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?
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: