The Digitalization of Fast Fashion
Created by Jeffrey Wills
CMN 170V- Summer 2016
The fast fashion industry has been made possible partly thanks to digitalization
Let's look at some of the effects of digitalization that the fast fashion company Zara has utilized:
Death of Distance: Physical distance no longer limits information exchange
Zara instantly collects sales data from all of its stores across the world to track which items are selling well and need to increase production of as well as those items that are not and need to discontinued.
The death of distance allows Zara to tailor its production to what is fashionable at the moment.
Poly-directionality: Digital networks allows for instant communication between one person to many others
Zara monitors individual customer feedback and can instantly report this data to many others within the company including sales, marketing, and production.
"Store managers [...] monitor customers’ reactions, on the basis of what they buy and don’t buy, and what they say to a sales clerk [...]Every day, store managers report this information to headquarters, where it is then transmitted to a vast team of in-house designers, who quickly develop new designs and send them to factories to be turned into clothes." (NYTimes)
Economies of Scale: Fixed costs of digitalization decrease as the scale of production increases (on a per unit basis)
Zara uses software to track sales information on all of its products in all of its stores. The cost of this technology is low on a per item basis as it is used on so many different products.
Hansen, Suzy. How Zara grew into the worlds largest fashion retailer. New York Times. Nov. 9 2012. http://www.nytimes.com/2012/11/11/magazine/how-zara-grew-into-the-worlds-largest-fashion-retailer.html?pagewanted=all&_r=0
Hilbert, Martin. Lectures from CMN 170V.
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Public - 7/10/16, 9:43 PM