The document outlines Zara's fast fashion business model and supply chain operations, which focuses on rapid design, production, and distribution of new fashion items to stores within weeks in order to stay on top of constantly changing trends, allowing Zara to maintain its competitive advantage over rivals with shorter inventory turnovers and product lifecycles. Zara's centralized operations and extensive use of data and technology allows it to quickly respond to demand changes through flexible procurement, production planning, and high-velocity logistics. This responsive supply chain model has supported Zara's global expansion to over 1700 stores in 78 countries while continually renewing its inventory with around 11,
For ZARA stores to be able to offer cutting edge fashion at affordable prices requires the firm to exert a strong influence over almost the entire garment supply chain.
For ZARA stores to be able to offer cutting edge fashion at affordable prices requires the firm to exert a strong influence over almost the entire garment supply chain.
Zara is a Spanish brand of clothing founded by the visionary Amancio Gaona and Rosalina Mera at 1975. It is one of the major selling brands of one of the biggest fashion retailer ‘INDITEX’. Zara is now available in 86 countries with total of 1,763 stores worldwide. In 1975 INDITEX established Zara’s 1st store in downtown A Coruna, Spain. Zara offers fashionable designs for men, women, and kids.
HBR Case Study - Fashion retailer ZARA has achieved spectacular growth via a distinctive design-on-demand operating model. This case describes this model and outlines a number of challenges facing the company, with a particular emphasis on its international expansion. Includes color exhibits.
The presentation has been prepared by the students of MFM(Master of Fashion Management), NIFT, Delhi as a part of the study on the Inventory Management of ZARA.
The presentation is create use as a material to the final case study presentation in Supply Chain class at Faculty of Engineering, Chulalongkorn University.
**All images use in the slide are from google images**
International strategy at Zara is defined by the combined generic strategy of cost leadership and differentiation strategy. There are considerations, however, such as when selecting the Lebanese market, labor cost and productivity, distribution cost and shipment cost of raw materials are considered. Other considerations are characteristics or behavior of consumers and income per capita. In terms of marketing approach, the considerations include the 4Ps inherent to the Lebanese consumers and business environment. Market entry considerations include economics, both macroeconomic factors which include tax, political condition and export tariff and microeconomic factors including local competitors, demand and location of store. Regulation from government and local producers protection issues are other considerations.
Zara is a Spanish brand of clothing founded by the visionary Amancio Gaona and Rosalina Mera at 1975. It is one of the major selling brands of one of the biggest fashion retailer ‘INDITEX’. Zara is now available in 86 countries with total of 1,763 stores worldwide. In 1975 INDITEX established Zara’s 1st store in downtown A Coruna, Spain. Zara offers fashionable designs for men, women, and kids.
HBR Case Study - Fashion retailer ZARA has achieved spectacular growth via a distinctive design-on-demand operating model. This case describes this model and outlines a number of challenges facing the company, with a particular emphasis on its international expansion. Includes color exhibits.
The presentation has been prepared by the students of MFM(Master of Fashion Management), NIFT, Delhi as a part of the study on the Inventory Management of ZARA.
The presentation is create use as a material to the final case study presentation in Supply Chain class at Faculty of Engineering, Chulalongkorn University.
**All images use in the slide are from google images**
International strategy at Zara is defined by the combined generic strategy of cost leadership and differentiation strategy. There are considerations, however, such as when selecting the Lebanese market, labor cost and productivity, distribution cost and shipment cost of raw materials are considered. Other considerations are characteristics or behavior of consumers and income per capita. In terms of marketing approach, the considerations include the 4Ps inherent to the Lebanese consumers and business environment. Market entry considerations include economics, both macroeconomic factors which include tax, political condition and export tariff and microeconomic factors including local competitors, demand and location of store. Regulation from government and local producers protection issues are other considerations.
Zara, the leading clothing and accessories brand based in Spain, is ruling the fashion market for more than 40 years now. Zara now has become synonymous to fast and affordable fashion items.
Zara- Case Study
Known for its fast, affordable fashion, retail chain Zara has built up a multi-billion dollar brand through listening and reacting quickly to its customers
Managing Supply Chain of Zara. It defines what a supply chain is and outlines the steps that makes up the chain. It Explain the factors that affect its design and understands the processes of designing and managing the supply chain. It outline the benefits of effectively managing supply chains
this presentation is about the supply chain of worlds leading apparel manufacturer ZARA and specially about it SUPPLY CHAIN. me and my colleagues have presented about the values, supply chain partners, KPI's(key performance indicators) and lot of supply chain related details n this presentation
Growth of Zara and Comparison with fabindiaArmanKashyap
Title: "A Tale of Two Retail Giants: The Growth of Zara and a Comparison with Fabindia"
Description:
This presentation explores the remarkable growth trajectory of two prominent retail giants, Zara and Fabindia. It delves into the unique strategies and approaches that have propelled Zara to international success and examines how Fabindia, with its focus on sustainable and artisanal products, has carved its niche in the market. Through a comparative analysis, we will uncover the key factors that have contributed to their respective successes and the lessons that can be learned from these retail leaders. Join us as we unravel the stories behind Zara's global dominance and Fabindia's sustainable growth in the dynamic world of fashion and retail.
2. • Zara is a Spanish clothing retailer
• 1700 stores
• 78 countries worldwide
• Zara practices fast fashion – trends moves from the runway to stores within
weeks, as opposed to months.
• Zara’s supply chain has undergone tremendous changes in order to sustain its
competitive advantage in today’s market
• Zara has continually maintained its mission to provide fast, affordable, and
fashionable items
3. Inventory Management
• Focus on reducing
response time
• Launched approximately
11,000 new items per
year, compared to 2,000 -
4,000 for H&M and Gap
4. Inventory Management
• Stock outs are not
uncommon
• Short shelf life attracts more
customers more often
• Zara holds 6 days worth of
inventory, while H&M holds
52 days, and Spanish retailer
Cortefiel holds 94 days of
inventory
5. Forecasting
Extensive market research
Quick input and output
response
Frequent new styles
• Near-term forecasts
• Short product life cycles to
reduce errors and improve
current products
• Customer feedback
6. Procurement
• Keeps approx. half of its production in-
house
• Separate procurement staff for each
clothing line
• Procures basic textiles from global suppliers
• Uncomplicated items are outsourced to
China
• Difficult items are produced in Zara factories
and by local subcontractors
• Most suppliers are located in close proximity
to its distribution centers
6
7. Production Planning
• Centralized Design & Production
Centre
• Constant flow of data throughout
the supply chain
• Zara allows its retailers to change
40%-50% of its orders
• Factories operate on a single-shift
mentality, and can change quickly
according to unforeseen demands
• Under produces products in order
to create scarcity value
7
8. Warehousing
• “High-velocity” shipping
• Merchandise is selected, sorted, and routed to the “lungs” of the
warehouse
• Merchandise is delivered, Retailers hold products in local
distribution centres or in retail store stockrooms
• “High-velocity” shipping relies on rapid information flows
9. Warehousing
• Stores are electronically linked to the company’s headquarters
• Logistics system is based on two core concepts: speed and
flexibility
• Currently building a new state-of-the-art warehouse and facility
complex in Zaragoza, Spain
10. Transportation
• Effective and efficient transportation
network
• Fast delivery time
• Coordinates with all aspects of logistics
• Quick response in supply chain
• Ability to distribute merchandise within
2 weeks
• Final step in order fulfillment
• Promotes service quality
11. Customer Service
• Founder: Amancio Ortega
• Customer Service
• Elements & Measures of Customer Service
• Product Availability
• Order Cycle Time
• Logistics Operations
• Response to Certain Events
• Stock-outs
• Extra Inventory
• Future outlook
12. Performance Measurement
• Dedicated to creating time to market
efficiency
• Order fulfillment and customer RESPONSIVE
satisfaction
• Tight linkages between demand and
supply EFFICIENCY
• Improve performance in accordance with
EFFECTIVENES
changes in demand S
• Customer loyalty and brand recognition
• Expansion into a global market
13. Technology
• Competition: 2% of revenue and 2.5% workforce in IT
• Zara: 0.5% of revenue and 0.5% workforce in IT
• In store:
• handheld PDA
bi-weekly order, communication with HQ, feedback from
customers, inventory.
• In Store: DOS=old, slow.
• Suggested: POS=speed, efficiency, connectivity.
• WWW: Online stores open now. Better late than never.
• iPad + Smart phone apps
• In house: 200km tracks=60,000 items/hour
13
14. • Short-term goals should see Zara expand into North American and Asian
markets as well as continued growth throughout Europe
• In the future, Zara should increase its production outsourcing to Asian
countries to reduce costs
• Overall, Zara seems to be heading in the right direction as the company is
growing at a tremendous rate and does not show any signs of slowing down