Zara Essay

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ZARA- Case Study Analysis Business Model As the first retail chain established by Inditex, Zara has become the largest and most expansive. It had three product lines (men, women, and children), each with its own creative team of designers, sourcing specialists, and product development personnel. The creative team relied on feedback from store managers, staff, and fashion-forward young people that populated universities and discotheques, to create the product line and to make adjustments for manufacturing later in the season. Zara’s clothing line changed continuously throughout the season. Therefore, its design team had to not only create the collection months ahead of time like other apparel brands, but it must also aggregate. Zara was able to make adjustments to their products throughout the season and had a product failure rate of 1% compared to the industry standard of 10%. The location of a Zara store would always be at the center of a fashion district and would either be renovated or relocated every 3-4 years to maintain high standards. Customers possessed a sense of urgency to purchase a Zara product because the clothing had a two-week shelf life. However, there was also freshness to Zara because the floor would be replenished with new products every two weeks. Zara segmented the product lines further by price, fashion content, and target age group to maintain variety, and its prices were also kept lower than comparable products from a competitor. Supply Chain Characteristics Zara is building on a vertically integrated demand and supply chain, while most other textile chains rely on outsourcing and cheap labour in China. It enables company to short turnaround times and achieves greater flexibility, reducing stock to a minimum and diminishing fashion risk to the greatest possible extent. In terms of speed to market, Zara has much in common with the computer

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