Introduction to Zara

• One of the fashion label and fashion chain stores established in 1975 by the Spanish group Inditex own by Amancio Ortega
• Next to Zara, the rest of the labels the groups own are Bershka,Massimo Dutti,Pull and Bear,Stradivarius,Oysho, Zara Home,
Zara kinds and Uterque
• During the last two decades Zara tripled its profit and stores and nowadays is ranked the third biggest retailer world wide
• Has 3000 in-house designers located in its headquarter in the region of A Coruna Spain
• Average markdown ratio is at approximately 50 per cent, for comparison Zara sold only 15 percent on sale
• By September 2010 Inditex group owns 4907 stores in 77 countries around the world (38 in Europe and 39 outside Europe)
• Zara gets the credit to be pioneer in Agile Supply Chain
• Zhang (2008) suggests that “whole process of the supply chain in Zara can be divided into four parts:
• Product organization and design
• Procurement
• Production and Product distribution
• Sales and feedback
Zara’s relation with consumer behavior
• Consumer behavior is the study of how individual customers, group or organization select, buy, use and dispose ideas, goods, and
services to satisfy their nature
• The brand name of Zara is strong in the market and the company has a strong new product pipeline which presents more than 10000
new designs every year that amounts to approximately 30 new designs a day
• The Zara represents all the nature of consumer behavior that the consumer behavior have . Some of the natures are:
• Process
• Influenced by various factor
• Keeps on changing
• Different for all customers
• Varies from region to region and country to country
• Different for different products
Results
Consumer-driven process
Agility – impact on the supply chain
Retailer power
Suppliers under increased pressure
Elimination of stages in the supply chain