New Business Models in the Fashion Industry

In case you missed it - - - In September Wal-Mart held a fashion show in New York during Fashion Week, the same week as the big designer shows. Their most expensive item was a $99 leather jacket, as contrasted with designer wares costing maybe 4 to 10 times more. They call it the "democratization of fashion."

A UPI report suggested that the Wal-Mart clothes were "very similar" to the designers'.

Years ago Benetton came up with the innovation of making all their clothes in white, and then dying them at the last minute to stay current with changing styles. This also led to the brand and values positioning as the "united colors." Year later, Zara began clandestinely taking digital photos at fashion shows, and then they very quickly copied the designer offerings, and in some cases the Zara knock-offs got into the stores faster than the originals! And of course at a small fraction of the price. And now Wal-Mart is challenging the fashion world head on.

We wouldn't necessarily call fashionable clothes innovations - they're more like fads. But clearly the industry is exploring new business models which are definitely very innovative. It's war out there!