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. ICT FOR ORGANIZATIONAL EFFECTIVENESS ZARA: IT FOR FAST FASHION CASE ANALYSIS AKSHAY BORHADE, 4007/20 2. C. Scarcity and Trendy a. Amancio would frequently design nightgowns and lingerie, which he would then sell at the retail store. Is the Met Gala still taking place in 2021? Among other things, the Franco regime had very tight dress-code regulations. 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's approach to information technology is consistent with its core business model (McAfee et al., 2007). 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. copyright wear-next.com – all rights reserved. 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. 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. The fashion industry might seem small and unimportant, especially in today’s world, when clothes couldn’t be cheaper and more available. It was co-founded by white Spanish businesspeople Amancio Ortega (worth $70.6 billion) and Rosalía Mera (worth $6.1 billion). This may be donating to charity or literally throwing it in the bin, but the majority of the time it ends up in landfill. Frequent style rotation: Zara shopper visits 17 times a year vs. Average shopper 3-4 times a year. Zara also publishes a list of suppliers, information of supplier audits and on gender equality, forced labour and freedom of association. Zara : it for fast fashion 1. Would you still shop at Zara? 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. The 1970s saw sweeping social and economic reforms across Spain, which revitalized the nation. 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. Zara has become the leader in rapid development of fast changing fashions. Inditex had pledged to maintain workers’ rights throughout their supply chains and the stability of payments to suppliers during COVID-19. Zara, a brand that generates $20 billion in annual sales, both pioneered and perfected the art of fast fashion. Zara’s target customers were fashion-sensitive urban people. The brand uses the Greenhouse Gas Protocol to guide the measurement and reporting o… 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. Mango is another successful Spanish fashion company that understands fast fashion pays off. Zara SA, stylized as ZARA, (Spanish: ) is a Spanish apparel retailer based in Arteixo in Galicia, Spain. Born out of Spain and now with more than ten thousand stores around the globe, the story of Zara is an exciting one. 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. by Kasra Ferdows, Michael A. Lewis and Jose A.D. Machuca. Their primary focus lies in speed and decision making. Let us know in the comments below. Spanish retailer Zara has hit on a formula for supply chain success that works. That’s why the topic of this article is the world’s largest clothes retailer, Zara. It's been a meteoric rise for Ortega, the inventor of fast fashion who has changed the way we shop forever. 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 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. 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. 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 … Zara’s model, now known as ‘fast fashion’, became a huge hit and redefined the fashion industry. READ MORE: Is ASOS ethical and sustainable? 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 is the hero of the high-street, offering stylish yet affordable pieces across the globe – but is it considered fast fashion? The question is, is this decades-old brand here to stay? It is the largest company in the Inditex group, the world's largest apparel retailer. Discover the new ZARA collection online. Its much more than that now. Zara is one of the most popular fast fashion brands which expand quickly in the worldwide fashion market. To test the waters he opened Zara’s first international store in nearby Portugal in 1988. Affordability a. Zara’s position is finding the perfect match between quality, style, and at affordable pricing. Back then, Spain was still a dictatorship under Francisco Franco, the Nationalist general who seized power after the Spanish Civil War. 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. This may be donating to charity or literally throwing it in the … Zara’s customers soon learned to buy their clothes quickly before their favourite designs got sold out. The company specializes in fast fashion, and products include clothing, accessories, shoes, swimwear, beauty, and perfumes. Over the course of the 1990s, Zara opened over 550 new stores across the globe. By 2004 Inditex had created two new brands, Oysho and Zara Home, and had opened store #2,000 in Hong Kong. Luckily for Amancio, Franco died in 1975, and totalitarian Spain died along with him. He opened his first retail store in La Coruña just a few months after Franco’s death. FASHIONOPOLIS The Price of Fast Fashion and the Future of Clothes By Dana Thomas. Amancio was eager to expand Inditex’ collection beyond Zara, and to that end, he started Pull&Bear as a casual urban brand in 1991. By subscribing you are agreeing to our privacy policy. Zara’s parent company, Inditex, has started a repair and reuse program called Closing the Loop. IEOR 153 Logistics Network Design and Supply Chain Management. 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. Zara as of 2017 manages up to 20 clothing collections a year. How much does a ticket to the Met Gala cost? 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 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. READ MORE: Is H&M ethical and sustainable? Daisy is a fashion stylist and journalist. Zara's core business model is vertically integrated, it specializes in speed and efficiency and the fast fashion trend. Zara has pioneered the niche market and has presence in all continents: Europe, America, Asia, Middle East, and Africa. 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? While Zara has made an effort to do better when it comes to sustainability and ethics, it still has a long way to go. Working out of his own home, Amancio established Confecciones Goa with a meagre $25 of initial capital. B. 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. He officially retired in 2011, but even after his departure, Inditex has continued to dominate the fashion industry. 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. Inditex’s most successful brand has almost 3,000 stores worldwide, with new stock arriving every week that truly never fails to disappoint. 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. Over the next decade, Amancio expanded throughout Spain and built a 10,000 square meter logistics centre. A branch of Zara in central Istanbul – its parent company, Inditex, has promised to reimburse workers as soon as possible. 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. Read our list of recommended anti-fast fashion brands here. In 1963 he felt confident enough to leave his managerial job and to start own company. hidden messages into clothing for customers to find. 2/21/2005. Spring 2011 Professor Kaminsky UC Berkeley I. 7 basket bags inspired by Loewe’s raffia tote. Is Zara considered fast fashion and is it ethical? Zara's Secret for Fast Fashion. zara fast fashion case solution Amanico Ortega Gaona is the founder of the group and was still the president of this enormous group. During the same year, Amancio purchased Massimo Dutti, for high-end cosmopolitan clothes. After becoming accustomed to such standardization, middle-class consumers … Amancio wanted to select business name as Zorba, in honour of his favourite movie, Zorba the Greek. By the turn of the new millennium, Amancio had also created Bershka and bought Stradivarius. Zara is the flagship brand of Inditex, a Spanish clothing giant. 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. 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. 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. In the northwestern part of the country lies La Coruña, a small but beautiful coastal city. By defying conventional wisdom, Zara can design and distribute a garment to market in just fifteen days. Our story starts in Spain in 1950. He was hesitant to start his brand due to Spain’s political climate. Zara, which belongs to Spanish fashion company Inditex, has left a mark with its Fast Fashion label standing for affordable, trendy clothing. 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. When it comes to the planet, Zara gets an “It’s a Start” rating from us. It’s important to note the working conditions and wages of Zara’s staff. These rockstar-level logistics take it from being just another fashion retailer to an industry example of fast fashion done right. Fast forward 40 years and Zara's arrival in Hawaii marked the company's 7,000th store. The financial crisis barely slowed Inditex down, and in 2010 they inaugurated store #5,000 in Rome. 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. Niko Katigbak Regine Labog Kevin Leung Ruoyun Li Miranda Ortiz Michelle Papilla. Founded by Amancio Ortega in 1974, the Spanish-born brand is now worth an unbelievable £14billion. Background Inditex, founded by Amancio Ortega, operates six different chains: Zara, Massimo Dutti, Pull&Bear, Bershka, Stradivarius, and Oysho. to capture current trends in the market Material Team Design Team Testing Stores … 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. These limited production runs also ensured that clients knew their clothes would be relatively unique, compared to the mass-produced designs of seasonal retailers. The timing of Zara’s launch was perfect, and Amancio’s unique approach to fashion helped kickstart the brand’s popularity. 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. Save my name, email, and website in this browser for the next time I comment. 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!) 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.