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Zara

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Submitted By amolsrivastava
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Executive Summary:
Zara is one the leading fashion having a substantial sale of Euro 8088 million in 2010. There are many factors which have led to such a substantial growth for the company some of which are analyzed in the subsequent discussion. Some of them are capability to release in-season fashion in 50% less time than competitors. The central distribution model and efficiency in supply chain has contributed to this immense success. Once the stores are opened outside Spain this is the biggest hurdle which it has to cross. 1. What makes Zara different from other specialty apparel retailers?
There are many levers which differentiate Zara from its competitors some of which are: a) The biggest strength which Zara has is that it has both manufacturing and designing under one roof. This has allowed it to be in forefront of latest fashion trends because design team keeps track of what the customers want and because there is not outsourcing of the manufacturing, Zara is able to reduce the turnaround time of releasing the latest designs in market. Zara’s Commercials, store managers, designers, procurement and production planners also contribute to making this model successful by providing well-oiled machinery. b) Zara applied a different promotion model in terms of making its stores appealing to the customers and thus spent very little on advertising. c) The stores operated below capacity to accommodate any new fashion trends very fast and do not have to make clearance sale to clear out last season clothes. Also the central distribution received information from these stores so they were able to optimize the shipping and distribution. d) Store managers and associates did not just work as employees selling clothes but provided valuable customer intelligence on what are the latest customer demands. They also had very good experience in handling...

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