Zara-Inditex Essay

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Inditex-Zara: Re-writing the rules in apparel retailing Zara is the flagship chain store of Inditex Group owned by Spanish tycoon Amancio Ortega , who also owns brands such as Massimo Dutti , Pull and Bear, Oysho, Uterqüe, Strad ivarius and Bershka . The group is headquartered in A Coruña , Spain , where the first Zara store opened in 1975. It is claimed that Zara needs just two weeks to develop a new product and get it to stores, compared with a six-month industry average, and launches around 10,000 new designs each year. Zara has resisted the industry-wide trend towards transferring fast fashion production to low-cost countries. Perhaps its most unusual strategy was its policy of zero advertising; the company preferred to invest a percentage of revenues in opening new stores instead . The Inditex business model is characterised by a high degree of vertical integration compared to other models developed by our international competitors. It covers all phases of the fashion process: design, manufacture, logistics and distribution to its own managed stores. It has a flexible structure and a strong customer focus in all its business areas. The key element in the organization is the store, a carefully designed space conceived to make customers comfortable as they discover fashion concepts. It is also where we obtain the information required to adapt the offer to meet customer demands. The key to this model is the ability to adapt the offer to customer desires in the shortest time possible. For Inditex, time is the main factor to be considered, above and beyond production costs. Vertical integration enables us to shorten turnaround times and achieve greater flexibility, reducing stock to a minimum and diminishing fashion risk to the greatest possible extent. The success of Inditex`s collections lies in the ability to recognize and assimilate the continuous
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