Zara’s Business model is characterized by a high degree of Vertical integration compared to other models developed by their International competitors. Itcovers all phases of the fashion process: design, manufacture, logistics and distribution to its own managed stores. It has a flexible structure and a strong customer focus in all its business areas.The Zara’s business model is unique, comprising each and every stage of the fashion retail business: design, manufacture, distribution and sale of fashion in own-operated stores.
The key to this modelis the ability to adapt the offer to customer desires in the shortest time possible. For Zara, time is the main factor to be considered, above and beyond production costs. This signifies there clearcut policy of valuing time even more then money.
Vertical integration enables them to shorten turnaround times and achieve greater flexibility, reducing stock to a minimum and diminishing fashionrisk to the greatest possible extent.
Zara’s team of designers, made up of more than 200 professionals, continuously assessing the customers´ preferences, wishes and demands offering each year comprisedsome 12,000 different models for sale in its stores. The availability of the factories owned by the company, together with a wide range of highly experienced external suppliers who have a solidcommercial relationship with the format, allow Zara to manufacture a model and to have it for sale in its stores worldwide within the average term of approximately two weeks.
Garments, both the...