Louis Vuitton Moët Hennessy

ABOUT THE CORPORATION:

LVMH stands for Louis Vuitton Moët Hennessy. A French multinational luxury goods
conglomerate formed in 1987 through the merger of the fashion house Louis Vuitton, champagne
and spirits producer Moët Hennessy. (Highs nobiety)(https://www.highsnobiety.com/tag/lvmh/)

Founded by Bernard Arnault and Alain Chevalier has led the Group since 1989 with
Headquarters in Paris ,France is the majority shareholder, pursuing a clearly focused vision:
make LVMH the world leader in luxury.

All the LVMH companies share a firm belief that the attractiveness of their products is
intrinsically linked to their sustainability. Therefore, LVMH has always made sure that the
production of its products is based on the best ethical, environmental, and social standards.

Corporate philanthropy towards the arts and culture has been an integral part of the Group since
its inception and a central tenet of its expansion. This act of philanthropy aligns with the values
of professional expertise, excellence, and innovation shared by their companies, values that
define their artistic, cultural, and social activities. (LVMH)

LVMH is targeting millennials and Gen Z, who are expected to generate 70% of luxury sales by
2025. The shift in this demographic is at the center of the company's growth strategy, with a
focus on digital experiences and sustainability. (CB INSIGHTS)n years, LVMH had increasingly
expanding worldwide revenue of more than 53 billion euros in 2019. The group achieved a level
of close to 85 billion euros in revenue in 2024, down by some 1.7 percent from the previous
year. (STATISTA RESEARCH DEPARTMENT)
With 75 firms in strategically positioned locations across the luxury business, The Group's
economic presence in the markets is roughly 80 nations across the globe, far from just its
commercial performance by creating value at numerous various levels via its operations.
(LVMH)

Here is a list of FAMOUS companies owned by LVMH:

1) Fashion & Leather Goods: (€41,060 M.REVENUE 2024)

Louis Vuitton, Christian Dior, Céline, Givenchy, Fendi, Loewe, Kenzo, Emilio Pucci, Marc
Jacobs, Berluti, Loro Piana, RIMOWA, and Patou. (Fashion & Leather goods,LVMH)

2)Wines & Spirits:

Moët & Chandon , Dom Pérignon, Hennessy, Veuve Clicquot , Krug, and Maison Ruinart.
(Jonathan Feniak)

3)Watches & Jewellery: (€10,577 M,REVENUE 2024)

Bvlgari, Tiffany & Co, Hublot, Chaumet, Daniel Roth, Fred, and Gerald Genta.(Watches &
Jewellery,lvmh)

4)Perfumes & Cosmetics:

Guerlain, Sephora ,Fenty Beauty by Rihanna ,Fresh, Acqua di Parma ,Benefit Cosmetics, Cha
Ling & Givenchy Parfums. (LVMH)

5)Selective Retailing:

Le Bon Marché (LVMH)

6)Other Activities:

Feadship and Glenmorangie distillery (Jonathan Feniak)

FUTURE PLANS:

● Targeting Younger Consumers:

● LVMH targets young consumers by hiring 25,000 people under the age of 30 and
including streetwear fashion in its luxury collections, thus targeting Generation Z and
younger generations. (Mimosa Spencer and Reuters)

● Partnerships and Collaborations:

● The firm has made a 10-year partnership with Formula 1, where TAG Heuer will come
back as the official timekeeper. This is in line with LVMH's move to increase brand
visibility and interaction via prominent events. (Global economic environment,LVMH)

● Sustainability Initiatives:
● LVMH is still upholding sustainable practices through its brands, paying special attention
to sustainable materials and traceability technologies in order to appeal to the values of
younger consumers. (CB INSIGHTS)

COMPETITORS:
1. KERING
● Focus: Luxury high-end fashion.
● Brands: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen.
Competitive Advantage:
● Strong focus on ethics and sustainability.
● A multi-brand strategy with separately managed maisons.
● Innovation in design and marketing approaches
Comparison to LVMH:
● LVMH has a diversified portfolio across a range of sectors, whereas Kering concentrates
mostly on luxury fashion.
 ● Kering targets environmentally friendly consumers through initiatives of sustainability.
(fourweekmba, n.d.)

2. RICHEMONT
● Focus: Fashion, jewelry, and watches.
● Brands: Cartier, Van Cleef & Arpels, Jaeger-LeCoultre, Piaget, Chloé.
Competitive Advantage:
● Specialized expertise in high-end craftsmanship and heritage.
● Significant presence in Asia-Pacific markets.
Comparison with LVMH:
● Richemont is expert in timepieces and jewelry compared to diversifying across several
luxury categories like LVMH.
● Both companies utilize boutiques and e-commerce websites for distribution.
(digiday.com / richemonts, n.d.)

3. HERMÈS
● Specialization: Leather goods, ready-to-wear clothing, accessories.
Competitive Advantage:
● Unequalled craftsmanship and exclusivity.
● Managed production volumes and controlled distribution increase brand desirability.
Comparison with LVMH:
● Hermès has a more limited range of products but enjoys higher margins due to
exclusivity.
● Hermès' omnichannel strategy prioritizes customer experience through real estate and
digital sources. (hermes - the - pinnacle, n.d.)

4. TAPESTRY INC.
● Focus: Affordable luxury that appeals to the masses.
● Brands: Coach, Kate Spade, Stuart Weitzman.
Competitive Advantage:
● Value positioning at accessible luxury levels for younger generations.
● Broader channels of distribution in the form of outlet stores.
Comparison to LVMH:
 ● Tapestry is positioned within the mid-luxury category, unlike the high-end direction of
LVMH.(pitch grade) (bigmarketing, n.d.)

5. BURBERRY GROUP PLC

● Focus: Heritage-based British luxury fashion.
Competitive Advantage:
● Iconic trench coats and distinct design motifs.
● Flagship store strategy enhances brand identification.
Comparison with LVMH:
● Burberry's product range is constrained relative to the wide range across several sectors
represented by LVMH.

6. ESTÉE LAUDER COMPANIES

● Luxury cosmetics and skincare products are concentrated focus areas for Estée Lauder,
whereas it does not compete directly with fashion or leather goods but with LVMH's
Perfumes & Cosmetics division through such brands as MAC and Clinique.

7. SWATCH GROUP
● Watches are its product strength with the likes of Omega and Longines. Competing with
LVMH's Watches & Jewelry segment.

Competitive Landscape
The luxury goods industry is competitive, with every competitor using distinctive
strategies to compete with LVMH's leadership:
1. Kering focuses on sustainability and fashion innovation.
2. Richemont exploits jewelry and watch craftsmanship.
3. Hermès preserves exclusivity through limited production levels.
4. Tapestry focuses on affordable luxury for wider markets. (thebrandhopper, n.d.)
CUSTOMER PROFILE :

Market segmentation is a cornerstone of LVMH’s marketing strategy. It allows the luxury

conglomerate to precisely target and cater to distinct consumer groups across its vast portfolio of
brands. LVMH utilizes a multi-faceted segmentation approach, including demographic,
geographic, psychographic, and behavioral segmentation, to effectively position its products in
various markets.

1. High-Net-Worth Individuals (HNWIs)

Demographics: Typically aged between 35-65, they possess high disposable income and often
have executive or entrepreneurial roles. (hivelr)

Psychographics: They value exclusiveness, improved quality, and heritage of the brand and
consider luxurious products to represent status symbols. (Bain & Company)

Behavioral Characteristics: They are recurring buyers who make regular purchases of limited
edition and custom items. (Vogue)

2. Aspiring Consumers

Demographics: Middle to upper-middle-class consumers, between the ages of 25-40, who are
looking for luxury as a symbol of social mobility. (Luxe Analytics)

Psychographics: These customers are appearance-oriented and view luxury items as milestones
or rewards for achievement. (Deloitte)
Behavioral Traits: These individuals have a tendency to indulge in the purchase of novice luxury
items, usually in the form of upscale perfumes, fashion accessories, and other small leather items
that appeal to their sense of taste. (hivelr)

3. Millennial and Generation Z Buyers

Demographics: People aged between 18 and 35 years old form a growing share of the luxury
clientele. Millennials, who are in this age bracket, are estimated to form a tremendous 50% of the
luxury consumer market by 2025. (Bain & Company)

Psychographics: They are very technology-oriented, very much prefer authenticity, and are
heavily affected by social media, celebrity promotions, and influencer marketing. (Vogue)

Behavioral Characteristics: They value customized experiences, brand partnerships, and eco-
friendly luxury goods. (Luxe Analytics)

4. Emerging Market Consumers

Demographics: The buying base is predominantly made up of customers that are from China,
India, the Middle East, and Southeast Asia, which are the markets that are witnessing a very high
growth of luxury demand directly as a consequence of high economic growth in these markets.
(Mckinsey)

Psychographics: They consider luxury products to be emblems of success and like extremely
recognizable logos and monogrammed items.

Behavioral Characteristics: They like flagship stores, private collections, and tend to buy luxury
items on the move. (hivelr)

5. Luxury Travelers

Demographics: Affluent individuals who travel overseas fairly frequently. (Deloitte)

Psychographics: They are looking for experiential luxury and value products that enrich their
travel experience, including luxury accessories and luggage. (Luxe Analytics)

Behavioral Traits: They invest in upscale travel accessories, enjoy airport luxury shopping, and
purchase duty-free exclusives. (hivelr)

6. Consumers of Diverse Geographical and Cultural Backgrounds

Geographic Segmentation: LVMH markets its products as per geographical preferences. (Bain &
Company)

Cultural Adjustment: In Asia, specifically China and Japan, LVMH emphasizes heritage,
craftsmanship, and the prestige of luxury ownership. (Mckinsey)

Both in America and Europe, focus is laid on areas like heritage, sustainability, and the feeling of
exclusivity that attracts consumers. (Luxe Analytics)

In the Middle East market, the company is particularly sensitive to cultural modesty traditions
and, as such, offers exclusive private shopping experiences that are aligned with such values.

LVMH segments its consumers with utmost care to cater to high-end shoppers, aspirational
buyers, and young luxury buyers across geographies. With strong digital engagement,
sustainability efforts, and judicious products, LVMH is still a market leader in the luxury space.
VENDOR SELECTION AREA :

Criteria for vendor selection are the rules and standards that organizations create to evaluate and
select suppliers or business partners. The criteria help to ensure that the vendors selected are in
accordance with the organization's values, quality expectations, and operational needs. LVMH, a
luxury goods conglomerate, has an extensive vendor selection criteria as defined in its Supplier
and Business Partner Code of Conduct.

Most Critical Vendor Selection Factors at LVMH:

1)Legal Compliance and Code of Ethical Conduct: LVMH obliges its suppliers to abide by all
appropriate local, national, and international legislation and regulations. These include
legislation and regulations concerning labor practices, anti-corruption, and fair competition.
LVMH has no tolerance for any corruption and asks its suppliers to have anti-bribery and anti-
influence peddling prevention policies.

2) Human Rights and Workplace Practices: Suppliers must respect human rights and provide
safe, healthy, and dignified working conditions. LVMH demands practices such as prohibiting
forced and child labor, anti-discrimination, and respect for freedom of association.

3) Environmental Responsibility: LVMH insists that its suppliers adhere to environmental laws,
obtain environmental permits where required, and have efficient environmental management
systems in place. These include efficient waste management, reduction of greenhouse gas
emissions, and conservation of resources.

4) Product Safety and Quality: Suppliers will need to maintain the high product and service
quality that LVMH expects. This includes ensuring all products are safe, compliant with all
regulations, and of luxury standards in LVMH brands.
5) Transparency and Traceability: LVMH gives the utmost importance to transparency
throughout the supply chain. Subcontractors must be made public by the suppliers, and everyone
who is part of the production process must be adhering to LVMH's norms. This means making
public information about the origin of raw materials and ensuring traceability throughout the
supply chain.

6) Financial Stability: Not specifically defined in the publicly available documents, but it is usual
for companies such as LVMH to evaluate the financial stability of their suppliers so that they can
have a stable and consistent relationship.

7) Continuous Improvement and Innovation: LVMH stimulates its suppliers towards continuous
improvement and innovation. This includes the implementation of green technologies and
processes for sustainability and efficiency.

Implementation and Monitoring:

To achieve these standards, LVMH continuously monitors its suppliers through audits and
checks. The company carried out more than 2,000 on-site audits worldwide in 2023 alone.
(Reuters) These audits cover different areas, such as labor practices, environmental management,
and compliance with ethical standards.

Also in 2023, LVMH launched the LIFE 360 Business Partners program aimed at involving
suppliers even more actively in the quest for ambitious environmental objectives. It is a
statement of LVMH's recognition that much of its carbon footprint lies in its supply chain,
illustrating the need for action through collaboration if sustainability is ever to be realized.
(LVMH)
Challenges and Continuous Improvement

Even with these tight controls and monitoring systems, situations still occur. In December 2024,
for example, there were reports of labor exploitation on the part of a Dior subcontractor, an
LVMH brand. This raised questions about the complexity of supply chain management and the
need to continually improve auditing and compliance practices. (Reuter)
 CSR PRACTICES

LVMH's social responsibility approach is long-term and places men and women at the center of
its actions. It is organized around a worldwide road map that is applied in many initiatives
carried out globally by LVMH and its Companies. The approach is founded on four principles:

● Develop individuality
● Foster a secure, healthy working environment,
● Excellence through know-how
● Contribute to a better society.

(Commitment in action for people,LVMH)

Some of the Key initiative CSR carried by LVMH are:

A) LIFE 360 Program:

● LVMH’s environmental policy has been a pillar of its growth strategy for the past 27
years. This policy accelerated in 2012 with the creation of the LIFE (LVMH Initiatives
For the Environment).
● In 2016, LVMH developed the LIFE program around four objectives to lead
environmental excellence by 2020: increase product sustainability, impose best
procurement practices, enhance site performance, and reduce CO2 emissions.
● Having exceeded its LIFE 2020 goals, LVMH launched LIFE 360 with targets for the
years 2023(completed), 2026, and 2030, focusing on biodiversity, climate action, circular
economy, and transparency.(Life 360,LVMH)

B) LVMH Heart Fund:

Launched in June 2021, A fund that provides emergency financial aid, social support, and
psychological assistance to the Group's employees worldwide. It is endowed with
€30 million and supports over 196,000 employees in more than 80 countries.(Heart
Fund,LVMH)

C)Métiers d'Excellence:

This program promotes craftsmanship and expertise within LVMH brands. Over 8,000 new
members joined in 2023, with outreach programs targeting young people and career changers.
(LVMH CSR Programs ,Market Screener)

D)Health and Safety:

LVMH achieved a percentage of 8% year-on-year reduction in accident frequency rates in 2023.

Mental health awareness campaigns were also organized to prioritize employee well-being.
(LVMH CSR Programs ,Market Screener)

E)Diversity & Inclusion:

Female representation in senior management increased to 46% in 2023. Initiatives like "Voices
of Inclusion" showcased efforts to promote diversity across the Group’s Maisons. (LVMH CSR
Programs ,Market Screener)

F)Biodiversity Protection:

LVMH joins forces with UNESCO to counterbalance the extensive impacts of climate change on
biodiversity as well as strengthen ecosystem resilience. LVMH also finances agroforestry
initiatives and R&D in sustainable materials such as keratin-derived fibers. (Global economic
environment,LVMH)
 JUST IN TIME:[ JIT]
Definition of JIT

● Just-In-Time (JIT) is an inventory management and manufacturing strategy that

synchronizes production with demand. (deskera, n.d.)
● Rather than holding raw materials or completed goods in inventory, JIT makes sure that
products are manufactured or shipped "just in time" for customers' needs. JIT reduces
waste, saves storage expense.

● In the clothing manufacturing sector, JIT enables companies to make garments in

accordance with immediate demand instead of predicting future demand. The system is
most advantageous for fast fashion companies that need rapid turnaround to remain
competitive. (medium jit, n.d.)

Historical Background and Origin

● The JIT philosophy was born in Japan in the post-World War II period when industries
were plagued by shortages of resources, insufficient capital, and surplus labor. Toyota
developed the technique under its Toyota Production System (TPS), created by Taiichi
Ohno in the late 1940s. The system sought to cut waste and streamline production
processes by making goods only when required.

Key Milestones:
● 1930s–1945: Post-war Japan adopted lean manufacturing principles to rebuild its
economy. Toyota began experimenting with JIT practices to address resource
constraints.

● 1973: The oil embargo crisis prompted Japanese companies to refine JIT methods
further, showcasing their resilience and efficiency.

● 1977–1980s: JIT spread globally, particularly to the United States, where

industries like automotive and electronics adopted the system.
(manufacturingdigital - timeline, n.d.)

Evolution in the Apparel Industry

 ● JIT principles were subsequently applied to the apparel industry to counter issues like
unstable consumer demand, high costs of inventory, and long lead times. In this sector:

● Fast Fashion Brands: Retailers such as Zara employ JIT systems to make clothes
rapidly in response to prevailing market trends. This enables them to react quickly to
shifting customer tastes without overproducing.
● Supply Chain Integration: Fashion companies depend on well-established supplier ties
and accurate forecasting of demand in order to prosper using JIT. (globaltrademag, n.d.)

Most Important JIT Features in Garment Manufacturing

● Demand-Driven Production: Pieces are manufactured when orders are on hand.

● Minimal Inventory: Keeps costs of storing stock low through elimination of overstock.

● Lead Times Short: Quickens manufacturing cycles for expedited delivery.

● Waste Reduction: Prevents overproduction and unnecessary use of materials.

(investopedia, n.d.)

QUICK RESPONSE:[ QR]

Definition of QR
● Quick Response (QR) is a supply chain approach to improve responsiveness and
flexibility by shipping products in the precise quantity, variety, quality, and timing
according to actual consumer demand.
● QR combines JIT manufacturing principles with sophisticated technologies like
Electronic Data Interchange (EDI), Computer-Aided Design (CAD), and Computer-
Aided Manufacturing (CAM).
● QR seeks to simplify operations throughout the supply chain, shorten lead times, and
enhance communication between manufacturers and retailers. (Sîrbu & Saseanu, 2012)

Historical Background and Origin

● QR began in the North American apparel and textile business in the 1980s as a reaction to
expanding import competition, volatility of demand, and inefficiencies of conventional
 batch manufacturing systems. It was conceived through research initiatives focused on
maximizing the complete apparel pipeline. (Ananth. V. Iyer, 1997)

key Milestone
● 1980s: QR was developed as a response to issues like seasonality, changing consumer
tastes, and expensive inventory.

● 1990s: QR became popular with retailers such as Zara and Benetton, who applied its
concepts to introduce fast fashion models that cut lead times from design to store
delivery.

● Global Expansion: QR strategies were implemented across the world as businesses

realized their potential to increase competitiveness in fast-changing markets.

Apparel Industry Development

● The apparel sector implemented QR strategies in order to address increasing demand for
faster production cycles and fashion-oriented designs. QR allows manufacturers to
rapidly address market trends using real-time sales information.

Key Features of QR:

● Shorter Lead Times: Decreases the time interval between order issuance and product
delivery.

● Demand Responsiveness: Enables manufacturers to modify production according to

real-time consumer information.

● Technology Integration: Applications such as EDI, CAD/CAM, and barcoding enable

effective management of inventories.

● Waste Reduction: Eradicates excess inventory and overproduction.

Influence of QR on the Fashion Industry

● QR has transformed the fashion industry by allowing for quicker response to trends in the
market and enhancing supply chain effectiveness.

● Improved Customer Satisfaction: Products better match consumer demands due to faster
replenishment (Kincade, 1995)
 IMPLEMENTATION OF THE JIT SYSTEM
IN APPAREL INDUSTRY

The fashion business is faced with unique challenges in terms of decreasing product life
cycles, high volatility, low predictability, and the need for quick market response. These
aspects make Just-In-Time (JIT) especially useful. Below is a detailed breakdown of its
implementation, benefits, challenges, and real-world applications:

1. Analysis Current processes:

Works on existing inventory levels, production workflows, and supplier relationships to
identify inefficiencies of the process. Gradually reduce excess stock while refining
demand forecasting tools to align with customer needs.(Just in Time (JIT) Inventory:
A Comprehensive Guide,Intuendi) (Tim Cooper and Sage)

2. Strengthen Supplier Collaboration:

Partner with reliable sources and long-term contracts.This ensures timely delivery of
materials in small batches and fosters trust, which is critical for JIT’s success. (Just in
Time (JIT) Inventory: A Comprehensive Guide,Intuendi) (Mazhrul Islam Kiran)

3. Optimize Production:
Install a demand-pull system utilizing equipment like Kanban (workflow visual
management) and heijunka (production leveling) to synchronize production with actual
orders. This decreases idle time and overproduction. (Mazhrul Islam Kiran) (Tim Cooper
and Sage)

4. Prioritizes Quality Control:

Have strict quality control at each stage to minimize defects and prevent delays. Small
batch production makes it easier to detect and repair defects. (Ken Feldman) (Just in
Time (JIT) Inventory: A Comprehensive Guide,Intuendi)

5. Leverage Technology:
Implement real-time data analysis and stock management software to monitor trends in
demand and enhance procurement activities. For instance, RFID technology can enhance
material traceability in apparel production. (Anita Raj) (Tim Cooper and Sage)
JIT’s IDENTIFIED IMPROVEMENTS:
1)Improved Quality and Customer Satisfaction: Manufacturing only when required
guarantees products are of the highest quality, minimizing the risk of obsolescence and spoilage.
(Uphance:Mastering JIT Inventory Management for Business Excellence)

2)Cost Saving: Reduces storage charges, holding charges, and tied-up capital in stock,
enhancing cash flow. (Anita Raj) (Salesforce)

3)Enhanced Efficiency and Productivity: Eliminates waste, optimizes storage capacity, and
minimizes production processes to facilitate rapid cycles of production. (Anita Raj) (IT
Convergence)

4)Enhanced Supplier Relationships: Promotes collaboration with suppliers for on-time

delivery, hence improving supply chain performance. (IT Convergence) (Salesforce)

5)Operational excellence: It triggers a culture for continuous improvement in which the work
environment becomes more productive and active. (Anita Raj)

Key Success factors of JIT:

The key successes of the Just-in-Time (JIT) system in the apparel industry include:
1. Reduced inventory costs
2. Improved cash flow
3. Enhanced flexibility in maintaining new trends
4. Increased efficiency
5. Better quality control
6. Stronger supplier relationships: JIT encourages closer collaboration with its suppliers for
timely deliveries.
7. Reduced obsolescence
8. Improved customer satisfaction
9. Optimized production scheduling
10. Reduced wastage by preventing over production according to trends
(Brightpearl by Sage)
ADVANTAGES & DISADVANTAGES OF THE JIT SYSTEM
ADVANTAGES:
● Lower Inventory Costs: JIT eliminates the necessity for high storage levels of
inventory, lowering warehousing expenses and obsolescence risks. (JIT Inventory ,Oracle
Netsuite)

● Increased Efficiency: Production is optimized by avoiding excess raw materials and

concentrating on real demand, improving operating productivity. (JIT Inventory,Forbes)

● Waste Minimization: By making only what is required, JIT minimizes overproduction

and waste of materials, in line with sustainability objectives. (Textile Learner)

● Accelerated Turnaround: Reduced production cycles enable faster response to market

needs, enhancing customer satisfaction. (Inco Docs)

● Improved Cash Flow: Reduced inventory frees up cash for other operational purposes,
enhancing financial well-being. (Textile Learner)

● Improved Quality Control: Small production lots facilitate easy detection and
resolution of defects. (JIT Inventory,Forbes) (Inco Docs)

DISADVANTAGES:
● Vulnerability in the Supply Chain: JIT relies significantly on timely supply deliveries;
disruptions can bring production to a standstill. (Inco Docs)

● Challenges in Demand Forecasting: Errors in demand forecasting can result in

stockouts or overproduction. (Importance of JIT, Adobe for Business)

● High Coordination Requirements: High-precision scheduling and strong relationships

with suppliers are required, creating high management (Inco Docs)

● Risk of Stockouts: Low inventory situations can lead to failure to address sudden spikes
in demand. (Importance of JIT, Adobe for Business)
 ADVANTAGES & DISADVANTAGES OF THE QR SYSTEM

ADVANTAGES:

● Agility in Fast Fashion: QR facilitates quick replenishment of inventory and regular

introduction of new items, keeping pace with fast fashion trends. (Adoption of Quick
Response and inventory management in fast fashion: two case studies in the state of
Minas Gerais By São Carlos,Page 3)

● Trend Responsiveness: QR systems enable brands to respond rapidly to new consumer

tastes, staying relevant in competitive markets. (Adoption of Quick Response and
inventory management in fast fashion: two case studies in the state of Minas Gerais By
São Carlos,Page 3)

● Inventory Optimization: QR reduces overstocking and stockouts by leveraging real-

time data for improved inventory management. (Role of Barcode & QR CODE IN
FASHION SUPPLY CHAIN MANAGEMENT,Apparel magic)

● Improved Supply Chain Efficiency: QR optimizes production and distribution

processes, shortening lead times and enhancing operational flow. (Adoption of Quick
Response and inventory management in fast fashion: two case studies in the state of
Minas Gerais By São Carlos,Page 5-9)

DISADVANTAGES:

● High Costs of Implementation: Implementing QR systems calls for heavy technology

and infrastructure investments. (Benefits of QR on Clothing,Bitly) (Role of Barcode &
QR CODE IN FASHION SUPPLY CHAIN MANAGEMENT,Apparel magic)

● Reliance on Accurate Information: QR depends on accurate information inputs;

discrepancies can jeopardize supply chain function and customer satisfaction. (Role of
Barcode & QR CODE IN FASHION SUPPLY CHAIN MANAGEMENT,Apparel
magic)

● Strain on Suppliers: The urgency to deliver turnaround rapidly can stress relationships
with suppliers or result in sacrificing quality with close deadlines. (Adoption of Quick
Response and inventory management in fast fashion: two case studies in the state of
Minas Gerais By São Carlos , Page 4)
 APPAREL COMPANIES THAT HAVE USED THIS
SYSTEM

Just-in-Time (JIT) in Fashion Industry

Worldwide:

1) Zara (Inditex, Spain)

● Creates, develops, and launches new designs in weeks.
● Utilizes current data from retailers to change manufacturing, with little surplus
inventory.

2) H&M (Sweden)
● Runs JIT inventory control to enable hassle-free operations and adapt to changing
fashion trends.
● Employs data analysis and automation in order to attain lean inventory levels.

3) Uniqlo (Japan)
● Takes a JIT approach in offering basic products in inventory but keeping minimal
amounts in stock.
● Uses sophisticated automation to monitor demand and shift production to match.
Quick Response (QR) in the Apparel Industry

India:

1) Madame
● Has an in-house manufacturing factory in Ludhiana, enabling restocking within a
week.
● Continuously replenishes stock in stores to keep up with market trends.

2) Myntra
● Utilizes real-time point-of-sale monitoring and artificial intelligence-powered
demand forecasting to restock top-sellers.

3) Reliance Trends
● Monitors closely track sales numbers and rapidly introduces new styles that
resonate with Indian fashion sensibilities.

International:

1) Zara (Inditex, Spain)

● Operates a QR strategy that distributes new fashions to retail outlets within 2–3
weeks.
● Utilizes up-to-date point-of-sale information in an attempt to quickly stock best-
sellers.

2) Shein (China)
● Uses AI and real-time data to determine trending patterns and create them in days.
● Lists more than 600,000 products on its website with thousands of new designs
added daily.

3) Tommy Hilfiger (USA)

● Uses QR codes in marketing to link consumers to online shops for quicker
buying.
● Utilizes augmented reality in campaigns to engage customers more.

4) Gucci (Italy)
● Employ QR codes on products to authenticate as well as improve customer
experience.
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