ZARA

Coursework Case Study: ZARA: Staying Fast and Fresh



Coursework Case Study: ZARA: Staying Fast and Fresh

Introduction

Industria de Diseño Textil (Inditex) is one of the leading multinational textile companies owning its brand all over the world, over 4700 shops in 76 countries (www.inditex.com). In every country it owns brands with different brands based on following fast fashion trends. Zara is one of the most recognized brand of Inditex in Europe and many other countries as compared to other brands owned by Inditex Oysho, Massimo Dutti, Bershka, Pull and Bear, Stradivarius, and Uterque. Inditex become famous and recognized with its unique strategy of introducing fast and fresh fashion trends based on America style of fast food. Inditex is well recognized in America, Asia, and Europe; but Zara is the most recognized brands in UK, apart from Zara, Massimo Dutti is also well known in London and Manchester. The success of Zara is based on the operational management strategies of Inditex. Advanced operational management strategies of Zara resulted in making it the most successful brand in the textile industry. The operations mangemnt strategy of Zara is based on which is based on “instant” or “fast fashion” trend, against the long process of designing, understanding trends, production, and distribution to the retailers, which followed under the traditional system of fashion clothes (Temporal, 2011). The lengthy process in traditional approach resulted in delivering the dress after the fashion is old or no more liked by the customer, by the time the dress introduced in the market, there is already a new fashion trend introduced in the market. Inditex identified this major concern and introduced “fast and instant” fashion trend for customers to “Stay Fast and Fresh”.

Inditex Company Brief Overview

Inditex is founded by Amancio Ortega Gaona, a Spanish rich business man and a shareholder of Inditex group, in 1973. It was opened as a retail business, first outlet with the name of Zara opened in La Cornua in 1973. Amancio Ortega Gaona started his business career as a delivery boy at the age of 13. He worked for a shirt making firm and then he soon started dealing in fabrics and textile. His knowledge and skills assisted him in becoming a manager of the shop. With his dealings with customers, he realized their issues and then used this experience to open his own shop. He realized that most of the designs were old as there was rapid change in the fashion industry. In the traditional model of textile designing, there is about six months' duration for the whole process and there was no direct communication between the customer and production unit to understand and identify the change in consumer demand and taste in six months' production period. This resulted in creating problems and loss for the company. During 70's and 80's there was major shift in the fashion trend, fashion shows and media provided more information to the public about the latest fashion. This resulted in change in fashion culture and consumer ...