Forever 21 and dual sourcing

The Oct 5 edition of the Wall Street Journal described “fast fashion” at Forever 21, a chain started by Korean immigrants in Los Angeles. The store was reported to have revenues of over $ 3 billion in 2010. The company uses local manufacturing sources in Los Angeles for their fashion products and lower cost sources, with long lead times, for their basic products. Such a strategy has enabled them to both react to trends and compete on price. The article focuses on the company’s expansion plans in Europe and going global.  At the heart of their strategy is the ability to carefully manage the supply chain to have both, as Marshall Fisher describes in his HBR article, “responsive” and “efficient” supply chain structures to offer”functional” and “innovative” products (quotes refer to Fisher’s article on “What is the Best Supply Chain for your product” – Harvard Business Review”). Is Forever 21 a model of the future of retailing ? How should the company balance its ability to source locally for stores all over the world ? Your thoughts

About aviyer2010

Professor
This entry was posted in Global Contexts, Supply Chain Issues and tagged , , , . Bookmark the permalink.

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