INVENTORY MANAGEMENT

ZARA

ABOUT THE COMPANY

 ZARA is a life style brand and a flagship chain store owned by Amancio Ortega ( Spanish
tycoon ).
 ZARA’s first store was opened in 1975.
 Headquarter of ZARA is in CORNUNA, Spain.
 Zara is into clothing AND accessories retailers.
 ZARA designs almost 10,000 designs every year.
 ZARA never advertises their brand and products.
 It delivers their consignment of new designs 2 times a week to all 1763 stores in
world.

CATEGORIES, ASSORTMENT & VARIETY

 ZARA Woman: In this zara makes houte couture, business, formal suits for the
women aged 25+.
 ZARA Basic: In this ZARA makes casuals, daily wear T-shirts, formal clothing to party
attires form men & women aged 17+.
 ZARA TRF: in this ZARA mainly focuses on Urban trends, very casual clothings,
graphic t shirts for the customers of the age group of 13-25.

INVENTORY MANAGEMENT OF ZARA

 ZARA makes sure that the fashion produced by them and the merchandise, should
be deliver on all the stores of ZARA in the world.
 ZARA adopts an inventory management tool, which help them to determine which product,
quantity, colour and size is required and in which stores.
 Adoption of inventory management tools ZARA delivers its fashion twice a week to
all of its 1763 stores in the world.
 IT & Communication plays a vital role in constant interface of various functions and
management of the huge variety of product information.

HOW DOES ZARA MANAGE THEIR INVENTORIES?

 EXTENSIVE MARKET RESARCH: help them to determine which product, quantity, colour
and size is required and in which stores. This research helps ZARA to out their production
team in an action.
 IN TIME PRODUCTION : ZARA produces thousand numbers of fashion, according to
the extensive research ZARA put their production in action and they produce only
according to the requirement.
 LEAN INVENTORY MANAGEMENT: ZARA produce only according to the
requirement and they keep a strict eyes over it, that’s why it isvery hard to find any
excessive inventory in the warehouse of zara .
 CENTRALISED ORDER FULFILLMENT: ZARA maintains an amazing workflow from
grasping information of requirement to delivering the product to the stores.
 SOLID DISTRIBUTION NETWORK: ZARA has amazing delivery network , they deliver
their goods to EUROPEON countries within 24 hours and to AMERICAN & ASIAN
countries in less than 40 hours.

MARKETING STRATEGIES OF ZARA

 “SEGMENTATION- The segmentation strategy employed by the fashion retailer Zara
is based one the typical demographics of the customers like gender, age and
psychographics. However aside from this the company also targets customer is
based on their sense of fashion and style e.g., contemporary, trendy, classic, grunge,
Latino etc. Zara blends the ethnicity of the brand as well as its target market in its
product offering which match a variety of tastes and settings.
 TARGETING- Inditex with its brand Zara has targeted a wide gap in the retail market.
The company targets customers that are interested in high fashion want to be inline
with the latest fashion trends but are not able to afford clothes and accessories from
the couture and high-end boutiques. In order to target the market, Zara strategy
launches its outlets in high profile locations and provides customers with a turnover
time of 4-5 weeks for its new collections made available at a fraction of the couture
cost. This, along with the brand persona, the collection of the clothes and
accessories and the marketing campaigns pulls the target markets to the Zara stores.
 POSITIONING- The main objective for positioning the Zara brand in a market as
mentioned by the company is to ‘democratize fashion’. The company aims to
provide its customers with trendy and high fashion products at lower prices to
accommodate their requirements. As a result the marketing strategy that is
employed by Inditex for Zara is to open stores and outlets that provide the Zara
experience at high profile locations to set the image of the brand as being trendy,
hip, high fashion and accessible.”