by [TC]²
Fast Fashion vs. Speed to Market
by Jim Lovejoy, [TC]²
April 2007
Fast Fashion and Speed to Market have received a lot of attention lately without much attention to their differences and similarities. Both processes or philosophies are applied to getting products to the consumer in less time, but the differences are seen in the objectives of the supply chain member who is driving the process. For example, a brand manufacturer emphasizes speed to market to shorten lead times to its customers. This allows their retail customers to make assortment decisions closer to the market introduction or, to replenish the branded goods in the stores within the current season. On the other hand, the leading notable fast fashion retailers implement fast fashion to continually refresh the merchandise in their stores with new styles. Chico’s advertises “You will find something new everyday at Chico’s”. Many of Zara’s customers know the day their store gets deliveries and check the stores soon after for new styles. At Topshop in London, there are multiple daily deliveries to the store to encourage frequent customer visits and immediate purchases.
A comprehensive analysis is beyond the scope of this article, but offered here are some of the key characteristics of these two supply chain concepts. It is also acknowledged that when you look at an individual company, both processes, and derivatives of these processes may co-exist and even complement each other to achieve that company’s objectives.
Fast Fashion 40-50 week cycle to 5-10 weeks Primary emphasis is speed with fashion, Full cycle from concept to store is Quick daily, weekly decisions. Continuous flow of products. Small frequent shipments. Continuous feedback from stores. Consumer pull, quick replenishment. Emphasis on reacting to consumer. Demand chain processes. |
Speed to Market 40-50 week cycle to 20-30 weeks Speed is important but secondary to getting price, the product right. Streamlined from order to supplier to receipt in store. Decisions based on product calendar dates. Seasonal flow of products. Larger shipments, collections. Seasonal feedback from sales data. Brands promote and push. Emphasis on good forecasting. Supply chain processes. |
The best fast fashion retailers have higher inventory turns, more sales per square foot, and better margins. The challenge for them is to keep the flow of new styles coming with a minimum of mistakes. Zara typically has 10,000 new designs each year and 11,000 new items each season. Topshop delivers 7,000 distinct looks each season.
To support these high levels of activities, fast fashion companies must have excellent communications throughout the processes – from design to delivery. This requires three key components: technology to make timely data visible, technology to communicate anywhere in the participating organizations, and the culture to encourage frequent and open communications.
Jim Lovejoy is the Director, Industry Programs at [TC]². He managed the Demand Activated Manufacturing Architecture (DAMA) research project in collaboration with the Department of Energy and a group of fiber, textile, sewn products and retail companies. The DAMA project defined the soft goods supply chain and created a collaborative model for demand activated chains. Mr. Lovejoy has presented in a series of Fast Fashion seminars in the US and Canada. Prior to [TC]², he was Director of Quick Response Systems at IBM. Comments about this article can be sent to jlovejoy@tc2.com.