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Zara: The Leading Brand

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Zara: The Leading Brand
Zara

Summary
Zara has successfully built a worldwide famous brand thanks to its premium locations as well as a unique management system of design, production and supply chain. Unlike other fashion brands, it takes Zara only 10 to 14 days from the time it designs new clothing until it arrives in stores.The case describes the implementation of the fast-fashion concept by Zara and analyzes the components of its flexible integrated business model . Furthermore it reports on the international expansion of Zara, identifying phases and modalities of expansion.

Dr. Simona Gentile-Lüdecke developed this case for the undergraduate course “Topics in International Management and Governance” at the University of Bremen.

Zarais the leading brand of the Spanish retail group Inditex (Industria de Diseño Textil SA), one of the biggest fashion retailers in the world. Incorporated in 1985, Inditexorigins as a fashion distribution group started ten years earlierwhen Zara opened its first store in A Coruña (Spain). Today, the InditexGroup has eight retail formats (Zara, Massimo Dutti, Pull & Bear, Bershka, Stradivarius, Oysho, Zara Home, Uterqüe ) that share the same vision of the fashionbusiness, characterized by strong customer orientation.
Inditex has been listed on the stock market since 2001; whenthe Group offered a 23 percent stake to the public in 2001, the issue was over-subscribed 26 times raising Euro 2.1 billion for the company .
Appendix 1 shows the number of stores per each retail form: in 2011 Inditex had 5,527 stores in 82 countries . With its 1.723 stores Zara counts for 64.6% of the total sales of the Group.

The fast fashion concept
“This business is all about reducing response time. In fashion , stock is like food. It goes bas quickly” (Jose Maria Castellano, Chief Executive Inditex)

Together with other few European specialty retailers, Zara is adopting a business model that has come to be known as “fast-fashion”. The companies are able

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