BACKGROUND:
Inditex Group is a high end designer wear retailer that operates globally around the world. It has expanded enormously into the established markets around the world. The group operates roughly over 1200 retail stores around the world and out of this more than 500 are located in its home country, Spain.
zara fast fashion case solution
Amanico Ortega Gaona is the founder of the group and was still the president of this enormous group. The organization practically operates six fashion retail chains and these retail stores of the Inditex Group are segregated among them. These chains operate in territories all over the world and they were submerged in sixty different companies and most of them were under the flag of Inditex. Their operations are based upon the culture, taste and trends of the societies they operate in. The first Zara retail store was set in the early 70`s and by the late 1980`s it was already doing business in Madrid and major cities all over Spain.
The retail brands were intended to function as individual corporate units within a potential market. Each chain addressed different proportion of the industry market. The primary goal of all the retail chains of the organization was to outperform every other in their respective markets by exercising the most feasible business structure that could be expanded on an international scale. Inditex Group focuse don providing the corporate services to its fashion chains so that they could achieve their goals. As a global fashion wear firm, the organization’s main growth strategy for global expansion is to become the only or majority stakeholder of the fashion industry. However, in geographically shrink and socially diverse markets they extended entrepreneur licenses to dominant native retail entities to pass out to the population of these marketplaces. In areas with large obstacles to entry and an attractive customer presence, Inditex Group invested in joint ventures with the strategy of later taking its local partner.
In malice of the different tactics used to spread out into the worldwide markets, Zara has demonstrated that there is no weakness in sharing a single fashion culture. Zara is the major retail chain of the Inditex Group; it started its operationsin Galicia, Spain
INTRODUCTION:
Zara is one of half dozen brands, which was launched by Inditex Group. It was the most important and one of the most prominent brands, not just of the Group but of the whole textile and high-end clothing brands around the globe. Due to the vise policies and brilliant strategies of the management, it flourished and expanded at a very brisk pace and is at present one of the most prevalent and profitable brand chains of the Inditex brands. Moreover, it was all possible due to the excellent business structure of the trade name and its ability to maintain itself at pace with the fast changing trends of the evolving fashion market.
It was due to this new business structure which was rather singular and had never witnessed in the apparel and accessories retail and manufacturing industry that the chain flourished and expanded enormously. The chain was the most profitable and operated in about more than 500 retail stores and outlets around the globe in many different rural areas by the year 2001. The brand designed, manufactured and established its resources for its distribution purposes to all its retail outlets all over the world domestically in the home state.
The brand`s designer team studied and monitored prominent sales and newer emerging trends in the securities industry and continuously dispatch roughly thousand designs to its manufacturing facilities and in some case independent suppliers. After that, they dispatch the completed products back to its offices where the distribution facilities are situated. The products are then shipped to its outlets all over the globe and this whole process took around two weeks in modifying existing merchandise and almost five weeks for a fresh product to hit the grocery store.
While other retail outlets mostly out-sourced their production to other providers in the developing nations of the region and gave them six months to design and a further three months to manufacture a single product. Moreover, faced numerous challenges in that process and this way they were not capable to grow as per the changing market trends. Due to this policy, Zara was much alert and attentive to react to the new emerging fashion in the industry and the changing preferences of its consumers...................
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