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ABSTRACT
The following research offers a theoretical model for understanding sourcing decisions made by apparel retailers. The concept of fast fashion is explored by applying the model to Zara and Kohl's. Factors influencing sourcing decisions are noted, and financial results of the retailers are compared. Finally, ideas for future research using the model are offered.
Keywords: Fast Fashion, Retail, Supply Chain Management, Global Sourcing, Merchandising, Zara, Kohl's
INTRODUCTION
The next time you are looking through your closet, inventory which items are "Made in the USA." Chances are your list will be very short since less than 5 percent of all apparel sold here is made in the United States (CNN News, 2009). Our closets are a microcosm of the shift in manufacturing due to globalization and reflect the huge influx of clothing imports into the United States.
To illustrate this point, in 1982, US textile and apparel imports were 10 billion dollars. In 2006, the figure was 96 billion (U.S. Department of Commerce). The Agreement on Textiles and Clothing Act was negotiated under the World Trade Organization (WTO) in 2005 and it removed quota restrictions for all apparel and textile imports for the 145 members of WTO. The trend of manufacturing fashion goods outside the US has resulted in lower costs to the consumer, and the look is not only cheap, but surprisingly cheap chic.
The impact of global trade in apparel has spawned the concept of fast fashion, apparel produced quickly with a low cost, chic look now dominating the retail world. Fast fashion is mass-produced, reasonable in price for most consumers, and easy to obtain, making it simple for anyone to look stylish. Tom Ford, the iconic designer who spent years with Gucci, proposed that the concept of fast fashion makes fashion democratic, because it is affordable and fashion is no longer dictated by an elite few (Agins, 2007). Both H & M and Zara pioneered the concept in the 1990's opening stores in major US cities. The first openings of H & M in the States prompted customers to line up outside the store waiting to get in to buy clothes that were cutting edge with the latest look but reasonably priced.
Traditional cycles prior to the advent of fast...