Zara Case Study

2537 Words11 Pages
Zara (Inditex) – Introduction Zara is one of the world’s most successful fashion retailers operating in 59 countries. Established in 1975, is the flagship of Inditex (Industria del Diseño Textil, S.A.), a holding company located in Galicia (north-west Spain). Soon after Zara was formed, Inditex became the world’s second largest clothing retailer with 2,692 stores spread across 62 countries worldwide by the end of January 2006. Zara only accounted 44% of the group’s turnover in the year of 2005. The rest of the 66% of the turnover was accounted by the seven other clothing chains that Inditex has, which are; Kiddy’s Class (children’s fashion), Massimo Dutti (quality and conventional fashion), Bershka (avant-garde clothing), Pull and Bear (youth casual clothes), Stradivarius (trendy garments for young women), Oysho (Lingerie) and Zara Home (household textiles). ZARA’s Concept Zara operated with a concept which leads to democratize fashion by offering the latest fashion in medium quality at affordable prices. Zara gained a competitive advantage with the remarkably lower turnaround time, and the stores being the main source of information. Zara’s vertical integration of design, just-in-time manufacturing, delivery and sales; flexible structure; low inventory rule; quick response policy and advanced information technology enable a quick response to customer’s changing demands (Castellano, 1993; 2002). On request, a totally different and a new piece of clothing can be designed, manufactured and delivered in less than four weeks. Modification of an existing garment only took less than two weeks. Zara internally manufactures its ´live collections´, the most receptive garments to fashion, which account for almost half of its production, and outsources those that are not subject to seasonal variation. – About 11,000 new items are launched every year (Ghemawat and

More about Zara Case Study

Open Document