zara supply chain
DESCRIPTION
Effective Supply Chain of ZARATRANSCRIPT
What is Zara ...
??
Chain
@
SPEED OF
For fashion conscious adults aged 25-35, Zara Clothing is the clothing retailer that incorporates modern telecommunication technology in its marketing research & supply chain in order to deliver fresh customer inspired fashion designs at less than designer prices.
11 Short Lead time = More fashionable clothes
22 Lower quantities = Scarce supply leads to higher
demand
33 More Style = More choice, and more chance
of hitting it right
Consumers in Central London visit the average store four times annually, but Zara's customers visit its shops at an average of 17 times a year. The high traffic in the stores circumvents the need for advertising…”
Zara Fact !!!
Ad Budgets of Retailers
% of Sales
Benetton 3Diesel 4H&M 4Gap 5.5Macy’s 6
Zara 0.3
11 Short Lead time = More fashionable clothes
Information
Communication
Technology
22 Lower quantities = Scarce supply leads to higher
demand
Turnaround Times30
26
24
24
12
10
5
33 More Style = More choice, and more chance
of hitting it right
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.Birkin Bag $3999.00
Versace Dress $1995.00
Gucci Handbag $1150.00
$65.00
$125.00
$73.00
ZARA
Perceptual Map
Fashion Value
Pric
e
Everyday Low quality
XX
prices
Product Development Cycle
Market Research
Visiting university campuses
Observing Fashion Leaders
Daily Feedback
from Stores
Sales report
Bulk Fabric purchase
Making semi-finished goods
Coloring according to
fashion
3 - 5
• Develop idea into physical sample …
1 - 2
• Decision making meetings
.5 - 2
• Fabric selection by retailer
Retailer V/S ZARA
Shhh…
Secret behind
speed of ZARA
INFORMATION TECHNOLOGY
Close watch on trends .
Buying behaviour.
Quick decisions
Inventory control
Distribution
Collecting information's on consumer needs
STANDARDIZATION OF PRODUCT INFORMATION
INVENTORY MANAGEMENT
DISTRIBUTOR MANAGEMENT
COST DOWN
•Low volume per style of changing products.
• Zara also has two clearly time-limited sales a year rather than constant markdown.
• It spends effort on producing what are current fashion trends
• Zara delivers fashion when it is HOT.
TIMELINE
1975Zara begins its activity with the opening in A Corunna of Its first store, although the origins of the group date back to 1963. the year in which Armanico Ortega Gaona, Chairman and founders ,begins his business activity.
1976GOASAM is founded by the owner of the ZARA store& continues with the opening of the first stores in Spain.
1985 The creation if INDITEX as head of the corporate group.
1988 The opening of the First ZARA store outside Spain Occurs in December 1988 in Oporto (Portugal).
1990 The United States and France are the next markets in which the group begins its activity.
1991 The birth of the PULL&BEAR chain and the purchase of 65% of the MASSIMO DUTTI group.
1994 INDITEX to open new international markets: Mexico in 1992,Greece in 1993 and Belgium and SwedenIn 1994.
1995 This year also sees the opening of the first store of the group in Malta and in the following year in Cyprus.
1997 Norway & Israel join the list of countries in which INDITEX is present.
1998The BERSHKA chain, targeting the younger female market commences its activity in a year which also sees the opening of stores in new countries: Argentina, japan, United Kingdom, Venezuela, Lebanon, United Arab Emirates, Kuwait, Turkey.
1999 The acquisition of STRADIVARIUS makes its fifth chain of the group and stores are also opened in new countries : the Netherlands, Poland, Saudi Arabia, Bahrain, Canada , Brazil, Chile and Uruguay.
2000 The opening of stores in four new countries takes place In 200: Australia, Denmark, Qatar,& Andorra..
2001 On 23rd may 2001 ,Index goes public listed on the Spanish stock market.
Setting a Trend or
Responding Early to one
Doing it Fast Needs Close Control
Keeping it Together is As important
IT Infrastructure
Indian Market Realities Differ
Conclusion