The fashion industry might seem small and unimportant, especially in today’s world, when clothes couldn’t be cheaper and more available. Their primary focus lies in speed and decision making. 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 ASOS ethical and sustainable? Zara’s model, now known as ‘fast fashion’, became a huge hit and redefined the fashion industry. In the northwestern part of the country lies La Coruña, a small but beautiful coastal city. He officially retired in 2011, but even after his departure, Inditex has continued to dominate the fashion industry. The organization practically operates six fashion retail chains and these retail stores of the Inditex Group are segregated among them. FASHIONOPOLIS The Price of Fast Fashion and the Future of Clothes By Dana Thomas. Since then, Inditex has been opening more than one new store every single day. Fast Fashion Leaders H&M And Zara; Weathering The Pandemic. 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. 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? Niko Katigbak Regine Labog Kevin Leung Ruoyun Li Miranda Ortiz Michelle Papilla. 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. Zara, a brand that generates $20 billion in annual sales, both pioneered and perfected the art of fast fashion. Zara’s customers soon learned to buy their clothes quickly before their favourite designs got sold out. 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. 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. 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. 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. 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. 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 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. 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. Speed a. 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. 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. IEOR 153 Logistics Network Design and Supply Chain Management. Zara as of 2017 manages up to 20 clothing collections a year. 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. When it comes to the planet, Zara gets an “It’s a Start” rating from us. Inditex owns Zara alongside Bershka, Massimo Dutti, Oysho, Pull & Bear and Stradivarius. Let us know in the comments below. to capture current trends in the market Material Team Design Team Testing Stores … After becoming accustomed to such standardization, middle-class consumers … These years came to be known as the Spanish miracle, and Amancio was eager to take advantage of it. Inditex’s most successful brand has almost 3,000 stores worldwide, with new stock arriving every week that truly never fails to disappoint. Zara’s target customers were fashion-sensitive urban people. 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. 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!) Frequent style rotation: Zara shopper visits 17 times a year vs. Average shopper 3-4 times a year. Over the next decade, Amancio expanded throughout Spain and built a 10,000 square meter logistics centre. He opened his first retail store in La Coruña just a few months after Franco’s death. It was co-founded by white Spanish businesspeople Amancio Ortega (worth $70.6 billion) and Rosalía Mera (worth $6.1 billion). For fashion advice and general chit-chat, join our Facebook group What To Wear Next. C. Scarcity and Trendy a. 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 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. ICT FOR ORGANIZATIONAL EFFECTIVENESS ZARA: IT FOR FAST FASHION CASE ANALYSIS AKSHAY BORHADE, 4007/20 2. Yes, Zara is a fast fashion brand. 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. In 1963 he felt confident enough to leave his managerial job and to start own company. Zara's core business model is vertically integrated, it specializes in speed and efficiency and the fast fashion trend. Zara is one of the hottest fast fashion brands in the world. It’s important to note the working conditions and wages of Zara’s staff. Zara’s parent company, Inditex, has started a repair and reuse program called Closing the Loop. Read more about Zara’s sustainability policy and ethics here. 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. Zara also publishes a list of suppliers, information of supplier audits and on gender equality, forced labour and freedom of association. The brand uses the Greenhouse Gas Protocol to guide the measurement and reporting o… Fast fashion retailers such as Zara, H&M, Topshop and Primark took over high street fashion. ... We know that our love of fast fashion is … 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. 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. 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. Luckily for Amancio, Franco died in 1975, and totalitarian Spain died along with him. Zara: Fast Fashion Case Study. Zara SA, stylized as ZARA, (Spanish: ) is a Spanish apparel retailer based in Arteixo in Galicia, Spain. 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. 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. 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. These rockstar-level logistics take it from being just another fashion retailer to an industry example of fast fashion done right. Daisy is a fashion stylist and journalist. This may be donating to charity or literally throwing it in the … Amancio would frequently design nightgowns and lingerie, which he would then sell at the retail store. By subscribing you are agreeing to our privacy policy. 7 basket bags inspired by Loewe’s raffia tote. Save my name, email, and website in this browser for the next time I comment. Background Inditex, founded by Amancio Ortega, operates six different chains: Zara, Massimo Dutti, Pull&Bear, Bershka, Stradivarius, and Oysho. copyright wear-next.com – all rights reserved. Our case solution is based on Case Study Method expertise & our global insights. Born out of Spain and now with more than ten thousand stores around the globe, the story of Zara is an exciting one. This also gave people an incentive to visit the store frequently, since they knew they’d find new designs every time they visited. From Harvard Business Review. The latest trends for Woman, Man, Kids and next season’s ad campaigns. However Zara still fails to pay a living wage across its supply chain – despite such a huge profit margin. Discover the new ZARA collection online. ... And it is Zara and other brands like it that have helped plant … Wear Next believes it’s important to highlight the negative and unjust practises taking place in the fashion industry. 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. The 1970s saw sweeping social and economic reforms across Spain, which revitalized the nation. Will Paredes-Zanini Zara: Fast Fashion Assets and Capabilities (Exhibit 1) A. Brands considered sustainable include People Tree, House of Sunny, Lucy & Yak and LF Markey among many more. 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. We want fashion to be empowering, enjoyable and accessible for everyone – celebrating all bodies, backgrounds and budgets. Is the Met Gala still taking place in 2021? Spanish retailer Zara has hit on a formula for supply chain success that works. The question is, is this decades-old brand here to stay? 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. Zara : it for fast fashion 1. We aim to inspire you to use fashion to feel confident, strong and powerful. 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. Affordability a. Zara’s position is finding the perfect match between quality, style, and at affordable pricing. Your email address will not be published. He practised reproducing popular designs using the less expensive materials left over from the retail store while adding his modifications and improvements. 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 When not at work, Amancio would develop his designs out of his sister’s house. hidden messages into clothing for customers to find. Founded by Amancio Ortega in 1974, the Spanish-born brand is now worth an unbelievable £14billion. The financial crisis barely slowed Inditex down, and in 2010 they inaugurated store #5,000 in Rome. To test the waters he opened Zara’s first international store in nearby Portugal in 1988. That’s why the topic of this article is the world’s largest clothes retailer, Zara. Would you still shop at Zara? Fast forward 40 years and Zara's arrival in Hawaii marked the company's 7,000th store. Ruffles, pretty prints and feminine silhouettes. 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. Zara is one of the world’s most successful fashion retail brands – if not the most successful one. These limited production runs also ensured that clients knew their clothes would be relatively unique, compared to the mass-produced designs of seasonal retailers. A branch of Zara in central Istanbul – its parent company, Inditex, has promised to reimburse workers as soon as possible. Our story starts in Spain in 1950. Read more about fast fashion here, or if you’re thinking of shopping more sustainably, read more about sustainable fashion here. 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. 2/21/2005. He got his brother, sister and wife to work alongside him, and before long, Amancio was supplying retail stores across the city. Spring 2011 Professor Kaminsky UC Berkeley I. During the same year, Amancio purchased Massimo Dutti, for high-end cosmopolitan clothes. She has worked with brands and publications including Grazia, Fabulous, Metro, Oasis, Warehouse and New Look. 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. 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. Is Zara considered fast fashion and is it ethical? Zara, which belongs to Spanish fashion company Inditex, has left a mark with its Fast Fashion label standing for affordable, trendy clothing. Zara's approach to information technology is consistent with its core business model (McAfee et al., 2007). Among other things, the Franco regime had very tight dress-code regulations. 2) What do you think of Zara's past B. What is the theme of the Met Gala in 2021? By defying conventional wisdom, Zara can design and distribute a garment to market in just fifteen days. By 2004 Inditex had created two new brands, Oysho and Zara Home, and had opened store #2,000 in Hong Kong. While Zara has made an effort to do better when it comes to sustainability and ethics, it still has a long way to go. 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. Zara is just not a brand of fast fashion. Your email address will not be published. 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. 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. He was hesitant to start his brand due to Spain’s political climate. This may be donating to charity or literally throwing it in the bin, but the majority of the time it ends up in landfill. 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? By the turn of the new millennium, Amancio had also created Bershka and bought Stradivarius. Read our list of recommended anti-fast fashion brands here. Zara has pioneered the niche market and has presence in all continents: Europe, America, Asia, Middle East, and Africa. Required fields are marked *. 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. Working out of his own home, Amancio established Confecciones Goa with a meagre $25 of initial capital. It is the largest company in the Inditex group, the world's largest apparel retailer. 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’ll never tell you to ‘blend in’. READ MORE: 6 books about fast fashion everyone should read, READ MORE: The best vintage to snap up stylish bargains. 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 … It's been a meteoric rise for Ortega, the inventor of fast fashion who has changed the way we shop forever. 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 flagship brand of Inditex, a Spanish clothing giant. Amancio was eager to expand Inditex’ collection beyond Zara, and to that end, he started Pull&Bear as a casual urban brand in 1991. Amancio wanted to select business name as Zorba, in honour of his favourite movie, Zorba the Greek. Mango is another successful Spanish fashion company that understands fast fashion pays off. Zara's Secret for Fast Fashion. In fiscal 2014, (ended January 31, 2015) the company had sales of $19.7 Billion compared to H&M with $20.2 [...] 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. 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. by Kasra Ferdows, Michael A. Lewis and Jose A.D. Machuca. read more about sustainable fashion here. Over the course of the 1990s, Zara opened over 550 new stores across the globe. 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. 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. Zara has become the leader in rapid development of fast changing fashions. How much does a ticket to the Met Gala cost? Its much more than that now. That turned out well enough, and so Amancio ambitiously opened a store in New York in 1989 and Paris in 1990. The company specializes in fast fashion, and products include clothing, accessories, shoes, swimwear, beauty, and perfumes. Read our exhaustive list of fast fashion brands here. 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. Inditex had pledged to maintain workers’ rights throughout their supply chains and the stability of payments to suppliers during COVID-19. Zara is the hero of the high-street, offering stylish yet affordable pieces across the globe – but is it considered fast fashion? We will never share your email address. zara fast fashion case solution Amanico Ortega Gaona is the founder of the group and was still the president of this enormous group.