Agile retail
Agile retail is a direct-to-consumer retail model that uses big data to try to predict trends, manage efficient production cycles, and faster turnaround on emerging styles.[1] Agile retail applies concepts from Agile and Lean in the retail business, and aims to respond faster to customer needs. This retail model is used by Amazon. The concept turns e-commerce retailers into on-demand platforms that identify stock and deliver desired products directly to the consumer. The main focus of Agile retail is to identify trends that are popular with consumers at a given moment and deliver those products using Agile production concepts.[2]
Experts in the fashion industry argue that Agile retail is the next step for fashion retail, especially with rising online sales.[2] Agile Retail gives more options to customers, usually at a lower price, and delivers the product directly to them.[2] Agile retail is a new form of fast fashion that applies the concepts of “Agile” and “Lean” in the fashion retail business.[citation needed] It is also all about serving customers better by aligning to their changing needs.[3]
History
[edit]The Agile ideology can be traced back to the Lean manufacturing principles developed at Toyota in the 1950s.[4] Lean manufacturing focuses on eliminating waste in the manufacturing process. The basic intention is to maximize efficiency during manufacturing with a view to enhance productivity and lower costs. Back then, the Agile retail concept was applied mainly to the manufacturing of hard goods such as automobiles.[4]
In recent years Agile retail, especially in the fashion industry, capitalizes on many of the principles that have made other stalwart tech companies successful in their respective industries.[1]
In a traditional fashion company, a designer creates an entire collection usually based on his or her inspiration.[1] The Germany-based online retailer Lesara has been using the concept of agile retail in the fashion industry.[5]
Processes
[edit]Agile retail uses big data to try to estimate what customers want and anticipate demand and quantities.[6]
Agile retail companies are able to respond more quickly to changing circumstances using the data from this process. The aim is to know consumer needs at any given point.[2][7] The Agile enterprise emphasizes iteration over perfection, the ability to move quickly and to constantly learn and adapt.[8]
Advantages
[edit]- Using big data to figure out faster what the consumer wants.[5]
- Ability to respond to changing needs faster than traditional retail.[dubious – discuss]
- Aim to personalize shopper's demands.[5]
- Intense use of big data and data analysis.[dubious – discuss]
- More efficient supply chain, reducing waste.[5]
Disadvantages
[edit]- Agile retail relies partially on traditional retailers, especially luxury retailers, in setting trends which are used as inspiration.[9]
See also
[edit]References
[edit]- ^ a b c Nadya Khoja, "Changing Clothes: How Agile Retail is Disrupting the Fashion Industry", business.com, July 20, 2016.
- ^ a b c d "Can This New Industry Disrupt Fast Fashion?", huffingtonpost.com, February 3, 2016.
- ^ "Agile Retailing?" Archived 2015-03-01 at the Wayback Machine, agileretailing.com,.
- ^ a b Lee Bonnell, "Agile 101: An Abbreviated History of Agile"[permanent dead link], ptc.com,.
- ^ a b c d "Lesara Uses Agile Management and Data to Meet Retail Fashion Trends", insights.samsung.com,.
- ^ "Reasons Why Big Data Is The Next Big Thing In The Fashion Industry", entrepreneur.com,.
- ^ Mark Collin, "Future of Retail: Agile Retail Development", thoughtworks.com,.
- ^ Jason Wallis, Mozu, "3 ways retailers can learn from the Agile movement — and get bolder and faster", venturebeat.com, October 20, 2015.
- ^ "Agile Methodology: Benefits & Disadvantages", study.com,
 | This article needs additional or more specific categories. (March 2024) |