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Malas Moe

on 12 September 2014

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Transcript of ZARA

ZARA: The Pyramid of Change
Inditex/ZARA Suppliers
€4 Ml sales per stores on average
Zara = 66% of InditexGroup total sales
Mapping and Segmenting
Generate a complete map from the first supplier to ZARA
Net Profit: €1.9 Bl in 2012
Make use of tools such as Crowdsourcing to increase transparency
Consider business risks and risks to society when choosing suppliers
Fair Trace Tool
Created by Indigenous in 2012.

Uses mobile technology to connect the customers to the original source of the product, and to social impact research data.

Other technologies include: World of Good, Good Guide, and Source Guide.
In 2005 Inditex embodied Ethical Trading Initiative (ETI), a Base Code of Conduct for External Manufacturer & Workshops
Every organization that wants to make B2B agreement with Zara, and become a supplier, must be in line with this principle (ETI)
Leaders' symbolic actions: values for Zara are a priority. put on the good’s label a symbol/phrase (e.g product made in e.g China, Brazil, Bangladesh in compliance with ETI)
Special internal business unit (SBU): 3-4 people, with deep values' understanding and adequate budget. GOAL -> teaching and implementing Zara’s core values
Trust-based networks: GOAL -> help other people develop their businesses. Supplier have internalized the standards as part of their core values.

Zara desperately needs a clearer picture of how the products move down the supply chain
Implementation of a signature agreement with the National Action Plan on Fire Safety (NAP) program.
Planning and coordinating based on the data collected from suppliers
Zara = leading brand of the world’s largest apparel retailer

Dependence of stakeholders--> Zara’s bargaining power
Additional Zara tools: image crisis + consumers’ demand for ethical companies

⇒ Power to mobilize for change

⇒ Power in Action:
-source only third party certified products
-rewards to suppliers who affiliate: new business opportunities
-one supplier as leader for change
Full transcript