It seems that Zara is not the only one with a fast turnover rate in the world of fashion. New competitor Forever 21 has mastered the art of the supply chain. Forever 21 has a high turnover rate, which they can accomplish because they “carry a healthy mix of private label goods as well as those from other suppliers” according to bnet.com.
Most “fashion seasons follow the annual cycle of summer, autumn, winter and spring”, but, “in fast fashion, cycles are compressed into shorter periods of 4-6 weeks [or less]”. Good operation of supply chains, along with communication with marketing, allows retail stores to offer high turnover. This is done by:
1. Supplier preference:
- Suppliers close to the market are used for products produced in the middle of a season, meaning trendy items. Marketers are in constant communication, providing ideas straight from fashion shows.
- Long-distance suppliers are utilized for cheap, “core” items that are used in collections every season and have a stable forecast.
2. New technologies in production, such as the continuous ink jet process which reduces screen printing time.
These tactics allow consumers to take advantage of current clothing styles at a lower price, and thus keep the customer coming back for more.