Djaky Agbadou, Nathalie Garro
In-Class Case Study:
1 Introduction: Background Information
1.1 Company overview
The firm Zara is a Spanish clothing and accessories retailer based in Galicia, northern Spain. In 1975, founder Amancio Ortega opened the first store in La Coruna, Spain.
Zara is the flagship chain store of the Inditex group (Industria de Diseno Textil), encompassing many self-designed different fashion styles from daily clothing to formal suits, evening dresses and business wear. Their stores feature low-costs lookalike products of popular high-end clothing fashion. The Spanish corporation Inditex is the world`s largest fashion group, running over more than 5400 stores in 73 different countries all over the world. In 2010, Inditex achieved total revenue of 12, 5 billion €. Currently there are 1283 Zara stores worldwide, mainly located in Europe. Besides their flagship chain Zara, Inditex owns 6 other brands like Massimo Dutti, Bershka or Pull and Bear. The company almost designs and manufactures every product itself.
Zara has often been called as a highly innovative, prosperous concept, mainly due to the fact that the firm just needs about 2 weeks to design a product, manufacture it and get it into their stores (average in the industry is 6 months).
1.2 Fast-Fashion
The Case Study is about the item “Fast-Fashion”. We will give a short explanation of this term, so it might be easier to understand the developments/changes and the implementation of IT system.
“Fast-fashion” is a term used to describe cheap and affordable clothes which are the result of catwalk designs moving into stores in the fastest possible way in order to respond to the latest trends.
Business Strategy: “Cutting-edge fashion at affordable prices”
Operations Strategy: builds on quick response
Quick Response: similar to what just-in-time manufacturing has meant to the auto