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The European apparel industry is speedy, lively and highly spirited. Its imports account one third of the world's total textile trade, and consumer apparel sales are over ?300bn annually. The EU fashion apparel retail industry has witnessed massive ups and downs in last year. The considerable movement in industry was a result of frequently changing consumer's demands, purchasing trends and the focus on time management in merchandising to enhance value for existing buyers, which are becoming more demanding and rationale oriented.
European apparel industry being more diversified in its approach towards style and fashion, 2005 was truly a challenging year for the worldwide apparel trade. The strategies that the European leading apparel retailers like Inditex, Carrefour, Next, Marks & Spencer, Mango, H&M and Karstadt Quelle have adapted for considerable growth in future are emphasized below.
Inditex: Rapid action on consumer feedback keeps company forward
The strategy to give fastest and finest response on consumer feedback to alter its product assortments at the least indication of change in consumer demand, keep the brand ahead than others. The significant task, which the sales-staff conducts, is to understand the market technicalities. One may find them keen to know about the requirements, even when they chat with the buyers in the store.
The Inditex seems to be more interested in finding out that what buyers want. The store notes down the of consumer feedback, and creates a databank, which is then sent to its head office. The head office reviews the feedbacks and takes immediate action accordingly. In a move to fulfill consumer's demands, the product assortments are modified or even created.
The suppliers of Inditex have to work hard to keep pace with new demands, probably every week. Inditex pertain a corporate routine and transparency to its suppliers to uphold the supply chain. Inditex claims that these arrangements support it to take control on the whole production and distribution process. Additionally, it also helps the company to meet radically changing fashions.
Carrefour - Focused on expansion and enhancement in consumer response
Carrefour faced unfavorable fiscal last year, due to poor performance in Taiwan, Brazil and Thailand, although it did well in countries like China, Argentina, Malaysia and Colombia. The results for first quarter 2006 was satisfactory comparing with first quarter 2005, as it witnessed climb in sales by the steady growth in France.
At present, Carrefour is largest retailer in Europe and ranks second in the world with over 11,000 hypermarkets, supermarkets, convenience and hard discount stores in around 30 countries. In order to expand, the company has already launched and acquired 191 new stores, accounting over 2,70,000 sqm of sales area in the Q1. Carrefour is planning to add 1.5mn sqm to sales area in the current year. Targeting to avoid incidents of pilferage, the company is adapting anti-shrink technology for its stores, whilst providing an index for other retailers who together lost $ 38bn to shrinkage in last fiscal.
The company is introducing the enhanced source tagging program this year. This program supports the retailers to quickly respond to consumer's demands for product assortments and enhancing availability of goods on shelves at sales floors.
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