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    Javier Fernandez Rodriguez
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    Case-Zara

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    17 views6 pages

    Case Zara

    Uploaded by

    Javier Fernandez Rodriguez

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 6
    Zara (www.inditex.com) isa fashion retail chain of Indi- ‘tex Group owned by the Spanish businessman, Aman- cio Orega, who also owns brands such as Massimo Dutti, Pull & Bear, Oysho, Uterqie, Stradivarius and Bershka, The Inditex group (of which Zara is a part) is, headquartered in La Corufia, north-west Spain, where the first Zara store opened in 1975. It is claimed that Zara needs just two weeks to develop a new product and get it to stores, compared with a two-month indus: try average. Zara has resisted the industry-wide trend. towards outsourcing fast fashion production to low- cost countries. Its most unusual strategy is its policy of 2010 advertising; the company profers to invest a por: centage of revenues in opening new stores instead, Main shareholder of Inditex, Amancio Ortega Sse: Capea © es. Zara's business model Zara is a vertically integrated retaller. Unlike similar ‘apparel retailers, Zara controls most of the steps on the supply chain it designs, produces and distributes itself. Zarais a fashion imitator and focuses its attention on Understanding the current fashion trend, which is what customers want, and then delivering it,ratherthan pro: moting predicted season's trends via fashion shows and similar channels of influence, as traditionally done by the fashion industry. (Of the products Zara sells, 80 per cont are manufac- tured in Spain, 26 pr cont inthe rest of Europe and 24 per cent in Asian and Aican countries and the rest of the world. So while some competitors (e.g. Gap) out- source al production to Asia, Zara makes its most fash- ‘onable items — half of all its merchandise — at a dozen company-owned factories in Spain and Portugel, par- ticularly in Galicia and northern Portugal where labour is cheaper than most of Western Europe. Clothes with a longer shelf lf, such as basic T-shirts, are outsourced to low-cost suppliors, mainly in Asia and Turkey. The store acts asa point of sale and also influences the design and speed of production. It is the ond and starting point of the business systom. Zara's business cycle starts with customers’ judgments on tho now dosigns, as well as information collacted by staf mom- bors who travel to fashion ctes, observing people on the streeis, browsing publications and visting venues frequented by their potential customers. What distinguishes Zara from its competitors is the feedback that Zara's managers get from the customers atthe point of sal in the stores about new clothing lines they are interested in. Store managers report customer demands and sales trends to the headquarters on a dally basis. Members of the design group (over 300

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