Made by:Jyoti Pathreja

Country of Origin
ZARA is a clothing and accessories retailer originated in 1975 by Amancio Ortega and Rosala Mera in Spain.

Unique selling proposition

to create or imitate the latest trends within a short two-week period. the new styles are available on sales floors for no longer than 4 weeks. Zara launches 10,000 new designs annually.

No. of stores worldwide

There are a total of 1659 Zara stores. The majority located in Europe.

No. of stores in India

There are only 8 Zara stores in India.

Product categories
Men's clothing Women's clothing Children's clothing (Zara Kids) Shoes Cosmetics and Complements. Accessories

Supply chain
Designers create fresh designs from their factory in La Courna. They are shipped directly to the stores, eliminating the need for expensive warehouses. The designers are in daily contact with the store managers discussing which items are most in demand and which aren't. The transfer of this communication is also accelerated by IT software that is specifically designed for Zaras diverse business. Zara is a direct marketing channel which means that it doesnt have an intermediary level, they have their own shops, and they sell their products exclusively in their shops directly to their customers

Supply Chain
Manufacturing
ASIA (20%)

System is designed for short production cycles, quick response (QR) to demand, and reduced number of markdowns

Design
INDITEX MANAGEMENT / DESIGNERS
DETERMINE
APPAREL

Low QR Low Cost

Distribution
DISTRIBUTION CENTER

Sale
STORES
Decentralized store management supplements QR Managers determine products to sell and return

IN-HOUSE (40%)
High QR High Cost

Increased shipment frequency increases QR

DESIGNS AND

MANUFACTURING
LOCATIONS

Small batch production lowers cost of demand uncertainty

EUROPE / N. AFRICA (40%)

High QR High cost

Returns from stores either rerouted or disposed of in local stores near dist. center

IT SYSTEMS
Provides accurate demand information to determine manufacturing locations and production levels

Limited Supply : Customers can Always find new product in stores but limited supply. Outstanding Labor: Zara outsourced the labor-intensive operations to a network of local subcontractors. Organization structure Regular creation Style idea, quantity etc., conveyed to headquarters: One day Fabric from Stock: One day Design: Three days Style Approval: One day Prototype Development/ Fit Sample/ Approval: Three days Garment Production: Ten days Shipment: Five days

Ethical practices followed

No forced labour No child labour No discrimination No harsh or inhumane treatment with employees Safe and hygienic working conditions Working hours are not excessive. Wages are paid. Environmental awareness. Regular employment. Does not exploit their customers undertakes to collaborate with the local, national and international communities in which it operates.

Associated with

It is the flagship chain store of the Inditex group which is associated with ETI(Ethical Trading Initiative).
ETI is working to improve the lives of poor and vulnerable workers across the globe who make or grow consumer goods.