Preview

The Case of Zara: a Supposed Exception to Globalization

Good Essays
Open Document
Open Document
1547 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Case of Zara: a Supposed Exception to Globalization
The case of Zara: a supposed exception to globalization

The article written by Nebath Tokatli is about the case of Zara, a fast fashion retailer company supposed to be an exception to the global trend of this sector. The author, after a brief introduction in which she declares her purpose to demonstrate this idea to be false, starts describing the change in the culture of fashion from “houte couture” and ready-to-wear too fast fashion.
Fast fashion retailers do not directly invest in design but instead they take inspiration and try to copy, obviously with some differences, the most attractive models presented by high fashion houses at international events like Milan fashion week or similar. Then they suddenly transform these ideas into cheap clothes to sell in their worldwide stores.
The success of this strategy is based on the fact that consumers can be fashionable without spending too much and they also have the possibility to keep up with the varying trends of high fashion. The principal brand of fast fashion besides Zara are the Swedish Hennes & Mauritz (H&M), the USA based “Gap”, the Italian Benetton and other minors like the Spanish “Mango” or the British “Topshop”. Nebahat Tokatli described five key points common to all these brands; first a huge number of stores around the world; secondly, their success is based on a “highly responsive communication channel”; third, the purpose to ensure a sort of exclusivity to their customers offering only a limited amount for each product; forth, a highly effective supply chain and finally they have to be a publicly traded company.
But despite this similarities there is a point which makes a huge difference between companies: the majority of them are only retailers and fuel globalisation with global sourcing but some of them, like Zara, prefer to manufacture their own clothes (and they do this in Western countries apparently without taking advantage of globalisation). So it seemed that there wasn’t a

You May Also Find These Documents Helpful

  • Powerful Essays

    Unit 510 5 And 6

    • 2741 Words
    • 12 Pages

    This form is used to record details of activities you have carried out in the work place. The examples will then link to your diploma evidence, including promoting Equality and Diversity in your working practice and functional skills English and Mathematics, which is naturally occurring in the workplace. Tick as appropriate:…

    • 2741 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Zara case study

    • 954 Words
    • 5 Pages

    Conventional wisdom of fashion industry "SUGGESTS LEVERAGING CHEAP CONTRACT MANUFACTURING IN DEVELOPING COUNTRIES TO KEEP THE COST OF GOODS LOW WHILE THE COMPANY FOCUSES ON DESIGN AND ADVERTISING."…

    • 954 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    zara case study

    • 670 Words
    • 3 Pages

    The close relationship between manufacturing and retailing make Zara different from the others specialty apparel retailers. His motto could be « fast and fashion ». Zara controls all phases of production of its clothing from design to distribution. A choice taken by the will of the company to « adapt to the client's request in minimum time.», for Zara, the most important thing is time.…

    • 670 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    The Color of Water

    • 7118 Words
    • 29 Pages

    * Ruth is reluctant to talk about her family because she felt that was the past and she just didn’t feel like opening up about something she felt “dead” about.…

    • 7118 Words
    • 29 Pages
    Powerful Essays
  • Good Essays

    Dr.Pepper Ten VS. Skky Vodka (Better title in progress) Advertisements now days are vastly different from what they were years ago, and that has everything to do with our culture changing. What used to be “not okay” or “vulgar”, is now not such a big deal. Such as using women in advertisements posed in promiscuous ways, in order to grab the attention of viewers.…

    • 536 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Zara Summary

    • 525 Words
    • 3 Pages

    Apparel retailing usually try to promote quick response that is needed to improve coordination between the manufacturer and the retailer itself. This is used to increase flexibility and response. The main competitor of Zara are GAP, H&M, Benetton. All of them have a comparative advantage among each other. More than 90% percent of GAP product are outsourced from outside US, GAP do this to get the competitive advantage of cheap labor, also, they are lack of clear fashion positioning. H&M are Inditex closest competitors from all side. They generate more than half sales outside the country. They have a cheaper price than ZARA. The last is Benneton, they focus on a colored knitwear. They are labor intensive. They use a strategy of narrowing their product lines.…

    • 525 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Zara Retail Chain

    • 591 Words
    • 3 Pages

    Zara, Spanish clothing with retail chain throughout the world is probably the world's fastest growing retailer with almost a thousand stores. Zara has it own unique business model that enabled Zara to be compete with its competitors, and it's driven by Zara's "fast fashion" with its vertically integrated supply chain. Vertically integrated supply chain allowed Zara to successfully build up a strong retail chain combine with the forces of fast fashion. Vertically integrated supply chain enabled company's domination of a market by controlling all steps in the production process, from the extraction of raw materials through the manufacture and sale of the final product. (Martin, 1988) While fast fashion is all about the quick respond to clothing trend. Objective of assignment is to summarise the benefits of Zara's vertically integrated supply chain explaining how it supports the "fast fashion" model.…

    • 591 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    This case focuses on the Spanish retail giant, Inditex and how its largest retail chain Zara has been so successful through its simple business model of speed, flexibility, and high fashion. As of 2002, Inditex had six separate chains: Zara, Massimo Dutti, Pull & Bear, Bershka, Stradivarius, and Oysho. Each chain operates independently and is responsible for its own strategy, product design, sourcing and manufacturing, distribution, retail. Zara is by far the largest, most profitable, and most internationalized of the chains.…

    • 1560 Words
    • 7 Pages
    Good Essays
  • Good Essays

    Essay On Abercrombie

    • 1012 Words
    • 5 Pages

    Young shoppers (target market) nowadays are less interested in the logo-centric clothes and more eager to shop for electronic or go to low cost, “fast fashion” chains like Zara, Forever 21 and H&M that offer greater variety more quickly.…

    • 1012 Words
    • 5 Pages
    Good Essays
  • Good Essays

    From the case it is quite clear that from the early 1990’s, Zara had begun to expand into the international apparel market and by the end of 2001 operated five hundred stores in over thirty countries (Exhibit 10). But now that most of the major markets had been exploited Inditex must consider the geographic location of its future Zara store additions that would ultimately have a great impact on the Inditex groups long-term success.…

    • 947 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Zara Case Study Analysis

    • 1850 Words
    • 8 Pages

    Zara is a successful retail clothing company that expanded over the years due to its elaborate supply chain and excellent product mix strategy. The company established in 1963 opened its first store in 1975, in La Coruna. By 1989, the company had ninety-eight retail shops and production facilitates distributed around Spain. This followed international expansion where the company opened several other stores around the world. The company has a huge expansion around the world, making it the largest and most lucrative Unit of Inditex SA, manufacturer and distributor of Spanish clothes with over one thousand three hundred stores located around Europe, Asia, America, the Middle East and Pacific region. This brief overview highlights the strategic issues underpinning Zara’s buying decisions and the company’s product mix strategy.…

    • 1850 Words
    • 8 Pages
    Best Essays
  • Satisfactory Essays

    Zara has a competitive edge against its rivals such as H&M, Gap, Benetton and Mango by producing fast fashion. Its extremely quick to know what is selling, and with this information they put the right products on shelf for customer purchases. (Pearson, A)…

    • 5929 Words
    • 24 Pages
    Satisfactory Essays
  • Better Essays

    Zara Case Study

    • 2762 Words
    • 12 Pages

    To prove Zara has the prospect of sustainable growth in the international apparel market, it is important to understand and compare the financial differences of Inditex, its parent company, and its major competitor. The most interesting of Zara’s competitors for comparison is Hennes and Mauritz (H&M), who as the case study states, “was considered Inditex’s closest competitor, [with] a number of key differences”. H&M differs from Zara because they outsource all of their production, spend more money on advertising, and is price-oriented. The key similarities for comparison between Zara and H&M are that they are European based companies, are fashion forward at lower price retailers, and have a strong international expansion strategy .…

    • 2762 Words
    • 12 Pages
    Better Essays
  • Powerful Essays

    Zara Customer Care

    • 3322 Words
    • 14 Pages

    This report is about ZARA which is a global brand of clothing owned by the Inditex Group. It is the world's third-clothing retailer, one of the world's four major fashion chain (the other three are the United States of casual fashion giant GAP, the Swedish fashion giant H & M, German parity giant clothing chain C & A), has more than 2,000 stores in 70 countries around the world. It was established in 1975 by Spanish fashion designer and tycoon Amancio Ortega. The first store opened in Galicia, Spain, where it is now headquartered. The company is very unusual in the fashion retail world and incorporates many pioneering concepts. The company takes just two weeks to get its products on its store shelves after designing them, compared with six months for its competitors. It does not advertise, preferring instead to use money on opening new stores. Zara also owns and controls every stage of production from design, manufacture, supply and sales. A Louis Vuitton spokesperson described it as “possibly the most innovative and devastating retailer in the world”. (Baidu.com 22, June, 2012)…

    • 3322 Words
    • 14 Pages
    Powerful Essays
  • Satisfactory Essays

    Operation Mangment

    • 905 Words
    • 4 Pages

     A chain of fashion stores owned by Inditex, Spain’s largest apparel manufacturer and retailer  2004, Inditex reported sales of 13 billion euros from more than 2,200 outlets in 56 countries  Take a design from drawing board to store shelf in just two weeks, compared with the industry average of more than 6 months  Responsiveness of its supply chain gives Zara a major competitive advantage  Combination of flexible and quick sources in Europe and low cost sources in Asia  Produce batches of clothing in small quantities…

    • 905 Words
    • 4 Pages
    Satisfactory Essays

Related Topics