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Essay example - Zara - spanish clothing company
Pages 4 (1004 words)
Operating in around 1,000 stores in more than 60 countries, Zara Clothing Company is one of the major companies owned by the Inditex firm based in Spain. Inditex is a rapidly growing clothes retailer in Europe. …
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Zara’s performance can be observed to be outstanding in the way it manages its operations timing in meeting the ever-changing demands of the customers. The company is in a “cutting edge”, capable of designing, manufacturing and delivering new styles of clothes and receiving “full price on 85 percent of its products”1. The present research focuses on a study on the Zara Spanish Clothing Company reflecting on the market that it serves, its competitiveness and the associations of its competitive measures with its supply chain facilities. Market Characteristics Where Zara Company Serves: Zara Clothing Company has grown very fast in Europe thereby increasing its share in the market that is characteristic of following the concept of “fast fashion”2. Manufacturing clothes in Spanish clothing companies involve higher costs of production than other companies that are competitors producing clothes in other countries like China and India. However, according to Zara, their productivity, lower costs of sales and distribution and flexibility pay off for the higher costs of manufacturing and production3. Considering the apparel market, studies reflect that Europe has a share of around 34 percent of the total market in comparison to United States’ 29 percent and Asia’s 23 percent. This signifies the rate of increasing population and their spending capabilities that tend to get affected by rising prices. The choices and demands of the customers also are rapidly changing in this market where companies like Zara are prevalent. The customers, particularly the young generation are more attracted towards new fashion styles and trends that includes strokes of other cultures as well. ...
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