Agile retail
Agile retail is a modern day direct-to-consumer retail model that makes use of smart data in predicting trends, managing efficient production cycles, and realizing fast turnaround on emerging styles.[1] The concept turns e-commerce retailers into on-demand platforms that identify stock and deliver desired product directly to consumer at a fraction of the traditional retail cost.[2] It is all about using smart data to identify trends that are popular with consumers at a given moment.[3]
Among experts in the fashion industry, Agile retail is considered as the next assured step for fashion retail especially in this age of the internet.[3] It supplies consumers with more options to choose from a wide range of products at attractive prices, and have their products shipped to their door front in a fast and efficient manner.[3] IIt is a new form of fast fashion that applies the concepts of “agile” and “lean” in the fashion retail business.[4] It is also all about serving customers better by aligning to their changing needs.[5]
History
The Agile ideology can be traced back to the Lean manufacturing principles developed at Toyota in the 1950s.[6] Lean manufacturing is actually focused on eliminating waste in the manufacturing process.The basic intention then was to maximize efficiency during manufacturing with a view to enhance productivity and lower costs. Back then, the Agile retail concept was applied mainly to the manufacturing of hard goods such as automobiles.[6]
In recent years, Agile retail especially in the fashion industry capitalizes on many of the principles that have made other stalwart tech companies successful in their respective industries.[1] Agile retail fashion companies represent a fundamental shift in approach.[1]
In a traditional fashion company, a designer creates an entire collection solely based on his or her inspiration.[1] The collections are then flaunted at fashion shows for large retailers to preview and eventually make their way to store shelves 6 to 12 months later. On the other hand, Agile retail is changing this old approach. It turns fashion retailers into on-demand platforms that identify consumer demand based on multiple data sources and deliver desired fashion & lifestyle products directly to consumers.[2] The Germany-based online retailer Lesara has been pioneering the concept of Agile Retail in the fashion industry.[2][7]
Processes
Agile retail leverages big data which gives companies enough room to make what consumers want instead of what they think they want. Big data helps agile retail companies anticipate demand and produce appropriate quantities.[8]
Agile retail companies are able to rapidly respond to changing circumstances as they focus more on the data. They know what consumers want at any point in time.[3][9]The Agile enterprise emphasizes iteration over perfection, the ability to move quickly and to constantly learn and adapt.[10]
Advantages
- Agile retail helps retailers use data to better capitalize on consumer trends[7]
- It helps companies respond to changing needs of consumers faster than traditional retail models[4]
- It personalizes the shopper's experience[7]
- It leverages technology in every aspect[4]
- Agile retailers manage their supply chain more efficiently, reducing waste and hence are able to deliver greater value for money for all stakeholders involved[7]
Disadvantages
- Agile retail relies partially on traditional retailers, especially luxury retailers, in setting trends which are used as inspiration.[11]
See also
References
- ^ a b c d Nadya Khoja, "Changing Clothes: How Agile Retail is Disrupting the Fashion Industry", business.com, July 20, 2016.
- ^ a b c Julian Mitchell, "This 27-Year-Old Founder Is Transforming High-Fashion Into A Billion-Dollar Tech Industry", forbes.com,.
- ^ a b c d "Can This New Industry Disrupt Fast Fashion?", huffingtonpost.com, February 3, 2016.
- ^ a b c Hariharan Narayanan, "What is agile retailing?", quora.com,.
- ^ "Agile Retailing?", agileretailing.com,.
- ^ a b Lee Bonnell, "Agile 101: An Abbreviated History of Agile", ptc.com,.
- ^ a b c d "Lesara Uses Agile Management and Data to Meet Retail Fashion Trends", insights.samsung.com,.
- ^ "Reasons Why Big Data Is The Next Big Thing In The Fashion Industry", entrepreneur.com,.
- ^ Mark Collin, "Future of Retail: Agile Retail Development", thoughtworks.com,.
- ^ Jason Wallis, Mozu, "3 ways retailers can learn from the Agile movement — and get bolder and faster", venturebeat.com, October 20, 2015.
- ^ "Agile Methodology: Benefits & Disadvantages", study.com,