Expansion of the Spanish Clothing Retailer Zara in

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 business person who planned to enlarge his small factory by opening a big store. In 1988 the Zara Company started to enter in to the international market to expand their business globally. Zara opened first international store in Portugal. Portugal store got a big success and then Zara decided to open a store in USA. By the next year they opened another store in Paris. These all made a tremendous growth to Zara and it became as an iconic representation of Spanish fashion. Zara began to enlarge their business quickly in 1990s. Around the world there are 1763 stores in 2013. In this assignment we are going to discuss about Zara’s strategy structure, infrastructure and process development, work scheduling and its reward products.

From only a single apparel store in La Coruña, Zara domain has since extended to more than 50 nations across the globe. While different competitors from multi-national brands in the business crush their overall revenues by assembling in mass and bringing down costs, Zara comprehended that the majority of the clients are enthusiastic

An interesting fact is their supply chain for the majority of their product is located close to their distribution centers. Their distribution centers are located in Spain and the designer ware is produced in Morocco, Portugal, and Turkey (“Case 3-4. Continued Growth for Zara and Inditex,” 2013). This ensures that new designs are produced and shipped quickly to their stores. This plan is reasonably different from their competition.

At its heart Zara is building on a vertically integrated demand and supply chain, while most other textile chains rely on outsourcing and cheap labor in China. It enables company to short turnaround times and achieves greater flexibility, reducing stock to a minimum and diminishing fashion risk to the greatest possible extent.

Now in 2012 it has 4400 stores in 73 countries all over the world. The primary place that all the Zara’s clothes are

The first Zara store was opened in 1975 and now there are over 1500 Zara stores around the world. Zara is now recognized as one of the top 100 most valuable retailers all over the world mostly thanks to its “fast-fashion” strategy. (Rachel Tiplady, 2006) Zara is famous since it only needs 4 to 5 weeks to design, produce and distribute a new style of clothing while other famous brands usually need 6 to 9 months to develop a new style. Currently Zara has over 200 fashion designers working for it, and it is able to develop over 1,000 new styles every month. Zara is using a “fast-fashion” strategy; it focuses on finding the popular styles of clothing in every different country or area in the world and design large quantity of styles to follow the fashion. Zara believes that more styles mean more choices and more chance to hit the market demand.

Zara owns both its production and retail units which give the upper management a better overall control. They have successfully integrated Information Technology into their business model. They also have great international growth selection

With estimated annual revenue in excess of 7 billion Euro, Zara has over 1700 stores worldwide, (Wikipedia, 2013). Zara has been described by Louis Vuitton fashion director as “possibly the most innovative and

Zara, a Spanish owned clothing organisation, is one of the world’s most successful clothing brands. It has utilized a unique and targeted marketing strategy to ensure it has consistently met business growth targets, and has attracted a wide range of consumers across its numerous stores worldwide. Zara was started by Amancio Ortea Gaona in 1963 and has since expanded to over 2000 stores worldwide.

At the beginning, Zara is a Spanish clothing and accessories retailer based in Arteixo Gallicia. The company was founded in 1975 by Amancio Ortega and Rosalla Mera. It is the main brand of the biggest fashion group in the world. Zara design it is own state of the art delivery circulation network. The theme of the company called sales of profits that was as a competition that did not state any rate of supply management and earnings.(Burns, 2001). Two of the clothing

The approach to analysis includes looking into the current supply chain processes and exploring the IT capabilities within Zara and proposing an Information Systems plan to enhance the process efficiency within Zara. The analysis reveals a significant but limited use of IT infrastructure in Zara to support several of its key business functions. It also exposes the need to upgrade the current IT infrastructure for sustaining the competitive advantage.

Zara is a Spanish store that deals in clothing and accessories. The store is one of Inditex fashion distribution retail store based in Artexo, Galicia and founded in 1975 (Harbott) by Amanico Ortega (Shankar). It is a flagship chain store and the world’s largest apparel retailer. The first Zara store dealt in low priced attractive higher-end fashion clothing that looked alike. It was a success and the founder, Ortega, started opening more stores across Spain. In the 1980’s he began changing the process of design, manufacturing and distribution to reduce the times of lead and counter new trends in a faster manner. The evolution of Zara stores reflects the changing culture of modern man where speed, customer relations, quality, and feedback

The relatively biggest and famous fashion distributor Inditex is parent company of Zara. In august 2008, Inditex acquired another famous brand GAP. This resulted in making Inditex as world’s biggest retailer (The Guardian, 2008). Zara has a contribution of 2/3 of the sales in the parent company which makes them the important brand of the company.

It was in this particular area that Zara differs from its competitors. While most of Zara’s competition, chains such as H&M and Mango, heavily advertised throughout the year, Zara made almost no investment in advertising, but still remains the leader among all fast fashion brands on fashion market. As such, Zara’s marketing expenses would represent roughly 0.3% of revenues, against the industry’s typical 3%-4%. One Zara’s biggest cost advantages while comparing it with its competitors is that it was to achieve the success and the lead without traditional advertisement. It means that Zara is stick to the policy of less advertisement, simplicity and exclusiveness. Taking to consideration the fact that, in contradistinction to its main competitor

Not many people know this, but Zara is a very unique fashion company compared to other mega fashion brands. Instead of focusing on inventing the next clothing item people want to buy , Zara built an advanced technology that can bias or push their entire clothing line production in blazing speed to meet what  real customers are actually buying across the stores. This “fast fashion” system depends on a constant exchange of information throughout every part of Zara’s supply chain.