(1) Zara’s Vision: “Zara is committed to satisfying the desires of our customers. As a r... ... middle of paper ... ... unordinary supply chain, which gives them a highly competitive advantage. They also successfully introduced a new, unique business model into the apparel manufacturing and retail industry. Zara chose to handle design, production and distribution in-house and concentrate the whole production close to their headquarters in Spain. By the entire process, Zara can react much faster than its competitors do to both the ephemeral trends in the world of fashion and the capricious tastes of its customers.
Followed by the brand 's global growth at the end of the 1980s and the following takeoff of new retail ideas: Customer focus reinforces a basic groundwork that encompasses all stages of a fashion value chain (design, industrial, delivery and sale in patented stores). Therefore their consumer promise is also the force behind the combination of their environmental and preservation guidelines used through the group 's supply chain. Zara, has been a groundbreaker in conveying new fashions, new designs, and new ideas rapidly to its stores. Zara’s tenacious thrust of on-trend products into the supply chain channel keeps its stores in stock on the latest fashions at lucrative prices. Lots of their new concepts have come from some of the fashion shows that just ended in New York, Paris and Milan will soon be on Zara’s racks.
Since then Zara has expanded its operations into 87 countries with 1900 stores located in the most important shopping districts of more than 400 cities in Europe, the Americas, Asia, Africa and Middle-East . During this rapid international expansion Zara has stayed focused on its core concept that creativity and quality design together with a rapid response to market demands will lead them to profitable results and further growth. In order to achieve these results Zara has developed a unique for fashion retail business model that incorporated the following three goals: developing a system that requires short lead times, decreasing quantities produced to decrease inventory risk and number of items in stock, and increasing the number of available styles and/or choices in outlets. Those initiatives helped Zara to formulate a unique value proposition: the combination of the reasonable prices with the ability to offer new/trendy clothing styles faster and more often than its competitors. Let’s take a closer look at the Zara’s business model that helped this brand to get a worldwide success.
It purposes is to allow the retailers to identify the best locations in a large geography to establish their business. For this, based on Sirkeci and Cawley, it is useful to follow the criteria that is going to explain bellow, that increase the knowledge of the markets to see what is the most proper for your business. (Sirkeci and Cawley, 2012). The market screening is... ... middle of paper ... ...itive growth in clothing sales leading to an increase of shops in the market. (Euromonitor International, 2013) 4.
The Fast Fashion Business Model 1. What are the key characteristics associated with the fashion markets that support this model? The fashion industry is synonymous with rapid changes and for a company to have success in the fashion industry the organization needs to be fast and flexible. The nature of the industry is discussed in terms of its volatility, complexity and dynamism. Companies like Zara, the retailer H&M and GAP have to keep up with the every changing trends in the fashion industry.
1. Business Model of Apparel Industry: It can be seen that the main customers the Zara brand target is the high-end customer, who are fashion conscious city dwellers, and want a quick repose to the changes in fashion and clothing industry. Zara caters to this by ensuring that they are quick in designing new fashion statements and responding try the impatient customers who are waiting anxiously for changes in fashion. This is because it is a well-known fact of customer behavior that they change quickly in their tastes and fashion sense. In addition to the above, Zara caters to this very basic competitive edge because the tastes of the customers in fashion, clothing and accessories are changing very r... ... middle of paper ... ...havior of Zara brand. The customers visit often and they find new staff to asset them on each visit.
Strengths & Opportunities 1. Strategy: Speed & Style Zara’s strategy is to deliver up-to-the-minute fashions to its customers who are looking for the latest trends. In order to achieve this goal, all of Zara’s operations are developed around the tenants of speed and decentralized decision-making. All of Zara’s divisions work to decrease the time it takes to bring products from the design table to the sales floor to ensure customers find what they are looking for. By delivering new styles to stores quickly Zara is able to respond rapidly to changes in clothing trends and in the market.
Furthermore, there... ... middle of paper ... ...ame period of 2012. (Inditex, 2012) The solid growth from Zara shows that Zara is successful in building its own brand identity. The high degree of recognition of Zara makes people choose Zara instead of other brand. One of customers who are interviewed said: “Zara is the name naturally came into my mind when I want to go shopping. It just came.” To sum up, window display is a significant way to promote the brand image and seasonal products in the highly-competitive fashion industry.
However it takes more than just shopping, it is their job to examine each article of fabric and decide whether it will capture the attention of the people, from that the buyer chooses if it will be sent out for the world to see or not. The buyers must also determine the price for each merchandise. Without retail buyers our sales rack would be empty and there would be nothing to sell. My goal in this paper is for the reader to better understand the road it takes in becoming a fashion buyer. Fashion merchandisers are the heart and soul of the fashion world.
VRIO is a business framework analysis that questions value, rarity, imitability of an organization. The first question is ‘Is the resources available valuable for the firm.The success of a firm heavily depends on how valuable is the resources and how rare it is. We analyse these questions with the models available like business models, CSR, design, IT, Advertising, brand image and HRM. Q3 It should be mentioned that the global phenomenon of fast fashion taking over the traditional fashion industry was not an incident solely distributed to H&M, but it was a concerted effort by a number of innovative fashion businesses, in which Zara perhaps gained more recognition and credit than that of H&M. Admittedly, H&M was dubbed “global leader” in fast