ZARAZARAThe Technology Giant Of Fashion World

TimelineTimelineZara is a flagship brand of Spain retail

Group, Inditex SAZara is riding two of wining retails

trends – 1. Being in Fashion 2. Low Price

Making an effective combination out of it.

Vision of Zara Vision of Zara “ZARA is committed to satisfying

the desires of our customers.

It pledge to continuously to improve.

Promise to provide new designs made from quality materials that are affordable”

Mission of ZaraMission of Zara

To contribute to the sustainable development of society and that of the environment with which we interacts.”

Fast Fashion –The New Fast Fashion –The New wavewaveFast fashion is new business model . In this business model companies

recognized and respond to fashion trends very quickly.

- create products of the trends And get them in the store faster then counter part.

Zara leads in the pack in all this i.e in production and distribution of the goods.

Process of zara Process of zara

Coping latest design from different magazine. (for e.g. vogue)

Zara is also prolific which means it launches 10000 design per year .Others 2000-3000 design per year

Zara store recieves merchandise 2 -3 times per week . Others 4-6 times per year

More variety less Qty.

Secret of Zara Secret of Zara SuccessSuccessExcellent Distribution system.Proper Supply Chain

Management from designing production and retailing.

Vertical IntegrationInformation system links store to

the designers and distribution system.

Store managers works has trend spotters.

They report every about the hot Fad.

Q 1Q 1

As completely as possible sketch the supply chain for zara from raw materials to consumer purchase.

ZARA Production ProcessZARA Production Process

Q2Discuss the concepts of Q2Discuss the concepts of Horizontal and vertical conflict as Horizontal and vertical conflict as they relate to Zarathey relate to Zara

Vertical conflict is conflict that occurs between organizations that work together to provide the same product to the consumer.

Horizontal conflict is one that occurs between two enterprises that might work together, either directly or indirectly.

Q3Q3

Which type of vertical marketing system Zara does zara employ?List all the Benefits that Zara receives by having adopted this system.

Benefits of VMS of ZARA:-Benefits of VMS of ZARA:-It make ZARA faster then

competition.More flexible and more efficient then

other fashion house.VMS helps Zara in controlling over

almost every aspect of the supply chain,

More items produced.Faster design.Less shelf times. Lower inventories.Frequent shipments.

Q4 Does Zara experience disadvantages from its fast fashion distribution system? Are these disadvantages offset by advantages?

Disadvantages of fast fashion:-# Its Unsustainable & have short

product cycle.# Focus on imitation original

product .# Tough competition due to low cost

of production.# Outsourcing is not possible as time

is very less for production.# Difficult in expansion.

One disadvantage that Zara incurs is possibly a higher cost on materials and labor by not sourcing globally to the cheapest source.

This all is offset by the cost savings of not having items

shipped all over the world. Faster response time between each

stage. Zara’s competitive advantage is the

“fast” part of the fashion, more important than the minimal amount that Zara could save by sourcing globally.

 

Q5Q5How Does Zara add value to customer

through major logistics function?Warehousing: The only warehousing

done in this system is local and brief for the component parts and the finished items. This adds value by cutting down on costs associated with warehousing and by decreasing the time-to-shelf.

 

Inventory Management: The IT system and the VMS in general both contribute to Zara’s ability to offer a just-in-time system.

This results in lower inventories, cut costs, and faster throughput.

Transportation: Zara’s competitive advantage is speed.