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Zare Essay

1500 words - 6 pages

ZARA: The Technology Giant of the Fashion World

ZARA:ZARA is one of the largest international fashion companies. It belongs to Inditex, one of the world’s largest distribution groups. The customer is at the heart of our unique business model, which includes design, production, distribution and sales through our extensive retail network.

1.As completely as possible, sketch the supply chain for ZARA from raw materials to consumer purchase.
Speed of the supply chain
ZARA top speed of response, whether it is to take quick, small, a variety of marketing model, or efforts to reduce reaction time, are inseparable from their efficient and integrated supply chain, supply chain, also created the ...view middle of the document...

erection of underground conveyor network.
(3) the clothing logistics
The ZARA originally the headquarters of La Coruna, has a construction area of ​​more than 50,000 square meters of distribution center, and the actual utilization of this distribution center is only about 50%. And in October 2001, ZARA, spent one hundred million euros in the northeast of Madrid, Spain's Zaragoza city, to build a logistics center. New distribution center, in order to expand the distribution range, to improve their delivery speed. Not only that, ZARA, also built two air bases, one in La Coruna, and another in Santiago, Chile, ZARA, you can ensure that all the chain stores in Europe to receive the goods within one day, the United States two days to reach the , a little further, China, Japan control within three days, the the ZARA marketing costs almost fully operational and logistics system expansion and improvement.
(4)timely information and feedback management.
ZARA including store every day of the sales information back to headquarters, and according to the current inventory and sale condition to send two times a week headquarters replenishment of the order. Headquarters of the store after each get information, the analysis judgment all kinds of products is a fast or poor. If the product is cancelled due to poor production plan; If the product sell well and headquarters entities corresponding fabrics, then set aside redundant capacity before can be quickly additional production, rapid replenishment to grasp sales opportunity, if no corresponding production or use existing fabric is fabric production and best similar products, general best replenishment most also only twice
Efficiently and effectively combine the whole supply chain, greatly reducing the production to the distance between the retail terminal, for the enterprise strategy and positioning services to create the greatest value
2.Discuss the cncepts of horizontal and vertical conflicts as they relate to ZARA
2.1The horizontal conflict of ZARA
"fast" at ZARA means that it can take a product from concept through design, manufacturing and store shelf placement in as little as two weeks, much quicker than any of its fast-fashion competitors. For example, Gap in USA and Abercrombie and Fitch takes months to finish this process. At that time, the fashion trend has been changed and the product would be slow-moving. In addition, ZARA imitates the design of other high fashion, but sell them in a lower price, ZARA occupy the market shares in its fast speed and lower prices, it makes other companys to earn less profits.
2.2The vertical conflict
Inditex has grow rapidly ,it only wants more. In 2006, it opened almost 500 new stores worldwide and has plans to do the same in 2007, it is even considering an entry into the fast-growing Indian market. Global retailers are pushing into in droves in response to India's thirst for premium brands.ZARA is capable of capitalizing on this trend.European fast-fashion...

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