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The Synopsis

Article. If the Model Doesn't Work, Don't Fix It: A Look at Traditional Apparel Retailers, Zara, and Shein

Mar 8, 2024
Exploring the agile models of Zara and Shein in traditional apparel retailing, contrasting with the struggles of traditional retailers in balancing inventory. Delving into Zara's rapid design updates and limited editions for efficient inventory management. Comparing Zara's centralized model with Xi'in's decentralized design process and rapid scaling based on demand.
12:53

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Quick takeaways

  • Traditional retailers struggle with inventory management due to outdated demand estimates.
  • Zara's success lies in fast fashion, insourcing production, and adapting swiftly to trends.

Deep dives

The Challenges of Traditional Retail

Traditional apparel retailers face significant challenges in estimating demand and managing inventory. Orders placed months in advance might become outdated, leading to either overstocking or understocking issues. The lack of real-time consumer feedback makes predicting trends difficult, resulting in potential losses from discounted products or missed sales opportunities.

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