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Zara Supply Chain
Zara is a clothing retailer that uses modern technology in its marketing research and supply chain to quickly deliver fashionable designs at lower prices. It collects frequent customer feedback and uses IT to closely monitor trends. This allows Zara to make production decisions quickly and produce small quantities of many styles. As a result, Zara is able to deliver new fashion designs about twice a month while competitors take 3-5 months. This rapid turnover keeps customers engaged with frequent store visits and purchases.
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Zara Supply Chain
- 2. What is Zara...
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- 7. For fashion consciousadults aged 25-35, Zara Clothing is the clothing retailer that incorporates modern telecommunication technology in its marketing research & supply chain in order to deliver fresh customer inspired fashion designs at less than designer prices.
- 8. Short Lead time= More fashionable clothes
- 9. Lower quantities = Scarcesupply leads to higher demand
- 10. More Style = Morechoice, and more chance of hitting it right
- 11. Zara Fact !!! Consumers in Central London visit the average store four times annually, but Zara's customers visit its shops at an average of 17 times a year. The high traffic in the stores circumvents the need for advertising…”
- 12. % of Sales Benetton 3 Diesel 4 H&M 4 Gap 5.5 Macy’s 6 Ad Budgets of Retailers Zara 0.3
- 13. Short Lead time= More fashionable clothes
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- 17. Lower quantities = Scarcesupply leads to higher demand
- 18. Turnaround Times 30 26 24 24 12 10 5
- 19. More Style = Morechoice, and more chance of hitting it right
- 20. Birkin Bag $3999.00 QuickTime™ and a TIFF (Uncompressed) decompressor are neede d to see this picture. $65.00 Z Versace Dress $1995.00 $125.00 A R Gucci Handbag $1150.00 $73.00 A
- 21. Perceptual Map X Price X prices Everyday Low quality Fashion Value
- 22. Product Development Cycle Sales Market report Research Daily Visiting Feedback university from campuses Stores Observing Fashion Leaders
- 23. Retailer V/S ZARA • Develop idea into 3-5 physical sample … Bulk Fabric purchase • Decision making 1-2 meetings Making semi- finished goods • Fabric selection Coloring .5 - 2 by retailer according to fashion
- 24. Shhh… Secret behind speed of ZARA
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- 28. Close watch Distribution on trends . Inventory Buying control behaviour. Quick decisions
- 29. Collecting information's onconsumer needs
- 30. STANDARDIZATION OF PRODUCTINFORMATION
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- 34. •Low volume perstyle 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.
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- 36. Zara begins itsactivity with the opening in A Corunna of Its first store, although the origins of the group 1975 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 the 1976 ZARA store & continues with the opening of the first stores in Spain.
- 37. 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).
- 38. 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.
- 39. 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.
- 40. 1997 Norway & Israel join the list of countries in which INDITEX is present. The BERSHKA chain, targeting the younger female 1998 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.
- 41. 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.
- 42. 2001 On 23rd may 2001 ,Index goes public listed on the Spanish stock market.
- 43. Setting a Trend or Responding Early to one
- 44. Doing it FastNeeds Close Control
- 45. Keeping it Together is As important
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- 47. Indian Market Realities Differ
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Editor's Notes
- #14 Result in more fashion clothes
- #23 They are focusing on actual need of product not predict by themselves..So it’s start from market research ………………………………..and end with sales report….
- #28 Zara paid more & more efforts on information technology. We can say that information technology considered as the heart of Zara's business.
- #29 1.)close watch on trends : Market research on university campuses, discos & other venues.2.) buying behaviour: through qualitative comments & feedback.3.) quick decisions ;HQ regional managers collect the information and analysis the feedback & on the basis of that the decisions.4.) inventory control: collect fabrics from stores, dyeing finishing, .5.) distributors: line in stores and first to stores.
- #30 Information flows daily..designer check the database before the dispatches as well uses information to create new lines and modify existing ones.
- #31 Zara is very specific with the standardization of product information. Zara warehouses the product information it quickly prepares & accurately prepare designs with clear cut manufacturing instructions.
- #32 They focused more on product information and inventory management Zara team have the capability to design a garment with available stocks they did not wait for the material to come and then manufacturing takes place.
- #33 They have a good distribution system. Approximately 200 km of underground tracks move merchandises from Zara's manufacturing plant to the 400+ stores.60000 items of clothing in a hour.Zaras merchandises does not waste time waiting for human sorting.ss
- #35 1.) they used to changed the products quickly in stores & also provide an appropriate discount.2.) It consisted of limited sales a year they have an industry average of around 35%.3.) They put more efforts on current fashion trend they spend more on designing rater than interpreting the fresh.4.) ZARA always delivers a hot & exclusive fashion and charged a moderate price and consumer happily paid for that.