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Zara, Success Story

In: Business and Management

Submitted By nika21
Words 884
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Assignment “ZARA” 1.Zara designs majority of it cloth in Spain (about 80 percent). It focuses on shorter response time enabling it to meet the constantly shifting fashion trends. However such moves do not take months, but this process is complete within in 30 days; during which Zara identifies the latest trends, design it clothes and supply material to its stores. Such strategy means catching up a trend when it is in vogue in the fashion circles. On the other hand H M company needs about two months to do the same job. It is this difference which makes Zara unique from others.
Zara has teams in the international arena, who observe the latest fashion trends and report leads to head office. The mangers are also involved in tracking customer demands through sales analysis; this process enables Zara to meet customer's needs and be ahead of its rivals. Its research style is not traditional, but it includes consistent emails and phone calls from various stores to head office and responding to it instantly.
H&M offers online shopping to customers in eight of its 48 markets around the world: Sweden, Norway, Denmark, Finland, Germany, the Netherlands, and the UK.
What's more, Inditex's vertical integration lets it respond to fashion trends much faster than H&M. For Hennes & Mauritz, better known as H&M, expansion can't come quickly enough. The Swedish giant already has about 2,800 stores, but many of them cater to the shaken shoppers of Western Europe. With four out of five revenue dollars coming from its home continent, the world's No. 2 apparel company continues to fall behind Inditex, owner of Zara stores.

Normally any proposed item in H M is made in bulk, while Zara produce in lesser quantity. This gives Zara's double benefit, such as lesser risk and...

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