Distribution Strategy Of Zara

Zara is one of the largest international fashion companies. It belongs to Inditex, one of the world’s largest distribution groups. According to its official website, Zara treated the customer as the heart of unique business model.

Amancio Ortego started clothing factories in Spain, in 1963. In an attempt to integrate the manufacturing with the unpredictable customer demand, he opened the first Zara store in La Coruna in 1997. Zara came under Intidex multinational companyin 1985 and Jose Maria Castellano Rios, who shared the same opinion as Ortego that IT was important for their business, joined the company, who later became the CEO of Intidex in 1997. By 2003, Intidex had 1,558 stores in 45 countries, of which 550 were part of Zara chain.

ZARA begins its activity with the opening in A Coruna (Spain) of its first store, although the origins of the group date back to 1963, the year in which Amancio Ortega Gaona, chairman & founder, begins his business activity (1975).

Zara clothing is Spanish based Inditex Group, and launched in the year of 1975. The contribution of sales of Zara clothing is about 63.8% in the group's whole sales of the previous financial year.

Zara a company founded on just €30 Euros is now worth an estimated €32 billion. It is the flagship retail unit of Spanish parent company, Inditex also found by Ortega. Zara was found in 1975, now having over 1800 stores in 81 countries.

Consequently, Zara has become Spain best known fashion brand. The company started in 1963 .half century later , it has become own of the world's fastest growing manufacturer of affordable Spanish fashion clothing .currently there are around 2000 stores in 77 countries .

ZARA, a branded Spanish clothing and accessories retailer, was founded in 1975 by Amancio Ortega and Rosalia Mera. It is the flagship retail store of the Inditex group, a fashion group that owns many other brands such as Pull and Bear, Uterque, Bershka, Stradivarius and Massimo Dutti. Amancio Ortega opened the first Zara store in a central street in Galicia, Spain under the name Zorba. Although another store a few blocks away was also named Zorba, the molds of the letters for the sign was already created and it was rearranged, thus coming up with the name Zara. In 1980, the company started its international expansion in Portugal. In 1989, they penetrated the US market and in 1990, they entered the French market. In 2003

Zara brand products are part of the Inditex Group which was founded by Amancio Ortega. Zara brand products currently compete in what is called the fast fashion industry. Fast fashion is a trend in the fashion industry where companies produce and sell new clothing trends within the market as quickly and cheaply as possible (Fernando, 2015). This is made possible by new innovations within the supply chain management of these companies. Innovations are precisely the way Zara has become one of the top fast fashion businesses in the industry. By utilizing their core competencies along with efficiently managing their supply chain, Zara has developed a way to give customers what they want faster than anyone else (Hitt, Ireland, & Hoskisson, 2017, p. 100). Zara has done an excellent job at defining its business strategy and utilizing their core competencies to create value for their customers which is why they keep coming back. This also brings in new customers to purchase from Zara. The purpose of this paper is to examine Zara and various aspects of their business.

First, “Retail companies have become involved in supply chain management in order to control product quality, inventory levels, timing, and expenses.” (About money). For this reason, Zara’s strategy ensured that its supply chain capabilities supported its ability to satisfy the targeted customers. In addition, Zara collects information on customer needs, integrates data with design, manufacturing and distribution functions. With this in mind, Zara concentrated its product to short lead time, lower quantities, more styles and use an effective distribution system. Similarly, Limited Brands, shifted to a high end product line that required a strategy to bring product to market and customer satisfaction. Furthermore, Limited Brands management approved the project of building a global

Amancio Ortego started clothing factories in Spain, in 1963. In an attempt to integrate the manufacturing with the unpredictable customer demand, he opened the first Zara store in La Coruna in 1997. Zara came under Intidex multinational companyin 1985 and Jose Maria Castellano Rios, who shared the same opinion as Ortego that IT was important for their business, joined the company, who later became the CEO of Intidex in 1997. By 2003, Intidex had 1,558 stores in 45 countries, of which 550 were part of Zara chain.

Zara is one of the world largest international fashion distributors, which is extremely competitive business with the most innovative speed-to-market business model. They are the third largest brand in the garment industry. Zara has become the most innovative retailers in the world. They invented the concept of fast fashion industry. Zara has changed conditions in the marketplace demand a much more agile response from the organizations and supply chain.

Zara was founded and established 1975 by Spanish born Amancio Ortega Gaona. The actual store dealt with the products of the manufacturing company Zara, was an outlet for cancelled orders of women’s night wears and lingerie. These have made a strong foundation for realizing the association between producer and retail trade

· Zara – the flagship brand of Spain based Inditex group, founded by Amancio Ortega Gaona and opened its first store in 1975.

Zara is a Spanish brand of clothing founded by the visionary Amancio Ortega Gaona and Rosalia Mera in Artexio, Galicia. Zara was founded in the year 1975. It is one of the major selling brands of one of the biggest fashion retailer "INDITEX". Zara is now available in 86 countries with total of 1,763 stores worldwide.

• Amancio Ortega quit his sales job to start the business with just 5,000 pesetas ($83) • Founded in 1963 as a maker of ladies’ lingerie in the Galician town of La Coruña • Today, 70-year-old chairman and majority shareholder, Mr Ortega, is Spain’s richest man.