The value of fast fashion: Quick response, enhanced design, and strategic consumer behavior

Management Science

Volumn 57, Issue 4, 2011, Pages 778-795

  Cachon, Gérard P ^a   Swinney, Robert ^b  

^a UNIVERSITY OF PENNSYLVANIA   (United States)

^b STANFORD UNIVERSITY   (United States)

Author keywords

Fast fashion; Game theory; Quick response; Strategic behavior

Indexed keywords

ALTERNATIVE SYSTEMS; CONSUMER BEHAVIORS; CONSUMER TRENDS; DESIGN CAPABILITY; DIFFERENT MECHANISMS; FAST FASHION; LEAD TIME; PRODUCTION CAPABILITIES; QUICK RESPONSE; STOCK-OUT; STRATEGIC BEHAVIOR; TRADITIONAL SYSTEMS; UNCERTAIN DEMAND;

GAME THEORY; PROFITABILITY; SALES;

PRODUCT DESIGN;

EID: 79954462534     PISSN: 00251909     EISSN: 15265501     Source Type: Journal    
DOI: 10.1287/mnsc.1100.1303     Document Type: Article

References (32)

1. Anand, K., K. Girotra. 2007. The strategic perils of delayed differentiation. Management Sci. 53(5) 697-712. (Pubitemid 351159633)
2. Aviv, Y., A. Pazgal. 2008. Optimal pricing of seasonal products in the presence of forward-looking consumers. Manufacturing Service Oper. Management 10(3) 339-359.
3. Bulow, J. I. 1982. Durable-goods monopolists. J. Political Econom. 90(2) 314-332.
4. Cachon, G. P., R. Swinney. 2009. Purchasing, pricing, and quick response in the presence of strategic consumers. Management Sci. 55(3) 497-511.
5. Caro, F., J. Gallien. 2010. Inventory management of a fast-fashion retail network. Oper. Res. 58(2) 257-273.
6. Caro, F., V. Martínez-de-Albéniz. 2010. The impact of quick response in inventory-based competition. Manufacturing Service Oper. Management 12(3) 409-429.
7. Coase, R. H. 1972. Durability and monopoly. J. Law Econom. 15(1) 143-149.
8. Eppen, G. D., A. V. Iyer. 1997. Improved fashion buying with Bayesian updating. Oper. Res. 45(6) 805-819. (Pubitemid 127684763)
9. Feitzinger, E., H. Lee. 1997. Mass customization at Hewlett-Packard: The power of postponement. Harvard Bus. Rev. 75(1) 116-121.
10. Ferdows, K., M. A. Lewis, J. A. D. Machuca. 2004. Rapid-fire fulfillment. Harvard Bus. Rev. 82(11) 104-110.
11. Fisher, M., A. Raman. 1996. Reducing the cost of demand uncertainty through accurate response to early sales. Oper. Res. 44(1) 87-99. (Pubitemid 126669439)
12. Fisher, M., K. Rajaram, A. Raman. 2001. Optimizing inventory replenishment of retail fashion products. Manufacturing Service Oper. Management 3(3) 230-241. (Pubitemid 33664111)
13. Ghemawat, P., J. L. Nueno. 2003. ZARA: Fast fashion. Case study, Harvard Business School, Boston.
14. Goyal, M., S. Netessine. 2007. Strategic technology choice and capacity investment under demand uncertainty. Management Sci. 53(2) 192-207. (Pubitemid 46326175)
15. Hammond, J. H., A. Raman. 1994. Sport Obermeyer Ltd. Case study, Harvard Business School, Boston.
16. Iyer, A. V., M. E. Bergen. 1997. Quick response in manufacturerretailer channels. Management Sci. 43(4) 559-570.
17. Lee, H., C. Tang. 1997. Modelling the costs and benefits of delayed product differentiation. Management Sci. 43(1) 40-53. (Pubitemid 127575304)
18. Li, Q., A. Ha. 2008. Reactive capacity and inventory competition under demand substitution. IIE Trans. 40(8) 707-717.
19. Liu, Q., G. van Ryzin. 2008. Strategic capacity rationing to induce early purchases. Management Sci. 54(6) 1115-1131.
20. Meichtry, S. 2007. Benetton picks up the fashion pace. Wall Street Journal (April 10) B1.
21. Milgrom, P., J. Roberts. 1990. The economics of modern manufacturing: Technology, strategy, and organization. Amer. Econom. Rev. 80(3) 511-528.
22. Passariello, C. 2008. Logistics are in vogue with designers-As slump threatens luxury goods, systems to track consumer tastes and tweak offerings win converts. Wall Street Journal (June 27) B1.
23. Rohwedder, C., K. Johnson. 2008. Pace-setting Zara seeks more speed to fight its rising cheap-chic rivals. Wall Street Journal (February 20) B1.
24. Rozhon, T. 2004. Worried merchants throw discounts at shoppers. New York Times (December 4), http://www.nytimes.com/2004/12/04/business/04markdown.html.
25. Stokey, N. L. 1981. Rational expectations and durable goods pricing. Bell J. Econom. 12(1) 112-128.
26. Su, X. 2009. Consumer returns policies and supply chain performance. Manufacturing Service Oper. Management 11(4) 595-612.
27. Su, X. 2010. Intertemporal pricing and consumer stockpiling. Oper. Res. 58(4) 1133-1147.
28. Su, X., F. Zhang. 2008. Strategic consumer behavior, commitment, and supply chain performance. Management Sci. 54(10) 1759-1773.
29. Su, X., F. Zhang. 2009. On the value of inventory information and availability guarantees when selling to strategic consumers. Management Sci. 55(5) 713-726.
30. Swinney, R. 2010. Selling to strategic consumers when product value is uncertain: The value of matching supply and demand. Working paper, Stanford University, Stanford, CA.
31. Vance, A. 2010. 3-D printing spurs a manufacturing revolution. New York Times (September 14) A1.
32. Yin, R., Y. Aviv, A. Pazgal, C. S. Tang. 2009. Optimal markdown pricing: Implications of inventory display formats in the presence of strategic customers. Management Sci. 55(8) 1391-1408.