Supply Chain Management Strategy of the Retail Brand Zara Executive Summary The purpose of this report is to understand and analyze fashion retail brand Zara’s secret behind its successful supply chain management. Zara has been the pioneer in agile supply chain management and for popularizing the trend of fast moving fashion. Therefore‚ with the help of this example‚ agile distribution management has also been discussed in this paper. Additionally‚ computer hardware brand Dell and Australia’s leading
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BACKGROUND ZARA is the flagship chain store for the Spanish Inditex Group owned by Amancio Ortega‚ who also brands such as Massimo Dutti and Bershka. It was first open in 1975 in La Coruna‚ Galicia‚ Spain. Originally a lingerie store‚ then the product range expanded to incorporate women’s fashion‚ menswear and children’s clothes (5). The international adventure began in 1988‚ opened its first foreign store in Oporto‚ Portugal. The market growth remained mysterious and it kept growing the stores in different
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Abstract Zara has been operating in Europe since the year 1975. This paper includes a study of the strengths and weaknesses of Zara Company supply chain management system. It divides the supply chain process into three distinct phases. It shows how the company has managed to embrace technology to deliver its products to customers in real time. The paper also contains a comparison between Zara and its main global competitor in the market. The paper concludes by outlining some of the challenges the
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Zara competitiveness as highlighted in number 4 managed to travel globally successfully. As 55% of Zara revenues coming from abroad‚ one can see that Zara was successful in migrating its competitiveness globally. By adapting to each culture‚ Zara has managed to position itself differently in different market. Zara strategy of opening one store for information gathering in the initial phase of entering a new market is one of its key strength points. By starting with such "information gathering" store
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adds/mannequins all around the exterior of the store. As you enter there is a sales person highered specifically to welcome you into the store. The store is then organized by color since all the different colored clothing are grouped together. We also noticed that it was very spacious and clean. We were attracted to Zara since it is very fashionable and has high variety of distinctive styles. Ideal for the independent shopper since customers are not bothered by employees. Zara was also spacious; however we found
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6.0 STRATEGIC ANALYSIS & RECOMMENDATION FOR ZARA 6.1 PORTER 5 FORCES ANALYSIS 1. Barriers to entry: HIGH a. High fixed cost business requires economics of scale for sustained profitability b. High Selling & Administration Expenses which includes advertising‚ in-store promotions‚ etc.; up to 3.5% of its revenue‚ even though for Zara‚ the company is famous for spending minimum level of advertisements and commercials. However‚ recently the company announced that it invested €450 million in
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new technology to expand productivity and increase competitiveness INTRODUCTION ABOUT ZARA • Established in 1975‚ Zara is the flagship of Inditex (Industria del Disen˜o Textil‚ SA). • Inditex has become the world’s second largest clothing retailer with 2‚692 stores spread across 62 countries worldwide by the end of January 2006. • In addition to Zara‚ which accounted for 66 percent of the group’s turnover in 2005 • Inditex owns seven other clothing chains: Kiddy’s
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SPANISH FASHION BRAND ZARA Carmen Lopez Ying Fan Brunel Business School Journal of Fashion Marketing and Management (2009)‚ 13:2‚ 279-296 INTRODUCTION Zara is one of the world’s most successful fashion retailers operating in 59 countries. However‚ there is little research about the firm in English as the majority of publications have been written in Spanish. This paper seeks to address this gap in the literature by examining the internationalisation process of Zara. This study adopts an
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Merchandising Report Merchandising centres on the buying and selling of goods within a market place and a good merchandising system is essential to the success of any retail business. I intend to focus this merchandising report on Zara‚ a ladies fashion retailer and HMV‚ an entertainment megastore. These two companies have specific buying and merchandising strategies‚ which are tailored to the needs of their products. This report will explore the similarities and differences within each company
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After approaching a Reiss and Zara Store in Oxford circus‚ speaking to staff and doing some more research on the internet i have come to notice both ZARA and REISS are a growing profitable companies. When looking at REISS THE BRAND: Reiss a retailer of “own brand” quality fashion menswear and womenswear that established itself in London in 1970. The brand has become reorganized as a progressive‚ fashion-led retail company. Designing and producing own –label ranges it offers an aspirational look
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