2. Zara is the flagship chain store of Inditex Group owned
by Spanish tycoon Amancio Ortega, who also owns
brands such as Massimo Dutti, Pull and Bear, Oysho,
Uterqüe, Stradivarius and Bershka.
The group is headquartered in A Coruña, Spain, where
the first Zara store opened in 1975.
It is claimed that Zara launches around 10,000 new
designs each year.
Its most unusual strategy was its policy of zero
advertising; the company preferred to invest a
percentage of revenues in opening new stores
3. ZARA is a Spanish clothing and accessories retailer
Zara delivers new products twice each week to its 1,763
stores around the world.
Zara has developed a highly responsive supply chain that
enables delivery of new fashions as soon as a trend
Mr. Pablo Isla Álvarez de Tejera
(Chairman and CEO)
Mr. Amancio Ortega Gaona
(Founder of Inditex and Member of the Board)
Mr. José Arnau Sierra
5. ZARA BRANDS SUCCESS
Zara is one of the most well known brands in the
world and is also one of the largest international
fashion companies. They are the third largest
brand in the garment industry.
The Zara clothing line accounts for a huge bulk of
its parent group’s revenues.
6. Zara’s success proves that if a retailer can forecast
demand accurately, far enough in advance, it can enable
mass production under push control and lead to well
managed inventories, lower markdowns, higher
profitability (gross margins), and value creation for
shareholders in the short- and long- term.
9. Main Issues
The elements supporting Zara’s business structure
and strategy are also greatly interlinked and
interdependent. The following three factors stand
Extensive market research providing a constant stream
of inputs into the product development process, rather
than in batches or discrete seasons.
Locating various business function in close proximity of
the headquarters, and tight control, allows the various
functions to coordinate and take joint-decision very
quickly.These provide the capability to respond very
quickly to the market research-influenced decions.
Communication and information Technology are
absolutely vital to managing the constant interface of
various and management of the huge variety of product
11. ZARA‘S STRATEGY OF DISTRIBUTION AND
Zara is a chain that has developed a successful diverse
method of doing business in the fashion industry. Zara
by working through the whole value chain is very
vertically integrated and highly capital intensive.
VERTICAL INTEGRATION: a distinctive feature of Zara’s
business model, has allowed the company to successfully
develop a strong merchandising strategy. This strategy
has led Zara to create a climate of scarcity and
opportunity as well as a fast-fashion system. Zara
manufactures 60% of its own products. By owning its in-
house production, Zara is able to be flexible in the
variety, amount, and frequency of the new styles they
Zara stores have men's clothing and women's
clothing, each of these subdivided in Lower
Garment, Upper Garment, Shoes, Cosmetics and
Complements, as well as children's clothing (Zara
13. Zara available in now all sizes..
Mid sized store
1.Cost leadership strategy
4.Fast delivery of new products ,and
1.Centralized distribution system
2.Doesn't spend much money on
3.Zara only has one manufacturing
and distribution centre in the world
1.Global market penetration
3.Distribution centre in us
3. Zara based in Spain and has a huge
no of stores in Europe will dent in