1. ZARAZARA
The Technology Giant Of Fashion World

2. TimelineTimeline
Zara is a flagship brand of Spain retail
Group,
Inditex SA
Zara is riding two of wining retails trends –
1. Being in Fashion
2. Low Price
Making an effective
combination out of it.

3. Vision of ZaraVision of Zara
“ZARA is committed to satisfying the
desires of our customers.
 It pledge to continuously to improve.
 Promise to provide new designs made
from quality materials that are affordable”

4. Mission of ZaraMission of Zara
To contribute to the sustainable
development of society and that of the
environment with which we interacts.”

5. Fast Fashion –The New waveFast Fashion –The New wave
Fast fashion is new business model .
In this business model companies
recognized and respond to fashion trends
very quickly.
- create products of the trends And get
them in the store faster then counter
part.
Zara leads in the pack in all this i.e in
production and distribution of the goods.

6. Process of zaraProcess of zara
Coping latest design from different
magazine. (for e.g. vogue)
Zara is also prolific which means it
launches 10000 design per year .Others
2000-3000 design per year
Zara store recieves merchandise 2 -3
times per week . Others 4-6 times per
year
More variety less Qty.

7. Secret of Zara SuccessSecret of Zara Success
Excellent Distribution system.
Proper Supply Chain Management from
designing production and retailing.

8. Vertical Integration
Information system links store to the
designers and distribution system.
Store managers works has trend spotters.
They report every about the hot Fad.

9. Q 1Q 1
As completely as possible sketch the
supply chain for zara from raw materials
to consumer purchase.

10. ZARA Production ProcessZARA Production Process

11. Q2Discuss the concepts of Horizontal andQ2Discuss the concepts of Horizontal and
vertical conflict as they relate to Zaravertical conflict as they relate to Zara
Vertical conflict is
conflict that occurs
between
organizations that
work together to
provide the same
product to the
consumer.
Horizontal conflict is
one that occurs
between two
enterprises that
might work together,
either directly or
indirectly.

13. Q3Q3
Which type of vertical marketing system
Zara does zara employ?List all the
Benefits that Zara receives by having
adopted this system.

15. Benefits of VMS of ZARA:-Benefits of VMS of ZARA:-
It make ZARA faster then competition.
More flexible and more efficient then
other fashion house.
VMS helps Zara in controlling over
almost every aspect of the supply chain,
More items produced.
Faster design.
Less shelf times.
 Lower inventories.
Frequent shipments.

16. Q4
Does Zara experience disadvantages from
its fast fashion distribution system? Are
these disadvantages offset by advantages?

17. Disadvantages of fast fashion:-
# Its Unsustainable & have short product
cycle.
# Focus on imitation original product .
# Tough competition due to low cost of
production.
# Outsourcing is not possible as time is
very less for production.
# Difficult in expansion.

18. One disadvantage that Zara incurs is
possibly a higher cost on materials and
labor by not sourcing globally to the
cheapest source.
This all is offset by
 the cost savings of not having items
shipped all over the world.
 Faster response time between each
stage.
Zara’s competitive advantage is the “fast”
part of the fashion, more important than
the minimal amount that Zara could save
by sourcing globally.

19. Q5Q5
How Does Zara add value to customer
through major logistics function?
Warehousing: The only warehousing
done in this system is local and brief for
the component parts and the finished
items. This adds value by cutting down on
costs associated with warehousing and by
decreasing the time-to-shelf.

20. Inventory Management: The IT
system and the VMS in general both
contribute to Zara’s ability to offer a just-
in-time system.
This results in lower inventories, cut
costs, and faster throughput.
Transportation: Zara’s competitive
advantage is speed.