School Papers

Zara collections. With this model, they have been

 

Zara is an international fashion designing and
manufacturing company, founded by Amancio Ortega and Rosalia Mera in Galicia,
Spain. It is one of the eight commercial brands which belongs to Inditex (see
Figure 1). And it is the most important one of the group since it generates the
highest profit margins for the organization and it is the most international and
recognized by costumers in the market. Inditex has become one of the biggest
retailers in the world, as Amancio Ortega adapted a singular business model,
which was innovative and flexible. The model narrows the gap between the
fashion creation and the customer, and at an affordable price.

 

Amancio Ortega was a textile producer for 12 years when in
1975, the first Zara Store opened in A Coruña, Galicia. The clothing industry often has around six months between design and
delivery to retailers but Zara does not. Zara´s success was followed by
international expansion (see the Timeline), and they were able to integrate a model
of physical and online stores. Zara doesn’t not only have a Just-In-Time
strategy but they also distinguish themselves with their “instant fashion” and over
300 designers, as they respond to the changing trends rapidly thanks to the
feedback and data from their Woman, Man and Kids collections. With this model,
they have been able to reduce the process and deliver the product in 10 to 15
days.

 

The Spanish success led Zara and the Inditex group to expand
the common concept of fast fashion internationally. First in 1988 with the first
store in Portugal. Followed by the opening of stores in New York, Paris, Mexico
and in 1997 they reached 600 stores in 14 different markets. They continued
with their expansion and in 2007 they reached the 1.000 stores milestone with a
new store in Florence. In 2010, they went online in 16 different European countries
and between 2013 and 2014 they opened up some landmark stores in London, Paris
and New York. Now, Zara has 2.236 stores spread around 88 countries throughout
the world (see Timeline and Figure 2). Over the years the size has increased, new
headquarters and logistics centres were built; but, they have always tried to
put the customer in the centre of what they do.