The Fast Fashion Business Model

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The Fast Fashion Business Model
1.What are the key characteristics associated with the fashion markets that support this model?
Because of the continuous change in consumer demand in a very short span of time creating high complexity for the supply chain, the demand for apparel in fast fashion industry is volatile. A fast fashion retailing company can optimize its performance and remain competitive by creating agile supply chain. Agile supply chain is paramount to achieving the ultimate in profit maximization and corporate survival in the fashion industry as well as any other businesses. Companies like Zara, the retailer H&M and GAP have to keep up with every changing trends in the fashion industry. Fashion markets typically exhibit the following characteristics:
Fashion industry manufactures clothes that have short life span and do exhibit the following characteristics: Short life-cycles – These product is often ephemeral, designed to capture the present moment of the market. The period in which it will be saleable is likely to be very short and seasonal, measured in months or even weeks. It needs constant update as well. High volatility – Demand for these products is rarely stable or linear. It may be influenced by the weather and as such the time of the year. Celebrities, movie actors and music artist do greatly influence the fashion industry. Low predictability – Because of the volatility of demand it is extremely difficult to forecast with any accuracy even total demand
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