Presented By:

Himanshi Singh
Sarah Asad
Mahima
(MBA-2023)
"Give customers what they want, and get it to them
faster than anyone else."
Amancio Ortega

 About ZARA
Launched in 1974 as Zorba

Renamed as Zara

Flagship brand for Inditex

Most profitable brand for

Inditex

Contributes upto 80% of the

total revenue of Inditex
 Net Profit- Revenue from Sales-
148.76 crore 1,815 crore

FACTS

300
Designers working round the
year

12000+
Release designs in a year

60%
Growth in India revenue
ZARA INDIA
Inditex and Tata group joint venture
The first store of Zara was opened in
Mumbai in 2010.
20 outlets presently Avg sales 47 Cr per
store.
First brand to cross 100 million sales
mark
Business Strategy
 Business Model

Sourcing &
Design
Manufacturing

Retailing Distribution
"The Cube"
What makes Zara unique?
Incorporates more than 700 designers with exceptional talent,
raw creativity and deep understanding of the market they are
operating in.
Driven by client's needs, fashion trends and store sales (Rapid
response to market demand)
Saves inventory cost by using Just-in-Time production.
Vertical Integration-grey dyeable fabrics
Company prefers to spend revenues on opening new stores rather
than going for advertising, works on word-of-mouth marketing
tactic.
Short lead times for delivery of unique fashion items combined
with short production runs enable Zara to offer customers more
styles and choices
It creates a sense of urgency to buy because items often sell out
quickly & collection is changed every two weeks.
Delivers products similar to luxury brands at an affordable price.
Competitors
The Challenges
The number of associated shipment decisions reaches several

millions every week.

The amount of relevant data (warehouse inventory, store

inventory and store sales history for each article) is also

enormous.
The available warehouse inventory is often limited. This follows

from Zara’s business model, whereby the store life‐cycle of

articles typically spans only a small fraction of a selling season

(i.e. 4‐5 weeks), so that the store assortment turns over much

more frequently than with more traditional retailers

The Challenges
These shipment decisions must be determined in

just a few hours after the relevant information

(latest store inventory, sales history of the previous

day) becomes available. This is because any

further delay, in light of the warehouse processing

times and transportation schedules, would

effectively delay the replenishment of stores by

one full day

Legacy Process vs. New Process