There is a very large diversity in how Footwear, Handbag and Apparel companies position and renew their offers, define their sales channels and their sourcing strategies. Marketing and SCM go hand in hand in these industries, the consumer being the ultimate target of both domains. But the management of the sales channel mix is becoming the real key differentiator. From wholesalers to retailers, own retail stores or franchises, everything participates to better understanding the consumer and consumer demand. In the way they manage their supply chains, fashion companies run an interesting blend of “traditional” and “innovative” business processes, quite particular to their business
IT solution vendors have historically addressed the fashion industry in a fragmented way (e.g. the retail business on one side and the supply management on another), occasionally leaving serious functional gaps. Bearing in mind the huge amount of transactional data that has to be processed, the integration of these fragments is one of the challenges in this industry.
Challenges in maintaining the competitiveness:
- Globalization of production and supply chains
- Profound understanding of new markets and sales channels, multi-channel distribution
- Developing a strong value proposition for its own brand
- Reducing the supply costs while avoiding to compete on price
- High level of shelf availability with dwindling customer requirement predictability