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Zara's Strategic Supply Chain Success

Zara is a global fashion retailer known for its rapid response supply chain and ability to quickly deliver new fashion items to stores twice per week. It was founded in Spain in 1975 and has since expanded worldwide. Key to Zara's success is its integrated network of local factories and workshops that allow it to produce small batches of many styles and respond rapidly to fashion trends, holding only 6 days of inventory compared to 52 days for H&M. Zara's innovative supply chain and focus on frequent new offerings have made it one of the largest and most profitable clothing brands in the world.

Uploaded by

Sumbla Tayyab
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Topics covered

  • Store Operations,
  • Customer Feedback,
  • Market Research,
  • Consumer Behavior,
  • Lead Time,
  • Supply Chain,
  • Fashion Economics,
  • Fashion Distribution,
  • Fashion Industry,
  • Fashion Supply Network
69 views8 pages

Zara's Strategic Supply Chain Success

Zara is a global fashion retailer known for its rapid response supply chain and ability to quickly deliver new fashion items to stores twice per week. It was founded in Spain in 1975 and has since expanded worldwide. Key to Zara's success is its integrated network of local factories and workshops that allow it to produce small batches of many styles and respond rapidly to fashion trends, holding only 6 days of inventory compared to 52 days for H&M. Zara's innovative supply chain and focus on frequent new offerings have made it one of the largest and most profitable clothing brands in the world.

Uploaded by

Sumbla Tayyab
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Topics covered

  • Store Operations,
  • Customer Feedback,
  • Market Research,
  • Consumer Behavior,
  • Lead Time,
  • Supply Chain,
  • Fashion Economics,
  • Fashion Distribution,
  • Fashion Industry,
  • Fashion Supply Network

STRATEGIC SUPPLY CHAIN MANAGEMENT

ZARA - FAST FASHION

SUBMITTED TO: MAHVESH MAHMUD


SUBMITTED BY:
HASSAAN ASLAM
MARIYAM SHAHID
MEHR NAWAZ
SUMBLA TAYYAB
YASIR CHAUDHRY
24/06/2015

CREATION OF
ZARA

1963- Amancio Ortega Gaona founded Inditex


1974
1975

The first zara store was opened in Spain

1976- Spreading of zara store in Spain


1984
1985

Zara started to enter the overseas market (in Portugal)

1989

Entering New York City, in USA

1990

Entering Paris, in France

1991- Spreading to the whole world including Japan(1998)


2004

INDITEX
A global specialty retailer that designs, manufactures, and sells apparel,
footwear, and accessories for women, men and children through its
chains around the world.
o Zara is the largest and most internationalized of the six retailers
o 2001-Zara operated 507 stores around the world

Zara was described by Louis Vuitton


Fashion Director Daniel Piette as

"possibly the most


innovative and devastating
retailer in the world

COMPETITORS OF INDITEX
GAP

H&M

BENETTON

Zara & H&M more fashionable and lower price


Prices less than Benetton & Gap but higher than
H&M
Benetton and Gap place as less fashionable and
higher price

ZARA
Zara has developed a highly responsive supply chain
Zara delivers new products twice each week to its 1,763 stores
around the world
Rather than subcontracting manufacturing to Asia, Zara built 14
highly automated Spanish factories
Zara has also created a partner network of more than 300 small
shops in Portugal and Galacia to handle the finishing work
Inditex SA grew revenue 10% to $19.15 billion for its fiscal year
ending January 31, 2012

KEY SUCCESS FACTORS FOR


ZARA
Short Lead Time = More fashionable clothes
Lower quantities = Scarce supply
More styles = More choice, and more chances of hitting it

INVENTORY
Launched 11,000 new items per
year, compare to 2,000 4,000 for
H&M and GAP
Focus on reducing time
Holds 6 days worth of inventory,
H&M-52 days,Spanish Retailer-94
days

FORECASTING
Extensive market
research
Quick input and output
response
Frequent new styles
Near term forecasts
Customer feedback

ZARA BRAND SUCCES

Zara is one of the most well known brands in the world


One of the largest international fashion companies
Third largest brand in the garment industry
The Zara clothing line accounts for a huge bulk of its parent groups
revenues

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