Zara s core values

Large choice of styles Zara produces around 12, styles per year compared to the retail average of 3,which means that fresh fashion trends reach the stores quickly. The products on their E-Commerce website is sent from various warehouses via expedited shipping, and in many countries, store pick-up is available.

Analysing Zara’s business model

This gives Zara s core values lot more flexibility and speed however it means higher costs. Deliveries typically arrive one to two days after ordering with most deliveries arriving by truck from the Spanish factories.

Scarcity in fashion increases desirability, which means shoppers need to buy quickly as the item may not be available next week.

As production is carried out in Spain where average wages are higher than low-cost Asian countries so factory wage costs will be higher than competitors, which will affect margins.

They are trend-setters in the field with excellent response in trends, whether it is style, cut, or color. Stores place orders twice per week and the supply of finished goods is matched to store demand.

This is beneficial to their own e-commerce website as the turnover is quick and easy. Thursday, May 2, Value Proposition Zara offers fashionable and affordable clothing by continuously presenting styles that are trendy and "hot" for the season.

They have an advantage over traditional retailers because they do not define their target by segmenting ages and lifestyles giving them a much broader market. Zara is also vulnerable to financial vulnerabilities in the Euro as most of its cost-base is denominated in Euros.

Zara is able to update their website constantly based on the changes in the trends and styles that they offer. Factory wages is also higher because of their facilities in Spain, which is typically a higher wage because of the higher cost of living in Europe versus Asia and South America, where many of their factories are located.

What is the value proposition? Any weather, labour or terrorist disruption to the area will have a serious impact to sales, as there are no alternative supply centres in Europe.

In contrast Zara is vertically integrated with the majority of production carried out in owned or closely controlled facilities in Spain. This ensures a faster turnover and delivery because every item is inspected and stored in this controlled facility.

Zara started operations in Spain inand now operates in 74 countries worldwide. This high number of styles also means that the commercial teams have more chances to find a winning style.

Prime locations Zara spends relatively little on advertising 0.Zara is the world’s largest fashion retailer in the world today because of its widely known process innovation.

Fast fashion, creativity, flexibility, quality design and rapid turnaround are all part of its approach to expand internationally at such a fast pace.

The philosophy embedded in the core values statement can be seen in L.L. Bean’s trademark satisfaction guarantee, and in the pride boot-makers take in placing a card in each hand-crafted pair of. GOAL -> teaching and implementing Zara’s core values Trust-based networks: GOAL -> help other people develop their businesses.

Supplier have internalized the standards as part of their core values. Zara desperately needs a clearer picture of how the products move down the supply chain.

Zara's design team generate approximately 1, designs per month that is then sent to their manufacturing plants and checked back in the Zara Centre, located in Spain. Zara's supply chain is integrated vertically through their closely controlled facility in Spain.

Company. Zara is one of the biggest international fashion companies, and it belongs to Inditex, one of the world’s largest distribution groups. The customer is at the heart of our unique business model, which includes design, production, distribution, and sales, through our extensive retail network.

Zara’s story begins with the opening of our first store in the Spanish coastal city of A Coruña inan early milestone in our company’s long history. Over the years, Zara has remained faithful to its core values, expressed simply in the same four key words that define all our stores: beauty, clarity, functionality and sustainability.

Zara s core values
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