Summary
Speeding up the design and sourcing process in only one factor out of many. In the current environment, the key is to get consumers to come to the shops in the first place and then to make sure they don't leave without having bought something.
Analysis
Speeding up the process of design and sourcing in apparel is an important factor and a winning one for companies like H&M and especially Zara, which is the benchmark in the industry for fastest turnaround. Vertical retailers like them (and Top Shop, Esprit, etc.) clearly have an advantage there when it comes to being closer to the consumers' wants and needs. On the other hand whether it is in the US or the US or elsewhere, when it comes to branded apparel, most retailers depend on the shipping cycles of the brands, which have also gotten more to a 10 times a year flow, rather than the typical and now antiquated spring/summer and fall/winter cycle. The key in today's tough times though is much more on having great product and PR to attract consumers into the store in the first place, as footflow is down from prior years. Once the consumers are in the store, they need to find reasons to spend and not just on a bargain proposal. The current lack in footflow is actually helping on-line retailers. Last November's Black Friday was followed by a much stronger Cyber Monday. People drive less to the malls, but they still spend if the offer is right. I don't see why the UK should recover sooner than the US. The UK market has been hit very hard since October. The reduction in VAT by 2.5% brought a lot of extra cost to the retailers, but didn't drive sales. What is really helping them right now is that the Pound is 25% below the high level of 2008. The UK has become more affordable to shop now (as has the rest of Europe).
