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1. Presumably, the greatest challenge faced by companies in fashion retail industry is the uncertainty of the market. Even if a company has managed to guess what its customers want right, it does not make the decision making in wear manufacturing for the next season easier…
The challenge gets even worse with the great variety of products presented with every single wear vendor. Product lines vary in styles, cloths and sizes - the range of goods a vendor must produce to attract the attention of buyers is enormous. Minding the fact that only a small part (50% in the case of Jossey Menswear) of the whole stock is sold at full price it becomes clear that wear vendors put up with significant wastes. And because of what Because of inaccuracies and misconceptions of fashion forecasts. Since the production cycle of clothes is rather long (it takes 18 months from the first sketch of a designer) companies have wear in their stores, which were presumed to be popular a year and a half ago.
Obviously, there are two ways a company can take to improve its chances of hitting the bull's eye of customers' popularity. The first one, extensive, lies in broadening its product range and increasing volumes of production. The second path is intensive, and tries to improve the accuracy of forecasts, which only can be made through shortening the production cycles. Of course, the second path is better for Jossey Menswear since it leads to full price sales proportion increasing, while keeping the production volumes the same, or even lower than before, which increases profits for the company. Meanwhile, the first way simply increases revenues along with manufacturing costs. ...
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