Tuesday, 16 July 2013
Fashion Markets Typical Characteristics
There are typical characteristics that are found in the fashion industry:
• Short life-cycles cannot be avoided. Products are often design to capture the trends and times of the moment and therefore can be short lived. These products may be inspired by the weather, television shows, stars and celebrities. These are highly volatile products and what’s hot one day can quickly become something that’s not how the next.
• High impulse purchases are made at the point of purchase. The buyer has not intended to buy these products but they have been stimulated to buy. These products need to be available to all in order to maximize the sale potential.
Short life-cycles and high impulse buying contribute to the extreme pressures found in fashion logistics. There is a high risk of brands being over or under stocked and logistics has to play a swift role in dealing with these problems.
With the number of products now being produced for brands outside of their own countries of origin logistics is now faced with longer lead times. The longer pipelines are also caused by the time it takes to process internal systems and importing and exporting. This is why third party logistics providers are able to work with the fashion industry to improve speeds and cost efficiency throughout the entire supply chain.