Zara
1. Zara profile
Zara is the most internationalized of Inditex’s chains which owned by Spanish tycoon Amancia Ortega. The first Zara store opened in 1975 and there are more than 1,500 Zara stores around the world until now. 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 design each year. Zara has resisted the industry –wide trend towards transferring fast fashion production to low-cost countries. While it spent little on ads, it spent heavily on stores. Zara is vertically integrated retailer. Unlike similar apparel retailers, Zara controls most of the steps on the supply chain: it designs, produces, and distributes itself. The business system that had resulted was particularly distinctive in that Zara manufactured its most fashion-sensitive products internally. 2. Zara’s supply chain strategy
Zara follows a structure that is more closely controlled than most other retailers, and pays further by having the various business elements in close proximity to each other, around its headquarters in Spain.
3.1 Ownership and Control of Production
It is estimated that 80 precent of Zara's production is carried out in Europe which is within the small radius of its headquarters in Spain. In fact, almost half of its production is in owned or closely-controlled facilities. Counter-intuitively Inditex has also gone the route of owning capital-intensive manufacturing facilities in Spain. In fact, it is a vertically integrated group, with up-to-date equipment for fabric dyeing and processing, cutting and garment finishing. 3.2 Supercharged Product Development
Design and product development is a highly people-intensive process. The heavy creative workload of 1,000 new styles every month is managed by a design and development team of over 200 people. This means that every person on an average is producing around 60 styles in a year or 1-2
Zara is the most internationalized of Inditex’s chains which owned by Spanish tycoon Amancia Ortega. The first Zara store opened in 1975 and there are more than 1,500 Zara stores around the world until now. 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 design each year. Zara has resisted the industry –wide trend towards transferring fast fashion production to low-cost countries. While it spent little on ads, it spent heavily on stores. Zara is vertically integrated retailer. Unlike similar apparel retailers, Zara controls most of the steps on the supply chain: it designs, produces, and distributes itself. The business system that had resulted was particularly distinctive in that Zara manufactured its most fashion-sensitive products internally. 2. Zara’s supply chain strategy
Zara follows a structure that is more closely controlled than most other retailers, and pays further by having the various business elements in close proximity to each other, around its headquarters in Spain.
3.1 Ownership and Control of Production
It is estimated that 80 precent of Zara's production is carried out in Europe which is within the small radius of its headquarters in Spain. In fact, almost half of its production is in owned or closely-controlled facilities. Counter-intuitively Inditex has also gone the route of owning capital-intensive manufacturing facilities in Spain. In fact, it is a vertically integrated group, with up-to-date equipment for fabric dyeing and processing, cutting and garment finishing. 3.2 Supercharged Product Development
Design and product development is a highly people-intensive process. The heavy creative workload of 1,000 new styles every month is managed by a design and development team of over 200 people. This means that every person on an average is producing around 60 styles in a year or 1-2