Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 9 pages
Data source: Published sources
Topics:
Hennes & Mauritz (H&M); Inditex and Zara; Gap; Abercrombie & Fitch (A&F); European apparel retailers; US apparel retailers; Efficient business models; Strong product-focus; Trend driven perspective; Consumer and buyer behaviour; Global supply chain; Efficient inventory management; Fast food of fashion; Faster turnaround of designs; Competitive pricing
Abstract
The US apparel industry had witnessed a sea of change following the entry of European apparel retailers. European apparel chains like Hennes & Mauritz (H&M) and Inditex, were eroding the profits of the US counterparts such as Gap and Abercrombie & Fitch (A&F), by eating into their market share through their efficient business models, innovative and fast-changing product offers and lower costs. With a better fashion focus, European retailers were changing the definition of fashion in the US. Instead of creating a certain lifestyle image, they emphasised a strong product focus, a trend driven perspective, but at a lower price. The case study offers a comparative study on the business models of US, and European apparel retailers, with the scope of discussing the viability and profitability of these models in the long run. A structured assignment ''305-280-4'' is available to accompany this case.
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Abstract
The US apparel industry had witnessed a sea of change following the entry of European apparel retailers. European apparel chains like Hennes & Mauritz (H&M) and Inditex, were eroding the profits of the US counterparts such as Gap and Abercrombie & Fitch (A&F), by eating into their market share through their efficient business models, innovative and fast-changing product offers and lower costs. With a better fashion focus, European retailers were changing the definition of fashion in the US. Instead of creating a certain lifestyle image, they emphasised a strong product focus, a trend driven perspective, but at a lower price. The case study offers a comparative study on the business models of US, and European apparel retailers, with the scope of discussing the viability and profitability of these models in the long run. A structured assignment ''305-280-4'' is available to accompany this case.