Need To Change In Fashion English

Guest Talk eBusiness
EDI & Channel Partnership @University Tilburg

Steven Witteveen
14 november 2012

White paper

“Time to change towards more
vertically integrated fashion
business”

https://docs.google.com/open?id=0ByhsIwaZm8kqWHh5M2FwSXBCSjg

Characteristics of the fashion market:

• Seasonality and trends

• Variances: style, colour, size, subsize
• >> giga # of SKU’s

• Perfect competition (versus oligopoly in food)

• Merchandise risc: traditionally at retailer side
• >> mark downs
FashionUnited Indicia14 november 2012 Indicia Groep 14 november 2012

Trends in the fashion market:
• Shortening of product life cycle (fast fashion)
• Rising costs
• Continuous growing competition:
> mono brand shop
> verticals
> foreign chains
> online retailers
> direct internet sales
• Shop floor volume versus sales volume


Shop floor space development is not
in line with turnover development

Sector study fashion industry
Source: ING Bureau of Economics, 2010

Multi brand retailer: what to do?

• Just go on?
• Wait for better economic circumstances?
• Sell your business?
• Quit your business?


Increasingly multi-brand fashion chains closing doors (Dutch)

Het loopt niet overal goed af …
Modebedrijf Koninklijke Meddens sluit na 180 jaar
haar filialen. 12 november 2010. Volgens de directie heeft
de economische malaise in combinatie met de slechte
bereikbaarheid van de winkels in de grote steden het bedrijf de
das omgedaan. Vorig jaar heeft failliet – mei 2011
Hans Textiel (160x): men geprobeerd middels een
reorganisatie Kerkhof (18x): stopt ermee – eindgelukt.
Piet het bedrijf te redden, maar dat is niet 2012
Klanten zijn in een brief op(103x): failliet – oktober 2012
Henk Ten Hoor de hoogte gebracht. (bron:
www.FashionUnited.nl)
Tango Fashion: failliet - april 2012
Leon Mode (26x): failliet oktober 2012
Piet Thielen stopt ermee. 9failliet – oktober Na 49 jaar
Neckermann.de: november 2010. 2012
gaan de winkels van de luxe herenmodezaak Piet Thielen dicht.
Neckermann.nl: 130 fte firedn – okt. 2012
Reden daarvoor zijn of Shoes (41x): omstandigheden en een
House de economische failliet – november 2012
snel veranderende markt. De zaak had filialen in Breda, Den
Bosch en Roosendaal. (bron: www.FashionUnited.nl)

Modehuis Slot stopt ermee. December 2007


How the forerunners do react:

• Multi channel operation
• Digital co-operation and integration within
the supply chain

• Management by figures (instead of
management by emotion)

So: >>> be clever and change!
However: no such change without EDI !!


http://youtu.be/sN6pzghXnGI

Film Vertical Supply Chain Integration (Dutch)

What is EDI ?
• EDI (electronic data interchange) is a standard data structure that allows
companies with differing hardware and software systems to exchange information
in a common format. EDI is used to communicate a variety of information and is
typically used in a supply chain. It is widely adopted in food and non-food retail,
healthcare, automotive and even by the U.S. Department of Defense.

• Traditionally, no one does EDI because they want to, they do EDI because a partner
in a business relationship mandates it, however it does help save time and money
when it comes to communicating business information documents. Major retailers
such as Wal-Mart, Target and Home Depot most commonly use EDI to
communicate the following information: Orders to their suppliers (850), Invoices
from their suppliers (810), Shipment notices from their suppliers (856). There are
also a number of other documentsthat are used but these three are almost always
required in a retail relationship.

• Advantages of EDI: faster supply chain due to increased speed of communication of
key business documents , increased accuracy (especially if integrated), cost savings
associated with reduced re-keying errors, fewer people needed to physically handle
the documents.

• Disadvantages of EDI: reputation for being complex and expensive to set up, VAN
fees are variable and can be expensive, business processes may need to change
(such as how accounting communicates with your EDI business partner).

What is a VAN?
• Value-Added-Network (VAN): This is a
service you can picture as an electronic
post office that looks at the sender and
recipient and routs EDI data to the proper
‘mailbox’. You pay the VAN based on the
volume of data you do, usually calculated
by the kilo-character. Note that some
companies like Wal-Mart and Bed, Bath &
Beyond do not use a VAN connection but
a direct connection called AS2. This
prevents data transmission charges
incurred by the VAN.

EDI message flow in fashion


New business models for new opportunities …

• From retail driven towards supplier driven models:
 Concession, consignment
 Vendor Managed Inventory

• Reallocation risks

• Co-operation based on figures

… for better results in the supply chain


Need to change at supplier side
Multi channel operating is a must:
• Separate responsibility for retail, next to wholesale
• More analyse based sales in stead of hard sales

Need to Change:
 Strategy
 Organisation
 Processes
 IT-tools
 People !


How to change?

Hire expertise:

FashionUnited Indicia is specialized
in eBusiness in fashion
(apparel, shoes and sportswear)

Our partner FCTB is specialized
in Innovation & Change

A combination that brings you forward!


Download the whitepaper
(10 pages, english):

“Time to change towards more
vertically integrated
fashion business”
http://t.co/yVS5mWJy

Contact FashionUnited Indicia

www.fashionunitedindicia.com
Tilburg: +31 13 5810666
Almere: +31 36 5382828

Steven Witteveen: +31 653 137303
Steven@FashionUnited.com

: stevenwitteveen

http://fashionedi.blogspot.nl


Need To Change In Fashion English

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