zara supply chain

What is Zara ...

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Chain

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SPEED OF

For fashion conscious adults aged 25-35, Zara Clothing is the clothing retailer that incorporates modern telecommunication technology in its marketing research & supply chain in order to deliver fresh customer inspired fashion designs at less than designer prices.

11 Short Lead time = More fashionable clothes

22 Lower quantities = Scarce supply leads to higher

demand

33 More Style = More choice, and more chance

of hitting it right

Consumers in Central London visit the average store four times annually, but Zara's customers visit its shops at an average of 17 times a year. The high traffic in the stores circumvents the need for advertising…”

Zara Fact !!!

Ad Budgets of Retailers

% of Sales

Benetton 3Diesel 4H&M 4Gap 5.5Macy’s 6

Zara 0.3

11 Short Lead time = More fashionable clothes

Information

Communication

Technology

22 Lower quantities = Scarce supply leads to higher

demand

Turnaround Times30

26

24

24

12

10

5

33 More Style = More choice, and more chance

of hitting it right

QuickTime™ and aTIFF (Uncompressed) decompressor

are needed to see this picture.Birkin Bag $3999.00

Versace Dress $1995.00

Gucci Handbag $1150.00

$65.00

$125.00

$73.00

ZARA

Perceptual Map

Fashion Value

Pric

e

Everyday Low quality

XX

prices

Product Development Cycle

Market Research

Visiting university campuses

Observing Fashion Leaders

Daily Feedback

from Stores

Sales report

Bulk Fabric purchase

Making semi-finished goods

Coloring according to

fashion

3 - 5

• Develop idea into physical sample …

1 - 2

• Decision making meetings

.5 - 2

• Fabric selection by retailer

Retailer V/S ZARA

Shhh…

Secret behind

speed of ZARA

INFORMATION TECHNOLOGY

Close watch on trends .

Buying behaviour.

Quick decisions

Inventory control

Distribution

Collecting information's on consumer needs

STANDARDIZATION OF PRODUCT INFORMATION

INVENTORY MANAGEMENT

DISTRIBUTOR MANAGEMENT

COST DOWN

•Low volume per style of changing products.

• Zara also has two clearly time-limited sales a year rather than constant markdown.

• It spends effort on producing what are current fashion trends

• Zara delivers fashion when it is HOT.

TIMELINE

1975Zara begins its activity with the opening in A Corunna of Its first store, although the origins of the group date back to 1963. the year in which Armanico Ortega Gaona, Chairman and founders ,begins his business activity.

1976GOASAM is founded by the owner of the ZARA store& continues with the opening of the first stores in Spain.

1985 The creation if INDITEX as head of the corporate group.

1988 The opening of the First ZARA store outside Spain Occurs in December 1988 in Oporto (Portugal).

1990 The United States and France are the next markets in which the group begins its activity.

1991 The birth of the PULL&BEAR chain and the purchase of 65% of the MASSIMO DUTTI group.

1994 INDITEX to open new international markets: Mexico in 1992,Greece in 1993 and Belgium and SwedenIn 1994.

1995 This year also sees the opening of the first store of the group in Malta and in the following year in Cyprus.

1997 Norway & Israel join the list of countries in which INDITEX is present.

1998The BERSHKA chain, targeting the younger female market commences its activity in a year which also sees the opening of stores in new countries: Argentina, japan, United Kingdom, Venezuela, Lebanon, United Arab Emirates, Kuwait, Turkey.

1999 The acquisition of STRADIVARIUS makes its fifth chain of the group and stores are also opened in new countries : the Netherlands, Poland, Saudi Arabia, Bahrain, Canada , Brazil, Chile and Uruguay.

2000 The opening of stores in four new countries takes place In 200: Australia, Denmark, Qatar,& Andorra..

2001 On 23rd may 2001 ,Index goes public listed on the Spanish stock market.

Setting a Trend or

Responding Early to one

Doing it Fast Needs Close Control

Keeping it Together is As important

IT Infrastructure

Indian Market Realities Differ

Conclusion