He was hesitant to start his brand due to Spain’s political climate. Luckily for Amancio, Franco died in 1975, and totalitarian Spain died along with him. Founded by Amancio Ortega in 1974, the Spanish-born brand is now worth an unbelievable £14billion. She has worked with brands and publications including Grazia, Fabulous, Metro, Oasis, Warehouse and New Look. Background Inditex, founded by Amancio Ortega, operates six different chains: Zara, Massimo Dutti, Pull&Bear, Bershka, Stradivarius, and Oysho. zara fast fashion case solution Amanico Ortega Gaona is the founder of the group and was still the president of this enormous group. Working out of his own home, Amancio established Confecciones Goa with a meagre $25 of initial capital. ZARA’s Value Chain Fast fashion A contemporary term used by fashion retailers to acknowledge that designs move from catwalk to store in the fastest time (2weeks!) He got his brother, sister and wife to work alongside him, and before long, Amancio was supplying retail stores across the city. The group had previously signed a joint agreement with global workers’ union IndustriALL, and during the pandemic they reiterated their commitment to ensuring health and safety standards were met and bargaining rights and workers’ rights to unionise were maintained throughout their supply chains. In 1963 he felt confident enough to leave his managerial job and to start own company. Read more about Zara’s sustainability policy and ethics here. Inditex owns Zara alongside Bershka, Massimo Dutti, Oysho, Pull & Bear and Stradivarius. The brand uses the Greenhouse Gas Protocol to guide the measurement and reporting o… Amancio was eager to expand Inditex’ collection beyond Zara, and to that end, he started Pull&Bear as a casual urban brand in 1991. ICT FOR ORGANIZATIONAL EFFECTIVENESS EXECUTIVE SUMMARY Zara has pioneered the niche market and has presence in all continents: Europe, America, Asia, Middle East, and Africa. To test the waters he opened Zara’s first international store in nearby Portugal in 1988. Zara, which belongs to Spanish fashion company Inditex, has left a mark with its Fast Fashion label standing for affordable, trendy clothing. Amancio would frequently design nightgowns and lingerie, which he would then sell at the retail store. The young Ortega excelled at his work, and as he grew older, he started dealing with the store’s customers and suppliers, eventually becoming a senior manager in 1960. Your email address will not be published. Zara has pioneered the niche market and has presence in all continents: Europe, America, Asia, Middle East, and Africa. Fast fashion is unsustainable as it encourages consumers to buy an item to wear just a few times while it’s on trend and then dispose of it. Zara – IT for Fast Fashion Management Information Systems EXECUTIVE SUMMARY The objective of this document is to discuss the issue of Inditex’s DOS-base IT infrastructure and how it affects Zara’s performance. 2/21/2005. Born out of Spain and now with more than ten thousand stores around the globe, the story of Zara is an exciting one. Niko Katigbak Regine Labog Kevin Leung Ruoyun Li Miranda Ortiz Michelle Papilla. With its dramatic introduction of the concept of “fast fashion” retail since it was founded in 1975 in Spain, Zara aspires to create responsible passion for fashion amongst a broad spectrum of consumers, spread across different cultures and age groups. Zara, a brand that generates $20 billion in annual sales, both pioneered and perfected the art of fast fashion. ICT FOR ORGANIZATIONAL EFFECTIVENESS ZARA: IT FOR FAST FASHION CASE ANALYSIS AKSHAY BORHADE, 4007/20 2. These years came to be known as the Spanish miracle, and Amancio was eager to take advantage of it. Zara's Secret for Fast Fashion. Amancio wanted to select business name as Zorba, in honour of his favourite movie, Zorba the Greek. Today, Inditex has a total of 7,292 stores spread across 93 countries, and Amancio is the second wealthiest man in the world, worth $67 billion. Frequent style rotation: Zara shopper visits 17 times a year vs. Average shopper 3-4 times a year. Zara also committed to stable payment terms to allow suppliers to honour payments to their workers, ensuring they didn’t lose wages during the pandemic. Is the Met Gala still taking place in 2021? Fast fashion retailers such as Zara, H&M, Topshop and Primark took over high street fashion. He was already 64 years old by that point and was looking forward to retiring, so in 2001 he took Inditex public by selling 20% his shares, which made him the wealthiest man in Spain. In 2008 they created the fashion accessories brand Uterqüe, and they blew past H&M, and the GAP to become the largest clothes retailer in the world. By the turn of the new millennium, Amancio had also created Bershka and bought Stradivarius. Zara’s target customers were fashion-sensitive urban people. read more about sustainable fashion here. Because Amancio was in control of the entire production process, from his sewing cooperatives to his storefront, he could market new designs in as little as two weeks. In the northwestern part of the country lies La Coruña, a small but beautiful coastal city. Your email address will not be published. Is Zara considered fast fashion and is it ethical? Yes, Zara is a fast fashion brand. He had already bought the letter moulds for the store when he discovered that just a few blocks down there was a big bar with the same name. Zara is one of the hottest fast fashion brands in the world. In 1985 he got ready to expand internationally, and so he created a holding company for his stores, called Industria de Diseño Textil, or Inditex for short. Zara has since started to improve the working conditions of their workers, introducing a code of conduct that protects workers and audits to ensure this is enforced. Zara is one of the world’s most successful fashion retail brands – if not the most successful one. hidden messages into clothing for customers to find. Over the next decade, Amancio expanded throughout Spain and built a 10,000 square meter logistics centre. Whether out of laziness or thrift, Amancio decided to reuse the letter moulds he had already bought, and thus he called his retail store Zara. When not at work, Amancio would develop his designs out of his sister’s house. We aim to inspire you to use fashion to feel confident, strong and powerful. The fashion industry might seem small and unimportant, especially in today’s world, when clothes couldn’t be cheaper and more available. 7 basket bags inspired by Loewe’s raffia tote. Over the course of the 1990s, Zara opened over 550 new stores across the globe. The fabric restrictions and more functional styles that were made necessary by World War II led to an increase in standardized production for all clothing. Amancio Ortega, who was barely fourteen years old back then, had just gotten his first job as an errand boy, delivering fabrics for a local clothing retail store. It's been a meteoric rise for Ortega, the inventor of fast fashion who has changed the way we shop forever. Zara has, in effect, set the standard for the fashion sector because it manages to “design, produce, distribute and sell its collections in [only] four weeks; a … copyright wear-next.com – all rights reserved. Spanish retailer Zara has hit on a formula for supply chain success that works. What is the theme of the Met Gala in 2021? Discover the new ZARA collection online. Inditex’s most successful brand has almost 3,000 stores worldwide, with new stock arriving every week that truly never fails to disappoint. He practised reproducing popular designs using the less expensive materials left over from the retail store while adding his modifications and improvements. Spring 2011 Professor Kaminsky UC Berkeley I. However Zara still fails to pay a living wage across its supply chain – despite such a huge profit margin. Ruffles, pretty prints and feminine silhouettes. Will Paredes-Zanini Zara: Fast Fashion Assets and Capabilities (Exhibit 1) A. by Kasra Ferdows, Michael A. Lewis and Jose A.D. Machuca. However we understand that sustainable fashion isn’t accessible for every body due to various factors, such as budget and the ability to find confidence-boosting clothes that fit. In fiscal 2014, (ended January 31, 2015) the company had sales of $19.7 Billion compared to H&M with $20.2 [...] Their primary focus lies in speed and decision making. Since then, Inditex has been opening more than one new store every single day. The latest trends for Woman, Man, Kids and next season’s ad campaigns. Zara is the flagship brand of Inditex, a Spanish clothing giant. Zara as of 2017 manages up to 20 clothing collections a year. Would you still shop at Zara? A branch of Zara in central Istanbul – its parent company, Inditex, has promised to reimburse workers as soon as possible. Let us know in the comments below. You see, most clothing retailers even today function on a seasonal model with huge production runs, and towards the end of each season, they heavily discount the clothes they didn’t manage to sell. When it comes to the planet, Zara gets an “It’s a Start” rating from us. Met Gala 2021: Date, theme, time, tickets, and everything else you need to know, If you buy one pair of sunglasses this summer, make it these, Wear Next presents Sweet Tooth, our first shoot showcasing this season’s most fun, frivolous and ultra-feminine trends. From Harvard Business Review. But make no mistake, there is money in fashion, so much so that the second wealthiest man in the world made his fortune in this industry. ... And it is Zara and other brands like it that have helped plant … Zara's core business model is vertically integrated, it specializes in speed and efficiency and the fast fashion trend. Zara is all about staying on top of the hottest trends, and exuding an exclusive feel, but its supply chain is the real star of the show. On top of that, there were very few women participating in the workforce, which meant that most of Amancio’s clients wouldn’t have a lot of money to spend on clothes. Zara SA, stylized as ZARA, (Spanish: ) is a Spanish apparel retailer based in Arteixo in Galicia, Spain. The timing of Zara’s launch was perfect, and Amancio’s unique approach to fashion helped kickstart the brand’s popularity. That’s why the topic of this article is the world’s largest clothes retailer, Zara. It is the largest company in the Inditex group, the world's largest apparel retailer. Among other things, the Franco regime had very tight dress-code regulations. Instead of producing clothes and then pushing them in the market, Zara used to sense the latest trend with the help of its’ product managers’ and then provide stylish clothes. For fashion advice and general chit-chat, join our Facebook group What To Wear Next. It was co-founded by white Spanish businesspeople Amancio Ortega (worth $70.6 billion) and Rosalía Mera (worth $6.1 billion). Daisy is a fashion stylist and journalist. Wear Next believes it’s important to highlight the negative and unjust practises taking place in the fashion industry. Read our list of recommended anti-fast fashion brands here. He officially retired in 2011, but even after his departure, Inditex has continued to dominate the fashion industry. It’s important to note the working conditions and wages of Zara’s staff. Zara, which has been credited as having the first successful fast fashion business model, has a design-to-retail style of about five weeks and introduces more than 20 different collections a year. With hundreds of new items arriving online and in-store every week, Zara relies on a quick turnaround of designs, from the moment a garment is seen on the catwalk, to when a garment goes on sale. Its much more than that now. Zara also publishes a list of suppliers, information of supplier audits and on gender equality, forced labour and freedom of association. We will continue to offer you fashion inspiration and guidance to suit every body and budget, while also highlighting the unjust systems at play in the fashion industry. After becoming accustomed to such standardization, middle-class consumers … Initially starting as small stores located in Europe, they were able to infiltrate and gain prominence in the American market by examining and replicating the looks and design elements from runway shows and top fashion houses and quickly reproducing and selling them at a fraction of a cost. These limited production runs also ensured that clients knew their clothes would be relatively unique, compared to the mass-produced designs of seasonal retailers. Zara is one of the most popular fast fashion brands which expand quickly in the worldwide fashion market. READ MORE: Is H&M ethical and sustainable? This may be donating to charity or literally throwing it in the bin, but the majority of the time it ends up in landfill. How much does a ticket to the Met Gala cost? Our case solution is based on Case Study Method expertise & our global insights. Brands considered sustainable include People Tree, House of Sunny, Lucy & Yak and LF Markey among many more. When there were no more family members to put to use, Amancio organized women across the province into sewing cooperatives. Back then, Spain was still a dictatorship under Francisco Franco, the Nationalist general who seized power after the Spanish Civil War. 2) What do you think of Zara's past READ MORE: Is ASOS ethical and sustainable? The question is, is this decades-old brand here to stay? Despite the increasing number of garment factories and sewing innovations, a great deal of clothing production was still done in the home or in small workshops throughout the beginning of the 20th century. Zara is the hero of the high-street, offering stylish yet affordable pieces across the globe – but is it considered fast fashion? These rockstar-level logistics take it from being just another fashion retailer to an industry example of fast fashion done right. Save my name, email, and website in this browser for the next time I comment. Zara’s parent company, Inditex, has started a repair and reuse program called Closing the Loop. We will never share your email address. By defying conventional wisdom, Zara can design and distribute a garment to market in just fifteen days. Inditex had pledged to maintain workers’ rights throughout their supply chains and the stability of payments to suppliers during COVID-19. IEOR 153 Logistics Network Design and Supply Chain Management. Zara continued to earn global accolades for its collections and initiatives, its integrated shopping experience, and its commitment to sustainability, with over 90 million garments put on sale under the Join Life label. FASHIONOPOLIS The Price of Fast Fashion and the Future of Clothes By Dana Thomas. This may be donating to charity or literally throwing it in the … Fast fashion is unsustainable as it encourages consumers to buy an item to wear just a few times while it’s on trend and then dispose of it. Mango is another successful Spanish fashion company that understands fast fashion pays off. READ MORE: 6 books about fast fashion everyone should read, READ MORE: The best vintage to snap up stylish bargains. After unpaid factory workers, hired by Turkish manufacturer Bravo Tekstil to produce clothes for various brands including Zara, sewed hidden messages into clothing for customers to find, Inditex worked with a trade union and other retailers to establish a ‘hardship fund’ to help the group of workers. Zara : it for fast fashion 1. This also gave people an incentive to visit the store frequently, since they knew they’d find new designs every time they visited. You see, most clothing retailers even today function on a seasonal model with huge production runs, and towards the end of each season, they heavily discount the clothes they didn’t manage to sell. Zara’s model, now known as ‘fast fashion’, became a huge hit and redefined the fashion industry. During the 1960s Amancio expanded to service the whole of Spain, but even then he was still only a supplier to retail stores without a brand of his own. to capture current trends in the market Material Team Design Team Testing Stores … ZARA: FAST FASHION AGENDA Industry Overview Zara Overview Zara Supply Chain Zara Challenges Recommendations INDUSTRY OVERVIEW High Demand Uncertainty Push vs ... – A free PowerPoint PPT presentation (displayed as a Flash slide show) on PowerShow.com - id: 6d51e9-OTMzO Zara has revolutionized the world of fashion by bringing out a large number of collections each season, instead of the same old two collections every year – one for spring-summer, and another for fall-winter – which has been the norm in the fashion industry. By subscribing you are agreeing to our privacy policy. During the same year, Amancio purchased Massimo Dutti, for high-end cosmopolitan clothes. Zara, however, could afford to develop new designs all year round and would only produce them for a brief period, thus eliminating the need for discount sales. In August 2020, it was reported that Inditex had pledged to maintain workers’ rights throughout their supply chains and the stability of payments to suppliers during COVID-19. Fast Fashion Leaders H&M And Zara; Weathering The Pandemic. Zara: Fast Fashion Case Study. Read our exhaustive list of fast fashion brands here. While Zara has made an effort to do better when it comes to sustainability and ethics, it still has a long way to go. Read more about fast fashion here, or if you’re thinking of shopping more sustainably, read more about sustainable fashion here. He opened his first retail store in La Coruña just a few months after Franco’s death. Other high-street brands that are considered to be fast fashion include Boohoo, Pretty Little Thing, Primark, Nasty Gal and H&M among many, many more. The company specializes in fast fashion, and products include clothing, accessories, shoes, swimwear, beauty, and perfumes. Required fields are marked *. We believe ethics and sustainability are an important talking point to bring about change and we encourage you to contact fashion brands to demand this. Zara is just not a brand of fast fashion. Zara’s Fast Fashion Strategy The timing of Zara’s launch was perfect, and Amancio’s unique approach to fashion helped kickstart the brand’s popularity. With hundreds of new items arriving online and in-store every week, Zara relies on a quick turnaround of designs, from the moment a garment is seen on the catwalk, to when a garment goes on sale. We want fashion to be empowering, enjoyable and accessible for everyone – celebrating all bodies, backgrounds and budgets. That turned out well enough, and so Amancio ambitiously opened a store in New York in 1989 and Paris in 1990. The financial crisis barely slowed Inditex down, and in 2010 they inaugurated store #5,000 in Rome. The program offers customers the opportunity to drop off their used garments in-store or through the post in order for their clothes to gain a second life – which is a good initiative. Affordability a. Zara’s position is finding the perfect match between quality, style, and at affordable pricing. We’ll never tell you to ‘blend in’. Zara's approach to information technology is consistent with its core business model (McAfee et al., 2007). By 2004 Inditex had created two new brands, Oysho and Zara Home, and had opened store #2,000 in Hong Kong. entered international markets by 1990s centralized production, and global standardized international strategy Questions Zara's Business System Inditex (Industria de Diseno Textil) 1) How well does Zara's competitive advantage travel globally? ... We know that our love of fast fashion is … The 1970s saw sweeping social and economic reforms across Spain, which revitalized the nation. The organization practically operates six fashion retail chains and these retail stores of the Inditex Group are segregated among them. Zara has become the leader in rapid development of fast changing fashions. ZARA: Fast Fashion is a Harvard Business (HBR) Case Study on Strategy & Execution , Fern Fort University provides HBR case study assignment help for just $11. Our story starts in Spain in 1950. C. Scarcity and Trendy a. Fast forward 40 years and Zara's arrival in Hawaii marked the company's 7,000th store. Speed a. B. Zara’s customers soon learned to buy their clothes quickly before their favourite designs got sold out.