![]() However, where Choosy’s true magic happens is around Critical Task #1, where they put the power of product selection in the hands of their users. In Critical Task #2, Choosy applied just-in-time production process to Zara’s vertically-integrated supply chain, reducing the amount of guesswork they have to do in forecasting customer demand. However, Zara still has to guess which high-fashion styles consumers want and then guess how many they plan to buy, leaving room for waste.Ĭhoosy not only takes Zara’s model a step further in multiple ways, but it also recognizes that Critical Task #2 is highly dependent on Critical Task #1. ![]() As a result, Zara remained in closer touch with fast-changing consumer trends and it has since benefited from “more frequent shopper visits to stores, fewer sales on markdowns and faster cash conversion cycles” than its competitors with longer production lead times. The fast-fashion retailer, Zara, tried to fix this problem by building a vertically-integrated supply chain, which allowed it to copy and deliver styles directly from the runways to its stores in a matter of weeks. The fashion giant H&M was reportedly sitting on $4.3BN of unsold inventory in March 2018. Unsold inventory results in higher discounts, squeezed margins, inventory holding/disposal costs, and higher COGS. Pathways to Just Digital Future Watch this tech inequality series featuring scholars, practitioners, & activistsĬritical Task #1: Predict which styles consumers want to buyĬritical Task #2: Predict how many they want to buyįailure to deliver on these Critical Tasks results in unsold inventory, which has become a burden to retailers.
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