Preview

Zara

Powerful Essays
Open Document
Open Document
1214 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Zara
CNN.com - Zara, a Spanish success story - June 15 2001

http://edition.cnn.com/BUSINESS/programs/yourbus...

MAINPAGE EUROPE WORLD WEATHER BUSINESS markets market data technology tech markets currencies biz international SCI-TECH ENTERTAINMENT IN-DEPTH NEWS BRIEF SPORT

Zara, a Spanish success * story
June 15, 2001 Posted: 4:37 AM EDT (0837 GMT)

Your Business Your World Success without sweatshops

• Zara does things differently LONDON, England (CNN) -- In an era when clothing retailers outsource much of their manufacturing to developing countries, one Spanish company is having enormous success doing things differently.

• Founder makes a mint

EDITIONS: CNN.com U.S.: Sections CNN.com Asia set default edition MULTIMEDIA: video audio daily crossword SERVICES: more services SERVICES E-MAIL SERVICES CNN MOBILE CNN AVANT GO DESKTOP TICKER ABOUT US AD INFO CNN TV what's on biz international inside sailing the music room show transcripts how to get CNN TV anchors/reporters bureaux CNN Partner Hotels EDITIONS CNN.com U.S. CNN.com Asia CNNArabic.com CNNEspañol.com set your edition Languages Time, Inc.

While retailers concentrate their money and efforts on building a brand image through advertising campaigns, their lack of control over sub-contractors has left many open to accusations of using sweatshop labour when unacceptable practices are uncovered at factories producing their merchandise. Many campaigners against sweatshop labour question the economics of outsourcing production and point to the likes of Spanish fashion chain Zara as an example of how things could be done. "Control over production facilities was Possibly the most given up by major American firms innovative and devastating coincident with the shift of most shoe and retailer in the world apparel production to authoritarian LVMH fashion director Daniel countries. Most consumers are now aware Piette on Zara of the untoward results of this major change," Jeffrey Ballinger, a Harvard

You May Also Find These Documents Helpful

  • Good Essays

    It’s clear that Lululemon is reliant on third-parties for the supply and the manufacturing requirements of its athletic apparel. By association, should these companies engage in unethical business practices or skimp on quality guidelines, these acts will reflect poorly on the Lululemon brand (Vallester, Lindgreen, & Maon, 2012). The use of foreign labour and manufacturing resources among multinational enterprises can become complicated, where firms that violate principles of corporate social responsibility experience backlash from consumers often (Nam et al., 2017). These issues are manageable for numerous multinational establishments; however, this is not the circumstance for Lululemon as it has few supplier replacements…

    • 247 Words
    • 1 Page
    Good Essays
  • Satisfactory Essays

    Consumer demands affect a company’s business decision in many cases. Fashion being so fast paced with many companies competing for the global dollars. Every company has cut prices which in turn has them searching for ways to reduce labor costs. Unfortunately the first thing companies do is outsource and turn to sweatshops for cheap fast labor in order to make a profit and to be competitive in the market.…

    • 368 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Centurion Media

    • 6621 Words
    • 29 Pages

    Helft, Miguel. 2007. Google, online ad giant, looks at radio and TV. The New York…

    • 6621 Words
    • 29 Pages
    Powerful Essays
  • Good Essays

    * Gap provides a recent example of bad publicity because of sweatshops. In late 2007, it was revealed that some of the company’s clothes were produced by young children in India. Though gap had policies and procedures to prevent the use of sweatshops and children in the production process, it was subcontractor that was operating the facility. The company responded to the bad publicity by announcing plans for “ sweatshop Free” labels for its clothing. They also pledged to increase its monitoring of subcon-tractors and overseas factories.…

    • 593 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Zara Swop

    • 474 Words
    • 2 Pages

    Zara has established itself successfully over the course of five years since the opening of its first retail store in Spain in 1975. We must now consider further opportunities of growth with a sole purpose of gaining further international recognition in order to maintain our mark as a top leader in the retail industry amidst the competition of the fashion industry.…

    • 474 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    2. Competitors Analysis TFC, CNN and Lifetime are three giant players in the fashion channel market which comprises 110 million television households in the United States. Exhibit 1 shows the average ratings figures for each company concerning viewers over 18 years old. Scores are 1.0 (1.1 million households), 3.0(3.3 million households) and 4.0 (4.4 million households) respective. As for the advertising revenue from female audience of the age of 18 through 34, there is a big gap between Lifetime and TFC. The percentage for Lifetime is 43% which is 10% higher than TFC. With both the male and female audience aged 54 through 74, CNN accounts for 45% and 26%, while TFC only has 39% and 20%. From the above data, it is easy to draw the conclusion that TFC is in an unfavorable position. However, when we take the time schedule into consideration, it might be argued that TFC has…

    • 1356 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Large companies in high-income countries purchase apparel from merchandisers, who in turn contract out the manufacturing to owners of sweatshops in low-income countries. Yet, it is particularly disturbing when there is evidence of sweatshop operations in developed countries such as the United States. Since the LA Fashion District is reputed to harbor sweatshops, associating our company with such an industry is at best, risky. The fact that there is ample evidence of sweatshop abuses occurring in the Fashion District renders such an association simply foolish.…

    • 2263 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Cheap Labor Condition

    • 1110 Words
    • 5 Pages

    Large apparel companies do not want to be associated with offshore suppliers that violate basic human rights due to immense pressure from consumers and Non profit Organizations. An example given in the article states that “Shares of Inc tumbled through the late 1990s as a stream of reports emerged about poor working conditions at Nike Supplier factories in China and Vietnam”. This resulted in…

    • 1110 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Knights Apparel

    • 1492 Words
    • 4 Pages

    In an industry often viewed with disdain by workers rights groups over a stigma of outsourcing, sweatshops and an overall lack of concern for worker’s rights, one company now seemingly stands alone as a beacon of hope. In 2005, Knights Apparel CEO, Joseph Bozich, set out to do something unheard of in the global apparel industry, he committed himself and the resources of his company to prove that an apparel company could make a profit while simultaneously improving the lives of its employees. The result of his idea was Alta Gracia Apparel, a collegiate clothing manufacturing company located in the Dominican Republic.…

    • 1492 Words
    • 4 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
  • Better Essays

    American apparel is an integrated quality high street retailer, clothing manufacturer and distributor operating more than 273 retail stores in 20 different countries. The brand was founded in 1989 by Dov Charney, an eccentric who made a brand which accentuated his personality, style and creativeness. It wasn’t until he re-launched and relocated the company (including the manufacturing) to Los Angeles in 1997 when American Apparel took off as a success. 11,300 people are globally employed (about 5,000 in the LA headquarters and in the manufacturing), and operate more than 273 retail stores in 20 countries. The company operates the largest garment factory in the United States. (American Apparel website, 2010) The unconventional business model Dov Charney uses means that the company is vertically integrated where all facets of business are intermingled in the one location, and therefore saves money due to maximum efficiency and fast production rates, which means that despite paying $12 per hour for labour unlike using cheap foreign labour as is universal in the garment-industry practice, they still have competitive high street prices. This is one of the brands main unique attributes, with very few labels now being able to brand themselves as being ‘Made in the USA’.…

    • 1683 Words
    • 7 Pages
    Better Essays
  • Satisfactory Essays

    The fashion industry produces hundreds of billions of dollars annually and millions of jobs around the world, however, what percentage is given to the workers for their essential service and at what risk are their lives. Brands that create cheap and low costly clothing such as George & Joe Fresh, also create cheap labour jobs with the rate of an estimated US37$ a month. Parenting corporations (Walmart and Loblaws) hire these companies who strive to produce at low costs with the purpose of gaining as much profit as possible, consequently, by doing so they induce conditions for their workers that are inhumane and life threatening. Rewinding back to the Joe Fresh and George brand factories collapsing in Bangladesh, a near total of 1500 garment workers, with women and children involved, lost their lives because of the faulty state the buildings had been in. The safety of the facility is one of the main priorities when it comes to the working conditions of an employee but they already knew that. Popular designer brand names including Engineered Garments or Wings & Horns don’t support cheap labour and horrible working conditions partially because they advertise heavier price tags, and when considering those prices, the manufacturing becomes more costly,…

    • 603 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Zara, the world largest clothing retailer brand that is part of the Inditex multinational clothing company which was created by Amancio Ortega and Rosalia Mera in 1974. They are based in the northwest of Spain. Currently, Zara has a total of 2,000 stores in major cities around 88 different countries. They are acclaimed as a fast fashion company in the industry with more than two hundred professional designers within the creative teams. Zara’s products are diversification strategy, include men’s and women’s apparels and accessories that keep up with the current fashion trend.…

    • 855 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Bus Optim

    • 422 Words
    • 3 Pages

    and unprinted and if demand for a particular garment turns out to be higher than expected…

    • 422 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    General. Zara is one of the greatest global fashion companies belonging to the Spanish retail group, Inditex SA. Its founder Amancio Ortega Gaona opened its first store in A Coruña (Spain) in 1975. During the 1980s Ortega started changing the design and distribution process to react to new trends quicker. In 1988 the company started its international expansion through Porto, Portugal. As of 2007, Zara stores provide men's / women's / children's clothing as well as shoes, cosmetics and complements. In 2010 Zara’s company opened his first online shop in several European markets and…

    • 1526 Words
    • 7 Pages
    Good Essays

Related Topics