To stay valuable, Nike, H&M invest in supply chains

It wasn’t the best of years for many of the top apparel brands. H&M recorded below the expected growth of 3% in 2017, with international sales in local currencies increasing to approximately $25 billion. In addition, it suffered some inventory issues, based, it says, on an unseasonably cold winter. In extremely competitive marketplaces, both Nike (chased by Adidas) and H&M (with Zara closing the gap) are aggressively strengthening their supply chains to maintain their leadership roles. The fashion market is constantly changing, based on seasonal clothing and, of course, consumer taste in a “we want it now” environment.  Nike is investing heavily in automation to help reduce lead times for its orders from 60 days to just 10 by redesigning its logistics network and near-shoring more facilities in, for example, Latin America. In addition, the company plans to install at least 1,200 new automated machines at its Asian suppliers' factories.