On the ethics of fast fashion

Last week, I wrote about wedding gowns. Now it’s time to think of the other end of the fashion price spectrum: fast fashion. The Observer had an interesting piece on Swedish fast fashion retailer H&M and what they report in their annual sustainability report (Is H&M the new home of ethical fashion?, Apr 7). The report is [...]

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What determines the cost of wedding gowns?

Check out this fun video from Planet Money: Why Did My Wedding Dress Cost So Much? (Apr 3). (Sorry, I can’t get the video to display properly here.) To some extent the title of this piece is wrong. The real question for her is not what her gown cost to make, but why it is priced [...]

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How does Lululemon keep from stocking lemons?

Lululemon is undoubtedly on a tear. According to the Wall Street Journal (Lululemon’s Secret Sauce Mar 21), the Canadian retailer has higher sales per square foot than Neiman Marcus and its price to earning ratio is 48. How does it manage this? A lot has to do with its management of its assortment and its inventory. Check [...]

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Random updates from Apple to Pret A Manger

We have a handful of updates on some recent stories. First, Apple has taken steps to address complaints about its labor practices. Specifically, they have signed up the Fair Labor Association (FLA) to audit its suppliers’ plants (Apple Initiates Labor Audit, Wall Street Journal, Feb 13). Apple asserts that these audits are “unprecedented in the electronics industry.” [...]

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Mass customization at Burberry

Few things would be more luxurious than a truly custom-made product that is tailored to your every desire. That, of course, is expensive but there is a medium ground between a truly custom product and something that is merely off the rack. Mass customization promises customers a sort of unique offering. I say “sort of [...]

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A very Kardashian supply chain problem

I should start by apologizing; this post has a very cheesy, scandalous angle of which I am not proud. The basic story, however, is just too fun to pass up. So this is about Kim Kardashian, her recent wedding, and her even more recent divorce. The wedding was a big celebrity splash complete with multiple branding opportunities. [...]

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Fancy Pants!

A few weeks ago, we posted on the steps apparel companies were taking to reduce costs, and in particular what let them make cheap pants. Today, the Wall Street Journal has a story about the other end of the market, asking “How Can Jeans Cost $300?” (Jul 7).The short answer is “Lots of reasons.”

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Lean operations for luxury bags

The Wall Street Journal had an interesting article on how Louis Vuitton is relying on operations to support its growth (At Vuitton, Growth in Small Batches, Jun 27). The brand has grown significantly and is now significantly bigger than rivals such as Gucci. That raises some interesting challenges as it tries to keep up its growth [...]

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Saving pennies on pants

Some eye candy from Businessweek (Cost-Cutting Is Rampant in Fashion, May 26). So the question is what does it take to save money in apparel? With material costs rising, pennies matter. Eliminating a few features to simplify assembly can make a significant difference in the profitability of the product. Because only so much can be [...]

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Some numbers on Zara

The Spanish fast fashion retailer Zara (a division of Inditex) has been a favorite topic in OM classes for a while. They are a successful, innovative firm whose competitive advantage really lies with their operations. The distinctive components of their operations (e.g., responsive production, excellent logistics) have been well documented. That has not kept The [...]

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