Zara's's Success chance or clever strategy?
the course of our courses always comes back to the question of whether
there unless gibt- a universal secret of success is the ideal business
model, for a good idea, sophisticated marketing and the right investors.
Yet it seems as though without observance of these recipes a
successful business arising can- see the fashion giant Zara, about which
I would like to report the following.
Zara offers two reasons Blog topic: First, the Empire pursued a
controversial and highly successful business strategy, secondly Zara is
probably the best known and most menacing Copycat the fashion industry.
At first a few basic questions to global corporation Zara:
Ortega opened early 70s his first clothing store in the provincial city
of La Coruna, some 40 years later, he is the richest man in Spain. The
textile group Inditex, Zara belongs to and on the Ortega holds 60% of
shares, has currently a market capitalization of 34 billion euros. Currently employs about 25,000 employees and designed to Zara 11000 new garments per year. In addition to H & M and Gap Zara is worldwide in the Top 3 of the clothing chains. In 60 countries there are more than 800 shops, every 3 days opens a
new shop openings and countries are surveying weekly program.
All this because of an ingenious idea or an innovative business model? Or Señor Ortega served in the creative work of international fashion designers?
What are the backgrounds of this unique success story?
Roughly speaking: speed, economy and a good sense for trends.
1. Success factor: speed
violates all common rules principles of efficient Wertschöpfungskette-
and generated yet from one quarter to post new sales records. Zara's
business strategies can probably so many economics professor
compassionately shake his head: Instead of usual to produce as in the
fashion industry in Asia, Zara makes more than two thirds of products in
Spain finished. Capacities
remain unutilized consciously, the company now manages design,
warehousing, distribution and logistics outsource themselves instead. These alleged errors contribute however to the fact that a responsive supply chain has emerged that is unparalleled. The
information circuit between the customer and the offshore operations
such as planning, procurement, production and sales will be closed as
soon as possible. It satisfy two weeks from design concept to finished garment that hangs in one of the flagship stores. That's right, two weeks. This
incredibly short period of time due to the following processes: Market
specialists communicate their findings to the designer, this in turn
finished in a flash designs on modern computers to, send them to
managing the stores, discuss with them regarding style, style, colors,
cuts, etc, pick realistic price expectations from the current financial and can immediately calculate the cost of production. Several prototypes are produced on site, favorites selected quickly and provided the necessary resources within hours. So
two important details are guaranteed: first was communicated promptly
of market researchers, which is at this very moment in vogue and it will
be in a very short time. Secondly,
a daily exchange with the directors of international stores, which can
be entered accurately to customer needs and preferences. The production and distribution, thanks to the excellent logistics completed within a few days. At Zara does not have to wait for the arrival of the slow ships from China. The
deliveries to the shops in Europe in less than 24 hours, the product is
finished and ironed transported suspended on stands and can thus
immediately be brought into the salesrooms. Although this mode of transport may be platzverschwendend but facilitates handling immensely. Everything runs according to a fixed system, dates must be strictly adhered to the fast rhythm not to bring to a halt. Reactions of customers to be closely monitored and analyzed in order to respond immediately it can. In Paris, the platform sandals are not selling as well as in Madrid? No problem, the product is immediately there verfrachtet- whether by a semi full trucks on the road. No model depends more than 4 weeks in the store. Nevertheless,
care is taken to create an artificial shortage in the shops:
Consciously come interesting parts in small quantities and are
consequently sold out after a few hours. This
has the consequence that customers now know how happy they are when
they have- once snatched a nice piece of clothing in their size and will
be driven by the pressure of time in their purchasing decisions. Are the coveted things sold, for others, cleverly placed near parts are acquired.
Madonna recently took a tour of Spain, the fans Madonna's outfit of the
first performance at the final concert Zara could already buy and
anziehen- the time interval was 15 days. Who can react so quickly, must be rewarded!
2. Success factor: thrift
main competitor Mango and H & M to pay millions of euros every year
to engage the most beautiful and most expensive models in the world for
time television commercials running on television, huge billboards
populate the cities and prestigious fashion magazines such as Vogue and
Elle are equipped with print advertising textile chains. Only one can not entirely: ZARA.
There is no advertising of Zara. Inconceivable, but apparently you can be without million high marketing budgets to a global player. The
money that will save the company as it invests in rather exclusive
locations: Zara stores are always located in the most prestigious part
of the city, often between luxury designers in the upper price segment. Although the rents of these showrooms are horrendous, but are offset by continuous onslaught of customers.
success despite a lack of marketing activity also contributed to that
Spain became popular holiday destination in the 70s and 80s and tourists
as Zara met shops. Through
word-of-mouth news spread especially among the female audience that
Zara a) constantly offering new, exciting designs and this b) are always
sold out within a few days. It took several years, but now Zara is an indispensable part of the shopping centers in Europe.
3. Success factor: good nose for trends
trends can be reacted as described within the shortest time werden- so
is Zara decided the other fashion designers an advantage over that
usually plan their collections a year in advance and on subsequent
changes hardly can respond. The
latest developments in Hollywood and New York as well as the out-of-bed
look of Kate Moss are just as clearly accepted as the most successful
international design ideas for the coming season, much to the chagrin of
the respective designers. Often
you will find at Zara all garments in the latest issue of Vogue in turn
copied one on one, in lower quality and material differences of course.
50 percent of seasonal goods is angefertigt- after the parades and
especially after the reviews of important opinion makers within the
fashion industry. Basically, this is likely the pick out the best and the further processing as a creative personal contribution. On the accusation of copying Zara reacts irritated and replies that the designers of the company would be inspired at best.
Aha. The truth is unfortunately clear.
Nevertheless, this method Zara has just let advance to an international brand. On this issue I will discuss in Copycat- following blog post.
summary it can be said that the mentioned factors as well as a strict
management and a pinch of luck have helped to make Zara one of the most
well-known companies around the world are. Here again the principles in short format:
Closed information cycle -> optimization of the supply to the
extent that any information can be passed quickly and easily from
clients to designers and production managers, as well as the real-time
tracking of each product in order to ensure a smooth sale
Compliance with the rhythm -> investment in all the systems
that promote the speed and responsiveness of the whole chain, and
constant monitoring of performance in terms of coordination and
in Anlagegüter-> In order to respond promptly to changing demand is
well worth the investment in production and distribution as well as in
certain cases decisions against outsourcing policies (eg in the
production particularly complicated or essential products)