Will MillingPI - Fashion's Technology…•6K followers

What do today's top brands have in common?

Name: What do today's top brands have in common?
Uploaded: 2024-02-20T15:47:25+00:00
Duration: 19 s
Channel: Will Milling
Description: In this brief commentary, the speaker observes that the world’s leading fashion companies—such as Zara and H&M—share a common driver of their market‑cap…

20 Feb 2024 · 0 min

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0:19

In this brief commentary, the speaker observes that the world’s leading fashion companies—such as Zara and H&M—share a common driver of their market‑cap, valuation ratios, inventory turnover, and cash flow: a superior supply chain. The speaker argues that supply‑chain efficiency is the fundamental source of competitive advantage for these brands, underpinning their strong financial performance.

If you look at the top fashion companies in the world right now in terms of market capitalization, what do they all have in common? If you look at their, you know, P/E ratios or their stock price, or if you look at their inventory turnover, or if you look at their cash flow, what drives that? Ultimately, their supply chain. Zara, H&M, they all have great supply chains. And really, that's the fundamental competitive advantage.