- Heidi Law |
The H&M Group and Inditex are two of the world's biggest fast fashon giants. Who's growing more? In an effort to keep its market position, the Swedish chain has been updating its logistics systems to improve on lead time. However, the changes so far have only lead to a huge increase of costs of up to SEK 400 million (35 million pounds), which is yet to materialise in profit.
By contrast, Inditex has been continually gaining ground in its agile supply chain, with a nearshoring strategy that shortens lead time and allows the group to quickly copy the latest trends straight from the runway. With 2018 drawing to an end, it will be interesting to see whether the end-of-the-year results will show signs of reversal.