Luxury Fashion Brands Automation

2000 words (+/- 10%)

APA Referencing

EXECTUTIVE SUMMARY

Source 1 – “Lean thinking in the luxury-fashion market: Evidences from an extensive industrial project” – GionataCarmignani, Francesco Zammori

Source 3 –  “The complexity of value in the luxury industry: From consumers’ individual value perception to luxury consumption” – Nadine Hennings, Klaus-Peter Wiedmann, Christiane Klarmann, Stefan Behrens

Source 4 –  “Supply chain strategy for companies in the luxury-fashion market: Aligning the supply chain towards the critical success factors” – Cecilia Maria Castelli, Andrea Sianesi

1. INTRODUCTION

Intro & Background

        What is ‘Lean’? Why did it come about?

        What is the philosophy? Where is it used?

        Define ‘luxury fashion’.

        Explain the disconnect between ‘lean’ and luxury’ briefly

Luxury 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 ‘as marketing and branding alone cannot guarantee long term stability anymore’ (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 customers’ 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 today’s 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).

1. LITERATURE REVIEW

Detailed discussion expanding on those points above.

Cite every claim – multiple times if needed

Clearly present the disconnect

- why is implementing ‘lean’ into ‘luxury’ hard?  

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).  Accordingly, the differences make the implementation of lean thinking difficult as well as many other factors which are outlined below.