Zara: the Technology Giant of the Fashion World
ZARA: THE TECHNOLOGY GIANT OF THE FASHION WORLD
2010
BACKGROUND
Zara brand is the flagship chain store of Inditex Group; the Inditex Group is integrated by: ZARA, OYSHO, UTERQÜE, BERSHKA, STRADIVARIUS, MASSIMO DUTTI, and PULL AND BEAR. The owner of Inditex Group is the tycoon Amancio Ortega, the group headquarter is located on Coruña, Galicia, Spain, this was the place where the first Zara store opened in 1975. Zara has resisted the industry-wide trend towards transferring fast fashion production to low-cost countries. Perhaps its most unusual strategy was its policy of zero advertising; the company preferred to invest a percentage of revenues in opening new stores instead.
Its first store featured low-priced lookalike products of popular, higher-end clothing fashions. The store proved to be a success, and Ortega started opening more Zara stores in Spain. During the 1980s, Ortega started changing the design, manufacturing and distribution process to reduce lead times and react to new trends in a quicker way, in what he called "instant fashions". The company based its improvements in the use of information technologies and using groups of designers instead of individuals. In 1980, the company started its international expansion through Porto, Portugal. In 1989 they entered the United States and in 1990 France. This international expansion was increased in the 1990s, with Mexico (1992), Greece (1993), Belgium and Sweden (1994), etc. until the current presence in over 73 countries.
As of 2007 Zara stores have men 's clothing and women 's clothing, each of these subdivided in Lower Garment, Upper Garment, Shoes, Cosmetics and Complements, as well as children 's clothing (Zara Kids). Zara can offer considerably more products than similar companies. It produces about 11,000 distinct items annually compared with 2,000 to 4,000 items for its key competitors. The company can design a new product and have finished goods in its stores in four to five weeks; it can
2010
BACKGROUND
Zara brand is the flagship chain store of Inditex Group; the Inditex Group is integrated by: ZARA, OYSHO, UTERQÜE, BERSHKA, STRADIVARIUS, MASSIMO DUTTI, and PULL AND BEAR. The owner of Inditex Group is the tycoon Amancio Ortega, the group headquarter is located on Coruña, Galicia, Spain, this was the place where the first Zara store opened in 1975. Zara has resisted the industry-wide trend towards transferring fast fashion production to low-cost countries. Perhaps its most unusual strategy was its policy of zero advertising; the company preferred to invest a percentage of revenues in opening new stores instead.
Its first store featured low-priced lookalike products of popular, higher-end clothing fashions. The store proved to be a success, and Ortega started opening more Zara stores in Spain. During the 1980s, Ortega started changing the design, manufacturing and distribution process to reduce lead times and react to new trends in a quicker way, in what he called "instant fashions". The company based its improvements in the use of information technologies and using groups of designers instead of individuals. In 1980, the company started its international expansion through Porto, Portugal. In 1989 they entered the United States and in 1990 France. This international expansion was increased in the 1990s, with Mexico (1992), Greece (1993), Belgium and Sweden (1994), etc. until the current presence in over 73 countries.
As of 2007 Zara stores have men 's clothing and women 's clothing, each of these subdivided in Lower Garment, Upper Garment, Shoes, Cosmetics and Complements, as well as children 's clothing (Zara Kids). Zara can offer considerably more products than similar companies. It produces about 11,000 distinct items annually compared with 2,000 to 4,000 items for its key competitors. The company can design a new product and have finished goods in its stores in four to five weeks; it can