Product_design_and_operation_strayegy_in_a_global_environment

Product_design_and_operation_strayegy_in_a_global_environment

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Case Study Zara Case Product Design and Operation Strategies in Global Environment Group 1 Sze Ka Scarlett Chan Long Fung Aaron Chan Chun Hei Fung Rufus Lam Man Kit Kidman Nga Ki Pandora Cheung
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Product Design and Operation Strategies in Global Environment Group 1 s106406, s106407, s106420, s106412, s106428 1 1.0 Introduction Zara is flagship chain store clothing from Spain while Hennes & Mauritz AB (H&M) is a Swedish clothing company. These two companies are successful in fashion field. Both of them claim that their successful strategy is fast. We are going to examine product design strategies and operation strategies on each company. We notice that they are using different operation strategy. For Zara, it uses vertical integration, changing product line frequently while H&M usually purchases from supplier and renew the store inventory frequently. After that, we compare the advantages in different aspects, such as, quality and production cost. 2.1 Product Design Strategy For production line of Zara, there are women, men and children. There are 1000 new styles every month managed by its design and development team. H&M caters to women, men, teenagers, and children, and provides them with new fashion items every day in each of 2,000 retail locations. Offering a varied selection of clothing, it has recently launched new lines in cosmetics, accessories, and footwear. The creative team of Zara, including designers, sourcing specialists, product development personnel, works on creating constant variation, expanding on successful products, continuing in-season development and selecting the fabrics and promoting mix. In order to keep streaming up-to-date trend information, the product design team refers the fashion shows, catwalks of luxury brand collections and visiting university campuses to observe what youngsters are wearing. To track customer preferences, the design team has frequent conversations with store managers, discussing which items are most in demand and which are not, and use the information about sales potential based. And the designs are accepted only if customers’ reactions are positive. Since all the products are designed in Spain, it can build up a luxury image. For H&M, it sometimes designs products with celebrities, such as Madonna, Karl Lagerfeld and Victor & Rolf. H&M also coordinates with other brand names, for example, Comme des Garcons and Jimmy Choo (accessories) and Lanvin ( men series). It
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Product Design and Operation Strategies in Global Environment Group 1 s106406, s106407, s106420, s106412, s106428 2 understands youngsters like fashionable brand names, which fulfills different customers’ needs. The product design of Zara is made in the general office which is in Spain. The decision is hence made by the general office too. The design process and decision are centralized. That’s why the product designs are standardized in all Zara shops. H&M adopts another strategy in product design. Different countries have different patterns. Product design is based on
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Product_design_and_operation_strayegy_in_a_global_environment

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