Zara Case Study Essay Example for Free

Zara Case Study EssayFirst of all, Zara is the flagship brand of the Spanish retail group, Inditex SA, possess by the Spanish Amancio Ortega Gaona. Ortega started his c beer in the fashion design field, developing his own designs, hitting upon the base-formula of his throng reproducing popular fashions using less expensive materials in order to sell high-demand clothing items at dismount prices. From manufacturing, Ortega soon turned to retail and opened his first and most successful retail store ZARA in 1975 in A Coruna, Spain, where the Inditex Group is headquartered. Once the rude(a) Ortegas retail format, started to be well sure by the public, Zara, and the Inditex Group in general, expanded and opened new stores, first all around the Spain, and consequently all around the world in 1988 Zara opened its first store abroad, in Portugal. Zara is now perplex in 72 countries, with more than 1500 Zara stores worldwide. Its vertically integrated structure, where design, produ ction, distribution and retailing are integrated, makes Zara a fantastic and particular example of successful retail company.Zaras direct competition may be its largest threat, ascribable to their wide range of merchandise categories. However, with its unique and innovative strategy, Zara has a competitive advantage on tralatitious retailers in the apparel industry. Zaras principal competitors are Arcadia Group, The Gap Inc. , Hennes Mauritz (HM), Benetton Group S. p. a. , Vivarte, Gruppo Coin S. p. a. , Kiabi S. A. , La Redoute, Charles Vogele property AG, Mango S. A. Zara clothing has two basic product divisions Mens and Womens apparel.Zaras chronicle includes also childrens and for teen-agers clothing (Zara TRF) as well. Zara offers more products and it offers them more often than similar companies virtually 12000 designs introduced every year, with a shelf life of about 4 weeks, compared with 2000-4000 items of its competitors. Three are the gentle formulae that Zara usin g up to reach these results Short supply chain lead times Zara can quickly indentify the prevalent and winning fashion trend of the moment, in order to quickly produce a response in legal injury of new drift within 2-4 weeks.Lower quantities (in each style) reducing the quantities manufactured in each style and changing the styles every week, people do not postpone the purchase of an item, because they know that it would not be available later. More styles instead of more quantities per style even if a style sells out quickly, in that location are new styles already ready to replace the older ones.Zara merchandising strategy eschew every collaboration with big name designers and multimillion-dollar advertising campaigns Zara focuses instead in choosing highly visible and premium locations for its stores, that are given priority in their interior and exterior design. Today, many companies are looking to Zara as the new industry standard for how to run a retail business, which sho ws that Zaras business model is becoming the draw in of the future.