Zara Essay - 1670 Words

Q 1. What are the unique features of Zaras business model ? Zara is one of the six retailing chains owned by Inditex (Industria de Diseilo Textil) of Spain who designs, manufactures, and sells apparel, footwear, and accessories for women, men, and children through Zara and five other chains around the world. The traditional global apparel chain had been characterized as a prototypical example of a buyer-driven global chain, in which profits derived from unique combinations of high-value research, design, sales, marketing, and financial services that allow retailers, branded marketers, and branded manufacturers to act as strategic brokers in linking overseas factories with markets. Apparel production is generally fragmented with†¦show more content†¦market remained a major challenge. The above is in stark contrast to Zaras model which simply put is based on a vertically integrated demand and supply chain, while most other textile chains rely more on outsourcing and cheap labour. Zara studies its customers demand in the stores, through fashion shows of others, its own trend spotters, employees to name a few and tries to deliver the products. This allows them to have a particularly appealing value proposition: A collection that, although not ‘created, is in line with the very latest fashion. The Economist, for example, writes: When Madonna gave a series of concerts in Spain, teenage girls were able to spot at her last performance the outfit she wore for her first concert, thanks to Zara. It takes the company only 5 weeks to come up with a new garment from design to delivery and only 2 weeks for modifying an existing model. Zaras shops use Information Technology to report directly to its production centers and designers in Spain. Shop managers use PDAs to check on the latest clothes designs and place their orders in accordance with the demand they observe in their stores. Thus, they directly contribute to a streamlined fashion collection of the entire company. Generally, a traditional retailer such outsources most if not all of its production while focusing on distributing and retailing those goods. This is due to the fact that the global apparelShow MoreRelatedZara Fashion Clothing : Zara1024 Words   |  5 PagesINTRODUCTION ZARA FASHION CLOTHING: Zara is one of the retail sale format of Inditex group and well-known an international fashion clothing brand which is very famous for its apparel and accessories. Zara is a place where we can buy all the latest fashionable clothes in the world as they launches 10,000 designs every year. Zara is one of the Spain famous fashion clothing brand which is located in 70 countries in the world. Zara company is started earlier in 1975 by Amancio Ortega, a famous businessRead MoreZara Case1472 Words   |  6 Pagesexpected to show high resistance in response to it. 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