Logistics of Luxury Product

This expansion demonstrates how the luxury industry is now run by massive corporations whose focus is only on growth, visibility, brand awareness, advertising, and most importantly, PROFITS! With growth and expansion, has come a decrease in quality and rarity. The luxury garments produced are mostly not handmade but are even outsourced to large factories in places such as China and Turkey. Also, to meet quarterly turnover projections, “designers churn(ed) out increasingly trendy collections of clothes, handbags, and shoes.” (Thomas, Pg. 246) With hundreds of new stores around the globe the surplus of designer labeled merchandise is immense hence, the proliferation of outlet malls.

Supply management can be studied as both an instant field of practice and forming academic domain (Storey, Emberson, Godsell, & Harrison, 2006). It was eventually about influencing behavior in particular directions and in particular ways. The fundamental logics, drivers, enablers and barriers asset and exact close attention in supply management. Manufacturers, retailers, suppliers, and wholesalers are the members in supply chain. Supply chain management (SCM) is normally applying in integrated wholesaling and retail businesses (Wisner & Tan, 2000). SCM is comprehensiveness with logistics and physical distribution functions with reducing lead time of delivery. It is a comprehensive philosophy intent on management’s purpose to sustain or establish competitiveness in a quickly growing environment, through more able distribution, and purchasing activities (Cooper & Ellram, 1993; Giunipero &

Gucci happens to be one of the most sought after brands in the industry. The latter emanates from the fact that Gucci is classified as one of the most successful brands in the fashion industry, owing to the fact that its products are of top-notch quality (Bhasin). Being a household name for quite some time now, Gucci prides itself in having a huge customer base on the global scene especially after changing designers, a fact that contributes greatly to its increase in sales which translate to subsequent profits (Cartner-Morley; Bowles). While it can be arguably said that Gucci is a force to reckon with in the fashion scene, a lot of factors affect the operations of this company, both internally (micro) and externally (macro

In the luxury goods industry, the rapid development has brought the market more brands and the latest design products. Industry matures has caused the accelerated development of a wide range of luxury goods (Chiari, 2009). However, one thing was constant, no matter how much increased production costs, the large luxury brand of origin will not be transfer. Long cultural history is an integral part of the luxury brand, and the origin of products have also brought a certain cultural value for luxury goods (Heine, 2012).Especially for Asian consumers, it seems that in the far west, craft superb tailoring and rich cultural history of the western area are the pursue of Chinese consumers (Sombart, 2001).Louis Vuitton 's president has said that (2013), “when customers buy our products, they expect Western quality. The mystery of the origin of our brand is closely linked with our brand”. Although with the close of trade, many luxury goods in the production and sales process will cooperation with other country’s companies, the final product definitely launch in the country of origin. Gucci is a legendary brand in Florence (Italy), and it will also strictly control the production done in Tuscany (Italy), to ensure pure and high-quality products (Gucci, 2015). Therefore, a regional feature has brought an intangible value and more local cultural characteristics to the luxury goods.

At the apex of the market was haute couture with it very high-end “custom” product offering that catered to the extremely wealthy. Luxury goods manufacturers believed diffusion brand’s lower profit margins were offset by the opportunity for increased sales volume and the growing size of the accessible luxury market and protected margins on such products by sourcing production to low-wage countries. Eye-catching utilization of their products by prominent figures in society leads to increasing demands for luxury good items and it is a growing industry with the global luxury goods market growing 9% per year. These consumers buy their products for satisfaction and to boost their self-esteem rather than for ease or comfort. All these components blend in the context of a successful business of the luxury goods.

Therefore it has become crucial to have an agile and responsive supply chain set up for both these companies. The main objective of the strategy is to reduce the lead times related to the process of getting new designs with good quality and right price into the retail stores in order to have the ability of responding to new market conditions and fashion trends. To achieve these objectives, Zara and Benetton have set up some supply chain strategies that resemble each other in many ways; they both focus on delivery, flexibility, efficiency and responsiveness to the production requirements of the company. Moreover, Zara controls every step of the value chain, closing information loop quickly, leveraging ownership of own asset, even trades off cost benefits to increase responsiveness of total system. In production stage, Zara has smaller batch productions compared with Benetton, this leads to a faster inventory turnover and quick response for Zara which is also equivalent of manufacturing's JIT to the retail sector. On the other hand, Benetton has based its supply network on two models of Industrialized Model and Commercial Model, sometimes referred as a dual supply chain. These models use two ways of planning. One is sequential approach aimed at minimizing costs and

The Spanish retail chain Zara has unique supply chain management practices that enable it to gain a competitive advantage over other fashion retailers in the industry. Zara’s rapid response time enables the firm to quickly respond to changing fashions while deliberately under producing products. This strategy, which is supported by competencies in logistic management, design and information systems, allows the company to maintain less inventory and higher profit margins and is a key factor to Zara’s success. The firm should continue to add value by seeking new opportunities to expand in the retail market and maintain their sustainable growth.

Based upon his ten years research on supply chain issues in diverse industries such as food, fashion, apparel and automobiles he devises a framework which will help

Department of Management, University of Bologna, Via Capo di Lucca, 34, 40126, Bologna, Italy E-mail: Version of record first published: 30 Sep 2009.

Supply management is a complex function that’s critical to business success, responsible for delivering efficient costs, high quality, fast delivery and continuous innovation throughout companies’ entire supply chains. The strategic contribution of supply management is measured not only in savings made, but also in increased shareholder value (Niezen, Weller & Deringer, 2007). Nike and Adidas are two global companies try to improve their competitive advantage through strategically managing and utilizing their supply chain. The purpose of this report is to compare and evaluate the supply chain management practices of Nike & Adidas.

Turnover in the year 2000 was slightly over 435,000 million pesetas. Profits were over 43,000 million pesetas. Tables II and III show information on each of the chains. The world fashion market has changed considerably over the past few decades. Fashion products, which used to be an elite consumption product, are now a mass consumption market ± embodying what has been called ``the democratisation process of fashion ' '. Fashion products are now bought by all segments of society, helped by lower average prices, which have brought about a

Bain and Company (D’Arpizio et al, 2014) state that the’ market for personal luxury goods has nearly tripled in the past 20 years’ (p. 7), with the industry reflecting healthy growth by exceeding €850 billion in 2014 (p. 3). It is evident that luxury consumption is a thriving industry. Despite the fact that prices of luxury goods has risen over 60 percent in a decade, consumers are still choosing to purchase such items (Sherman, 2014).

* Another essential part we have done in the research is finding information about competitors who exist in the market, the number of dealers and sales outlets found on a limited geographical area, which has helped us to consider and decide whether to do this project report and introduce the apparels to the luxury market or

The world has become fascinated towards the fashion. The first thing need to be considered is Fashion; it can be behavior, implementing new ideas on clothing’s, hairstyle, decorations and so on which are automatically linked to our day to day activities. In today’s context, fast fashion has become a trend to a fashion industry patterns yet delivered utilizing less costly materials to guarantee a low cost tag. Many companies have been successful and unsuccessful to earn a trust from their customer. For the matter of success level it depends on how innovativeness they are and also applies the principle of supply chain and logistic management activities for the growth of their

This report examines the strategic management of the international iconic fashion company- Prada. In this report we conduct an analysis of the external and internal environments and identify strengths, weaknesses, opportunities and threats of the Prada. The key issues identified in the environment analysis is the Prada’s future market especially China. The report reviews the financial and non-financial objectives of the company’s strategies and their affects for the stakeholders. Prada is engaging in their attempts to achieve their objectives. The strategic