Management Development Institute - Gurgaon

Operations Management
Case 05

ZARA International:
Fashion at the speed of Light
OM
Group
Case Presentation

ID

Name

15P065

Akshat Chowdhary

15P070

Somyata Rastogi

15P093

Mayank Vimal

15P101

Rahul Venugopal

15P105

Sanjeet Mathur

15P109

Shikha Garg

Presentation Date: 19 October 2015

Post Graduate Programme in Management

PGP: 2015-17 Batch Section: B
Term: II (Sep-Dec 2015)

Zara: At a glance
Spanish group Inditex is the parent company
First Zara shop opened in 1975 in La Corua, Spain
Has
and

stores in 86 countries today - in Europe, the Americas, the Middle East,

Asia

Has over 2000 stores worldwide

One of the worlds fastest growing retailers
Known for the ability to deliver new clothes to stores quickly and in small
batches
Recent quarter showed jump in profits by 28%

Operation Strategy at Zara

Whats different at Zara?

vs
ZARA

GAP

Vertical integration
-Short lead times

Outsourced all production

-Long lead times

Fast expansion in 86 countries

Slow expansion in 51 countries

vs
ZARA

H&M

Vertical integration
-Short lead times

Outsourced all production

-Long lead times

Engages many designers

-originate design in few weeks

60% fewer designers

One distribution centre

-better survey over inventory
-low costs

Distribution centre in each

country
-high costs

Fast expansion in 86 countries

Slow expansion in 61 countries

Stores as 'face to the world'

No focus on store makeups

Thank You!