Using these two systems managers can quickly and

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Unformatted text preview: n to reward success—as much as 70 percent o f salaries can co me f ro m co mmissio ns.K. Capell, “Zara Thrives by Breaking All the Rules,” BusinessWeek, Octo ber 9, 2008. Ano ther level o f data gathering starts as so o n as the do o rs clo se. Then the staf f turns into a so rt o f investigatio n unit in the f o rensics o f trendspo tting, lo o king f o r evidence in the piles o f unso ld items that custo mers tried o n but didn’t buy. Are there any pref erences in clo th, co lo r, o r styles o f f ered amo ng the pro ducts in sto ck?D. Sull and S. Turco ni, “Fast Fashio n Lesso ns,” Business Strategy Rev iew , Summer 2008. P DAs are also linked to the sto re’s point ­of ­sale (POS) syst em—a transactio n pro cessing system that captures custo mer purchase inf o rmatio n—sho wing ho w garments rank by sales. Using these two systems, managers can quickly and regularly send updates that co mbine the hard data captured at the cash register with insights o n what custo mers wo uld like to see.C. Ro hwedder and K. Jo hnso n, “P ace-Setting Zara Seeks Mo re Speed to Fight Its Rising Cheap-Chic Rivals,” Wall Street Jo urnal, February 20, 2008. All this valuable data allo ws the f irm to plan styles and issue rebuy o rders based o n f eedback rather than hunches and guesswo rk. The go al is to impro ve the f requency and quality o f decisio ns made by the design and planning teams. Design Rather than create trends by pushing new lines via catwalk f ashio n sho ws, Zara designs f o llo w evidence o f custo mer demand. Data o n what sells and what custo mers want to see go es directly to “The Cube” o utside La Co ruña, where teams o f so me three hundred designers crank o ut an asto nishing thirty tho usand items a year versus two to f o ur tho usand items o f f ered up at big chains like H&M (the wo rld’s third largest f ashio n retailer) and Gap.M. P f eif er, “Fast and Furio us,” Latin Trade, September 2007; and “The Future o f Fast Fashio n,” Eco no mist, June 18, 200...
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