Zara Summary Essay
Global apparel chain are characterized by unique combinations of high value research, design that they have been pursued for quite some time. Almost more than 30% percent of world production apparel was exported. Lots of company making their manufacturing production on the developing country, because of some factor of the cheap labor intensive. Some country are keen to supply their product to the country that has a very low quote restrictions like China supply their product to Japan where there are no quota restrictions.
Some country also do like combining all of the resources part from other country and combine it, like in making a jacket, the zipper come from Japan, the shell from Korea, the jacket filling from Japan, and the label, and other trim are from Hong Kong. Apparel retailing usually try to promote quick response that is needed to improve coordination between the manufacturer and the retailer itself. This is used to increase flexibility and response. The main competitor of Zara are GAP, H&M, Benetton.
All of them have a comparative advantage among each other. More than 90% percent of GAP product are outsourced from outside US, GAP do this to get the competitive advantage of cheap labor, also, they are lack of clear fashion positioning. H&M are Inditex closest competitors from all side. They generate more than half sales outside the country. They have a cheaper price than ZARA. The last is Benneton, they focus on a colored knitwear. They are labor intensive. They use a strategy of narrowing their product lines.
Basically, Inditex are global specialty retailer that sell apparel, footwear and accessories for women, children, and men through a prominent store like Zara and others. They are headquartered in Galatia to get the advantage of poor labor and other advantage. There are 6 chains that Inditex worked with which Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Zara. This are all the prominent chain. That are all the chain in 2002, but in May 2001, Inditex sold 26% percent of their share to the public to raise cash.
The largest chain of Inditex are Zara that are oprated in 507 stores in various countries. Zara has it’s own way to track consumer preferences. Zara usually supply the store directly from the main distributor which usually take twice a week. Zara can work very fast regarding the finished goods, with the systematic technique, they can be able to have a finished goods including finishing the design in just 4 weeks. Zara has it’s own professional creative team, designer and consulting team, product development and sourcing specialist.
Zara focused it’s product distribution from internal and external supplier. That passes through the distribution center in Arteixo and than it is distributed on the store to saves time. By the time going, Zara want to improve their model to be more sophisticated based on the trends to increase consumer loyalty and keep maintaining the lower prices than the competitor. Zara only do a small amount of advertising campaign. They focused on the freshness of the product that stay up to date with the changing environments.
University/College: University of Arkansas System
Type of paper: Thesis/Dissertation Chapter
Date: 23 October 2016
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