Inditex 2018 Financial Results (2)

Following last post about Inditex 2018 financial results, the aim of this post is understanding the leading fashion retailer performance in a deepest level. Retail Physical Footprint If we analyse the chart below we can make two deductions: Inditex is reducing its physical footprint growth from an average of +5% to approximately 0% from the … More Inditex 2018 Financial Results (2)

Inditex 2018 Financial Results (1)

Inditex is one of the world’s largest fashion retailers. It has eight retail formats or brands (Zara & Zara Home, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Uterqüe) which sell their collections in 202 markets over an integrated offline-online store network. As of year-end 2018, it had a network of 7,490 stores and was selling … More Inditex 2018 Financial Results (1)

Adidas, walking for sustainability

In previous articles, we saw how companies are transforming the fashion business into a more sustainable ecosystem as new generations demand for sustainable products, including recycling and upcycling: Circular Economy in Fashion Sustainable Fashion Brands 3D Knitting in Fashion H&M Conscious Collection, Inditex Join Life or Green to Wear + and Adidas collab with Parley for the Oceans (trainers made from recycled ocean plastic) … More Adidas, walking for sustainability

Mass-market fashion retailers

Extending the review of luxury organizations, niche players from the long tail in fashion and sustainable brands, it´s time to talk about leading “fast-fashion” retailers. Mass-market fashion retailers are localized at the bottom of the Maslow´s pyramid of needs. Those brands´ business models are based on high traffic, high volume and low margin. But some … More Mass-market fashion retailers

Circular Economy in Fashion

Millennials are driving companies to sustainable practices even if their business model is based on volume, low margins. New generations demand for sustainable products and a visible and transparent value chain: from “sheep to shop”, something that blockchain is already enabling. Another interesting trend to mention is nownership, or the end of ownership as repair and rental … More Circular Economy in Fashion

A few words with Nextail Founder and CEO

Joaquin Villalba is the CEO and co-founder of Nextail, a smart platform for retail merchandising. A retail industry veteran, Joaquin has almost two decades of experience in innovation, retail and operations. Prior to Nextail, Joaquin was Head of European Logistics for Zara-Inditex, the world’s largest fashion retailer. In that capacity, he oversaw more than a … More A few words with Nextail Founder and CEO

Apparel Sourcing Trends

Global volatility is the new normal and companies in all industries have to adapt and track external factors such as weather or social media. Climate change is not only impacting retail sales  (revenues) but also other phases across the value chain like wool or cotton production (costs). Managing supply chain assets like fabrics and textiles … More Apparel Sourcing Trends

Headquarters, cities and talent

Headquarters relocation and global competition for talent In The New Fashion Retail Paradigm, I introduced the latest trends impacting the fashion retail industry. Headquarters location is an important one that deserves a deepest approach. Amazon announced in november 2018, after a year-long competition, that New York City and Northern Virginia will host its second headquarters. This … More Headquarters, cities and talent

Awarded Top 100 best retail blogs to Follow in 2018

The Fashion Retailer: Awarded Top 100 Retail Blog In March 2017, there was a conference at IESE on Fashion and Luxury Goods where, Patrizio di Marco (Dolce & Gabbana), Alessandro Varisco (TWINSET Simona Barbieri), Giorgio Presca (Golden Goose), Sian Keane (Farfetch), Luca Solca, amongst others, talked about how to manage talent in fashion and luxury companies. At … More Awarded Top 100 best retail blogs to Follow in 2018

A few words with LPP´s RFID Expert

A Few words with Alexander Yashin, Operations RFID expert at LPP Alexander Yashin is 31 years old, Russian, master degree in engineering of IT systems. He has joined fashion retail industry in 2007 as a cashier in a store. Since 2014 he has been working on RFID solutions in retail. The Fashion Retailer: What is … More A few words with LPP´s RFID Expert

Artificial Intelligence in Fashion Retail

Fashion Retail is adapting it´s business model at the pace of digitalization. As Darwin said, it is the most adaptable to change that will survive. After reading IESE insight “5 Building Blocks for Cyber-Physical Value Chains”, from Professor M. Sachon (Issue 33, Second Quarter 2017), I decided to start writing a series of articles about … More Artificial Intelligence in Fashion Retail

A few words with a Master in Fashion Operations

When people hear about fashion, they expect a guru or a designer wearing funny clothing. This is part of it, but some would argue that the main competitive advantage of international retailers, such as Zara, is Operations. In fact, Zara doesn´t have a best-in-class designer like Gucci has Alessandro Michele. Inditex best-in-class business model is … More A few words with a Master in Fashion Operations

Sustainable Fashion

Patagonia´s famous ad in 2011. Don´t buy it if you don´t need it. Millennials are driving companies to sustainable practices even their business model is based on volume. An example is The Social and Labour Converge Project signed by leading fashion companies such as H&M, Gap, Nike, Adidas, Levi Strauss, amongst others. Also Primark joined … More Sustainable Fashion

A few words with a Kids Accessories Manager at Mango

A day in the life of Carlota, Kids Accessories Manager at Mango. Carlota Casals. Mango Kids Accessories Manager. 30 years old. Married and mother of a boy. Fashion fan. Enjoys traveling, exploring new restaurants and visiting fashion stores. The Fashion Retailer: Could you define what is Mango? Carlota Casals: Punto Fa S.L., trading as MANGO, … More A few words with a Kids Accessories Manager at Mango

Uniqlo, the fashtech retailer, opens in Barcelona

Uniqlo, the fashtech (fashion technology) japanese retailer opens its first store in Barcelona, next Zara and H&M flagship stores. “For all major companies, starting point has to be Barcelona. We want to grow with this city of art”, has secured this Tuesday, founder of Uniqlo Tadashi Yanai (source: Turkey Telegraph). Therefore, the japanese retailer is positioned … More Uniqlo, the fashtech retailer, opens in Barcelona

Sports and Fashion in the ironman era

Sports, Fashion and Society: A sociological approach Sport is as old as humanity. Cave paintings have been found in the Lascaux caves in France that have been suggested to depict sprinting and wrestling in the Upper Paleolithic around 15,300 years ago. Later on, it was predictably in Greece that sports were first instituted formally, with the first Olympic Games recorded in 776 BCE in … More Sports and Fashion in the ironman era

Louis Vuitton, World of experiences

Louis Vuitton is one of the most prestigious luxury fashion houses in the World. In a previous post, I analysed diversification and segmentation in the fashion retail industry. Armani and Inditex are fashion retailers that have grown thru different diversification strategies. Armani is closing some of its brands due to some inconsistencies between brand, value … More Louis Vuitton, World of experiences

H&M invests in supply chain as fashion rivalry intensifies

Cost controls helped H&M (HMb.ST) to limit a drop in quarterly pretax profit but the fashion chain said it was increasing investments this year as it tries to keep pace with its larger rival, Zara owner Inditex (ITX.MC). H&M, the world’s second-biggest fashion company, said conditions remained very tough in key European markets and in … More H&M invests in supply chain as fashion rivalry intensifies

A few words with Brownie´s Head of Operations

Cecilia Cano is Operations Manager at Brownie. 31, degree in Business Administration, fitness fan, fashion retail and cooking passionate. Cecilia started her professional career at Deloitte Audit Services, in finance, but switched to fashion retail and found her path. She spent 7 years at Oysho, Inditex, as a Buyer and Project & Product Manager for … More A few words with Brownie´s Head of Operations

Fast Fashion, the art of liquidity

The Fashion disruption Polish-born sociologist Zigmunt Bauman described our modern life as “liquid modernity“, where change is occurring more and more rapidly. Social entities are flexible, plastic. “Each new structure which replaces the previous one as soon as it is declared old-fashioned and past its use-by date is only another momentary settlement – acknowledged as temporary … More Fast Fashion, the art of liquidity

The Fashion Retail Long Tail

Growth evolution: Dinosarus and aliens in Fashion Industry Long Tail The chart above shows the Compound Annual Growth Rate and revenues (size of the bubbles), from 2007 to 2015, of some of the global leading retailers, including fashion, electronics and foods retailers. Inditex is still the king of fashion retail, H&M is fighting for the … More The Fashion Retail Long Tail

Diversification and Segmentation in Fashion retail

Many brands have evolved into groups that focus on different customer profiles. On the one hand, we have companies such as GAP, H&M, Inditex, Mango, Armani…that are focus on many segments in order to respond to different income, gender, style (e.g. COS vs H&M), size (e.g. Violeta by Mango) or categories (e.g. beauty, homewear) profiles. … More Diversification and Segmentation in Fashion retail