Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Copy of ZARA FASHION BUSINESS CASE

No description
by

Elena G

on 18 June 2013

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Copy of ZARA FASHION BUSINESS CASE

A case study of ZARA
OUTLINE

ZARA

A brief history of ZARA
Traditional vs. Fast Fashion

Supply chain

Design
Manufacturing & distribution
Stores

Conclusions
The revolution of the fashion business:
ZARA: a highly effective supply chain.

Elena García
Design stage
THANK YOU
Conclusions
A brief history of ZARA
Traditional fashion industry
Traditional vs. Fast Fashion
Fulfill customer's needs:
High product variety.
Short lead times.

Efficient and flexible supply chain.

Vertical integration.
Conclusions
1.751 stores
400 cities
87 countries
5 continents
1st shop in LA CORUÑA
1975
2012
SOURCE: INDITEX Group Official Website
Predicting trends in advance
Lead time = 6 months
Two collections a year
'Fast fashion' industry
H&M
Several sub-collections within year
Lead time = 2-6 months

ZARA
New items = Lead time=
15 days
World's largest clothing retailer
Pioneer of Fast Fashion

Store stage
KEY TASKS: Promotion, Advertising, Spotting trends.

New products every 15 days.

Limited production run benefits:

Cultivate exclusivity.
Buy right away at a full price: 85%.
Customers visit more often: 17 times per year.
Almost no advertising.
Reduce the risk of mistakes: 1%.


300 designers in "The cube"
30.000 items a year
Spotting fashion trends:
- Fashion magazines, street fashion.
- Celebrity styles.
- Store managers.
Manufacturing & Distribution
Styles based on feedback.
No guesswork.
SOURCE: Gallahuger 2008
SOURCE: Gallaugher 2008
- Cutting & dyeing: 23 highly automated factories.
- 3 production lines: avoid cost overruns.
- Final stage in local cooperatives.

Production
Distribution center
- 2 distribution centers for all the items.
- Items are ironed, packaged on hangers,
secured and priced before leaving .
- Moving 2.5 million of items a week,
staying in-house no more than 72 hours.

"Probably the most innovative and devastating retailer in the world."
Louis Vuitton Fashion Director, Daniel Piette
Anonymous (2005), ‘How Zara fashions its supply chain’. Strategic Direction, 21(10).

Ferdows, K., Lewis, M.A. and Machuca, A.D. (2004), ‘Rapid-fire Fulfillment’. Harvard Business Review Online. Available at:<http://hbr.org/2004/11/rapid-fire-fulfillment/ar/1> [Accessed 02 June 2013].

Gallaugher, J. (2008), ‘Zara Case: Fast Fashion from Savvy Systems’. Gallaugher Web. Available at: < http://www.gallaugher.com/Zara%20Case.pdf>. [Accessed 25 May 2013].

Hansen, S. (2012), ‘How Zara Grew Into the World’s Largest Fashion Retailer’. The New York Times Journal Online. Available at:
<http://www.nytimes.com/2012/11/11/magazine/how-zara-grew-into-the-worlds-largest-fashion-retailer.html?pagewanted=all&_r=0>. [Accessed 25 May 2013].


INDITEX Group - Press releases. 2013. INDITEX Group - Press releases. [ONLINE] Available at: <http://www.inditex.com/en/press/press_releases?action=view&subject=00000002> [Accessed 07 June 2013].

References
Full transcript