Week 10 Flashcards
Which of the following best encapsulates Inditex’s competitive advantage in the fast fashion industry?
Shortening the design-to-retail cycle through vertical integration and real-time data usage
How did Inditex leverage globalization in the late 1980s and early 1990s to transform its operations?
By exploiting reduced trade barriers to establish centralized production close to demand centers
What fundamental flaw in the traditional fashion model does the Inditex fast fashion model address?
The inflexibility in adjusting supply to real-time demand variations
Why does Zara’s approach to advertising differ significantly from its competitors?
By spending only 0.3% of its revenue on advertising, Zara reallocates resources to efficient supply chain operations.
Inditex’s fast fashion model heavily depends on real-time consumer feedback. What is the primary operational advantage of this approach?
Maintaining a consistent inventory turnover without overproduction
What aspect of vertical integration is most crucial to Inditex’s operational efficiency?
Centralizing the design and production of key components while outsourcing non-critical tasks
How does the just-in-time production model enable Inditex to address inefficiencies in the fashion industry?
By adjusting production volumes dynamically based on real-time sales data
What role did Inditex’s IPO in 2001 play in its business development?
Provided the financial resources needed to expand its fast fashion model globally
In the traditional fashion industry, what problem arises from the reliance on subcontractors for production?
Increased production costs and delayed responsiveness to market changes
How does Zara’s approach to supply chain management differ from its competitors in the traditional fashion industry?
It centralizes distribution to ensure real-time feedback is integrated into production adjustments.
What strategic move helps Zara maintain competitive pricing despite its reliance on local production?
Substantial cost savings through just-in-time production and reduced marketing expenses
Why is the concept of “urgency to purchase” crucial to Zara’s success in the fast fashion model?
It encourages consumers to buy before products go out of stock due to frequent inventory turnover.
What is one significant drawback of traditional fashion’s reliance on long-term seasonal collections?
Products on shelves quickly become outdated, reducing consumer interest.
Which of the following best describes the operational focus of the Inditex model?
Streamlining production with local manufacturing, frequent shipments, and centralized distribution
What unique approach does Zara use to maintain low advertising costs while driving consumer demand?
Relying on word-of-mouth and strategic price allocations
What distinguishes Inditex’s fast fashion model from traditional fashion models?
Integration of just-in-time production with real-time customer feedback
How does Inditex link its designers directly to customer demands?
By analyzing data from bi-weekly store reports detailing sales by size and color
What is the primary operational focus of Inditex’s vertical integration strategy?
To combine capital-intensive production in-house with outsourcing labor-intensive tasks
What enables Inditex to shorten its design-to-retail cycle to just five weeks?
Vertically integrated manufacturing and localized subcontracting networks
Which of the following best reflects Inditex’s strategy for managing inventories?
Using small, frequent deliveries to stores twice a week
Why does Inditex avoid using complex supply chain management software?
Simpler systems allow for faster and more flexible decision-making
What was the primary motivation behind Inditex’s IPO in 2001?
To allow its founder to sell shares and begin transferring control
How does Inditex determine the target pricing for its products?
By basing prices on competitors’ products and setting them 15% lower
What is the significance of Inditex’s customer-driven production approach?
It aligns production closely with real-time market trends
Why is speed prioritized over low labor costs in Inditex’s fast fashion model?
Faster production reduces the risk of products going out of fashion
How does Inditex’s vertical integration differ from traditional subcontracting models?
It focuses on speed and flexibility rather than cost minimization
How does Inditex reduce the need for large clearance sales?
By producing smaller quantities and avoiding overproduction
Why is Inditex less vulnerable to criticism regarding labor practices?
It maintains local production facilities to reduce dependency on low-cost labor
What role does bi-weekly data collection from stores play in Inditex’s operations?
It allows designers to adapt collections to customer preferences in real time
How has Inditex’s fast fashion model impacted global competitors?
By forcing competitors to adopt similar rapid-response production systems
Which of the following fields does Mukti Kher NOT hold a degree in?
Fine Arts
Mukti Kher’s research focuses on:
Entrepreneurship and creative industries
The article discusses the evolution of the Indian high-end fashion industry during which period?
1980–2005
According to the article, what key role do entrepreneurs play in the Indian fashion industry?
Shaping the industry’s identity and creating markets for cultural goods.
One major challenge faced by Indian designers is:
Balancing cultural identity with the need for globalization.
Why do Indian consumers initially resist high-end fashion prices?
They view fashion designers as glorified tailors.
What does the article suggest about maintaining traditional Indian craftsmanship?
It creates a unique identity but limits global appeal.
What impact does undervaluing luxury goods have on the Indian fashion industry?
It hinders the financial growth of the industry and artisans.
Which of the following is a key tension highlighted in the article?
Preserving cultural heritage while adapting to global markets.
What trend has influenced the shift in Indian consumers’ clothing preferences?
Increased Westernization of fashion tastes.
Why is globalization significant for Indian fashion designers?
It provides opportunities for global recognition and expansion.
How does the growth of the Indian fashion industry contribute to the economy?
By creating jobs and boosting GDP.
What perception do consumers need to change to support the Indian luxury fashion market?
That premium products are overpriced.
The lack of empathy towards designers impacts the industry by:
Lowering the perceived value of their work.
What makes the Indian fashion industry unique, according to the article?
Its foundation in traditional craftsmanship and heritage.
How did early Indian fashion entrepreneurs overcome consumer skepticism about pricing?
By emphasizing traditional craftsmanship and ornate designs.
What was the primary influence behind the establishment of the National Institute of Fashion Technology (NIFT) in 1986?
The need to train individuals for India’s apparel export industry.
What social factor influenced the limited adoption of Western-style clothing by Indian women in the 1980s?
Western clothing being seen as rebellious or inappropriate.
How did early Indian fashion designers differentiate their creations from traditional tailors?
By using heavily embellished traditional fabrics and embroidery.
What defines the unique identity of Indian high-end fashion?
Opulent, heavily embellished traditional-style garments.
What challenge do Indian designers face when presenting collections abroad?
Balancing traditional Indian aesthetics with global expectations.
Why were early Indian fashion designers often compared to “glorified tailors”?
Consumers undervalued the creative process behind their designs.
How does the Indian high-end fashion industry contribute to the economy?
By creating employment opportunities in rural and urban areas.
What economic policy initially slowed the growth of consumerism in India?
Gandhian principles emphasizing austerity and self-reliance.
What role did multidesigner outlets (MDOs) play in the evolution of Indian fashion?
They offered a platform for multiple designers under one roof.
What was a key feature of the Fashion Design Council of India (FDCI) when it was established in 1999?
It modeled itself after international organizations like CFDA and Chambre Syndicale.
How did Bollywood contribute to early Indian fashion trends?
By providing inspiration for consumer-tailored garments.
What was the government’s rationale for promoting traditional Indian textiles in the mid-20th century?
To create employment opportunities in rural areas.
Why did early Indian designers focus on ornate traditional garments for weddings?
To cater to an existing market willing to pay for opulence.
What limitation is associated with the traditional identity of Indian fashion on the global stage?
It limits perception of innovation and creativity.
