Business Strategy: Zara’s Strategic Vision
The ‘fast fashion’ is one of the most innovative strategies of Zara, is based on going faster than the idea itself. Zara’s power is its speed: moving from the tendency to have the item in the store hangers.
The fashion industry was a balanced range of movement of business was almost non-existent and known, knowing that each season lasts three or four months, then there are four or six months of sales.
The difficulty of the sector companies to change the trend involved high storage costs and the costs of destroying or selling the surplus to traders in markets, potential stock-outs, shortages or overstock garments.
For consumers, the fashion industry were in equilibrium, you agree the rules of the game and in the case of the latest fashion season is very expensive and had good quality fabric, but if the purchase is not urgent there was the near certainty of getting the same item during the sales at substantial savings.
In contrast, Zara has changed the rules, creates a need to purchase the product shortage. Inditex success is based on the store as the axis and core business, design as strategic key and the time factor in the manufacture of the goods. Each of the 3,250 stores shelves renewed twice a week, which gives an idea of ??its great flexibility.
For Zara most important and which marks its success is to keep clients understand that if they see something they like should buy at the moment, because next week is no longer in stores. The idea is to create a climate of opportunism-scarcity.
Zara’s competitive advantage, in part, is in logistics, production just in time ‘, has the ability to completely revamp everything in their stores in a few weeks. Inditex also has the advantage of storage in Europe, Zaragoza, their competitors have not seen the benefits of a logistics center relatively close to the distribution