Swedish port magnate opened its first flagship depot on the Chinese mainland. Meanwhile, a strong company rival, Spanish shape chain Zara, continues its success in China. In fact, its cock-a-hoop 1,500-square-meter flagship store made daily sales record of RMB1 million (US$130,000) during the boundary Festival holiday. Zara and H&M have confusable duty strategies. Both retailers open stores in prosperous technical districts and do a limited amount of garments in a modification of styles. Signifi displacetly, they also respond quickly to changes in the fashion gentlemans gentleman by updating their lines as fashion trends change. In 2003, Zara stratified No.3 among global habiliment retailers, while its revenue in FY2004 reached 4.6 primeval euros. Added to this was the company’s high profit margin of 9.7%, which exceeded the disruption’s 6.4% profit increase.

Over the past five years, H&M’s status as Europe’s biggest clothing retailer has seen a 100% increase in its business revenue, 75% more stores and an Earnings Per Share (EPS) exhaust of 262%. In FY2005, the company’s total pre-tax profit reached 13.55 gazillion Swedish Kronors (about 1.46 billion euros). Both Zara and H&M have been tagged “followers of fashi! on” due to their rapid lead time, which is comprised of design, manufacturing and sales. Zara’s lead time, for example, is 15 days, while H&M can complete the process in 20. Chinese clothing enterprises arrogate’t size up quite as favorably with a lead time of around 90-120 days. The Zara-H&M tilt is strong to say the least. Both...If you want to get a all-inclusive essay, order it on our website: OrderEssay.net

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