QI A new phenomenon called 'Apparel on Demand' is slowly making its presence felt. It is an
extension of JIT linking retailers and manufacturers for a just-in-time responsiveness. Naar
Clothing Inc, promoted by a young management graduate has recently ventured into the
business of making reasonably priced custom jeans for women. It has partnered with many
stores selling women garments. In the stores, women are electronically measured and
information like colour, fabric, style, etc., are recorded. The information reaches the Naar
manufacturing facility at Ahmedabad almost immediately through a state-of-the-art information
system NaaR guarantees delivery of the custom jeans within 10 days. With the growing
acceptance of jeans among the women in India, specially in the urban areas, the market for
women's jeans is growing at a fast pace. NaaR with its unique business model hopes to garner a
significant share of this market. The promoter of NaaR along with her top executives is
confident that their concept of JIT jeans would work
(a) Do you think NaaR's strategy would work? Why or why not? What is the importance of
retailers in its business strategy?
(b) Will customers wait for 10 days to have the jeans delivered? What can Naar do to compete
on customer service if delivery takes this much time?
(c) Comment on the necessity of a robust supply chain in the context of NaaR Clothing Inc.
ity to invest INR 100 billen for your
Answers
The success of NaaR's strategy depends on several factors, such as the quality of the jeans, price competitiveness, marketing and branding, and customer service.
Retailers play an important role in NaaR's business strategy as they serve as the point of sale and provide direct customer feedback to the manufacturer. The JIT concept can help NaaR reduce waste and improve efficiency, but it also requires a well-coordinated supply chain and reliable information systems to work effectively. The growing acceptance of jeans among women in India suggests that there is potential for NaaR to succeed, but competition and market conditions will also play a role.
b) It may be challenging for NaaR to convince customers to wait for 10 days for delivery, as there is increasing competition for same-day or next-day delivery in the retail industry. NaaR may need to consider offering incentives or alternatives to improve customer service and remain competitive.
c) A robust supply chain is essential for NaaR Clothing Inc to successfully implement its JIT business model. This includes efficient procurement and production processes, reliable logistics and transportation, and effective communication and coordination between retailers, manufacturers, and suppliers. A robust supply chain can help NaaR meet customer demands and reduce the risk of stockouts, delays, and quality issues.
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