Winning at the Speed of Fashion

Winning at the
Speed of Fashion

2Copyright © 2016 Accenture All rights reserved.
KEY TENANTS. WINNING AT THE SPEED OF FASHION
Traditional brands are applying the key tenants of Fast Fashion leaders to win in faster, digital,
omnichannel marketplace
BEING RIGHT. Bringing
on-trend products to target customers
BEING FAST. Delivering the product when it’s
needed, faster than competitors
BEING EFFICIENT. Creating lean, cost
efficient, end-to-end operations
KEY TENANTS
~ 10%
~ 5%
~30%
REVENUE.
through trend-right,
customer-centric
assortments
COSTS.
through smarter product
component sourcing and
reuse
SPEED.
through governed design
and product development
lifecycle processes
LOYALTY.
of lifetime customers
achieved by being right and
being fast
AVERAGE BENEFITS

OVERVIEW. FAST FASHION VALUE STREAM
Understanding which Fast Fashion tenant is most important to your brand informs where along the value
stream you want to invest in first
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VALUE STREAM CASE STUDIES
Understanding which Fast Fashion tenant is most important to your brand informs where along the value
stream you want to invest in first
 INNOVATION.
lululemon quickly brings innovations to market through their “lab” stores
 PLANNING.
Zara leads in fast and agile calendar management
 DESIGN.
Theory realizes the benefits of 3D design capabilities
 DEVELOPMENT.
Levi Strauss is on the edge of material development innovation
 COMMERCIALIZATION.
Brands continue to struggle with managing FOB and landed product costs across their value stream

Copyright © 2016 Accenture All rights reserved. 5
COMPANY OVERVIEW
lululemon athletica has evolved into a global lifestyle brand for those seeking to live “happy, healthy, and
fun” lives
INNOVATION CAPABILITIES
• Countries: 373 locations globally,
headquartered in Vancouver, Canada
• Leadership: CEO Laurent Potdevin is the
latest successor to founder Chip Wilson
• Fun Fact: The company was named based on
the results of a 100 person survey; the “A” in
the logo mismatching the company name is a
remnant of the company’s original rejected
name

LULULEMON LAB
In 2009 lululemon launched their “lab” stores: a brick and mortar retail location where designers test and
get guest feedback on new innovations
PRODUCT TESTING
Test new color, materials, and even
product lines, with as little as 100 units
per SKU
CUT AND SEW
Styles are developed, engineered, and
prototyped in an open workshop on the
sales floor
DESIGN IN MARKET
Sales Associates are the actual
Designers and Technical Developers in-
store to get immediate feedback on what
consumers are buying
Source: http://www.instyle.com/beauty/lululemon-lab-concept-store-fitness-nyc

INNOVATION MANAGEMENT
Brands have to change how they go to market to take advantage of the customer feedback they get from
test stores, like lululemon’s lab
PRODUCT LIFECYCLE CONSIDERATIONS
CALENDAR MANAGEMENT
Create a go-to-market calendar that provides for a clear path for bringing innovations to market, in-season,
based on results from the lab store
DESIGN AND DEVELOPMENT INTEGRATION
Rely on an integrated digital design and PLM platform to quickly turn innovations into technical blueprints
that can be scaled for full commercialization
MATERIAL CAPACITY PLANNING
Have the ability to quickly scale material capacity plan, without losing your margin to the cost of doing
business just in time

WHICH FAST FASHION TENANTS IS LULULEMON REALIZING
THROUGH CONCEPT AND INNOVATION MANAGEMENT?
Being RIGHT Being FAST Being EFFICIENT
Bringing on-trend products to target
customers
Delivering the product when it’s
Creating a lean, cost efficient, end-to-
end operations

COMPANY OVERVIEW
Inditex’s flagship brand Zara has positioned itself as the market leader in the world of
Fast to Market Fashion
• Countries: 88 Countries, headquartered in Spain
• Fun Fact: Over 1 Billion products are manufactured at
INDITEX owned factories
Source: Planet Retail, Accenture Proprietary Framework
PLANNING CAPABILITIES

OVERVIEW. CALENDAR MANAGEMENT
High performing fashion brands effectively compete in a fast to market environment by managing their lines
of business on the “right” model
Two season model that includes
innovation as a part of traditional
planning
Two season model that spins-off
innovation as a part of traditional
planning
Perpetual season model, delivering
smaller collections to market versus
seasonal assortments
TRADITIONAL MULTI-TRACK PERPETUAL SEASON
 In-Season Flexibility
 Speed to Market
 Cross-Team Coordination
 In-Season Flexibility
 Speed to Market
 Cross-Team Coordination
 In-Season Flexibility
 Speed to Market
 Cross-Team Coordination
BASIC ASSORTMENTS FASHION ASSORTMENTS FASHION ASSORTMENTS

INVESTING IN CALENDAR MANAGEMENT
Inditex effectively manages multiple business models based on the nuances of each collection
MULTI-TRACK PERPETUAL SEASONPERPETUAL SEASON
Repeated styles like shirts,
tank-tops, and pants
Weather-driven items like summer
dresses and winter coats
Cat-walk and editorial influenced
styles like jump-suits and rompers
Focused innovation team that develops
products based on cat-walk, editorials, and
celebrity trends
Take on a “test/learn” approach where
initial styles are released in limited
quantities to see what sells before scaling
a full go to market
Foundational styles that are sourced well
in advance of when they hit stores
BASICS SEASONAL FAST FASHION
35% 25% 40%

WHICH FAST FASHION TENANTS IS ZARA REALIZING THROUGH
CALENDAR MANAGEMENT?
customers
end operations

COMPANY OVERVIEW
Theory has made a name for itself selling contemporary, high-quality, modern basics, reflecting the
atheistic feel of New York City
DESIGN CAPABILITIES
• Leadership: CEO Andrew Rosen sold the brand to
Japanese conglomerate Fast Retailing in 2009
• 3D Fun Facts: All of Theory’s FY17 Fall Seasonal collection
will have been 3D designed
Source: Optitex Case Study

INVESTING IN 3D DESIGN
CEO Andrew Rosen wants Theory’s operations to be as innovative as its materials and products
DESIGN CAPABILITIES
“
”
Theory as a company has always been
on the forefront of what’s happening. For
us, that is a big part of the DNA of our
business. The innovation and execution
of our clothing is what we stand for.
– Theory CEO Andrew Rosen on
partnering with OPTITEX

3D PRODUCT DESIGN BENEFITS
3D product design facilitates the coherent communication of concepts across the entire Fast Fashion
value stream
DESIGN CAPABILITIES
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BRAND COHERENCE
Visualize what a line is
going to actually look
like on the market
PHYSICAL SAMPLES
Have accurate
renderings to support
assortment adoption and
selling to Buyers
INNOVATION
Design for what is possible
through advanced
manufacturing, versus just
what you can sketch
DESIGN INTENT
Start with accurate
Technical Packs and
BOMs to communicate
intent to vendors
COLLABORATION
Capture design and
development edits both
internally to the brand and
externally with the vendors
SPEED TO MARKET
Use rendering for marketing,
packaging, and commerce
channels ahead of
commercialization

WHICH FAST FASHION TENANTS IS THEORY REALIZING THROUGH
3D DESIGN?
customers
end operations

COMPANY OVERVIEW
Levi Strauss & Co. first introduced blue jeans in 1873 and has since grown into a global apparel brand,
with a footprint across 110 countries
DEVELOPMENT CAPABILITIES
• Countries: Sold in over 110 countries, across 50,000 retail outlets
• Fun Fact: Belt loops were only introduced in 1922, decades after
the first pair of Levi’s went to market in the late 1800’s

INVESTING IN ADVANCED MATERIALS
Launching in Spring 2016 is Project Jacquard: Levi’s joint venture with Google to bring fashion and the
world of innovation one in the same
Launching Spring 2016
Levi’s will use a conductive yarn, weaved into
fabrics, making any clothing item into an
interactive, connected, digital surface
This Isn’t a Gadget
In fact, this should reduce the number of gadgets people have
to carry to stay connected
Create Something People Want to Wear
Everyone has that one pair of jeans they love, this one just
brings that pair into the digital world
Foundation of Heritage
Levi’s has been an apparel market leader for a century, they
know what people want to wear
Speed to Market
Levi’s can incorporate Jacquard into their existing materials
manufacturing seamlessly
Source: Project Jacquard

MATERIAL TIERS AND INNOVATION
Brands are focusing innovation on advanced finished materials
FINISHED PRODUCT
Assembled, final product ready for commercialization and consumer fulfillment
FINISHED MATERIALS
Treated, dyed, and composed materials ready for assembly into a finished product;
these have become more complex and proprietary to a specific fashion house
PROCESSED MATERIAL COMPONENTS
Prepared inputs to support material production (e.g., thread, un-dyed fabrics) that can be sourced as
a commodity
RAW MATERIALS
Cultivated inputs from a plant or animal
INNOVATION FOCUS

ADVANCED MATERIALS MANAGEMENT
The focus on complex materials has changed how brands source and commercialize products
PRODUCT LIFECYCLE CONSIDERATIONS
DEMAND TRANSPARENCY
Use a product development platform like PLM to aggregate demand for an advanced material across categories,
lines, color, and size mix
IP PROTECTION
Improve supplier management through incentives and premeditations to protect the intellectual property behind
the innovation
ECONOMIES OF SCALE
Reduce costs by formalizing the process for negotiating and sourcing materials at an enterprise level, 3 years
in advance

WHICH FAST FASHION TENANTS IS LEVI’S REALIZING THROUGH
ADVANCED MATERIAL MANAGEMENT ?
customers
end operations

PRODUCT COSTING
Estimating and confirming the total cost of a product from an estimated FOB at the start of the season, to
an ALC at the end of a season
COMMERCIALIZATION CAPABILITIES
reconcile ALC at the end of a season
based on actual POs and invoices,
compliant with SOX if necessary
post-season
SU 16
$
$
ALC
use a multiplier based on historic
freight, volume, labor, and engineering
costs to determine the ELC
commercialization
calendar milestone >
go to market
SU 16
β
$
ELC
determine refined CBD based on
layering in components (e.g.
materials, colour, trims)
design & development
SU 16
$
CBD
category design review
decision > “go” or “no-go” style based
on if CBD > FOB
calculate a Target FOB at style level
on Line Plan based on historic
performance of a similar style
planning
$
FOB
SU 12 - 15
$
FOB
SU 16
line review
decision > +/- target FOB based on
merchant discretion
• Clear decision-making governance
rights and trusted data across
functional silos
• Scenario plan cost by changing
CBD factors
• Incrementally plan Line down-
stream
• Multiplier with analytics engine of
historic cost data
• Use ELC as a determining factor
in “go/no-go”
• Clear ramifications to
Merchandisers for ALC > FOB
KEY: Proposed Solutions

WHICH FAST FASHION TENANTS ARE BRANDS REALIZING
THROUGH COST MANAGEMENT?
customers
end operations

KEY TAKEAWAYS
customers
end operations
What are competitors doing to win in a faster, digital, omnichannel, fashion marketplace?
INCREASE REVENUE
with trendy, customer-
centric assortments and
innovations
DECREASE COSTS
through smarter product
component sourcing and
reuse
INCREASE SPEED
to market through smarter
planning and streamlined
process
IMPROVE LOYALTY
of lifetime customers
achieved by being right
and being fast
What are the benefits of these investments?

QUESTIONS? Contact one of our Fashion Industry Advisors in the
“Meet the Team” section of our website

Winning at the Speed of Fashion

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