Week 10

Question 1

Which of the following best encapsulates Inditex’s competitive advantage in the fast fashion industry?

Answer 1

Shortening the design-to-retail cycle through vertical integration and real-time data usage

Question 2

How did Inditex leverage globalization in the late 1980s and early 1990s to transform its operations?

Answer 2

By exploiting reduced trade barriers to establish centralized production close to demand centers

Question 3

What fundamental flaw in the traditional fashion model does the Inditex fast fashion model address?

Answer 3

The inflexibility in adjusting supply to real-time demand variations

Question 4

Why does Zara’s approach to advertising differ significantly from its competitors?

Answer 4

By spending only 0.3% of its revenue on advertising, Zara reallocates resources to efficient supply chain operations.

Question 5

Inditex’s fast fashion model heavily depends on real-time consumer feedback. What is the primary operational advantage of this approach?

Answer 5

Maintaining a consistent inventory turnover without overproduction

Question 6

What aspect of vertical integration is most crucial to Inditex’s operational efficiency?

Answer 6

Centralizing the design and production of key components while outsourcing non-critical tasks

Question 7

How does the just-in-time production model enable Inditex to address inefficiencies in the fashion industry?

Answer 7

By adjusting production volumes dynamically based on real-time sales data

Question 8

What role did Inditex’s IPO in 2001 play in its business development?

Answer 8

Provided the financial resources needed to expand its fast fashion model globally

Question 9

In the traditional fashion industry, what problem arises from the reliance on subcontractors for production?

Answer 9

Increased production costs and delayed responsiveness to market changes

Question 10

How does Zara’s approach to supply chain management differ from its competitors in the traditional fashion industry?

Answer 10

It centralizes distribution to ensure real-time feedback is integrated into production adjustments.

Question 11

What strategic move helps Zara maintain competitive pricing despite its reliance on local production?

Answer 11

Substantial cost savings through just-in-time production and reduced marketing expenses

Question 12

Why is the concept of “urgency to purchase” crucial to Zara’s success in the fast fashion model?

Answer 12

It encourages consumers to buy before products go out of stock due to frequent inventory turnover.

Question 13

What is one significant drawback of traditional fashion’s reliance on long-term seasonal collections?

Answer 13

Products on shelves quickly become outdated, reducing consumer interest.

Question 14

Which of the following best describes the operational focus of the Inditex model?

Answer 14

Streamlining production with local manufacturing, frequent shipments, and centralized distribution

Question 15

What unique approach does Zara use to maintain low advertising costs while driving consumer demand?

Answer 15

Relying on word-of-mouth and strategic price allocations

Question 16

What distinguishes Inditex’s fast fashion model from traditional fashion models?

Answer 16

Integration of just-in-time production with real-time customer feedback

Question 17

How does Inditex link its designers directly to customer demands?

Answer 17

By analyzing data from bi-weekly store reports detailing sales by size and color

Question 18

What is the primary operational focus of Inditex’s vertical integration strategy?

Answer 18

To combine capital-intensive production in-house with outsourcing labor-intensive tasks

Question 19

What enables Inditex to shorten its design-to-retail cycle to just five weeks?

Answer 19

Vertically integrated manufacturing and localized subcontracting networks

Question 20

Which of the following best reflects Inditex’s strategy for managing inventories?

Answer 20

Using small, frequent deliveries to stores twice a week

Question 21

Why does Inditex avoid using complex supply chain management software?

Answer 21

Simpler systems allow for faster and more flexible decision-making

Question 22

What was the primary motivation behind Inditex’s IPO in 2001?

Answer 22

To allow its founder to sell shares and begin transferring control

Question 23

How does Inditex determine the target pricing for its products?

Answer 23

By basing prices on competitors’ products and setting them 15% lower

Question 24

What is the significance of Inditex’s customer-driven production approach?

Answer 24

It aligns production closely with real-time market trends

Question 25

Why is speed prioritized over low labor costs in Inditex’s fast fashion model?

Answer 25

Faster production reduces the risk of products going out of fashion

Question 26

How does Inditex’s vertical integration differ from traditional subcontracting models?

Answer 26

It focuses on speed and flexibility rather than cost minimization

Question 27

How does Inditex reduce the need for large clearance sales?

Answer 27

By producing smaller quantities and avoiding overproduction

Question 28

Why is Inditex less vulnerable to criticism regarding labor practices?

Answer 28

It maintains local production facilities to reduce dependency on low-cost labor

Question 29

What role does bi-weekly data collection from stores play in Inditex’s operations?

Answer 29

It allows designers to adapt collections to customer preferences in real time

Question 30

How has Inditex’s fast fashion model impacted global competitors?

Answer 30

By forcing competitors to adopt similar rapid-response production systems

Question 31

Which of the following fields does Mukti Kher NOT hold a degree in?

Answer 31

Fine Arts

Question 32

Mukti Kher’s research focuses on:

Answer 32

Entrepreneurship and creative industries

Question 33

The article discusses the evolution of the Indian high-end fashion industry during which period?

Answer 33

1980–2005

Question 34

According to the article, what key role do entrepreneurs play in the Indian fashion industry?

Answer 34

Shaping the industry’s identity and creating markets for cultural goods.

Question 35

One major challenge faced by Indian designers is:

Answer 35

Balancing cultural identity with the need for globalization.

Question 36

Why do Indian consumers initially resist high-end fashion prices?

Answer 36

They view fashion designers as glorified tailors.

Question 37

What does the article suggest about maintaining traditional Indian craftsmanship?

Answer 37

It creates a unique identity but limits global appeal.

Question 38

What impact does undervaluing luxury goods have on the Indian fashion industry?

Answer 38

It hinders the financial growth of the industry and artisans.

Question 39

Which of the following is a key tension highlighted in the article?

Answer 39

Preserving cultural heritage while adapting to global markets.

Question 40

What trend has influenced the shift in Indian consumers’ clothing preferences?

Answer 40

Increased Westernization of fashion tastes.

Question 41

Why is globalization significant for Indian fashion designers?

Answer 41

It provides opportunities for global recognition and expansion.

Question 42

How does the growth of the Indian fashion industry contribute to the economy?

Answer 42

By creating jobs and boosting GDP.

Question 43

What perception do consumers need to change to support the Indian luxury fashion market?

Answer 43

That premium products are overpriced.

Question 44

The lack of empathy towards designers impacts the industry by:

Answer 44

Lowering the perceived value of their work.

Question 45

What makes the Indian fashion industry unique, according to the article?

Answer 45

Its foundation in traditional craftsmanship and heritage.

Question 46

How did early Indian fashion entrepreneurs overcome consumer skepticism about pricing?

Answer 46

By emphasizing traditional craftsmanship and ornate designs.

Question 47

What was the primary influence behind the establishment of the National Institute of Fashion Technology (NIFT) in 1986?

Answer 47

The need to train individuals for India’s apparel export industry.

Question 48

What social factor influenced the limited adoption of Western-style clothing by Indian women in the 1980s?

Answer 48

Western clothing being seen as rebellious or inappropriate.

Question 49

How did early Indian fashion designers differentiate their creations from traditional tailors?

Answer 49

By using heavily embellished traditional fabrics and embroidery.

Question 50

What defines the unique identity of Indian high-end fashion?

Answer 50

Opulent, heavily embellished traditional-style garments.

Question 51

What challenge do Indian designers face when presenting collections abroad?

Answer 51

Balancing traditional Indian aesthetics with global expectations.

Question 52

Why were early Indian fashion designers often compared to "glorified tailors"?

Answer 52

Consumers undervalued the creative process behind their designs.

Question 53

How does the Indian high-end fashion industry contribute to the economy?

Answer 53

By creating employment opportunities in rural and urban areas.

Question 54

What economic policy initially slowed the growth of consumerism in India?

Answer 54

Gandhian principles emphasizing austerity and self-reliance.

Question 55

What role did multidesigner outlets (MDOs) play in the evolution of Indian fashion?

Answer 55

They offered a platform for multiple designers under one roof.

Question 56

What was a key feature of the Fashion Design Council of India (FDCI) when it was established in 1999?

Answer 56

It modeled itself after international organizations like CFDA and Chambre Syndicale.

Question 57

How did Bollywood contribute to early Indian fashion trends?

Answer 57

By providing inspiration for consumer-tailored garments.

Question 58

What was the government’s rationale for promoting traditional Indian textiles in the mid-20th century?

Answer 58

To create employment opportunities in rural areas.

Question 59

Why did early Indian designers focus on ornate traditional garments for weddings?

Answer 59

To cater to an existing market willing to pay for opulence.

Question 60

What limitation is associated with the traditional identity of Indian fashion on the global stage?

Answer 60

It limits perception of innovation and creativity.