BY -: DIVYANSH TEOTIA

ASHAM QURESHI
SAGAR SHARMA
 A garment manufacturing company, which
specially manufactures apparels, footwear and
accessories for men, women and children
 Zara was founded by AMANCIO ORTEGA
GAONA in the year 1975
 Headquarter is in Artexio, Spain
 Parent company is Inditex
 Zara produces around 450 millions items a year
Vision:
“Zara is committed to satisfying the desires of
our customers. As a result we pledge to
continuously innovate our business to improve
your experience. We promise to provide new
designs made from quality materials that are
affordable.”
“Through Zara’s business model we aim to
contribute to sustainable development of
society and that of the environment with which
we interacts”
 Zara concentrated on emerging trends
 The constant weekly updating of style attracts
consumers as they get the feel of exclusivity
 Producing limited stocks were advantageous to
ZARA as they did not loose much if sales are
down
 Based on the sales feedback they would plan
pull process if a product did not reach expected
sales .
 They reach their target market by locating their
stores in prime town –centre locations.
 By reducing the manufacturing quantity of
each style creates artificial scarcity and lower
the risk of having stock it cannot sell
 Scarcity in fashion increases desirability, which
means shoppers need to buy quickly as the
item may not be available next week.
 STORES place order’s twice per week and the
supply of finished goods is matched to store
demand.
 Production is then increased or decreased in
the flexible production facilities.
 Demand based production means there is very
little inventory in ZARA’s supply chain, which
result in much lower working capital
requirements.
 Effective and efficient transportation network
 Fast time delivery
 Coordinates with all aspects of logistics
 Quick response in supply chain
 Ability to distribute merchandise within 2
weeks
 Final step in order fulfillment
 Promotes service quality
 Zara’s strategy is achieving growth through
diversification with vertical integrations. It
adapts couture design, manufacturers,
distributes, and retail clothes within two weeks
of the original design first appearing on
catwalks. This is in stark contrast to the average
six months it takes to produce items in the
fashion industry.
 The retail giant deliver fashionable and trendy
numbered catered for different tastes through a
controlled and integrated process
 Zara success relies on keeping a significant amount
of its production in house and making it sure that
it own factories reserve 85% for in season
adjustments
 ZARA also commits six months in advance to only
15 to 20 % of season line by the start of the season
,meaning that up to 50 % of its clothes are
designed and manufactured smack in the middle
season
 Store managers communicate customer
feedback on what shoppers like, what they
dislike, and what are they looking for.
 That demand forecasting data is instantly
funneled back to ZARA’s designer, who begin
sketching on the spot
 Difficult to find any excess inventory or dead
stock in a ZARA warehouse .
Inventory optimization model are put in a place
to help the company to determine the quantity
that should be delivered to every single one of
its retail stores via shipments that go out twice
every week. The stock delivered is strictly
limited, ensuring that each store only receive
just what they need.
 Zara’s fast distribution network enables
company to deliver goods to its European
stores within 24 hours, and to its American and
Asian outlets in less than 40 hours
 Zara advertise its product through its parent
company INDITEX
 Other companies spend near about 30% on
advertisement whereas ZARA spend only near
about 10 to 15% on advertisement
1 . Product people want ,and when they want
them :-

New fashion items can be designed and

delivered to the store within four weeks, and
modification can be made to existing items in
as little as two weeks
 Omni channel is all about ensuring your
product or service is in the right place, at the
right time
 Omni-channel retailers focus on utilizing their
supply chain to deliver a great customer
experience
Vertically integrated supply chain where deign,
production, distribution and retailing were
integrated
The vertical integration of their production
system allows them to place a garment in any
store around the world in a period between
two to three weeks
 The industry average for developing a new
product and getting it to store is six-months.
Zara can achieve this, in just one week . The
sheer scale and speed of Zara’s production
schedule is no small feet, with the fashion
retailer launching 12000 new designs each year
 Vertically integrated  Dual supply chain
system

 Own production  The production is out

capacities but sourced fully to
outsourced sewing suppliers

 Production mainly in  Fast fashion clothes

Spain & Portugal are produced in
Europe