If you’re running a fashion store, you need to keep up with the latest product and service trends in the market. Zara has been one of the most successful (and most copied) brands in the fashion industry, and companies can find both inspiration and business ideas by taking a closer look at how they operate.
Zara is a leading Spanish fashion retail brand owned by the distribution group Inditex. Founded in 1975, Zara works in textile design, manufacturing, and distribution. With over 1,700 stores across 86 countries, Zara’s profitability is still among the highest in the industry.
So, what makes Zara so successful? What operational strategies do they use? And finally, what can other fashion retailers learn from Zara? The answers to these questions can help you as you make your way towards retail success.
For Zara, its competitive advantage is its supply chain. Zara designs fashionable products inspired by trade fairs, catwalks, magazines, and more. Their designs are unique, and they are able to meet the demands of fashion-centric customers from all age groups. Whenever a new style is seen in the market, the talented designers at Zara can move quickly and capitalize while trends are at their peak.
This flexibility means that Zara is associated with new trends in the industry, and that recognition leads to higher demand. So, how do they move so quickly? It’s obvious that Zara’s processes are very efficient. They surely have a great inventory management system that helps them automate and streamline their processes.
Zara designs thousands of products every year, and they deliver new products to their stores twice a week. They have a precise inventory management tool that makes it easy for them to determine which products they have in stock, how many of those products are available, and which sizes need to be delivered to what stores.
Looking at Zara, it’s clear that having an inventory optimization model in place is essential. Zara is able to make sure that each store receives only the products they need, and no more. This way, Zara is able to stay efficient and avoid wasteful over-stocking.
Zara’s stores place two orders per week, and they do it on a scheduled date and time. The shipping carriers are scheduled to leave and deliver shipments at specific times. This level of attention to detail and organization allows Zara’s staff to have clear expectations and processes.
With an organized logistic system in place, Zara also has the ability to go from idea generation, to design, and finally stocked in stores in only 15 days. The industry standard, on the other hand, is 6 months.
Zara’s distribution process is extremely efficient, too.They’re able to deliver products to their European stores within a day, and to their American and Asian outlets in 2 days or less.
Zara’s flexibility, efficiency, and organization make it an outstanding organization, and a great model for fashion retailers around the world. Their cross-functional operations strategy, efficient supply management, and organized distribution methods result in well-managed inventories, lower prices, higher profits, and fantastic brand value.
Want to get organized like Zara? Request a demo here and speak to a specialist who can discuss how Cin7 increases operational efficiency and overall productivity for all kinds of retailers and wholesalers.
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