Zara Case Study

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Internationnal marketing
Case study – Zara

Question 1
The close relationship between manufacturing and retailing make Zara different from the others specialty apparel retailers. His motto could be « fast and fashion ». Zara controls all phases of production of its clothing from design to distribution. A choice taken by the will of the company to « adapt to the client's request in minimum time.», for Zara, the most important thing is time. Zara has a highly flexible tool for producing close to its customers and an efficient and quick chain information system. Zara designers are constantly listening to advice and comments from store managers. During their regular contact, the store managers give suggestions, advice and criticisms on products and on the choice that should be taken thanks to the retail experiences with customers. .It allows to Zara to be the first company to offer the new fashion garments, Zara create a sort of rareness. To control his production, Zara produces a lot in Spain with exclusive suppliers, it give to Zara a great reactivity and a good control.
Zara reduces also inventory risk and delays thanks to limited series. Zara is able to deliver all of its stores since their huge warehouse which centralized the production, it limits intermediaries, reduce stocks, and delays.
One of the main difference between Zara and H&M is that H&M has not the quickness, the reactivity of his production tool and the short delays that Zara can have because H&M produces their garments in Eastern Europe and in Asia and also because of the control chain which is longer. One other main difference are that H&M invests a lot in advertising contrary to Zara, indeed H&M is making huge advertising campaigns.

Question 2
In the business model of Zara, the stores are playing a huge and important role. First, Zara do not invest in advertising, they…...

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