Business Strategies and Financial Performance of Global Fashion Brands under Financial Crisis

• Main Authors: Lih-Yuh Chou, 周麗玉
• Other Authors: Dr. David M
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/97758006295123752114

碩士 === 輔仁大學 === 織品服裝學系 === 98 === This thesis studied the effects of economic cycle on the financial performance of global fashion brands based on their distinctive business models and resources allocation strategies.Luxury-goods companies diversified their product lines to make up for losses of affected product categories. This co-branding strategy facilitated global R&D, production and marketing, and offered a unique advantage not easily replicated. Fast-fashion companies excelled at the speed of mimicking and distributing hot fashion products with time-to-market measured in days. The global financial crisis made consumers more price-conscious and benefited companies pursuing the low-cost strategy. Financial performance analysis showed that most of the sample companies kept large cash balance to maintain sufficient liquidity under the financial crisis. They all undertook cost cutting and integrated resources. Reducing the burden on investments in working capital and long-term operating asset was still the key success factor regardless of the boom or bust of the economic cycle. Hence, Fast-fashion companies registered higher ROE in both 2007 and 2008. Companies of high operating equity turnover rate were net creditor, could use excess cash to repurchase shares to further increase ROE.