10 - Fast Fashion Business Models

Question 1

fast fashion business models

Answer 1

traditional fast fashion business model
value & discount fashion business model
ultra-fast fashion business model
shein business model business model

Question 2

traditional fast fashion

Answer 2

operational pillars:
- quick response to market
- dynamic assortment
- low inventory levels (=higher margins)
- flexible distribution

no traditional advertising => invest in merchandising
- merchandising: physical flagships in prime locations
- strategy driven by product, not brand

Question 3

challenges of traditional fast fashion

Answer 3

not digital enough
heavily dependent on store networks
not sustainable + ethical enough

Question 4

value & discount fashion

Answer 4

value proposition: high volume/low price
- appeal to budget consumers
- high customer loyalty

ex: Primark

Question 5

challenges of value & discount fashion

Answer 5

not compatible w/ e-commerce

does not own its factories
- poor working conditions

not sustainable

Question 6

ultra-fast fashion

Answer 6

direct-to-consumer model focused on an on-demand basis
- based on social media trends

supply chain:
- avoids excess inventory
- focuses on local manufacturing
- shorter lead times (agile supply chain)

ex: ASOS, Boohoo, Fashion. Nova…etc

Question 7

shein business model

Answer 7

world’s biggest digital fashion retailer
- managed to find a tariff loophole
- no physical stores (some pop-ups)
- supply chain more efficient than any other model (based in the country)

Question 8

challenges of the shein business model

Answer 8

legal challenges - copyright infringement
poor customer service
poor quality
lack of cultural sensitivity
encourages overconsumption