Zara Apparels Essay

901 WordsJan 7, 20144 Pages
Zara was the oldest brand of Inditex and it was the innovator of the new category “fast fashion”. Its success was due to trendy cat walk inspired items manufactured at a fast pace but at affordable price. The supply chain design strategy responsible for the phenomenal success of Zara brand in its niche market was its quick response to the changing trends in the fashion industry and the requirements of the customers. Unlike the average of six months needed by a luxury brands Zara was able to manufacture and deliver the items in round three weeks period to its stores. Its key competitors typically supplied on average 2000 to 4000 items while Zara on the other hand was able to supply 11000 in a season. Zara decided upon the supplier’s selection based on its requirements. For the fashion items that had high demand and so were not easy to forecast, Zara used suppliers with closer proximity having lower lead times although the productions costs were high. For items whose sales were forecasted easily, it used suppliers with lower costs of production but longer lead times. The following are the two main HR policies that contributed to the Zara success: 1. Staff feedback: It appreciated feedback from even the lowest staff member of the company. The feedback included the store manager’s demands for the fashion in trend which gave the ability to know about the latest fashion and stay ahead of it. 2. Employee Autonomy: By staying with the prevailing culture of the company, the employees were able to do their work that suited the environment. The managers of the stores were appointed for the most appropriate stores based on the evaluation of their skills and they had a sense of job security as they knew the company cared for them. The company business is mainly in the fast fashion category in which there is high variation in demand due to changing customer

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