Zara is a Spanish multinational clothing company founded in 1975 by Amancio Ortega and RosalÃa Mera. It is the largest company in the Inditex group, which also owns Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, and Uterqüe. Zara designs, produces, and sells a wide range of clothing items for men, women, and children, as well as accessories, shoes, and perfumes. The company is known for its fast fashion approach to design and production, with new items being introduced to stores on a regular basis. Zara has stores in over 90 countries worldwide.
Zara’s fast fashion production process is a result of several strategic approaches:
Vertical Integration: Zara controls most of the steps in the supply chain, allowing it to be flexible and responsive to new trends. This means that Zara can design, produce, and distribute a new product to its stores in just a few weeks.
Modular Manufacturing: Zara uses modular manufacturing techniques, where garments are broken down into components that can be easily assembled later. This approach facilitates faster production, reduces lead times, and enables quick adaptations to design changes.
Just-in-Time Manufacturing: Zara follows a ‘Just-in-Time’ production model, which means making "only what is needed, when it is needed, and in the amount needed". This approach minimizes waste and makes the production process more efficient.
Dynamic Inventory Management: Zara’s inventory management is highly responsive to real-time demand. This allows the company to adjust production based on which items are selling well.
Efficient Distribution Network: All finished goods pass through the distribution center in La Coruña, Spain, where operating hours are flexible to accommodate fluctuation in the orders This ensures that products move from the factory to store shelves in record time.
These strategies enable Zara to refresh their collections with new products and respond to the latest fashion trends quickly.
