Contribution of agile methodologies in the success of fashion retail companies : a comparative case study on Zara and Victoria Secret

Abstract

With the introduction of new technologies, the way in which people work and communicate, as well as their habits and expectations have experienced changes. Along with this evolution, characterized by growth and globalization, new ways for companies to compete and produce have emerged. The vast amount of available information, prompted by new technologies, has created a new type of consumer with rapidly changing demands. Companies are required to work towards an agile mindset to be capable of satisfactory respond to these demands and hence achieve success. The use of agile methodologies is particularly useful in the fashion industry as this is why this essay will focus on this field. This research examines if fashion brands are able to succeed without adapting on time to an increasingly demanding market with rapidly changing needs by the comparison of two large retailers, Zara and Victoria´s Secret and supporting on the evolution and organisational theories. It will also examine how agile methodologies work to deeply understand how they are transforming the way of doing business and to determine what adjustments these methods require so that can be successfully embedded into companies. Plus, it will analyze how agile methodologies contribute to fashion brands capability of following market trends and to examine the influence, advantages and potential risks these methodologies pose. And finally, this study will determine whether or not all fashion companies must implement agile methodologies in their operative processes to succeed in the fashion industry and why. To test this matter as successfully as possible, the study will be driven using a qualitative approach. A thematic paradigm has been used to interpret the information collected from 6 phenomenological semi-structured interviews. This qualitative approach is subject to an abductive paradigm permitting the investigator to complement data from theories made in the past with experimental data encountered in the research findings. The outcomes of the research clearly indicate that is the paramount importance to know the market and to be able to connect with customers and listen to their needs and values for achieving success in the fashion industry. They also show that the implementation of agile methodologies dramatically betters fashion brand´s capability of following market trends and satisfying customer needs at unprecedented rates and finally, the study indicates that due to the transformation of the market and customer mindset all mainstream retailers must implement agile methodologies if they wish to succeed in the fashion field