Case Study Summary of Zara and Oxford Industries Essay examples
Zara specializes in inexpensive fashions for women and men between the ages of 16 and 35. In keeping with the spirit of that demographic, Zara moves quickly. Like many apparel retailers, it has two seasons—fall/winter and spring/summer—but selections change frequently within those periods. Items spend no more than two weeks on the shelf before making way for new merchandise, and stores are replenished twice a week.
With annual growth of around 20 percent in both sales and number of stores, Zara was finding that strategy increasingly difficult to execute. Part of the Inditex group of fashion distributors, it currently has more than 1,100 stores in 68 countries. With so much volume flowing through the supply chain, the …show more content…
The model has yielded additional benefits. Product now spends more time on the sales floor, and less in a back room or warehouse. With a reduction in misallocated inventory, there are fewer returns to the warehouse and transfers between stores. And, as Zara’s distribution network continues to grow, the retailer won’t need to expand its warehouse team as fast as the old process required.
Summary of Oxford Industries
Oxford Industries began in 1942 as a domestic manufacturer of basic, button-down shirts for mid-level retailers, particularly department stores. In recent