ZARA - ZARA A Case Write-up Submitted by Saurabh Sao MBA 2014-16 Jindal Global Business School BUSINESS OVERVIEW ZARA is a Spanish clothing and

ZARA - ZARA A Case Write-up Submitted by Saurabh Sao MBA...

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ZARA - A Case Write-up Submitted by Saurabh Sao, MBA 2014-16, Jindal Global Business School. BUSINESS OVERVIEW ZARA is a Spanish clothing and accessories retailer based in Arteixo, Galicia. Founded in 24 May, 1975 by Amancio Ortega and Rosalía Mera. Zara needs just two weeks to develop a new product and get it to stores, compared to the six-month industry average, and launches around 11,000 new designs each year. Zara was described by Louis Vuitton Fashion Director Daniel Piette as "possibly the most innovative and devastating retailer in the world. Zara has over 2,100 stores strategically located in leading cities across 88 countries. Zara's designers and customers are inextricably linked. Specialist teams receive constant feedback on the decisions its customers are making at every Zara store. Zara's approach to design is closely linked to their customers. This feedback inspires Zara's creative team which is made up of over 200 professionals. Zara has continually maintain its mission to provide fast and affordable fashionable items. Inditex (Industria de Diseño Textil) of Spain, the owner of Zara and five other apparel retailing chains, continued a trajectory of rapid, profitable growth by posting net income of €€ 340 million on revenues of €€ 3,250 million in its fiscal year 2001. Around the world: Zara 1.763 Pull & Bear 817 Bershka 899 Oysho 529 Uterqüe 91 Zara Kids 171 Massimo Dutti 630 Stradivarius 794 Zara Home 364 TOTAL 6.058 Inditex is a global specialty retailer that designs, manufactures, and sells apparel, footwear, and accessories for women, men and children through its chains around the world. Zara is the largest and most internationalized of the six retailers that Inditex owns. By the end of 2001, Zara operated 507 stores around the world, including Spain. Competitors of inditex: Gap, H&M and Benetton are considered Inditex's three closest comparable international competitors. Zara, is relatively perceived as more fashionable than all the other three and prices less than Benetton and Gap but higher than H&M. In these four competitors, Benetton and Gap place at relatively less fashionable and higher price, while Zara and H&M is more fashionable and price lower.
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Zara has developed a highly responsive supply chain that enables delivery of new fashions as soon as a trend emerges. Zara delivers new products twice each week to its 1,763 stores around the world. Rather than subcontracting manufacturing to Asia, Zara built 14 highly automated Spanish factories, where robots work around the clock cutting and dyeing fabrics and creating unfinished “gray goods,” the foundations of their final products. Zara has also created a partner network of more than 300 small shops in Portugal and Galacia to handle the finishing work where, the gray goods are transformed into dresses and suits. Inditex SA grew revenue 10% to $19.15 billion for
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