JAIPURIA INSTITUTE OF MANAGEMENT

A-32 A, Sector 62, Institutional Area, Noida- 201309 (U.P.)

SUMMER INTERNSHIP PROJECT

ON

“Analysis of Business Strategies & Store Operations at

Zara”

Under the Supervision

Prof. Ajay Bansal

INDUSTRY MENTOR Submitted by

Mr. ABHISHEK CHAUDHARY AMAYKUTARIYAR
(Management Training & Talent) (PGMB2105)
1|Page
INDITEX TRENT RETAIL INDIA PVT. LTD

7/15/2022

To Whom It May Concern

This is to certify that AMAY KUTARIYAR has successfully completed his Internship from
5/15/2022 to 7/15/2022 at Inditex Trent Retail India Pvt LTD.

We wish him all the best in his future endeavors.

For Inditex Trent Retail India Pvt Ltd

MADHU Digitally signed by
MADHU BALA SHARMA
BALA Date: 2022.08.05
SHARMA 14:43:06 +05'30'

Human Resources Department

Inditex Trent Retail India Pvt. Ltd.

Unit No. 1 (Office 1), 8th Floor Ambience Corporate Tower II, Plot No.3 , Ambience Island, NH 8, Gurgaon
122002, Haryana, India. Telephone +911244973500 Fax +911244973510 Website: www.Zara.com/in
Corporate Identity number: U74900HR2009FTC043768 2|Page
 Declaration

I hereby declare that I have completed my summer internship at Zara, and have submitted
this project report entitled A detailed study on “Analysis of Business Strategies & Store
Operations at Zara” towards partial fulfilment of the requirements for the award of the Post
Graduate Diploma in Management 2021-2023.This report is the result of my own work, no
part of it has earlier comprised any other report, monograph, dissertation, or book.

Signature
Amay Kutariyar
PGMB2105
Jaipuria Institute of management, Noida

3|Page
 Table of Contents

No. No. TITLE Pg no.

Acknowledgement 6
Abstract 7
0 0.1 Executive Summary 8
About the Project 8
Objectives 8
Research & Methodology 8
Data Analysis Techniques 8
Findings & Suggestions 9
1 INTRODUCTION 10
1.1 Industry Overview 11
1.2 Company Overview 12
1.3 Value Chain 12
1.4 JIT & EOQ 12
1.5 Supply Chain Model 13
1.6 Organization Structure 13
1.7 About the store 14
1.8 6 Minimum of Customer Service 15
1.9 Visual Merchandising 15
2 JOB DESCRIPTION & ANALYSIS 17
2.1 Job Description 18
2.2 Job Description Analysis 18
BUSINESS & COMPETITIVE
3 19
STRATEGIES
3.1 Analysis of Business Strategy at Zara 20
3.2 Positioning Map 21
3.3 Competitive Strategy 21
4 RESEARCH & METHODOLOGY 23
4.1 Identification of problem 24
4.2 Problem Analysis 25
4.3 Improvement 26
4.4 Ishikawa Diagram I 26
4.5 Ishikawa Diagram II 27
5 CONCLUSION & RECOMMENDATION 28
6 BIBLIOGRAPHY 29

4|Page
 List of Figures
Figure no. TITLE Pg.no.
1.1 Market Forecast Graph 11
1.2 Supply Chain Model 13
1.3 Organization Structure 13
1.4 Outlet Picture 14
1.5 Warehouse Picture 15
3.1 Positioning Map 21
4.1 Ishikawa Diagram I 25
4.2 Ishikawa Diagram II 26

List of Tables
Table no. TITLE Pg.no.
4.1 Process Chart 25
4.2 Process Chart Symbols 25
4.3 Summary Table 25
4.4 Step Description 25

5|Page
 Acknowledgement

I take this opportunity to express my sincere gratitude to ZARA Store, Noida and all those who
have contributed directly or indirectly towards the completion of this project, has been a learning
process for me.

I humbly express our feeling and hearty thanks to who all have helped us one way or the other
during the process of preparing this project report.

I express our very sincere gratitude to our college project guide Prof. Ajay Bansal he has been a
constant motivation to us and the right direction in the business world to complete this project.
I am very thankful to our friends for assisting us in the preparation of this report. I would also
like to thank the entire respondent for sharing their valuable time for me and patiently supporting
us with their feedback.
I am especially thankful to our family members who have been providing us most valuable moral
support and inspirations to us in different ways.

6|Page
 Abstract

The Fast Fashion industry brands have three weapons that have helped them seize
market opportunities Fast, Fashion, Affordability. It can drive consumers mind in an
instant. Though with such power comes great responsibility as well. The Fast fashion
has been so wide that it has numerous brands. In order to be a competitive chunk, it
is essential for a company to focus on strategies that can make brands different from
one another. Business Strategy implementation is one of the crucial tasks that needs
to be implemented in order to flourish the consistency of growth and enhancement in
a company. Strategies creates a phenomenon that can make a business a market leader
in its industry. Timely change or an upgradation in strategies for running a company
thus allow competitive advantage. The management should have the understanding
when a system needs to be changed or upgraded so to get an edge of their competitors.
The successful implementation of operations in a retail store enhances or add up value
to convenience in working. The daily operations in the store may have an impressive
effect on effectiveness, though following a path of greater effectiveness has some
cost called inefficiency. The inefficiency has price to pay that can cause a severe
damage to the ongoing operations. Hence it is essential and crucial to identify and
analyse each process and identify the scope of improvement that can enhance the
working efficiency is necessary. In view of this, the report contains a Fast Fashion
brand ZARA has been taken under consideration for analyzation of its business
strategies for enhancement purposes in order to gain competitive advantage among
other brands. Improving of efficiency and effectiveness in operational techniques in
ZARA store is one of the major components that needs to be covered in the report
for a scope of improvement.

7|Page
 0.1 Executive Summary

About the Project

The Project contains various business & competitive strategies with their analysis that have
been used by ZARA an INDITEX fashion brand, in order to stay competent and be a market
leader in the diverse market conditions of Fashion Retail Industry. The analysis of how
business strategy effects customer acquisition. It contains information about Zara Store
situated in Noida. The research problem and the optimum solution provided for the problem.
The project provides various techniques that can be used to improve in store operations for
better efficiency & effectiveness through Flow Chart, Process Chart and Cause & Effect
Diagram. The Project mentions the conclusion and recommendations by analysing the
business environment & research used.

Objectives

The objective of the study includes

(1) Analyse and Interpretate effective Business strategies

(2) Focus on improvement in current store operations

(3) Focus on effective customer service

Research & Methodology (Research Design)

The study can be defined as exploratory and opportunistic. The methodology includes use
of both primary and secondary data where qualitative and quantitative data would be
collected through unstructured and semi-structured interviews and survey of associates in
the organization including managers as primary data extraction and various published
reports would be accessed for secondary data extraction. In the later stage a proper analysis
would be using various tools that would be followed by interpretation of results.

8|Page
Data Analysis Techniques
The Data Analysis Techniques used includes Flow Chart, process Chart, Cause & Effect
Diagram

Findings & Suggestions

The findings include that the problems have been occurred due to specific circumstances
and process that can be improved and enhanced for better quality of operations in the store.

9|Page
 Chapter 1
INTRODUCTION

10 | P a g e
 1.1 Industry Overview
Fast Fashion is a term used for fashion designs moving rapidly from catwalk on fashion
shows to direct stores. The assortment introduced are regularly based on styles of present
fashion trends and worn by personalities. The stylish fashion clothes make the consumer
look hot at an affordable price is a big hit between women. Advantages namely include
cheaper clothes, speed of trend cycle and shopping for new clothes becomes a hobby. Fast
fashion can be defined as cheap, trendy clothes that gets ideas from celebrities’ culture that
turns up into garments in stores at a high speed in order to meet consumer demand. The idea
to get newest styles in hand as fast as possible is the trend that has been booming rapidly, so
shoppers tend to snap up clothes as fast as possible in order to gain advantage of following
the fashion trend. Fast fashion has become so common as of cheaper, speedier
manufacturing and shipping methods that has led to increase in consumer purchasing power
mostly among the youths. In fact, Fast fashion companies introduces multiple new products
every week in order to stay on trend. The major reason for getting clothes delivered in
moment of time is due to innovation in supply chain management. The goal is to rapidly
produce fast fashion garments and supply it to multiple outlets in a week or two. It is
assumed that the garments carelessly made are not be used for years or multiple times. The
efficient and effective supply chain management made it possible for fashion retailers to
cater consumer demands. Fast fashion Industry follows category management, where the
manufacturer is linked with the consumer with a mutually beneficial relationship.

Fig-1.1

11 | P a g e
The above graph gives us a clear picture of increase in market value of Fast fashion in
coming years. In 2021 market value amounts to 93 billion dollars whereas with a significant
increase to 99.23 billion dollars in 2022, The market is set to increase to 106 billion dollars
in 2023 and so on. There has been a significant increase of 8.76% every year. The immense
growth worldwide would initiate a greater challenge to cater consumer demand.

1.2 Company Overview

A Spanish clothing and accessories brand, One of the most revenue generating brand of
Inditex group. Zara keeps up with the trendy fashion with huge verities & designs and are
also affordable at the same time. It can be probably said as the consolidation of all qualities
that has made Zara one of the most famous brands all around the world. Zara focuses on
variety and designs instead of quality. As it knows many entities like women tend to follow
trends that makes their previous purchase an obsolete. The Spanish fashion brand that
became the go-to fashion brand for all. One of the world's largest apparel retailers. The
fashion group also owns brands such as Massimo Dutti, Pull & Bear, Bershka, Stradivarius,
Oysho, Zara Home, and Uteraie. Zara is considered to be the brand which is designated as
one of the most innovative fashion apparel retailer brands in the world that was originally
the conception of The Inditex Group by Spanish businessman Amancio Ortega.
The company headquartered in LA Corunna, Galicia, Spain, where the first Zara outlet was
inaugurated in the year 1975, This Spanish accomplishment tale includes many diverse
styles, from day-to-day garments, to casuals and formals, thereby giving a comprehensive
fashion & apparel solution for women, men and children. Opening a solo store then, today
Zara has more than 2000+ outlets delivering fashion apparels to all around the world and
whipping out annul turnovers of 3.2 million Dollars.

1.3Value Chain

Zara as a vertically-integrated retail chain that is , it controls all its garment manufacture and
contracts out only the basic clothing that csn be well-ordered in advance and simply
modified to future essential panaches.

1.4 JIT (Just in Time) & EOQ (Economic Order Quantity)

In order to preserve its competitive advantage, Zara uses a Just-in-time (JIT) manufacturing
system to automate high-quality internal production and a JIT inventory method to keep
inventory levels stable. Zara uses the EOQ model in the meanwhile to manage setup costs.
A predicting demand model and an optimization model are used by Zara to estimate the
weekly shipping quantities from the warehouse to each retail shop and resolve various issues

12 | P a g e
with inventory coordination among the retail network. In addition, Zara must ensure that its
universal retail store network is operating smoothly by employing JIT inventory strategy.
Due to the effectiveness of its current inventory management system, Zara enhances its
ability to respond quickly to client trends and to market demands, both of which are essential
components of Zara's success in the fast-fashion industry.

1.5 Supply Chain Model

Fig-1.2
The above figure displays the supply chain structure of Zara in comparison to other fashion
retail stores. It starts from Research of trends after which clothes are designed, after
resourcing the materials the clothes are tailored which is transported to various Zara stores
all around the world within 2 weeks, whereas a common clothing company requires at least
a time of 2 months in order to replenish items.

1.6 Organization Structure

Fig-1.3

13 | P a g e
The above figure consists of functional organization structure that is followed by Zara. Each
functional associate has a line responsibility over salespeople. The structure used by large
firms with many products / market segments, minimising line authority to functional
managers. Advantages include Qualified associates guide salesforce, clarification of
communication between lower level and upper-level associates.

1.7 About the Store

Fig-1.4
Zara Store Shop no. A101 is located at Ground Floor at DLF Mall of India, Noida. The Size
of the store is 2200 square-meters, with furbished lights, Black Furniture, white walls and
ceilings in order to draw all the focus on clothing. The store has 2 stockrooms. The varieties
include clothing, accessories, shoes, swimwear, beauty, and perfumes. The Store has three
sections Male (Masculino), Female (Masculina) and Kids (Nino’s), each section has a trial
room. More than 2000 articles are arranged on shop floors. Built with a discreet environment
and big windows; stores were comfortable and designed to "make an atmosphere of anarchy
and excitement, continuously located in prime highly visible locations that were fully-
occupied by Zara (with a few exclusions where cultural and political influences could act as
problems). There is total 60 employees in the store including Managers, Sales Associate,
etc. RFID technology is used at the store. When clothing is affixed with microprocessor-
based security labels at logistic stands till the point of sale, product security is increased
because RFID technology enables autonomous garment identification and location that is
quick and accurate. In order to avoid lost sales and optimise earnings, it is now possible to
quickly identify and restock the shop floor with the items and sizes that have been sold out
on the shop level but stock is still present in the stock room. Previously, this process required
a lot of time. Radio frequency identification (RFID)-based digital labels and interactive trial
rooms were introduced by Inditex. Store sales associates may match items and recommend
full looks with the use of digital labels. Additionally, this endeavour provides consumers
with information about the breadth of goods offered in a more visually appealing manner.
14 | P a g e
Touch screen interactive trial rooms give customers a full shopping experience by informing
them about the products that are offered in-store or providing them the option to buy them
online. The purpose of interactive trial rooms is to cut down on the amount of time clients
have to wait while a salesperson brings them other sizes, colours, or styles to try on clothing.
Users would no longer need to leave the trial area in order to find the objects with this
system.

Fig-1.6
The above figure displays the stockrooms of Masculina (Men) & Masculine (Female). The
stockroom contains more than 10,000 articles. The articles include clothes, shoes, perfumes
and other accessories. The online orders are even packed up as parcels in Masculina
stockroom.
In order to successfully operate, the store has been organising various programs to enhance
Customer Experience. Such as “Customer Delight Programs”

1.8 (6 Minimum of Customer Service)

1) Friendly Look
2) Always be available
3) Always offer alternatives
4) Always sell in fitting room
5) Cashier gives cash with both hands looking in eyes and says thanks
6) Manager makes more contact with customers.

1.9 Visual Merchandising

Zara stores connects its consumers with its most effective visual merchandising that affects
the sensory which contains first the mannequins that help people recognize the type and
variety of clothes available in store for men, women and kids. The stores have all furniture
in black that emits love for Gen-Z. The scorching lights enhances the view of articles. The
15 | P a g e
stores even play a regular background music radio that makes the shopping experience quite
interesting. They merchandise in order to enhance features & aspects such as
• Catching the customer’s attention
• “Waking up” buying desires
• Creating shopping needs

16 | P a g e
 Chapter 2
JOB
DESCRIPTION &
ANALYSIS

17 | P a g e
 2.1 Job Description

As a sales associate there were various tasks and duties that were assigned to m
1) Stockroom Operator
As a stockroom operator I had duties of arranging the shelves where the articles were
kept mostly size wise so it would be quite easy for other stockroom associates to locate
the right sizes in need as per the RFID software. Arranging also included putting the size
tags on articles as after folding the articles it is quite difficult to know the sizes of the
particular article. So, tagging is an alternate to it.
I was also provided the RFID scanner device that helped me know the articles that have
been sold from display area so that I could search for those articles in stockroom just by
moving the device beside articles until it beeps. The device beeps when the article is
found. So, I would keep those articles on trays for further process.
2) Shop floor Operator
As a shop Floor Operator, the daily tasks included merchandising, In order to enhance
consumer experience in the store. By arranging articles to its respective places. Helping
consumers in order to get their exact sizes and articles consumers’ desire. The operator
tasks include getting articles from stockroom if available on consumer demand.

2.2 Job Description Analysis

The Job description plays a great role in part of learning and gaining experience of how
better one can cater consumer’s experience that ultimately leads to increase in sales
revenue as consumers tend to find their right choice articles soon without much
hesitation and time consumption. This defines the need and usefulness of a stockroom
operator as well as a shop floor operator.
As a stockroom operator one can analyse the demands of consumers to a greater extent.
A pressure to restock the shop floor area as fast as possible in order to cater the
willingness to purchase of the consumers. As fast the articles would get displayed on the
shop floor the faster it increases the chance of the article to get sold. By proper
arrangement of articles in stockroom allows the operators to find articles more easily in
a particular section. Labelling of articles according to sizes helps stockroom operators
find the relevant articles in need in a quick and easy way.
As a shop floor operator one can gain insights on how to cater consumer experiences
that seems to be one of the most crucial components to consider while performing the
shop floor operator job. Assisting consumers find what they need creates an impact in
minds of consumers as they feel prioritized in terms of service that ultimately leads to
visiting multiple times for such service.

18 | P a g e
 Chapter 3
BUSINESS &
COMPETITIVE
STRATEGIES

19 | P a g e
 3.1Analysis of Business Strategy at Zara
1) Strategy - Customer Co-creation
Zara sales associates are deemed to hear and note the consumer requirements within
the shop. The requirements are then forwarded to the design department where the
article is designed and then it forwards it to sourcing department where raw materials
are extracted and the design centres design the product and sends it to manufacturing
and within weeks Zara products are available on stores all around the world.

Analysis - The strategy aims to understand consumer objectives and satisfies them
instantly that leads to building of products according to consumer wants which
ultimately leads to increase in sales. As analysing the consumer impulses and making
availability of products accordingly within stipulated time and intimate consumers
about the availability of products tends to increase sales.

2) Strategy - Lower quantities of one style

Whenever consumers visit any garment store by watching the same number coloured
and designed articles there, they feel that these articles are being used by various
consumers in same city. Hence, it decreases the sense of exclusivity among
consumers and they tend to feel as commoners. So, Zara keeps limited stocks of
specified articles.

Analysis – The strategy helps in

• Arising a feeling of lots of variety among consumers
• Realization of exclusivity
• Short production of articles reduces chance of failing
• No same style products prevent overstock issue
• Feeling of artificial scarcity arises in consumer mind

3) Strategy - Short shelf life

An article that is well preferred by consumers will not be available at Zara store after
few weeks. Whereas, a normal Indian retailor would display such articles that have
been selling more often and would repeatedly keep it stocked in order to boost sales.
Even manufacturers tend to the same as they keep producing the same articles being
sold. As it reduces the chances of producing new products and ready inventory gets
to be sold easily.

Analysis – The above strategy provides a glimpse of getting a competitive edge

among other brands as short shelf-life strategy would implement innovation which
is helpful for growth.

4) Strategy – More number of styles

Zara produces 12000+ designs per year. Most number of designs produced by any
company in the world.
20 | P a g e
 Analysis – benefits of more verities
• Articles for every type of consumers as it reduces the chances of consumers
not purchasing when visiting stores.
• Customers have more options to explore that helps in on spot decision
making.
• More verities mean gaining a position among fashion leaders

Hence, it increases the impulse decision of buying and consumers who came just to
take a tour of shop buys an article for an instant.

5) Strategy - Two orders per week from every stores

Every Zara store places orders twice a week. The order placed are received in the
upcoming week.

Analysis – The main objective is to be updated with current trends and remove the
old stocks from display so that consumers visiting frequently in search of new
articles is taken care of. This creates curiosity among consumers.

3.2 Positioning Map of Zara among other Brands

Fig-3.1

3.3 Competitive Strategy

In order to withstand with its competitive edge, Zara for cost efficiency follows Just-in-time
(JIT) manufacture system to machine high quality in-house work and uses JIT inventory
21 | P a g e
approach to maintain inventory level. Zara uses EOQ model to regulate setup cost. Zara
makes sure its worldwide retail store system running fine by implementing JIT inventory
method, so Zara performs an inventory stream procedure that involves a forecasting demand
model and an optimization model to regulate weekly consignment quantities from
warehouse to every retail outlet and unravel some problems about inventory management
amongst retail network. Due to successful engagement of its present inventory management
strategy, Zara advances the abilities that rapid comeback to consumer trends and high
speediness to market which is the fundamental factors to Zara s success in the fast-fashion
Industry.

22 | P a g e
 Chapter 4
RESEARCH &
METHODOLOGY

23 | P a g e
 4.1 Identification of Problem
While serving as an intern in store I understood the tasks and operational decisions that are
taken under considerations by Sr. Managers in Store. By conducting unstructured & semi
structured interviews of Sr. Managers, Sales Associate & Stockroom associates at store and
arranging a poll that contained various problems identified in order to get the most relevant
and serious problem that the company has been facing. By getting responses I came to
know about one of the critical processes that presents opportunities for process
improvement. “Delay in re-stocking of sold articles on Display Area from Stockroom” & A
second problem that is faced by the store on daily basis “Long ques near trial room”.

1) Delay in re-stocking of sold articles on Display Area from Stockroom.

Re-stocking is an important process to be taken under consideration. As one article sold
empties space and refilling the space is one of the core operational tasks of a floor assistant
and stockroom operator combined, as fast the article is displayed the faster are the chances
of getting it sold. As per my observation there were various factors due to which it became
a time-consuming process. Due to inefficiency in people management.
2) Long ques near trial room
One of the most significant and crucial problems in store that has tremendous effects on
consumers even the associates working near the trial rooms and that also has an adverse
effect in mind of consumers. As most customers tend to think it takes a long time to try
clothes os many skip purchasing sue to this. Due to long waiting time consumers tend to
carry multiple articles with themselves in order to try it once. Specially in women sections.
This causes piled up articles to be re folded and displayed once more.

24 | P a g e
 4.2 Problem Analysis
Delay in re-stocking of sold articles on Display Area from Stockroom.

Process Chart
Process Chart Symbols
Process Restoring of Sold Goods
Operation
Subject Associates
Beginning Arrival of aticles in stockroom Inspection
Ending Display Articles Transpaortation
Table- 4.1 Delay

Summary Storage
Activity No. of StepsTime in mins. Distance in ft. Table-4.2
Operation 7 72
Inspection 1 5
Transpaortation 3 15 642
Delay 1 5
Storage 1 2

Table-4.3

Step No. Time Distance

Step Description
(min) (ft)
1 30 25 x Unpacking of articles covered in packing materails
2 20 65 x The Stockroom associates arrange the articles to their respective hangers
3 10 60 x Associates select the articles to be dispatched
4 2 10 x assmebling trays
5 3 12 x The selected articles are arranged on buildings of tray
6 5 120 x The arranged trays are then taken to Lift
7 5 x Wait for the Lift to arrive
8 10 60 x The articles are arranged in main stockroom from trays
9 5 50 x The articles are selected through RFID that are to be displayed
10 2 10 x assmebling trays
11 5 x The selected articles are kept on buildings of tray
12 2 20 x Get Hangers for the articles
13 8 An associate arranges the articles on Hangers
14 5 90 x The hanged articles on trains are taken staright to main display area
15 30 120 x The articles kept on display area are arranged by Floor operator

Table-4.4

The table-4.1 represents the Process, Subject, Beginning and ending of the whole process,
Figure 4.2 provides information about the Symbols used in the Process chart Operations is
symbolized as Circle for the various operational tasks that have been performed, Inspection
is symbolized by an arrow that provides information about various inspection that has been
conducted, Transportation is symbolized by square that represents change of place or going
one place to other or covering of some distance, Delay is symbolized by A semi-circle that
provides information about waiting for any of the processes and Storage is symbolized by
triangle that represents the storage of any good in the process, Figure 4.3 represents the
summary that includes activities performed, number of steps that has been covered, total
time taken in minutes in each step and the total distance that has been covered while
25 | P a g e
performing the whole process, Figure 4.4 represents the final process chart that includes step
by step process an Associate performs while transferring articles from stockroom to display
area.

4.3 Improvement
The delay in restoring of sold articles on shop floor can be improved by introducing a
specific time frame to transfer goods from one stockroom to other hourly in a day. As there
are optimum workforce in store to accomplish this process. More number of associates can

be assigned in order to arrange the articles as it reach es to the shop floor from stockroom.

4.4 Ishikawa Diagram I

Fig-4.1

The above figure is the cause-and-effect diagram also known as the Ishikawa Diagram is
used in order to understand the cause for a particular problem. In the above diagram I have
represented an Ishikawa diagram to inspect Delay in re-stocking of sold articles on Display
Area from Stockroom process within Zara Store. We have considered various components
in order to measure the causes and its effect on late billing such as various Personnel’s
responsible, procedures, materials, equipment’s and others responsible for Delay in re-
stocking of sold articles on Display Area from Stockroom process.
26 | P a g e
 4.5 Ishikawa Diagram II

Fig-4.2
The above figure is the cause-and-effect diagram also known as the Ishikawa Diagram is
used in order to understand the cause for a particular problem. In the above diagram I have
represented an Ishikawa diagram to inspect long ques near trial room process within Zara
Store. We have considered various components in order to measure the causes and its effect
on late billing such as various Personnel’s responsible, procedures, materials, equipment’s
and others responsible for long ques near trial room process.

27 | P a g e
 Chapter 5
CONCLUSION &
RECOMMENDATIONS

28 | P a g e
Inditex is one of the biggest companies all around the world. Zara being the biggest
contributor of profits among other brands of Inditex has around 70% of profit share among
other brands of Inditex. Zara had never incurred losses until the pandemic stuck. In the
current financial year march 2022 Zara profits around 3.2 million dollars. Zara’s feel of
premium segment is loved by the middle-class consumers to a greater extent. The strategy
of Zara making its customers realise the phenomena of FOMO has made its brand more
valuable. Zara’s clothes are sold so fast that consumers tend to purchase multiple items
together in a fear to lose the best. These Business strategies have been following since a
decade at Zara. The ultimate strategy that is used by Zara includes focus on Variety and
designs more than quality and using a quick supply chain strategy to get the newest trendy
clothes straight to the shop floor. Zara gets its designs mostly by following the premium
brands and their designs. Using the technique of JIT & EOQ Zara saves cost that gives a
competitive edge among other competitors. The target consumers of Zara have so habituated
to shopping at Zara that they rarely shift their preference among other brands like H&M,
GAP, Mango, etc.
The Noida store of Zara has provided me a chance to get an actual view of customer
experience in one of the biggest brands. The store caters to an average of 500+ customers
on a daily basis. As so many customers tend to visit the store, the store also needs to provide
its services in an effective way.
The delay in restoring of sold articles on shop floor can be improved by introducing a
specific time frame to transfer goods from one stockroom to other hourly in a day. As there
are optimum workforce in store to accomplish this process. More number of associates can
be assigned in order to arrange the articles as it reach es to the shop floor from stockroom.

29 | P a g e
 CHAPTER 6
BILIOGRAPHY

30 | P a g e
1) https://www.zara.com/in/
2) https://www.inditex.com/itxcomweb/en/home
3) https://radvilekisieliute1310689year2.wordpress.com/2015/12/28/zara-
report/
4) https://prezi.com/zohat-uhgopp/store-experience-zara/
5) https://interobservers.com/zara-competitors/
6) https://www.ibef.org/industry/retail-india
7) https://erply.com/in-the-success-stories-of-hm-zara-ikea-and-walmart-
luck-is- not-a-key-factor/
7) https://www.impinj.com/library/blog/zaras-retail-inventory-management-
systemdriv
8)
https://www.scmglobe.com/zara-clothing-company-supply-chain/
9) https://www.investindia.gov.in/sector/retail-e-commerce

31 | P a g e