Chapter 1.9, Problem 1RQ

There is a huge demand in the United States and elsewhere for affordable women’s clothing. Low-cost clothing retailers such as Spain’s Zara and Sweden’s H&M are benefiting from their ability to quickly get mass-produced, trendy new fashions to store shelves white some less-agile competitors like Macy’s and Gap struggle to achieve the same results. A key factor for the ague retailers is their nearness to low-cost producers In Romania and Turkey, which greatly shortens transportation time. American retailers often source from China, but increasing wages there and the longer distance lessen their ability to take advantage of quickly introducing new low-cost fashions.

Questions

What possible solutions do you see for competitors such as Macy’s and Gap?

Source: Based on Roya Wolverson, “Need for Speed Glamorizing Cheap Fashion Costs More than You Think” Time, August 6, 2012, p. 18.