Business

Business
- Inditex:

- umbrella group of Zara and 5 other apparel chains

- founded in 1963 in Galicia, Spain

- Zara:

- headquarters in Arteixo, Spain

- till 2002: 507 stores in 42 countries

- position: “medium quality fashion clothing at affordable prices“

- competitors: The Gap, H&M, Benetton

Zara‘s Business Plan

Activity circle:

Design

- creative teams

- different sources for information: store managers, consumption,information system, TV, internet,

   Industry publications, film,trend spotters, ready-to-wear fashion shows

- first sketches about nine months before start of a season

- presentation in certain key stores

- determined prices

Sourcing and Manufacturing

- assistance of purchasing offices in Barcelona and Hong Kong

- more than 200 external suppliers

- 60% of the clothes produced externally, 40% internally

- 450 workshops where garments are sewed

Distribution

- own distribution center in Arteixo

- satellite center in Argentina, Brazil and Mexico

- center works on a dual-shift basis

- equipped with mobile tracking system

- delivery upon Europe takes about 24-36 hours, outside Europe 24-48 hours

- scheduled shipments by time zones

- establishment of a second distribution center at Zaragoza in 2003

Retailing

- consists of merchandising and store operations

- stores placed in premier shopping streets and centers

- set high value on presentation of store window displays: prototypes at headquarters

- continuous training on their personnel

- very low advertising expenditures, no fashion shows

- main retailing-tactic: create a sense of scarcity

- aim: reduce inventories at marked-down prices