What I learned on November 19th

I think it is fascinating how good the communications are in the Zara store. They are able to make their own stuff and change their clothing styles based on what they are hearing and what people are buying from their stores. I think the Zara company is smart because they have invested a lot of time and money to have the organizational skills that they have today. Because of that, they are able to run more successfully than some companies that face going into bankrupcy because they haven't been able to meet the demand. They are also always on the front end of the fashion trend curve, since the products are able to be manufactured much quicker.

It is also clever that the stores decide not to put out all of their fall clothes at once. The system that H&M has where they have a main fall collection and many sub-collections is smart because then the store will not lose their customers. Shoppers will always be coming back to shop more and it gives the idea of a mystery: shoppers don't know what will be out next, so they keep coming back and becoming enticed to buy more. It is also interesting that H&M has changed the lead times based on locations.

It is interesting that in a time of recession in many places around the world, Zara has been able to maintain a low rate of purchase at the markdown price, only 15-20%. This is astounding compared to 30-40% generalized rate of purchase at the markdown price. In doing so, Zara can make more money and not have clothing just lying around waiting to be sold.

It is also pretty amazing how clothing retailers have to be good at getting into a person's mind and knowing what the person wants to buy, before they even see the product. For example, the head of the Uniqlo company has stated that they focus more on what the "next big thing" will be. They approach the fast fashion idea as a long term process than a short term process. In doing so, the company will never be out of stock and never be stuck for ideas.



Uniqlo store in Japan