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Zara Supply Chain

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Effective Supply Chain of ZARA

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Zara Supply Chain

  1. 1. What is Zara ...
  2. 2. Chain
  3. 3. SPEED OF
  4. 4. For fashion conscious adults aged 25-35, ZaraClothing is the clothing retailer that incorporatesmodern telecommunication technology in itsmarketing research & supply chain in order to deliverfresh customer inspired fashion designs at less thandesigner prices.
  5. 5. Short Lead time =More fashionable clothes
  6. 6. Lower quantities =Scarce supply leads to higher demand
  7. 7. More Style =More choice, and more chance of hitting it right
  8. 8. Zara Fact !!! Consumers in Central London visit the average store four times annually, but Zaras customers visit its shops at an average of 17 times a year. The high traffic in the stores circumvents the need for advertising…”
  9. 9. % of SalesBenetton 3Diesel 4H&M 4Gap 5.5Macy’s 6 Ad Budgets of RetailersZara 0.3
  10. 10. Short Lead time =More fashionable clothes
  11. 11. InformationCommunication Technology
  12. 12. Lower quantities =Scarce supply leads to higher demand
  13. 13. Turnaround Times30 26 24 24 12 10 5
  14. 14. More Style =More choice, and more chance of hitting it right
  15. 15. Birkin Bag $3999.00 QuickTime™ and a TIFF (Uncompressed) decompressor are neede d to see this picture. $65.00 ZVersace Dress $1995.00 $125.00 A RGucci Handbag $1150.00 $73.00 A
  16. 16. Perceptual Map XPrice X prices Everyday Low quality Fashion Value
  17. 17. Product Development Cycle Sales Market report Research Daily Visiting Feedback university from campuses Stores Observing Fashion Leaders
  18. 18. Retailer V/S ZARA • Develop idea into3-5 physical sample … Bulk Fabric purchase • Decision making1-2 meetings Making semi- finished goods • Fabric selection Coloring.5 - 2 by retailer according to fashion
  19. 19. Shhh…Secret behind speed of ZARA
  20. 20. INFORMATION TECHNOLOGY
  21. 21. Close watch Distribution on trends .Inventory Buying control behaviour. Quick decisions
  22. 22. Collecting informations on consumer needs
  23. 23. STANDARDIZATION OF PRODUCT INFORMATION
  24. 24. INVENTORY MANAGEMENT
  25. 25. DISTRIBUTOR MANAGEMENT
  26. 26. COST DOWN
  27. 27. •Low volume per style of changing products.• Zara also has two clearly time-limited sales a year rather than constant markdown.• It spends effort on producing what are current fashion trends• Zara delivers fashion when it is HOT.
  28. 28. TIMELINE
  29. 29. Zara begins its activity with the opening in A Corunna of Its first store, although the origins of the group1975 date back to 1963. the year in which Armanico Ortega Gaona, Chairman and founders ,begins his business activity. GOASAM is founded by the owner of the1976 ZARA store & continues with the opening of the first stores in Spain.
  30. 30. 1985 The creation if INDITEX as head of the corporate group.1988 The opening of the First ZARA store outside Spain Occurs in December 1988 in Oporto (Portugal).
  31. 31. 1990 The United States and France are the next markets in which the group begins its activity.1991 The birth of the PULL&BEAR chain and the purchase of 65% of the MASSIMO DUTTI group.
  32. 32. 1994 INDITEX to open new international markets: Mexico in 1992,Greece in 1993 and Belgium and Sweden In 1994.1995 This year also sees the opening of the first store of the group in Malta and in the following year in Cyprus.
  33. 33. 1997 Norway & Israel join the list of countries in which INDITEX is present. The BERSHKA chain, targeting the younger female1998 market commences its activity in a year which also sees the opening of stores in new countries: Argentina, japan, United Kingdom, Venezuela, Lebanon, United Arab Emirates, Kuwait, Turkey.
  34. 34. 1999 The acquisition of STRADIVARIUS makes its fifth chain of the group and stores are also opened in new countries : the Netherlands, Poland, Saudi Arabia, Bahrain, Canada , Brazil, Chile and Uruguay.2000 The opening of stores in four new countries takes place In 200: Australia, Denmark, . Qatar,& Andorra.
  35. 35. 2001 On 23rd may 2001 ,Index goes public listed on the Spanish stock market.
  36. 36. Setting a Trend or RespondingEarly to one
  37. 37. Doing it Fast Needs Close Control
  38. 38. Keeping it Together is As important
  39. 39. IT Infrastructure
  40. 40. Indian Market Realities Differ
  41. 41. Conclusion

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