Zara's Growth in the Fashion Industry

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.

Zara is a high-end street store offering the latest tastes in fashion for women, men, and children alike. Amancio Ortego, Zara’s founder, has made the store grow with rapid success in both its home country, Spain, and internationally. One of the distinct reasons why Zara is such a unique company compared to its competitors is its foundation of the quick response system. Today, Zara’s cycle time is six weeks, in which it responds to its customers’ demand very quickly, unlike most stores that take half a year. Overall, Zara is distinct from most apparel stores in its ability to travel globally and from its international strategy.

Zara’s value proposition is that it offers its customers cutting edge fashion at very affordable prices. It actively seeks out what styles are “hot” in the fashion world. After Zara has identified the latest trend it can have the

Zara produces around 1000 new styles every month, which means that fresh fashion trends reach the stores quickly. A typical Zara’s customer visits the store 17 times a year compared to the average of 3 times per year. This high number of styles also means that the commercial teams have more chances to find a winning style.

Zara is a Spanish clothing and accessory retail company founded in 1975 by Amancio Ortega and Rosalía Mera. It is the main brand of the Inditex group, the world's largest apparel retailer. Zara also owns brands such as Massimo Dutti, Pull & Bear, Bershka, Stradivarius, Oysho, Zara Home, and Uterqüe. Zara’s strategy is to offer cutting edge fashion at affordable prices by following fashion and identifying which styles are “hot”, and quickly getting the latest styles into stores. They can move from identifying a trend to having clothes ready for sale within 30 days (whereas most retailers take 4–12 months). This is made possible by controlling almost the whole garment supply chain from design to retail. Zara, as of 2017, manages up to 20 clothing collections a year.

Zara 's combination of cutting-edge fashions and culture lends itself well to a European-style, fashion-conscious consumer. While this type of consumer can be found in New York, this is not representative of the entire US market. Retailers in small towns and urban sprawls rely more on a shopping mall atmosphere. Adapting that strategy would undermine Zara 's image. It is therefore recommended that Zara target only major metropolitan areas which would likely have higher concentrations of fashion-minded individuals.

Zara is a Spanish clothing brand founded in 1975 by visionary Αmancio Οrtega Gaona in Spain. Zara is one of the largest selling brands from the largest retailer of fashion "INDITEX". Zara is known chain of brands particularized into designing clothes, shoes and accessories for all genders and ages. Zara owns lots of employees (40.000) for fast clothing fabrication and shipping needs. Zara is now available in 88 countries with a total of over 2000 stores worldwide and 29 online markets (Slack, Chambers, and Johnston, 2009). Also, Zara is classified as one of the biggest and most successful companies with due to the excellent quality of products provided and the visional given attempt to compete and claim the first place on sales among other strong companies such as H&M and Gap. Of course, it cannot be neglected that Zara managed to rapidly correspond to customer's demands.

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, 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.

With annual growth of around 20 percent in both sales and number of stores, Zara was finding that strategy increasingly difficult to execute. Part of the Inditex group of fashion distributors, it currently has more than 1,100 stores in 68 countries. With so much volume flowing through the supply chain, the

Introduction     Zara  is  a  fashion  retailer  established  in  1975  by  the  Spanish  group  Inditex  founded  by   Amancio  Ortega  Gaona.  Inditex  runs  over  more  than  5400  stores  worldwide  and  owns   brands   other   than   Zara   such   as   Massimo   Dutti,   Breshka,   Oysho,   Pull   and   Bear   and   Stradivarius.   Inditex   headquarters   are   located   close   to   La   Coruña   in   northwestern   of   Spain.   The   old   shipbuilding   town   of   La   Coruña   seems   an   unlikely   home   to   a

• Flagship enterprise of Inditex (2001 IPO) • Sales of 3.2 billion €, EBIT of 476.1 million € in 2003 and EBIT margin of 14.8%. • HQ and central distribution in La Coruña (Galicia – northwestern corner of Spain) • Women’s, men’s and children’s wear • Over 724 stores in 56 countries

Zara is one of the biggest international fashion companies and Inditex is her parent firm which is largest clothing retailer in the world. Nowadays, Zara already has more than 2000 stores in 88 countries and is increasing at the speed of 60 stores each year (Inditex, 2014) which create chic clothing every week in order to make customers come back again and again to pick out the freshest styles.

Zara is a Spanish company at the forefront of fast fashion. Launched in 1975 by Inditex and owned by Amancio Ortega, Zara now has almost 2,100 stores in 88 countries. Zara’s vertically integrated business model limits out-sourcing therefore making most of its catwalk copies in-house and ensuring better quality control.

Today’s fashion market is highly competitive and companies need to always be up to date. Zara has many competitors such as H&M, Mango and Gap. The successful concept of “Fast fashion” has created many retail stores to change their retail strategy but have not yet to compete with Zara system.