Case study

Zara

Inditex (Industria de Diseo Textil) of Spain, the owner

of Zara and five other apparel retailing chains, continued
a trajectory of rapid, profitable growth by posting net
income of 340 million on revenues of 3,250 million
in its fiscal year 2001.
ZARAis aSpanishclothing and accessories retailerbased
inArteixo,Galicia.
Founded in 24 May ,1975 byAmancio OrtegaandRosala
Mera.
Zara needs just two weeksto develop a new product and
get it to stores, compared to the six-month industry
average, and launches around 10,000 new designs each
year.
Zara was described byLouis VuittonFashion
DirectorDaniel Pietteas "possibly the most innovative and
devastating retailer in the world.
Zara
shoppers
inworldwide.
86 countries to its network of
1763welcomes
stores , 78
countries
Zara
1.763
stores
upscale locations
world's
has in
continually
maintainin
itsthe
mission
tolargest
provide fast

Zara's
approach
to design is
closely
cities.
and
affordable
fashionable
items
. linked to their
customers.

Inditex is a global specialty retailer that designs, manufactures, and

sells apparel, footwear, and accessories for women, men and
children through its chains around the world. Zara is the largest and
most internationalized of the six retailers that Inditex owns. By the
end of 2001, Zara operated 507 stores around the world, including
Spain.

Competitors of inditex

Around the world

Zara

1.763

Zara Kids

171

Pull & Bear

817

Massimo Dutti

630

Bershka

899

Stradivarius

794

Oysho

529

Zara Home

364

Uterqe

91
TOTAL

6.058

Gap, H&M and Benetton are

consideredInditex's three
closestcomparable international
competitors.
Zara, is relatively perceived as more
fashionable than all the other three and
prices less than Benetton and Gap but
higher than H&M.
In these four competitors, Benetton and
Gap place at relativelyless fashionable
and higher price, while Zara and H&M is
more fashionable and price lower.

Zara has developed a highly responsive supply chain that

enables delivery of new fashions as soon as a trend
emerges.
Zara delivers new productstwice each weekto its 1,763
stores around the world.
Rather than subcontracting manufacturing to Asia, Zara
built 14 highly automated Spanish factories, where robots
work around the clock cutting and dyeing fabrics and
creating unfinished gray goods, the foundations of their
final products.
Zara has also created a partner network of more than
300 small shops in Portugal and Galacia to handle the
finishing work where, the gray goods are transformed
into dresses and suits.
Inditex SA grew revenue 10% to $19.15 billion for its fiscal
year ending January 31, 2012.

Inventory
Launched
approximately
11,000 new items
per year,
Compare to 2,000
4,000 for
H&M and GAP .
Zara always focus
on reducing time .
Zara holds 6 days
worth of inventory,
while H&M holds 52
days, and Spanish
Retailer holds 94
days of inventory .

Forecasting

Extensive market research

Quick input and output response

Frequent new styles

Near term forecasts

Customer feedback

Key success factors of Zara

Short Lead Time = More fashionable clothes
Lower quantities = Scarce supply
More styles = More choice, and more chances of hitting it.

Product
Zara stores have men's clothing and women's clothing, each
of these subdivided in Lower Garment, Upper Garment,
Shoes, Cosmetics and Complements, as well as children's
clothing (Zara Kids). Currently their sizing on women's
clothing goes to a US size 12 or a UK size 14.

Women s
Zara produced a range with
better fabrics and more
"womanly" cuts, Zara Basic
essential fashion-fix pieces and
fashion for younger women.
Lightness to the garments, with
looser silhouettes seen on flowy
dresses, sarong pants, pleated
culottes, softly-constructed blazers
and silky tops.
Zara discover delicate cherry
blossom prints on green silk
dresses , kimono-inspired shapes
at Zara Basic and Oriental
watercolor prints on slim pants
and chiffon tops .

Mens

Zara produced a range of

lightweight cotton tops and
paisley-print shirts, paired with
comfortable cotton twill shorts,
cropped linen pants and linen
blazers.
The collection features hints of ethni
Asian touches like robes, beads and
string tie belts that provide hippiebohemian detailing.

Zara
Kids
Zara produce a unique and sophisticated range for childrens .
Zara kids clothing is a great place to shop and It felt secure in finding fun,
unique, great quality clothes there at a reasonable price point.
Zara kids clothing offers a whole new lifestyle for children, which serve to
be tomorrow's fashionistas. Indeed they can be a bit more expensive as
compared with adult clothing, but the brand's collections are truly worth

Zara Footwear's
Zara Foot Wear , are one of the leading manufacturers offering a wide
array of ladies foot wears that are beautifully crafted.
Their range include ladies sports sandal, formal sandal, fashionable
sandals, bellies, designer sandals, shoes, high heel sandals, flat sandals
and flat bellies.
Established at Dehradun, in Uttaranchal, in the year 2004.
Under the guidance of Mr. Shafiullah Khan, who has with him extensive
experience of footwear industry. His able handling of the operations and
dedicated support of our team help us in delivering ladies fashionable
sandals and shoes.
ZARA is able to design classic designs like desert boots or
brogues over to espadrilles, sneakers and loafers. The pieces
convince not just throughthe design but through material, suede,
perforated leather or premium canvas and details, like pearls,
studs, leather strings or fringes.

Bags and accessory

Zara Home specializes

Its textile collections bed, table and bath linens are
complemented by dishware, cutlery, glassware and
decorative accents.
Zara Home stores offer inspiration in a range of themed
display environments: Contemporary, Classic, Ethnic and
White. Zara Home constantly updates the merchandise in its
Zara
was founded
in 2003
andinithome
now has
364 stores in
shopsHome
to include
the hottest
trends
decoration.
37 countries.

Zara

available in now all sizes..

Small boutiques

Mid sized store

Colossal sized

Department store

Zara brands success

Zara is one of the most well known brands in the world and
is also one of the largest international fashion companies.
They are the third largest brand in the garment industry.
The Zara clothing line accounts for a huge bulk of its parent
groups revenues.

Indidex ;annual report: sales distribution

Zara is unique in the way that it does not spend money on

marketing and instead concentrates on opening new stores
instead. Their brave experiments have led them to be
labeled as one of the most innovative retailers in the world.
Zara started out with low priced products which were pale
imitations of high end fashion products. This move led to
Zara being a smashing success and allowed them to expand
Zara
is known
to use
teams
of designers instead of
by opening
more
stores
in Spain.
individuals.
Zara has to face a lot of competition from H&M, Gap and
Benton internationally. Fortunately Zara is considered to be
more fashionable than the rest of the brands despite the
fact that its price is less than Benetton and Gap. H&M is still
cheaper than Zara but is equally fashionable as Zara. Gap
and Benetton are less fashionable and more pricy.

Strategies

Zara Target .&.price

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
Mission Statement
Through Zaras business model, we aim to contribute to the
sustainable development of society and that of the
environment with which we interacts.

BRAND POSITIONING
Zara among others, has
about 3,000 stores
worldwide H&M, based in
Swede n, has 2,500 (when
you include its smaller
lines of stores); and
Mango, based in Spain,
2,400.
Zara accounts for nearly
70% of Inditexs income,
and, therefore, makes it
the pillar of Amancio
Ortegas the 3rdrichest
man.

Zara controls and coordinates perfectly all the process

and allows reducing the times to minimums.
Zara provided a considerable number of products,
which were more than rival corporations in the fashion
industry.
It produced approximately 11,000 different products
per year, while its major rivals only produce 2,000 to
4,000.
Zara spent four to five weeks on the process of
designing a new product and getting finished products
in its stores .
Zara is indeed an unique brand that, instead of
So, Zaraan
already
was brand.
the leading brand in `fast
creating
exclusive
fashion. Zara could redesign existing products in no
Now that
fast fashion competitors are adopting
more
thanmajor
two weeks.
Zaras model, Inditex will be -necessarily- bringing to
the fashion retail industry.

CONCLUSION
1. Zara has an unordinary supply chain, which gives them a
highly competitive advantage.
2. Zara has successfully introduced a new, unique business
model into the apparel manufacturing and retail industry.
3. zara choose to handle design, production, and distribution
in-house and concentrate the whole production close to their
headquarters in Spain.
4. By entire process, Zara can react much faster than its
competitors do to both the ephemeral trends in the world of
fashion and the capricious tastes of its customers.
5. Zara have achieved their success by thinking out of the
box.
6. Their success is directly related to their ability to
understand their customers most innate needs and desires
and tie these to successful innovation strategies, which
ultimately lead to these new and unique approaches to their
business.

Thank you !!