Zara is one of the fastest growing fashion chains in the world founded by Amancio Ortega. It focuses on turning around new designs within 3 weeks of them appearing on runways, producing clothes inspired by celebrity outfits. Zara is able to react incredibly quickly to the latest fashion trends, producing fashionable but inexpensive clothes and getting new lines into stores within 3 weeks, much faster than competitors. It introduces 20,000 new designs per year and refreshes stock weekly so customers regularly return to see new items that are only available for around a month before being replaced.
2. Have you ever been to a Zara store?
You probably have because it’s one of the fastest-growing chains in the
world. The person behind Zara is Amancio Ortega. He is the richest man in
Spain, but very few people know his face. There are only few official
photographs of him, and he rarely gives interviews. Although he is a
multimillionaire businessman, he doesn’t look like one – he doesn’t like
wearing suits or ties, and prefers to wear jeans and a shirt.
4. The idea of Zara was created by Amancio
Ortega.
Partnered with Jose Catellano Rios,
Inditex CEO
Inditex-Multinational clothing retailer and
manufacturer
The first store opened in 1975
Headquarters are in La Coruna, Spain
Presently in over 88 countries
About zara
5. “Link customer
demand to the
manufacturing, and
link manufacturing to
distribution.
Different from
average retailers
Focused on turning
around delivery time
within 3 weeks
Producing clothes
worn by celebrities
with quick
turnaround
The Unique idea
7. Product Design Team, on going development
Commercial Team-Allocation
Product Manager Team-Research
Store Managers-Selection
Dynamic Company
8. Zara business model goals for
operations
Develop a system that requires short lead
time
Decrease quantities produced to decrease
inventory risk
Increase the number available styles and
choices.
9. Inventory Management
Zara replenishes its inventory from one of its
2000 stores
Stock quantities are limited so that they
ensure not to carry excess inventory
They carry the least inventory as percentage
annual sales as compared to competitors
10. The main reason is that Zara reacts incredibly
quickly to the latest designer fashions, and
produces clothes which are fashionable but
inexpensive. Zara can make a new line of clothes
in three weeks. Other companies normally take
nine months. The clothes also change from week
to week – so customers keep coming back to see
what’s new. It produces 20,000 new designs a
year – and none of them stay in the shops for
more than a month.
So if you’ve seen a new jacket or skirt you like in
a Zara store, hurry up and buy it, because it won’t
be there for long.
11. It reacts to top designer fashion
very quickly and cheaply, the
clothes change every week, they
produce 20,000 new designs a
year.
