2. About Zara
A Spanish clothing and accessories retailer
based in Galicia
The company was founded in 1975 by
Amancio Ortega and Rosalia Mera
The main brand of the Inditex group, the
world‘s largest apparel retailer
3. Internationalization of Zara &
Inditex
1975 Spain
1988 Portugal
1989 USA
1990 France
2010 5,000 stores, 77 countries
2012 6,000 stores, 87 counties
China in 2012: 396 stores, (138 Zara stores),
Zara online
6. Zara is almost ‘Just-in-Time’
Manufactures a new line in only two-three
weeks, as opposed to the industry average of
nine months
Company Policy: clothes would stay in stores
no longer than one month
7. Clothing: high margins and low
profits
Forecast
Demand less Demand greater
than Forecast than Forecast
Expected Demand
High administrative expenes Online shopping
Discounts, end
of the season
sales
Lost Sales
10. The Zara Retail Model
Fashion Experience
1. New fashion weekly
2. Buy now or it will be gone
3. Anticipation-17 visits
4. Store style & location
Fashion at low cost
1. Fast process
2. Automated processes
3. Low inventory
11. Zara’s Competitive Advantages
Reduced design cycle time: Timely response to items that
sell well, ability to quickly alter/enter new designs
Controlled and timely delivery to all stores across the world
Logistics/Distribution: Clothes move with hours to their
destination, efficient scheduling of shipments
Strong IT system: Allow immediate communication of sales
and inventory information
Low and Centerally Managed Inventory
Marketing of “ Fashion but reasonable & convenient”
