Submitted by: Nandini PaltaFMM- II

Market Research

• Zara is a Spanish clothing retailer • 1700 stores • 78 countries worldwide

• Zara practices fast fashion – trends move from the runway to stores within weeks, as opposed to months.

• Zara’s supply chain has undergone tremendous changes in order to sustain its competitive advantage in today’s market

• Zara has continually maintained its mission to provide fast, affordable, and fashionable items

Inventory Management

• Focus on reducing response time

• Launched approximately 11,000 new items per year.

Inventory Management

• Stock outs are not uncommon

• Short shelf life attracts more customers more often

• Zara holds only 1 month worth of inventory, generally. Though at places it varies according to the varied consumer behavior.

Forecasting

Extensive market research

Quick input and output response

Frequent new styles• Near-term forecasts • Short product life

cycles to reduce errors and improve current products

• Customer feedback

Procurement

• Keeps approx. half of its production in-house

• Separate procurement staff for each clothing line

• Procures basic textiles from global suppliers

• Uncomplicated items are outsourced to China

• Difficult items are produced in Zara factories and by local subcontractors

• Most suppliers are located in close proximity to its distribution centers

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Production Planning

• Centralized Design & Production Centre

• Constant flow of data throughout the supply chain

• Zara allows its retailers to change 40%-50% of its orders

• Factories operate on a single-shift mentality, and can change quickly according to unforeseen demands

• Under produces products in order to create scarcity value

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Warehousing

• “High-velocity” shipping• Merchandise is selected, sorted, and routed to the “lungs” of the

warehouse• Merchandise is delivered, Retailers hold products in local

distribution centers or in retail store stockrooms • “High-velocity” shipping relies on rapid information flows

Transportation • Effective and efficient

transportation network• Fast delivery time• Coordinates with all aspects of

logistics• Quick response in supply chain• Ability to distribute

merchandise within 2 weeks• Final step in order fulfilment• Promotes service quality

Customer Service

Effective Measures of Customer Service

Product Availability Short Order Cycle Time Logistics Operations Future outlook

Performance Measurement

• Dedicated to creating time to market efficiency

• Order fulfilment and customer satisfaction

• Tight linkages between demand and supply

• Improve performance in accordance with changes in demand

• Customer loyalty and brand recognition

• Expansion into a global market

EFFECTIVENESS

EFFICIENC

Y

RESPONSIVE

Technology

• Zara: 0.5% of revenue and 0.5% workforce in IT

• In store:• handheld PDA

○ Feedback from customers, inventory.

• WWW: Online stores open now.

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World's largest clothing retailer Inditex entered India with its flagship brand Zara on a Friday in May 2010 and that day the South Delhi outlet recorded the largest single-day sale by an international retailer in the country.

"Zara has nailed it," Natasha Chopra, who heads personal shopping services at Select Citywalk mall in South Delhi where Zara opened its first shop, said. "It's a hot favorite among shoppers because it offers trendy styles between 1,500-2,300.

Why Zara is having so much of popularity?

Zara's ability to chase fashion trends around the world, move a design from a drawing book to shop floor in two weeks and launch new lines sometimes twice a week has helped it ensure steady flow of consumers who now embrace global trends like never before.

• It's fast.• It's fashionable.• Attention grabbing.

Expansion plans for India….• Spanish fast-fashion brand Zara is making waves in

India. As per a recent survey, its average sales per store soared much above other top apparel brands.

• Its annual sales were of Rs 405 crores, each of Zara's nine stores in the country on an average made Rs 45 crores last fiscal.

•  The company is now planning to open 18 stores across the country.

My personal observation….

• 1st preference of customers who want trendy clothes.

• Gives quantity.• Maintained quality.• International fashion and designs in

affordable prices.• Good customer service.• Feedback taken.

Thank you…