2. ZARA is a Spanish clothing and accessories retailer based
in Arteixo, Galicia.
Founded in 24 May ,1975 by Amancio Ortega and Rosalía Mera.
Zara needs just two weeks to develop a new product and get it to
stores, compared to the six-month industry average, and launches
around 10,000 new designs each year.
Zara was described by Louis Vuitton Fashion Director Daniel
Piette as "possibly the most innovative and devastating retailer in
1763 stores , 78 countries worldwide.
Zara has continually maintain its mission to provide fast and
affordable fashionable items .
Zara has developed a highly responsive supply chain that enables
delivery of new fashions as soon as a trend emerges
Zara delivers new products twice each week to its 1,763 stores
around the world
11,000 new items per
Compare to 2,000 –
H&M and GAP .
Zara always focus
on reducing time .
Zara holds 6 days
worth of inventory,
while H&M holds 52
days, and Spanish
Retailer holds 94 days
of inventory .
5. Key success factors of Zara
Short Lead Time = More fashionable clothes
Lower quantities = Scarce supply
More styles = More choice, and more chances of hitting it.
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 Kids). Currently
their sizing on women's clothing goes to a US size 12 or a UK size
8. Zara produced a range with better
fabrics and more "womanly" cuts,
Zara Basic essential fashion-fix
pieces and fashion for younger
Zara produced a range of lightweight
cotton tops and paisley-print shirts,
paired with comfortable cotton twill
shorts, cropped linen pants and linen
The collection features hints of ethnic
Asian touches like robes, beads and
string tie belts that provide hippie-
9. Zara produce a unique and sophisticated range for children’s .
Zara kids clothing is a great place to shop and It felt secure in finding fun, unique,
great quality clothes there at a reasonable price point.
Zara kids clothing offers a whole new lifestyle for children, which serve to be
tomorrow's fashionistas. Indeed they can be a bit more expensive as compared
with adult clothing, but the brand's collections are truly worth
10. Zara Foot Wear , are one of the leading manufacturers offering a wide array
of ladies foot wears that are beautifully crafted.
Their range include ladies sports sandal, formal sandal, fashionable sandals,
bellies, designer sandals, shoes, high heel sandals, flat sandals and flat bellies.
Established at Dehradun, in Uttaranchal, in the year 2004.
Under the guidance of Mr. Shafiullah Khan, who has with him extensive
experience of footwear industry. His able handling of the operations and
dedicated support of our team help us in delivering ladies fashionable sandals
13. Zara Home specializes
Its textile collections – bed, table and bath linens – are complemented
by dishware, cutlery, glassware and decorative accents.
Zara Home stores offer inspiration in a range of themed display
environments: Contemporary, Classic, Ethnic and White. Zara Home
constantly updates the merchandise in its shops to include the hottest
trends in home decoration.Zara Home was founded in 2003 and it now has 364 stores in 37
14. 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
Indidex ;annual report: sales distribution
1.Cost leadership strategy
4.Fast delivery of new products
1.Centralized distribution system
2.Doesn't spend much money on
3.Zara only has one manufacturing
and distribution centre in the
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 revenues.
17. Production & Distribution
• Maintain quality
• Cost leadership
• Can offer more products than other
• fast distribution system
• Ability to produce new products
• Coordinate with R & D stores to get new trends
• Customers response
• Product distribution system
• Improving inventory system
• Stores ordering system
• R & D
• Market & location of stores
• Market penetration
• Consumer behavior analysis
19. • Zara’s consumers are young, highly
sensitive to latest fashion trends .
• Zara sells apparel, footwear and
accessories for women, men and children
• Zara offers fashion at affordable price
by following the most up to date fashion
Zara Target .&.price
“ZARA is committed to satisfying the desires of our customers. As a
result we pledge to continuously innovate our business to improve your
experience. We promise to provide new designs made from quality
materials that are affordable”
“Through Zara’s business model, we aim to contribute to the sustainable
development of society and that of the environment with which we
22. Zara has overturned the tables of supply change management by
following the three principles – closing the communication loop, sticking
to the rhythm across the entire chain and leveraging their capital assets
to increase supply chain flexibility (Ferdows, Lewis & Machuca, 2004).
These three principles work wonders at their individual levels. They do so
by making the data transfer easy and transparent from shoppers to
designers and production staff thus continually evolving their designs and
keeping with the latest trends. Their production efficiency is next to
none as they are able to bring the product to market shelf in 15 days
which other retailers cannot match. They have also been able to control
production and distribution facilities which results in high efficiency in
the supply chain responsiveness thus able to deliver new products at very
fast rates and hence taking caring of the ever changing market around
the world. This is something which is very difficult for other retailers to
emulate and hence Zara’s model will be difficult to implement at these
23. I believe that Zara’s model do not work for all retailers. In order for
some retailers to use Zara’s model, they would need to match Zara’s
fashion expertise and have the ability to change their product. For
example when customers say they don’t like this one certain product,
Zara would pull out the product and wound not sell it anymore. Zara’s
fashion is quick and adapts to their customers demands. Zara’s model
focuses on low advertising because they create that store
atmosphere where everything is trendy, limited amount of each
products which helps them reduce risk, and loyal customer feedback
that comes to the store. Regular retailers are rapidly improving their
skill for demand forecasting, merchandise selection, stock control,
space allocation, and display Regular retail and Zara are different
because Zara takes customer feedbacks seriously