THE ROOKERY

Action Sports Industry Expert Network

Mike Reilly

I think people are starting to realize that the model needs to change?

Fast fashion is the key to apparel success. Having the right product at the right time in the right spot for your customers is key. Also not having too much of one item so the consumer will think "I will wait until it goes on sale". Scarcity is one of the top compliance gaining tactics to change purchasing behavior and this is what limited/unique runs of product can bring to the table. Not to mention if done right it will increase inventory turns, and decrease inventory carrying costs which include a litany of costs like financing, insurance and taxes on inventory, physical inventory and cycle counting, opportunity cost, rent, shrinkage and obsolescence etc, Most importantly in this age of huge markdowns your gross margins will stay solid as with limited runs you won't have as many or as deep of mark downs.

Here are some harvard case studies about Zara,

http://harvardbusiness.org/product/zara-it-for-fast-fashion/an/6040...

http://harvardbusiness.org/product/zara-fast-fashion/an/703497-PDF-ENG

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