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Introduction To Zara

Zara is a fashion label and chain store established in 1975 in Spain. It is owned by Inditex and has grown to over 4,900 stores in 77 countries. Zara pioneered an agile supply chain model, bringing new designs from concept to stores in as little as two weeks. This consumer-driven process allows Zara to be highly responsive to changing fashion trends. Its supply chain agility also puts pressure on suppliers to meet tight turnaround times.

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Ashmi Neupane
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248 views3 pages

Introduction To Zara

Zara is a fashion label and chain store established in 1975 in Spain. It is owned by Inditex and has grown to over 4,900 stores in 77 countries. Zara pioneered an agile supply chain model, bringing new designs from concept to stores in as little as two weeks. This consumer-driven process allows Zara to be highly responsive to changing fashion trends. Its supply chain agility also puts pressure on suppliers to meet tight turnaround times.

Uploaded by

Ashmi Neupane
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Introduction to Zara

• One of the fashion label and fashion chain stores established in 1975 by the Spanish group Inditex own by Amancio Ortega
• Next to Zara, the rest of the labels the groups own are Bershka,Massimo Dutti,Pull and Bear,Stradivarius,Oysho, Zara Home,
Zara kinds and Uterque
• During the last two decades Zara tripled its profit and stores and nowadays is ranked the third biggest retailer world wide
• Has 3000 in-house designers located in its headquarter in the region of A Coruna Spain
• Average markdown ratio is at approximately 50 per cent, for comparison Zara sold only 15 percent on sale
• By September 2010 Inditex group owns 4907 stores in 77 countries around the world (38 in Europe and 39 outside Europe)
• Zara gets the credit to be pioneer in Agile Supply Chain
• Zhang (2008) suggests that “whole process of the supply chain in Zara can be divided into four parts:
• Product organization and design
• Procurement
• Production and Product distribution
• Sales and feedback
Zara’s relation with consumer behavior
• Consumer behavior is the study of how individual customers, group or organization select, buy, use and dispose ideas, goods, and
services to satisfy their nature
• The brand name of Zara is strong in the market and the company has a strong new product pipeline which presents more than 10000
new designs every year that amounts to approximately 30 new designs a day
• The Zara represents all the nature of consumer behavior that the consumer behavior have . Some of the natures are:
• Process
• Influenced by various factor
• Keeps on changing
• Different for all customers
• Varies from region to region and country to country
• Different for different products
Results
Consumer-driven process
Agility – impact on the supply chain
Retailer power
Suppliers under increased pressure
Elimination of stages in the supply chain

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