Zara: Future Ready?
| Case Code: OPER122 Case Length: 10 Pages Period: 2011 - 2016 Pub Date: 2017 Teaching Note: Available |
Price: Rs.400 Organization : Inditex Industry : Apparel Manufacturing and Retail Countries : Spain Themes: - |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
In 2016, Spain-based Industria de Diseño Textil, S.A. (Inditex) was the biggest retailer of clothes in the world with revenue of 20.9 billion euros. As a public listed holding company, the Spanish retailer had several brands under its umbrella. Zara, its flagship brand, contributed 63% to Inditex’s top-line in 2014. The Zara brand was considered the pioneer of fast fashion. Although, Inditex was a fully integrated organization, its flexibility in adapting to the dynamic trends of the apparel industry was unparalleled. Zara took the latest catwalk designs and converted them into affordable high-street fashion apparel within 3 weeks. Zara stores were replenished twice a week. The speed at which the stores rotated inventory while maintaining competitive pricing instilled a sense of scarcity and urgency among customers. Customers knew that most items would be sold out or replaced within days, and this knowledge made them take quick buying decisions as well as frequent the Zara store more often – “it was buy now or miss out”. An average Zara customer made 17 visits to a Zara store per year. To offer such a value proposition, Inditex had to maintain a complex and high speed supply chain for Zara. Inditex managed 50% of its production in its own factories. The balance production was either near-shored to neighboring countries like Morocco or outsourced to countries in Asia and South America for cost advantages..
Buy this case study (Please select any one of the payment options)
| Price: Rs.400 |
Price: Rs.400 | PayPal (9 USD) |
