Zara is a Spanish clothing and accessories retailer, which is part of the parent company Inditex. Zara has 650 stores in 50 countries all over the world.
Zara introduced a new formula for their supply chain. It introduces new products in small quantities, which reduces the usual costs of running out of stock. The key for this concept is fast replenishment and regular creation of small batches of goods. Empty racks don’t drive customers to run to other stores, because they always find new products on the shelves.
Zara’s production consists of three different lines, women – men – children. Each line has separate designers, sales, and production planning stuff. Although running these 3 parallel might be more expensive but through a fast and direct information flow their supply chain is more responsive.
The production is automated, which makes it easier for them to track the pieces through the various steps involved in production.
Another advantage of their “Fast Fashion” concept is that only less than 10% of Zara’s items are staying unsold, compared with the industry where the average is 20%.
I personally enjoy shopping at Zara. It’s a nice fact finding every time you enter a store something new. I also like that there is a limited quantity of the goods. So running around you don’t always see someone else in the same clothes. I think Zara has a big lead over their competitors. They have even started to produce their clothes in Europe and not anymore in Asia, which improves the quality of their clothes a lot. Nowadays young people care a lot about the environment and producing in Europe is a big plus then for Zara. [continues]
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