Wednesday, November 19, 2014

Manufacturing and Distribution

I learned that Zara and H&M have very stylized marketing systems. Zara is focused on flooding the market with a constant stream of new clothes. While H&M focuses on cheap and planed out distribution of clothes on a longer time scale. Both these companies use a centralized hub that controls the marketing of the business. Both companies out source their manufacturing to foreign countries where labor is cheaper. With Zara's fast distribution chain they are able to have less clothes sitting in stores and just rely on weekly shipments. I am wondering how these big companies micromanage their small local stores.
  

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