Aritizia’s success in Inventory and Operations Management and Market Research

Like Lululemon, Aritzia has received high demand for its products, including its three distinct product lines: Talula Babaton, Talula, and TNA, which account for 70 per cent of the inventory in the stores. It keeps its inventory replenished through its efficient management information system, which explains its success in terms of store revenues.

Aritzia cleverly targets a broad age demographic: females aged 14 to 30. Market research suggested that women at this age range, before marriage, would spend more on buying clothing and on following the latest fashion trends. Aritzia is a very well-positioned company because it did not target only the tween market but the older teens. Its garments and accessories suit the taste of females aged 14 to 30 because 14 year old girls like to dress more maturely and women in their 20s like to dress down and appear more youthful. Aritzia has thoroughly researched the market for women’s fashion and catered to a target market that is enormously profitable.

Aritzia’s fundamental advantages in terms of operations also contribute to its success. It can’t be “undercut by the department store down the aisle or another store in the mall” because Aritizia controls its store policies, which includes the merchandise as well as the markdowns.

http://www.retaileducation.ca/index.php?option=com_content&view=article&id=72&Itemid=61

http://nbc5streetteam.wordpress.com/2008/09/11/an-inside-look-at-aritzia/

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