Zara Fast Fashion Case Study
What’s behind Zara success?
Zara success comes not only from adapting the latest to the latest trend in fashion through what they sell, it’s mostly from how fast they deliver their cutting edge fashion and the most current trend to eagerly awaiting customers ahead of all the competitors through their fast distribution system. Zara can take new fashion concept through design, manufacturing and store shelf-placement in as little as 2 weeks whereas competitors take 6 months or more.
What type of distribution Zara is adapting? And why?
Zara follows Vertical integrated supply system for distribution, to control the entire distribution phases starting from designing and manufacturing until in store product placement which makes them more flexible and efficient. As a result Zara can take a new line from design to production to worldwide distribution in its own stores in less than month which other competitors achieve in 6 months and more.
3. How does Zara do it? If you’ve been reading this series, you’ve already guessed: operations. Supply chain management is the key to Zara’s corporate strategy.
According to Nelson Fraiman, a Columbia Business School professor who wrote a 2010 case study about Zara, most apparel retailers commit six months in advance to the designs for 40 to 60 percent of their seasonal lines. By the start of each season, nearly 80 percent of that season’s inventory is committed—meaning a lot of it has already been manufactured.
There are upsides to scheduling far in advance. When you’re paying for factory time in China and you don’t own the factory, booking the time up front ensures that the factory will have available capacity and that it will be focused on your company’s products instead of on some rival’s. It also keeps manufacturing prices predictable—no need to pay extra for emergency rush orders.
But there are downsides, too. Once you’ve made your bets, you need to sit back and hope you...
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