Zara Business Model

In: Business and Management

Submitted By garylee2826
Words 591
Pages 3
The Zara boutique-clothing store on Calle Real in the northern Spanish city of La Coruna is buzzing. Customers have made the journey here in a rainy Saturday morning to see what new exciting styles are available this week. The red tank tops and black blazers seem to be a hit, but customers also really like the begie and bright purple ones too. Faced with this problem most fashion companies would normally have to spend months retooling and restocking their range. Not Zara, however, Each store manager is able to spot these changes in trends and then type them into their handheld computer on Saturday in the safe knowledge that they will arrive on Monday or Tuesday the next week.
There is a very strong link between store manager and the central design team based at Zara’s head office n La Couruna in northern Spain. Each store is electronically linked back to head office so that they can view and assess sales on a real-time basis. This allows the company to make sure that they can adapt quickly to customer wants and desires. One example of this was a new khaki skirt that the company initially just stocked in Spain to see how it would sell. In the Coruna store it was sold out after only having been on the shelves for a couple of hours. After speaking to Barcelona, it was apparent that sales were brisk there too. It was then decided that the skirt should be tested our elsewhere, so overnight Zara sent out 7,800 skirts to more than 1,300 stores worldwide. The results were clear, the skirt was a hit and within the next few days stores in Europe, Asia, and North and South America were being stocked with the khaki skirt.
It is this mix of intelligence gathering, fashion instinct and technological savoir-faire that is allowing Zara to set in motion something unique in the clothing trade. The combination of being able to translate the latest trends into products in less than 15…...

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