Essay Zara

4860 Words Dec 28th, 2014 20 Pages
Alexandra Iacob University of Huelva HUELVA, SPAIN 2015 Abstract Zara is a retail company belonging to the Spanish company Inditex Group. Currently, Zara has 1,808 stores in 86 countries. This paper will analyse Zara’s business model, based on innovation and flexibility, as well as logistics chain and the various tools used to recognize the continuous changes in fashion trends and turn them into a product marketable within a few weeks. Compared with the competition, Zara has three distinctions: vertical integration to achieve a faster turnaround time; rapid expansion; and use of the store as the main tool for promotion, with low spend on advertising. This company offered a product design
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During the next ten years after the expansion of Zara in Spain, and after Spain’s insertion in the European Union, this brand opened stores in Porto (1988), New York (1989) and Paris (1990). In addition to this brand, Inditex owns eight other clothing chains: Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterque - boasting 6.570 stores in 88 markets and more than 133,400 employees. Today there are 2000 Zara stores and 164 Zara Kids stores around the world. Zara’s online retail format launched in 2010 is now available in 22 countries, covering most of Europe, Japan, China, and the United States, and will continue to expand in smaller markets. Zara generates about two-thirds of group sales by offering fashion trends at affordable prices. Zara’s core consumers are 20-45 year old women, though they also have kids, menswear and home decor offerings. “Zara's designers and customers are inextricably linked. Specialist teams receive constant feedback on the decisions its customers are making at every Zara store. This feedback inspires Zara's creative team which is made up of over 200 professionals”. Zara always tries to meet the needs of its customers at the same time as helping to inform their ideas, trends and tastes. Vision and Mission The company’s vision as stated on the website: “Zara is committed to satisfying the desires of our customers. As a result we

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