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Solution - Zara and Inditex needed to speed up

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Solution - Zara and Inditex needed to speed up

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Management:

- Alarm tags are attached to garments at the factories that staff had 3% more time to serve customers.
- Quickly distinguish the new collection with NEWC stickers.

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Technology:

- Install software systems made the flexibility of employee schedules.
- Store managers can use hand-held computers to see how garments rank by sales and can re-order bestsellers in less than an hour.

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Supply chain:

- The factories were built up in Spain and nearby areas which are next to distribution centers.
- “The Cube” was used to accumulate the sales insights from stores’ managers and then transmit to the designers to quickly create new collections.
- Every two weeks, new store decorations are photographed and e-mailed to stores to replicate.
- Stores are stocked with new designs twice a week. Collections are small and often sell out.
- Clothes are shipped straight from the factory to stores.
- Inditex also paved the new ocean and air routes which can mix their brands together and send them twice a week with Air France Cargo - KLM Cargo.

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Zara is a brand of the Inditex Group (has almost 60% of the total business), the world's second-largest clothing retailer by sales following Gap Inc., which sells inexpensive trendy clothing.

The first Zara store opened in 1975 in La Coruña, northern Spain.

The first foreign store, in Portugal, opened in 1989, followed by New York.

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The impact of the economic downturn in Spain.

Inditex share decreased by 24% within a year in Spain where it made up above 30% in total sales.

Competitors catch up, forcing the pioneers to do even better.

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With the savvy use of information technology, Zara controlled production and inventory by collecting data from 4,430 stores in 73 countries to detect trends and products based on consumer tastes.

Due to selling its fast-changing collections online, Inditex was falling behind its competitors.

Zara opened their websites country by country.

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In 2011, Inditex launched its Zara online store in the US, seeking to widen its clientele beyond big cities where it currently operated.

A Zara application for iPhone allows shoppers to check out what’s new in the Zara collection, and to find the nearest shop.

Inditex would grow selectively in the U.S. in the coming three years.

Zara had soared past Gap Inc to be the most-selling fashion retailer in the world with 4600 stores in 76 countries.

Expect to grow in Asia (20%) and Europe (50%)

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Store expansion:

- In the last 12 months, Inditex added 560 stores, including entering new markets in Croatia, Colombia, Guatemala, and Oman, to reach 3,691 stores in 68 countries.

- Inditex avoided store openings in slow months to reverse a trend of costs growing faster than sales.