ZARA Product Description



ZARA: Product Description

Background of the Company

Zara started as a clothing retailer in Spain in 1975 and became incorporated within Inditex in 1985. From its first inception, Zara focused its growth in the domestic market. In 1988, Zara was motivated to search for new markets when the Spanish market became saturated. From 1989 to 1996, Zara expanded into markets geographically. From 1997 to 2005, the internationalization experience acquired has enabled Zara to expand rapidly disregarding the geographical distance and cultural differences. Zara has 1,723 stores located in 77 countries by end 2010. Overseas sales contributed more than 60% of its total sales (Badi´a 2009).

Information technology (IT) communications played an important role in Zara's internationalization success. For example, Zara is able to pick up on the latest runway trends and make it into a Zara product within a short timeframe e.g. two-three days. The design team, cloth suppliers and production facilities kept in constant contact via IT systems. In addition, it relies heavily on local managers' feedback on what consumers desire and the information is transmitted real-time back to headquarters through an integrated marketing information system. Computer-aided design (CAD) technology is also applied in the cutting of fabric.

The pre-cut fabric pieces are delivered to 350 workshops located close to its factories for sewing into finished products. Zara has collaborative and exclusive arrangements with these workshops in Galicia which have a huge network of seamstresses for its labor-intensive production activities. This has helped provided 11,000 jobs in Spain.

Majority of Zara's products are self-manufactured while small quantities of non-seasonal basics such as t-shirts are taken from other sources. The fast-selling clothing that are allocated for stores worldwide all go through Zara's own distribution facility in Spain. Zara's distribution system copied 'Just In Time' (JIT) methods from Toyota. Shipping on the continent takes only 1 day while Asia and US shipments take 2 days. Some products are sent in small batches using commercial airlines .

The network of workshops coupled with IT technology and modern distribution system enabled Zara to design, manufacture and distribute its new designs within 15 days. This is the core competence of Zara and gives it the competitive advantage over its competitors. Customers adore the speedy offerings of the latest fashion trends and long lines were often seen outside Zara's stores during delivery days - a happening dubbed 'Zaramania' by reporters. This popularity has generated tangible, bottom-line results with high profits for Zara (Tungate 2008).

Product Description

Product is the defining nature of the business, in the case of Zara, in particular the production of a fleeting fashion, which is affordable and easy to sell throughout the world, and also defines young customers.

At Zara, design is conceived as a process closely which is linked to the public. Zara moves with society, dressing the ideas, trends and tastes that society develops over time. Hence its success among people, cultures and generations that, despite their differences, share a special feeling for fashion. Within the marketing program, the most crucial element is probably the ...