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Zara final pdf

  1. 1. 1
  2. 2. INDEX 1. GENERAL CHARACTERISTICS………………………………………………………………3 2. BUSINESS STRATEGY……………………………………………………………………….5 2.1 DESIGN…………………………………………………………………………….5 2.2 MANUFACTURE………………………………………………………………….6 2.3 LOGISTICS…………………………………………………………………………7 2.4 DISTRIBUTION……………………………………………………………………8 3. INTERNATIONAL OPERATIONS……………………………………………………………9 4. STRUCTURE AND ORGANIZATIONAL CULTURE……………………………………..10 5. ETHICS AND SOCIAL RESPONSIBILITY………………………………………………….12 6. BIBLIOGRAPHY………………………………………………………………………….….14 2
  3. 3. 1. GENERAL CHARACTERISTICS Zara is a Spanish clothing and accessories retailer based in Arteixo, Amancio Ortega and Rosalía Mera. It is the flagship chain store of the Inditex group; the fashion group also owns brands such as Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe. Galicia, and founded in 1975 by 1975 Spain 1988 Portugal 1989 United States 1990 France Origins & History: 1992 Mexico The fist store was opened in 1975 in A Coruña, Spain by the 1993 Greece founder of Zara, Amancio Ortega. The name of the store was 1994 Belgium and Sweden called Zorba, like the 1964 film “Zorba the Greek”. But he has to 1995 Malta rename it, because there had been already a bar called “Zorba”. 1996 Cyprus Since they had already made the molds for the letters in the sign, 1997 Norway and Israel they just rearranged and they found Zara. 1998 Argentina, United Kingdom, Zara got very popular the following years, so the retailer extends Venezuela, Turkey, Lebanon, U.A.E., its networks of stores to major cities in Spain. During the 1980s, Kuwait and Japan Ortega started changing the design, manufacturing, and 1999 The Netherlands, Germany, Poland, distribution process to reduce lead times and react to new trends Saudi Arabia, Bahrain, Canada, Brazil, Chile and Uruguay in a quicker way, in what he called "instant fashions". The 2000 Andorra, Qatar, Austria and company based its improvements in the use of information Denmark technologies and using groups of designers instead of individuals. 2001 Puerto Rico, Jordan, Ireland, In 1985 the holding company Inditex was created. Three years Iceland, Luxembourg, Czech Republic and later, Inditex opened the fist Zara store outside Spain in Oporto, Italy Portugal. In 1989 they opened the first store in the United States 2002 El Salvador, Finland, Dominican and in 1990 the first store in France. In the following years they Republic, Singapore and Switzerland opened every year new stores. Inditex begins trading on the stock 2003 Russia, Malaysia, Slovenia and market on 23 May 2001. Slovakia In 2003 the Group opens Zara’s second distribution hub, 2004 China, Morocco, Estonia, Latvia, Lithuania, Hungary, Romania and Panama Plataforma Europa, in Zaragoza, Spain, to complement the 2005 Philippines, Thailand, Monaco, distribution centre in Arteixo (A Coruña, Spain). Three years later Costa Rica and Indonesia they opened further two new Spanish distribution hubs begin 2006 Serbia and Tunisia operating in Meco (Madrid) and Onzonilla (León). Zara celebrates 2007 Guatemala, Croatia, Colombia and the launch in Florence (Italy) of Zara shop number 1,000. Oman They also opened a a new distribution centre, which begins 2008 South Korea, Ukraine, Egypt, operating in Palafolls (Barcelona) in 2009, next to the existing Honduras and Montenegro logistics platform in Tordera. 2009 Syria In September 2010, Zara began selling its products online and by 2010 Bulgaria, Kazakhstan, India year’s end the online store was available in 16 European 2011 Australia, Taiwan, Azerbaijan, South countries. Africa and Peru In 2011 stores opened for the first time in Taiwan, Azerbaijan, Australia, South Africa and Peru, Inditex has now stores in every continent. 3
  4. 4. Location & Size: The campus (located in the industrial area of Arteixo, next door to La Coruña) consists of corporate headquarters for the entire company, as well as headquarters for Zara and Zara Home, two of Inditex’s eight brands. There are also factories and a distribution center where clothes are loaded onto trucks to be sent around the world. The factories are directly across from the corporate offices. More than half of Inditex’s manufacturing takes place either in the factories it owns or within proximity to company headquarters, which is to say in Europe or Northern Africa. Inditex owns factories in Spain and outsources production to factories in Portugal, Morocco and Turkey — considered costly labor markets, typically. The rest of its clothes are produced in China, Bangladesh, Vietnam and Brazil, among other countries. The trendiest items are made closest to home, however, so that the production process, from start to finish, takes only two to three weeks. Inditex’s higher labor costs are offset by greater flexibility — no extra inventory lying around — and on faster turnaround speed. Zara has got 1,671 stores in 85 countries. Divided by continents: 1,280 stores in 39 European countries, 207 stores in 17 American countries and 243 stores in 26 countries in Asia and the Rest of the world. The whole Inditex group has 109,512 employees. Their sales grew in 2011 by 10% up to 8,938 million euro. That makes a contribution of 64.8% on the whole Inditex sales. Their earnings before interest and taxes (EBIT) amounts to 1,725 million euro in 2011. 4
  5. 5. Sales by geographical area 2010 Europe ex-Spain Spain Asia The Americas 12% 18% 45% 25% Sector of activity: Inditex belongs to the clothing industry. They are operating in textile design, manufacturing and distribution. Although the company is also involved in the design and the manufacturing of its products, its main activity is the retail by means of its own stores present in Europe, North and South America, Asia, and Oceania. 2. BUSINESS STRATEGY DESING: Each of Zara’s three product lines (women, men, and children) had a creative team consisting of designers, sourcing specialists, and product development personnel. The creative teams simultaneously worked on products for the current season by creating constant variation, expanding on successful product items and continuing in-season development, and on the following season and year by selecting the fabrics and product mix that would be the basis for an initial collection. Top management stressed that instead of being run by maestros, the design organization was very flat and focused on careful interpretation of catwalk trends suitable for the mass market. Zara created two basic collections each year that were phased in through the fall/winter and spring/summer seasons, starting in July and January, respectively. Zara’s designers attended trade fairs and ready-to-wear fashion shows in Paris, New York, London, and Milan, referred to catalogs of luxury brand collections, and worked with store managers to begin to develop the initial sketches for a collection close to nine months before the start of a season. Designers then selected fabrics and other complements. Simultaneously, the relative price at which a product would be sold was determined,guiding further development of samples. Samples were prepared and presented to the sourcing and product development personnel, and the selection process began. As the collection came together, the sourcing personnel identified production requirements, decided whether an item would be insourced or outsourced, and set a timeline to ensure that the initial collection arrived in stores at the start of the selling season. 5
  6. 6. The process of adapting to trends and differences across markets was more evolutionary, ran through most of the selling season, and placed greater reliance on high-frequency information. Frequent conversations with store managers were as important in this regard as the sales data captured by Zara’s IT system. Other sources of information included industry publications, TV, Internet, and film content; trend spotters who focused on venues such as university campuses and discotheques; and even Zara’s young, fashion-conscious staff. Product development personnel played a key role in linking the designers and the stores, and were often from the country in which the stores they dealt with were located. On average, several dozen items were designed each day, but only slightly more than one-third of them actually went into production. Time permitting, very limited volumes of new items were prepared and presented in certain key stores and produced on a larger scale only if consumer reactions were unambiguously positive. As a result, failure rates on new products were supposed to be only 1%, compared with an average of 10% for the sector. Learning by doing was considered very important in achieving such favorable outcomes. Overall, then, the responsibilities of Zara’s design teams transcended design, narrowly defined. The teams also continuously tracked customer preferences and used information about sales potential based, among other things, on a consumption information system that supported detailed analysis of product life cycles, to transmit repeat orders and new designs to internal and external suppliers. The design teams thereby bridged merchandising and the back end of the production process. These functions were generally organized under separate management teams at other apparel retailers. Manufacture: Zara sourced fabric, other inputs, and finished products from external suppliers with the help of purchasing offices in Barcelona and Hong Kong, as well as the sourcing personnel at headquarters. While Europe had historically dominated Zara’s sourcing patterns, the recent establishment of three companies in Hong Kong for purposes of purchasing as well as trend-spotting suggested that sourcing from the Far East, particularly China, might expand substantially. About one-half of the fabric purchased was “gray” (undyed) to facilitate in-season updating with maximum flexibility. Much of this volume was funneled through Comditel, a 100%-owned subsidiary of Inditex, that dealt with more than 200 external suppliers of fabric and other raw materials. Comditel managed the dyeing, patterning, and finishing of gray fabric for all of Inditex’s chains, not just Zara, and supplied finished fabric to external as well as in-house manufacturers. This process, reminiscent of Benetton’s, meant that it took only one week to finish fabric. Further down the value chain, about 40% of finished garments were manufactured internally, and of the remainder, approximately two-thirds of the items were sourced from Europe and North Africa and one-third from Asia. The most fashionable items tended to be the riskiest and therefore were the ones that were produced in small lots internally or under contract by suppliers who were located close by, and reordered if they sold well. More basic items that were more price-sensitive than time sensitive were particularly likely to be outsourced to Asia, since production in Europe was typically 15%–20% more expensive for Zara. About 20 suppliers accounted for 70% of all external purchases. 6
  7. 7. While Zara had long-term ties with many of these suppliers, it minimized formal contractual commitments to them. Internal manufacture was the primary responsibility of 20 fully owned factories, 18 of them located in and around Zara’s headquarters in Arteixo. Room for growth was provided by vacant lots around the principal manufacturing complex and also north of La Coruña and in Barcelona. Zara’s factories were heavily automated, specialized by garment type, and focused on the capitalintensive parts of the production process (pattern design and cutting) as well as on final finishing and inspection. Vertical integration into manufacturing had begun in 1980, and starting in 1990, significant investments had been made in installing a just-in-time system in these factories in cooperation with Toyota—one of the first experiments of its kind in Europe. As a result, employees had had to learn how to use new machines and work in multifunctional teams. Even for the garments that were manufactured in-house, cut garments were sent out to about 450 workshops, located primarily in Galicia and across the border in northern Portugal, that performed the labor-intensive, scale-insensitive activity of sewing. These workshops were generally small operations, averaging about 20–30 employees (although a few employed more than 100 people apiece), which specialized by product type. As subcontractors, they generally had long-term relations with Zara. Zara accounted for most if not all of their production; provided them with technology, logistics, and financial support; paid them prearranged rates per finished garment; carried out inspections onsite; and insisted that they comply with local tax and labor legislation. The sewn garments were sent back from the workshops to Zara’s manufacturing complex, where they were inspected, ironed, folded, bagged, and ticketed before being sent on to the adjoining distribution center. Logistics In the world of fashion, logistics takes a very important and distinctive approach between manufacturers. Even well-targeted designs could go out of favor in the months it takes to get plans to contract manufacturers, tool up production, then ship items to warehouses and eventually to retail locations. But getting locally targeted designs quickly onto store shelves is where Zara really excels. The average time for a Zara concept to go from idea to appearance in store is 15 days vs. rivals who receive new styles once or twice a season. Smaller fashion products arrive even faster. If enough customers come in and ask for a new version of a model that is no currently at the store, it can be in stores with in just 10-16 days. To put that in perspective, Zara is twelve times faster than Gap, despite offering roughly ten times more unique products! Contrast this with H&M, where it takes three to five months to go from creation to delivery –and they're considered one of the best. Other retailers need an average of six months to design a new collection and then another three months to manufacture it. VF Corp (Lee, Wrangler) can take 9 months just to design a pair of jeans, while J. Jill needs a year to go from concept to shelves. At Zara, most of the products you see in stores didn't exist three weeks earlier, not even as prototypes. The firm is able to be so responsive through a competitor-crushing combination of vertical integration and technology-orchestrated coordination of suppliers, just-in-time manufacturing, and finely-tuned logistics. While H&M has 900 suppliers and no factories, nearly 60% of Zara’s merchandise is produced in-house, with an eye on leveraging technology in those areas that speed up complex tasks, lower cycle time, and reduce error. 7
  8. 8. Inventory optimization models help the firm determine how many of which items in which sizes should be delivered to stores during twice-a-week shipments, ensuring stores are stocked with just what they need. Outside the distribution center in La Coruña, fabric is cut and dyed by robots in 23 highly automated factories. Zara is so vertically integrated, the firm makes 40 percent of its own fabric and purchases most of its dyes from its own subsidiary. Roughly half of the cloth arrives undyed so the firm can respond as any mid-season fashion shifts occur. After cutting and dying, many items are stitched together through a network of local cooperatives that have worked with Inditex so long they don’t even operate with written contracts. The firm does leverage contract manufacturers (mostly in Turkey and Asia) to produce staple items with longer shelf lives, such as t-shirts and jeans, but this volume accounts for only about 1/8th of dollar volume. All of the items the firm sells end up in a 5 million square foot distribution center in La Coruña, or a similar facility in Zaragoza in Spain’s northeast. Just to make a comparison, The La Coruña facility is some nine times the size of Amazon's warehouse in Fernley, Nevada, or about the size of 90 football fields. The facilities move about 2.5 million items a week, with no item staying inhouse for more than 72 hours. Ceiling-mounted racks and customized sorting machines patterned on equipment used by overnight parcel services whisk items from factories to staging areas for each store. Clothes are ironed in advanced, packed on hangers, with security and price tags affixed. This means that instead of wrestling with inventory during busy periods, employees in Zara stores simply move items from shipping box to store racks, spending most of their time on value-added functions like helping customers find what they want. Efforts like this help store staff regain as much as three hours in prime selling time.Trucks serve destinations that can be reached overnight, while chartered cargo flights serve farther destinations. The firm recently tweaked its shipping models through Air France-KLM Cargo and Emirates Air, so flights can coordinate outbound shipment of all Inditex brands with return legs loaded with raw materials and half-finished clothes items from locations outside of Spain. Distribution Like each of Inditex’s chains, Zara had its own centralized distribution system. Zara’s system consists of an approximately 400,000-square-meter facility located in Arteixo and much smaller satellite centers in Argentina, Brazil, and Mexico that consolidated shipments from Arteixo. All of Zara’s merchandise, from internal and external suppliers, passed through the distribution center in Arteixo, which operated on a dual-shift basis and featured a mobile tracking system that docked hanging garments in the appropriate barcoded area on carts capable of handling 45,000 folded garments per hour. As orders were received from hand-held computers in the stores (twice a week during regular periods, and thrice weekly during the sales season), they were checked in the distribution center and, if a particular item was in short supply, allocation decisions were made on the basis of historical sales levels and other considerations. Once an order had been approved, the warehouse issued the lists that were used to organize deliveries. Lorena Alba, Inditex’s director of logistics, regarded the warehouse as a place to move merchandise rather than to store it. According to her, “The vast majority of clothes are in here only a few hours,” and none ever stayed at the distribution center for more than three days. Of course, the rapidly expanding store network demanded constant adjustmentt to the sequencing and size of deliveries as well as their routing. 8
  9. 9. The distribution center generally ran at half its rated capacity, but surges in demand, particularly during the start of the two selling seasons in January and July, boosted utilization rates and required the hiring of several hundred temporary workers to complement close to 1,000 permanent employees. Shipments from the warehouse were made twice a week to each store via third-party delivery services, with shipments two days a week to one part of the store network and two days a week to the other. Approximately 75% of Zara’s merchandise by weight was shipped by truck by a third party delivery service to stores in Spain, Portugal, France, Belgium, the United Kingdom, and parts of Germany. The remaining 25% was shipped mainly by air via KLM and DHL from airports in Santiago de Compostela (a major pilgrimage center in Galicia) and Porto in Portugal. Products were typically delivered within 24–36 hours to stores located in Europe and within 24–48 hours to stores located outside Europe. 3. INTERNATIONAL OPERATIONS Zara is a globally known company, with many of its operations taking place worldwide trough an international work scheme. When we take a look at its outsourcing, we can observe that 80% of production is carried in Europe, much of it in Spain, which gives control and high quality but is 10 times more costly than it would be if undertaken in Asia. This means that its offshore production is very limited and concentrated to ensure that control can be exercised immediately and that the final product maintains the quality associated to the brand. Stitching is the only part of production it doesn’t own, but it is controlled through a network of workshops through Spain and Portugal. These workshops don’t follow an industrial production system, but a more traditional and modest operating technique. When analysing Zara’s multinational operations, we can differ between four different techniques or strategies: 1. Whenever building a manufacturing facility in a new country wouldn’t be profitable, Zara goes for exporting its products to that country instead. 2. In order to avoid the development costs inherent in opening a new store, sometimes it chooses to make its openings through franchising. 3. Whenever entering a new country Zara usually takes full ownership of all the necessary subsidiaries. This way it can take the advantage of total control. 4. When it enters a new country it aims to establish joint ventures with national firms, in order to take advantage of the partner’s knowledge of the foreign country. To complete its international operations analysis, we have to look at how it sells its products overseas. When entering a new country market, it starts by making only one opening. The reason for this is the necessity to gather information and make a deep analysis about the local culture, customer likes, trends, etc. It needs to acquire cultural sensitivity to be aware of local and national customs, and how they affect interpersonal relationships. Once it has the certainty of obtaining success, it expands in the new market multiplying its stores, resulting in the colonization of a new country. To ensure worker’s sensitivity to cultural differences, it mainly contracts national workers of the country of destiny and international workers with multicultural factors when going abroad. This system allows for the absence of culture shock problems and differences in negotiating style, or for them to be dealt with in an effective and timely manner. 9
  10. 10. About Zara’s 2011 main international operations, it entered the markets of Taiwan, Azerbaijan, Australia, South Africa and Peru. With the entrance in these last 3 countries of the Southern Hemisphere it enforces its strategy of global offer as well as well as acquiring presence throughout the 5 continents. In total, Zara opened 107 stores during 2011, 30 of them in China, where the firm owns now more than 100 establishments. For new stores the firm always chooses emblematic shops in distinguished buildings, such as Pitt Street, in Sydney; Burke Street, in Melbourne; Sandton City, in Johannesburg; or the Taipei 101 of the capital of Taiwan. By the end of 2011 Zara was already present in a total of 82 markets. To conclude it must be highlighted the extraordinary presence of Zara’s international operations through the Internet. In 2011 it launched its online shop in America and Japan, under the campaigns of “Dear America” and “Dear Japan”. At the end of 2011 the online shop was present in 18 countries, with more than a million visits per day. 4. STRUCTURE AND ORGANIZATIONAL CULTURE Culture Zara is under the management of Inditex and the Structure is mixed as some functions are shared with the different brands , not only for ZARA. Under the top management of Inditex there is an international staff with over 70,000 professionals, with 82.8% of these professionals being young women, with an average employee age of 26 years. Inditex’s corporate culture is focused on teamwork, open communication, and a high level of demand, and it offers employees a dynamic and international environment to work in. Inditex and Zara values job stability, training, and internal promotion. 10
  11. 11. Organization Structure This is an organizational chart for the organization Temple , it Works the same way for Zara but this chart was the best one I found to explain the functional departmentalization that takes place in the organization and how the different brands share the same functional departments. Zara is divided in MEN , WOMEN and KIDS with different designers and products but the logistics , distribution and the rest of the departments are common .the keys that difference Zara and Inditex organizations structure are : Horizontal differentiation where communication flows easily and an International Organization ,focus on local demands and trends and which i sable to perfectly adapt to each market where it operates . The communicative flow is simple and, even though there are adequate channels to organize communication, it is possible to exchange information with high and mid-level management and intermediate leaders quite easily a hierarchy exists, such as the one in the pyramid model, but the communication circuit is bi-directional and communication between departments is fluid. If we go down to a store level: every store manager is responsible for a business unit similar to a small to medium sized business of about 100 employees. The focus on the client and the product requires that the group is constantly re-inventing itself to avoid falling into obsolescence. Because of this, it is necessary to facilitate communication as much as possible, maintaining a direct line of communication between the store manager and other points of contact such as the design team, a sales person responsible for the zone and the window designers. The traditional model is turned upside down and the store becomes the heart of the process, the one that collects all the information received by its clients and that inturn communicates it to headquarters. The information is passed on to the commercial teams which will be the ones that determine what might be, or won’t be, liked. New patterns are designed and are sent to the factory, over and over again: the commercial teams are the ones that determine tastes for each country or region. This process is designed to ensure that the merchandise takes 24hours to get to the stores from the distribution center and 48 hours for those in America or Asia. 11
  12. 12. 5. ETHICS AND SOCIAL RESPONSIBILITY Zara views social and environmental variables as a strategic vector for its management system. Sustainable growth, which customers and society in general increasingly demand, is a value the company share and applies to all the relationship, both with customers and suppliers. All of Inditex’s and Zara’s activities are conducted:  Ethically and responsibly  Respecting the environment  Including actions regarding product health and safety Ethics – CSR Zara believes that it is vital to maintain honest and stable relationships with its network of external suppliers worldwide. For this reason, in 2001, the company decided to enforce its social guarantee on all suppliers through the Code of Conduct for External Manufacturers and Suppliers. In order to have the possibility of embarking on a business relationship with Inditex the suppliers must comply with the code, demonstrating to follow its rules and provisions. To confirm compliance with the code, independent external companies regularly audit all the suppliers. Inditex follows up with improvement programs for suppliers and social projects aimed at promoting education and a better quality of life in the regions in which it does business. Vidya Project Vidya Project is an initiative supported by Inditex and Zara in India, which accounts for around 5% of its total sourcing. Inditex’s CSR policies aim to improve conditions working in collaboration with trade unions, independent organizations and entrepreneurs. This project, launched in 2009, targeted the 24 lowest rated suppliers and applied a series of procedures that sought to ensure their compliance with Inditex’s Code of Conduct and increase control over the supply chain. The final results ensured that of the original 24 suppliers, 17 reached improved ratings. Three suppliers were rejected because they failed to provide sufficient guarantees of agreement with the Code of Conduct, while relations with the remaining four were finished for commercial motives. Environment Environmental issues have always played an important role in Zara’s activities. This policy was implemented in recent years in the form of an environmental management system that Inditex planned and adapted to the requirements of its business model. It regularly evaluates the potential impact of the company’s activities on biodiversity and the environment. Apart from encouraging compliance with environmental protocols, the system increases efficiency in resource consumption and reduces environmental impacts. We can distinguish four points that Zara follows in order to promote environmental protection: 12
  13. 13.  Taking environmental issues into account and encouraging environmental awareness  Having compliance with the environmental laws that govern activities, prevent pollution and reduce the environmental impact of the business  Achieving constant improvements to the Management System, to enhance its usefulness and improve efficient use of resources  Establishing open lines of communication with government authorities, local communities and other stakeholders Product Health and Safety Zara's responsibility to ensuring that the merchandise it sells complies with health and safety requirements is founded on its Clear to Wear (health) and Safe to Wear (safety) standards, which set obligatory criteria for each of the clothes Zara offers to its customers. These in-house standards, developed by the company with the advice of scientific experts, draw on the world’s most demanding requirements. CLEAR TO WEAR Clear to Wear is a product health standard and it has been developed by Zara in conformity with the most rigorous regulation on product health and safety. Zara will validate “Clear to Wear” correct application at any phase of the manufacturing process of those products that are manufactured, commercialized and distributed by it, by carrying out analyses at any point of their production cycle and regulate those substances whose use is legally limited. SAFE TO WEAR The Safe to Wear standard is a product safety standard and it has been developed by Zara in accordance with the most demanding safety regulations worldwide. Zara will verify “Safe to Wear” correct implementation at any phase of the manufacturing process by carrying out controls at any point of their production cycle. In order to promise compliance with these specifications, Inditex and Zara conduct analyses of the garments it sells before, during and after their manufacture. These examines, 30000 of them conducted weekly, are carried out by independent teams from 28 laboratories run by the leading companies in the field. In addition, Zara works closely with government bodies in numerous countries with major clothing manufacturing industries. Zara's perseverance in guaranteeing the health and safety of its products is not limited to monitoring, however. Indeed, the company is directly involved in improving its suppliers’ manufacturing processes. For this reason, the group conducts technical assistance visits to manufacturing facilities and publishes customized handbooks instructing suppliers on how to implement Clear to Wear and Safe to Wear standards. A team of 40 independent experts are at work full time on this task, which in 2012 alone resulted in more than 600 technical assistance visits to suppliers worldwide. 13
  14. 14. 6. BIBLIOGRAPHY   The New York Times, November 9th, 2012: How Zara Grew Into the World’s Largest Fashion Retailer, p.2  Inditex eNotes overview (  Inditex annual report  uales    Luciano Catoni, Nora F. Larssen, James Naylor, and Andrea Zocchi, “Travel Tips for Retailers,” The McKinsey Quarterly 3 (2002): 126-133. “Crossing the Pond: European Growth Strategies” (Apparel/Footwear/Textiles), October 23, 2001. 11 Peter N. Child, Suzanne Heywood, and Michael Kliger, “Do Retail Brands Travel?” The McKinsey Quarterly 1 (2002): 11-13.   12 “Euro Consumers: Survey,” Trends International (English edition), November 19, 2001. 13 Denise Incandela, Kathleen L. McLaughlin, and Christina Smith Shi, “Retailers to the World,” The McKinsey Quarterly 3 (1999): 84-97.  14 The template for applying the Du Pont formula to Inditex‘s and key competitors‘ financials was suggested by Professor Guillermo D‘Andrea of I.A.E., Universidad Austral, Argentina. 15 Ananth Raman and Marshall Fisher, “Supply Chain Management at World Co. Ltd.,” HBS No. 601-072 (Boston: Harvard Business School Publishing, 2001).   16 Leslie Crawford, “allzarage,” Report on Business Magazine, March 30, 2001, available from Factiva,, accessed September 23, 2002.  FashionGear.comstory/zara/  Coordination of inventory distribution & price markdowns for clearance sales at Zara- Zara- 14