Project overview
My final project is on the popular fast-fashion retailer, ZARA. ZARA is one of the biggest international retailers known for their trendy products and fast distribution. The brand's merchandise mix includes apparel, accessories, shoes, homewares, and beauty products.
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For this project, I will be focusing on an item from ZARA's Children's apparel line, specifically the young girl's department. I will be following one product, the Linen Romper with Patch Pocket, through the last three steps in the supply chain.
About
ZARA
Zara is a Spanish fashion retailer based in Galicia, Spain.
It was founded in 1975 by Amancio Ortega.
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The main headquarters are located in La Coruña, Spain.
It is the largest chain store of Inditex group, the world's largest apparel retailer.
Inditex also owns Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, and Uterqüe.
The company operates 6,829 stores in 96 different countries.
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As of April 21, 2022, there are only 100 Zara locations in the United States.
The bulk of the stores are in Spain at 547 doors, then 229 in China, 145 in France, 144 in Russia, and 134 in Italy.
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The brand's overall mission is to provide currently trending designs to its customers, at the right place and the right time.
The brand's competitive advantage is that clothing designs change every two weeks on average, versus their competitors that change their designs every two or three months.
THE PRODUCT
TIER 2 - FaBRIC PRoducers
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ZARA purchases large quantities of only a few types of fabric
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​Cotton, linen, polyester, and viscose make up 90% of all raw materials purchased by the brand
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Most often purchases their raw fabric from their suppliers in Italy, Spain, Portugal, and Greece
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Assists fast distribution by having fabric manufacturers make quick deliveries in bulk quantities directly to Zara's huge, highly automated manufacturing center, also known as "the Cube"
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The Zara Young Girls Linen Romper with Patch Pocket is made from a cotton/linen blend that is fabricated from those bulk fabrics
ANNUAL SALES
In 2019, ZARA's annual sales came in at $20.58 billion dollars, the highest they had been in the past ten years. Then, like many other retailers during the pandemic, there was a sharp drop-off in 2020 where the brand's total sales ended up equaling about $14.86 billion dollars by the end of the fourth quarter.
This is a 27% decrease in revenue compared to the previous year. However, as most restrictions eased up ZARA was able to restore that revenue to slightly higher than their pre-pandemic levels in 2021. The company's revenue for 2021 totaled roughly $20.6 billion dollars.
THANK YOU!
Meet The Creator
