Luxury Fashion Brands Automation
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2000 words (+/- 10%)APA ReferencingEXECTUTIVE SUMMARY Source 1 â âLean thinking in the luxury-fashion market: Evidences from an extensive industrial projectâ â GionataCarmignani, Francesco ZammoriSource 3 â  âThe complexity of value in the luxury industry: From consumersâ individual value perception to luxury consumptionâ â Nadine Hennings, Klaus-Peter Wiedmann, Christiane Klarmann, Stefan BehrensSource 4 â  âSupply chain strategy for companies in the luxury-fashion market: Aligning the supply chain towards the critical success factorsâ â Cecilia Maria Castelli, Andrea SianesiINTRODUCTIONIntro & Background        What is âLeanâ? Why did it come about?        What is the philosophy? Where is it used?         Define âluxury fashionâ.        Explain the disconnect between âleanâ and luxuryâ brieflyLuxury brands are considered as one of the most profitable and fastest growing brand segments, the market for luxury goods has more than tripled, from 73 billion EUR in 1994 to 218 billion EUR in 2013 (Source 3). In order to continue to achieve and sustain such success in the luxury market, new managerial paradigms must be implemented âas marketing and branding alone cannot guarantee long term stability anymoreâ (Source 4). Thus, according to top managers of leading groups, the entire supply chain appears to be relevant to success in luxury business (Source 4).  As a result, it is vital for the luxury fashion industry to rethink and re-evaluate their current business models, and focus more on the operational side of things so as to be competitive in an ever-changing market.
A solution for this could be implementing lean thinking. Lean thinking aims to match and even outdo customersâ needs and expectations, through a flexible and resilient manufacturing system focused on avoiding wasted resources (Source 1). Another key aspect of lean is continuous flow and always achieving optimum results in logistics systems(Source 1). There are many benefits to lean thinking which have led to astonishing results, such as lead time reduction and stabilisation, process simplification, inventory reduction and quality improvement (Source1).Fast-fashion retailers mostly use lean logistics and currently, fast-fashion retailers Zara are implementing lean logistics very well and are succeeding. Lean logistics generally aims to produce on mass to therefore avoid wasted resources, while luxury brands do not produce on mass so as to uphold their brand exclusivity and tailor made feeling. Despite the different end goals, lean logistics can be reconfigured in an innovative way in order to suit the business, and product and companies characteristics. The implementation of lean thinking in the luxury fashion market is a challenging initiative, however a necessary one in todayâs market place. The many specificities of the luxury fashion industry, such as high variability and high level of product customisation may act as barriers for lean thinking (Source 1).LITERATURE REVIEWDetailed discussion expanding on those points above.Cite every claim â multiple times if neededClearly present the disconnect – why is implementing âleanâ into âluxuryâ hard? Â There are many barriers surrounding the implementation of lean principles in the luxury fashion industry, so much so that the implementation is very rare. These barriers derive from the many specificities of the luxury fashion industry, such as high variability and a high level of customisation, whereas lean logistics originated for high volume and low variety manufacturing firms (Source 1). Â Accordingly, the differences make the implementation of lean thinking difficult as well as many other factors which are outlined below.