Fashion Retailer

Fashion Retail Simulation

The global fashion business - footwear, apparel, accessories – is worth more than $1.3 trillion per year – or over 2% of world GDP. The creative design side of fashion has historically been focused in the USA ($352Bn) and Europe ($443Bn), and this industry grouping represents more revenues than all other creative industries – more than books, movies and music combined. It is of vital importance to many of the world’s developed and developing economies.

In this dynamic simulation, we have focused on the retail side of this dynamic and exciting business – the retailing of fashion brands for men and women, the “sharp end” of the business.

To succeed in this game, you will deal with extended supply chain issues, fast product life cycles, seasonal booms (and busts), inventory and cash control, pricing for rapidly changing fashion trends, marketing and sales promotion choices, and much more. How do you manage a multi-product fashion portfolio in a world like this?

Why could investing in a web-shop reduce receivable days by 20%, but increases G&A expenses at the same time? A designer collection is a great way to boost sales, but its effect is limited to 6 months – is this a good investment?  A fashion show is a common way to quickly increase sales for a short term of 3 months – should you try this? Or build a Flagship Store in a prime retail location (this will take over 6 months to prepare for launch), which is a great way to increase sales in the long run. But what is the financial return, and the impact on shareholder value?

What choices should you make as general manager of this dynamic business? 

Learning points in this simulation

This simulation helps you, your students or manager-learners understand how business operates in the real world. Some of the issues you will cover are:

  • Management of retail markets, where an understanding of rapid market change and managing inventory-related cash flows base is critical to business success.
  • Finance – Corporate Finance, Debt and Equity Financing, Credit Quality and Rating, Coverage Ratios, Corporate Valuations, EPS and PE values, Cost of Capital, and Shareholder Value and concepts.
  • Economics – Dynamic Supply and Demand, Cost ratios and cost curves, Economies of Scale and Scope, MEPS, Experience and Cost curves,
  • Accounting – Income Statements /P&L statements, Balance Sheets, Cash Flow Statements, Corporate Performance Ratios, Budgeting and Planning, ROI, ROS, ROCE, EBITDA and other profitability ratios.
  • Strategic Marketing – retail product listings / withdrawal, marketing budgets, product portfolios and profitability, Product Life Cycles and impacts on firm profitability.
  • Team Building – working with other teams in this simulations builds understanding of team dynamics and collaboration, as well as self-knowledge and self-awareness.

How is this simulation used ?

  • Suitable for all levels of marketing management education, from new undergraduate programs in fast moving consumer goods marketing at universities or colleges, to more complex management development programs where short cycle market trends and strategies are being discussed.
  • In Corporate Management Training programs – for retail-focused industries, where fashion, short PLCs, and retail marketing present key management issues.
  • In executive development programs, and in university classes:
  • In one- to five-day events which focus on retail dynamics, customer focus, consumer marketing issues, and management of short cycle investment situations
  • To build confidence in Business Acumen programs, young manager / new hire eventsFor specific seminar-long classes in many subjects, dealing with all aspects of business, or a specialized subject program. A focus on concepts related to achieving long term financial returns in highly volatile, fashion dominated retail businesses are key will get the best out of this simulation
  • In competitive team-building events, such as a special prize event, a motivational tournament between different departments, offices or campuses. An unlimited number of participants are possible.


 

The Single Player version, where you can log on 24/7 from anywhere in the world, and compete against our pre-programmed virtual competitors. the Single User version is used for:

  • Personal, private study
  • Pre-course or post course assignments in business courses
  • Team based projects
  • Compete against our pre-programmed players

What's in our Single User Package:
  • 2 complete simulation runs, running to your schedule (subject to time limit)
  • Free User Guide for this simulation, with information on:
  • Complete Operating Instructions for this simulation
  • Financial and Business Glossary with common terms and definitions
  • Discussions about the economic, financial and marketing theories which are embedded in our simulation models

The MMultiPlayer version, where a number of teams or individuals compete in real time against each other, for a predefined period, with the event controlled by an instructor. Normally used for :

  • Management Training Seminars in companies
  • Individual Simulation-based lectures in colleges
  • Complete semester-long programs in colleges
  • Inter-office or inter-campus competitions and tournaments

What's in our Multiplayer Package:
  • MultiPlayer simulation access, with 5 to 50 user connections, and the ability to run a multi user/team simulation event using this model.
  • Access to our proprietary Learning Center system, including management features - start, run, stop the simulation event, review scores, view individual or team performances.
  • Free instructor briefing slides, including an introduction and sign-on instructions, theoretical concepts, operating instructions
  • Free User Guide for this simulation, with information on:
  • Complete Operating Instructions for this simulation
  • Financial and Business Glossary with common terms and definitions
  • Discussions about the economic, financial and marketing theories which are embedded in our simulation models
 

Click to go to InstructorZone

 

We are currently not able to provide individual users with access to our simulations, or deliver smaller scale simulation exercises for schools on an economic basis.

IndustryMaasters supplies corporations, large training companies and business schools across the world with world-beating business simulations to build leadership and management capabilities.